SOCIAL SECURITY AND OTHER LEGISLATION AMENDMENT (PENSION REFORM AND OTHER 2009 BUDGET MEASURES) BILL 2009

2008-2009

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Social Security and Other Legislation

Amendment (Pension Reform and Other

2009 Budget Measures) Bill 2009

No. , 2009

(Families, Housing, Community Services and Indigenous Affairs)

A Bill for an Act to amend the law relating to social

security, veterans' affairs, family assistance and

aged care, and for related purposes

i Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009

Contents

Short title ............................................................................................ 1

Commencement .................................................................................. 1

Schedule(s) ......................................................................................... 3

Schedule 1--Increased pension rates on 20 September 2009

Part 1--Increased maximum basic rate

Social Security Act 1991

Part 2--Disability support pension for persons under 21 with

dependent children

Div ision 1--Main amend ments

Social Security Act 1991

Div ision 2--Related amendments

Social Security Act 1991

Part 3--Other amendments

Social Security Act 1991

Part 4--Application of amendments

Schedule 2--Indexation using the Pensione r and Beneficiary

Living Cost Index

Social Security Act 1991

Schedule 3--Indexation using combined couple benchmark

Social Security Act 1991

Schedule 4--Pension supple ments

Part 1--Key concepts

Social Security Act 1991

Part 2--Amendment of Rate Calculators

Social Security Act 1991

Part 3--Seniors supplement and quarterly pension supplement

Social Security Act 1991

Social Security (Administration) Act 1999

Part 4--Other amendments

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 ii

Income Tax Assessment Act 1997

Social Security Act 1991

Social Security (Administration) Act 1999

Part 5--Application and transitional

Schedule 5--Flow-through of pension supplement to CPRS

Social Security Act 1991

Schedule 6--Income tests

Part 1--Taper rate

Social Security Act 1991

Part 2--Income free area

Social Security Act 1991

Part 3--Application of amendments

Schedule 7--Work bonus

Social Security Act 1991

Schedule 8--Employment income attribution for pe rsons of

pension age

Social Security Act 1991

Schedule 9--Pension bonus scheme

Social Security Act 1991

Schedule 10--Transitional arrangements

Part 1--Main amendment

Social Security Act 1991

Part 2--Related amendments

106

Div ision 1--A mend ments commencing on 20 September 2009

106

Social Security Act 1991

106

Div ision 2--A mend ments commencing on 21 September 2009

106

Social Security Act 1991

106

Schedule 11--Pension age

108

Social Security Act 1991

108

iii Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009

Schedule 12--Advance payments

110

Social Security Act 1991

110

Schedule 13--Commonwealth seniors health card

115

Social Security Act 1991

115

Veterans' Entitlements Act 1986

115

Schedule 14--Indexation under the family assistance law

117

A New Tax System (Family Assistance) Act 1999

117

Schedule 15--Portability of payme nts

118

Social Security Act 1991

118

Schedule 16--Excluded income

120

Social Security Act 1991

120

Veterans' Entitlements Act 1986

120

Schedule 17--Amendme nts relating to aged care

121

Part 1--Main amendments

121

Aged Care Act 1997

121

Part 2--Application provisions

134

Schedule 18--Operational area

135

Veterans' Entitlements Act 1986

135

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 1

A Bill for an Act to amend the law relating to social

security, veterans' affairs, family assistance and

aged care, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Security and Other Legislation

Amendment (Pension Reform and Other 2009 Budget Measures)

Act 2009.

2 Commence ment

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day on which this Act receives the

Royal Assent.

2. Schedule 1

20 September 2009.

20 September

2009

3. Schedule 2

The day on which this Act receives the

Royal Assent.

4. Schedule 3

1 January 2010.

1 January 2010

5. Schedule 4

20 September 2009.

20 September

2009

6. Schedule 5

Immediately after the commencement of

Schedule 1 to the Carbon Pollution

Reduction Scheme Amendment (Household

Assistance) Act 2009.

However, if that Schedule does not

commence, the provision(s) do not

commence at all.

7. Schedules 6, 7

and 8

20 September 2009.

20 September

2009

8. Schedule 9

The day on which this Act receives the

Royal Assent.

9. Schedule 10,

Part 1

20 September 2009.

20 September

2009

10. Schedule 10,

Part 2, Division 1

20 September 2009.

20 September

2009

11. Schedule 10,

Part 2, Division 2

21 September 2009.

21 September

2009

12. Schedule 11

The day on which this Act receives the

Royal Assent.

13. Schedule 12

1 Ju ly 2010.

1 Ju ly 2010

14. Schedule 13

1 Ju ly 2009.

1 Ju ly 2009

15. Schedule 14,

items 1 and 2

30 June 2009.

30 June 2009

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 3

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

16. Schedule 14

item 3

3 Ju ly 2009.

3 Ju ly 2009

17. Schedule 14,

items 4 and 5

30 June 2009.

30 June 2009

18. Schedule 15

20 September 2009.

20 September

2009

19. Schedule 16

1 Ju ly 2009.

1 Ju ly 2009

20. Schedule 17

20 September 2009.

20 September

2009

21. Schedule 18

The day on which this Act receives the

Royal Assent.

Note:

This table relates only to the provisions of this Act as originally

passed by both Houses of the Parliament and assented to. It will not be

expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Schedule 1 Increased pension rates on 20 September 2009

Part 1 Increased maximu m basic rate

4 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Schedule 1

Increased pension rates on

20 September 2009

Part 1

Increased maximum basic rate

Social Security Act 1991

1 At the end of Part 3.16

Add:

Division 7--Increase in maximum basic rate of some

pensions on 20 September 2009

1206GE Maximum basic rate of some single pensions increased on

20 September 2009

(1) This Act has effect as if, on 20 September 2009, each indexed

amount of pension MBR that is described in subsection (2) and

substituted under subsection 1192(1) (as affected by Division 3, if

relevant) for another amount on that day were in turn replaced with

an amount equal to the indexed amount plus $1,560.00.

Note:

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

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

the following provisions:

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

1064-B1;

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

1065-B1;

Increased pension rates on 20 September 2009 Schedule 1

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

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 5

Part 2

Disability support pension for persons under

21 with dependent children

Division 1

Main amendments

Social Security Act 1991

2 Paragraphs 117(b) and (d)

Omit "and has not turned 21", substitute ", has not turned 21 and does

not have any dependent children".

3 At the end of section 117

Add:

Note:

For dependent child see section 5.

4 Paragraph 1064(1)(b)

After "21", insert ", or of a person who has not turned 21 and has one or

more dependent children".

5 At the end of subsection 1064(1)

Add:

Note 3:

For dependent child see section 5.

6 After paragraph 1065(1)(b)

Insert:

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

(i) is permanently blind; and

(ii) has not turned 21; and

(iii) has one or more dependent children;

7 Subsection 1065(1) (note)

Omit "Note:", substitute "Note 1:".

8 At the end of subsection 1065(1)

Add:

Note 2:

For dependent child see section 5.

Schedule 1 Increased pension rates on 20 September 2009

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

6 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

9 Subsection 1066A(2)

Repeal the subsection, substitute:

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

(a) the person is permanently blind; or

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

Note 1:

The rate for a disability support pension payable to a person under 21

who is permanently blind is dealt with in section 1066B.

Note 2:

For dependent child see section 5.

Note 3:

The rate for a disability support pension payable to a person under 21

who has one or more dependent children is dealt with in section 1064

or 1065.

10 Point 1066A-B1

Omit "and whether the person has a dependent child".

11 Point 1066A-B1 (table, column 3A)

Repeal the column.

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

Repeal the heading.

13 Point 1066A-B1 (table, column 4A)

Repeal the column.

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

Repeal the heading.

15 Point 1066A-B1 (note 2)

Omit "dependent child and".

16 Point 1066A-B1 (note 4)

Omit "columns 3A and 3B", substitute "column 3".

17 After subsection 1066B(1)

Insert:

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

dependent children.

Increased pension rates on 20 September 2009 Schedule 1

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

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 7

Note 1:

The rate for a disability support pension payable to a person under 21

who has one or more dependent children is dealt with in section 1065.

Note 2:

For dependent child see section 5.

18 Point 1066B-B1

Omit "and whether the person has a dependent child".

19 Point 1066B-B1 (table, column 3A)

Repeal the column.

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

Repeal the heading.

21 Point 1066B-B1 (table, column 4A)

Repeal the column.

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

Repeal the heading.

23 Point 1066B-B1 (note)

Omit "dependent child and".

24 Point 1066B-B1 (note 4)

Omit "columns 3A and 3B", substitute "column 3".

Division 2

Related amendments

Social Security Act 1991

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

maximum payment rate)

After "21", insert ", or is under 21 and has one or more dependent

children".

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

maximum payment rate)

After "21", insert ", or is under 21 and has one or more dependent

children".

Schedule 1 Increased pension rates on 20 September 2009

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

8 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

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

maximum payment rate)

Omit "and not blind", substitute ", is not blind and does not have any

dependent children".

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

maximum payment rate)

Omit "and is blind", substitute ", is blind and does not have any

dependent children".

29 Subsection 1061JU(4) (subparagraph (a)(ii) of the

definition of maximum basic rate)

After "21", insert ", or is under 21 and has one or more dependent

children".

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

maximum basic rate)

After "21", insert ", or is under 21 and has one or more dependent

children".

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

maximum basic rate)

Omit "and not blind", substitute ", is not blind and does not have any

dependent children".

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

maximum basic rate)

Omit "and is blind", substitute ", is blind and does not have any

dependent children".

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

maximum basic rate)

Add:

Note:

For dependent child see section 5.

34 At the end of section 1070D

Add:

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

Increased pension rates on 20 September 2009 Schedule 1

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

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 9

(a) the person's social security payment is disability support

pension; and

(b) the person has not turned 21.

Note:

The specific requirement for a person who is receiving disability

support pension and has not turned 21 is in section 1070F.

35 Subsection 1070F(1)

Repeal the subsection, substitute :

(1) If:

(a) the person's social security payment is disability support

pension; and

(b) the person has not turned 21; and

calculated in accordance with Pension Rate Calculator A or

Pension Rate Calculator D;

the specific requirement applicable to the social security payment

is that the person comply with subsection (2) or (3).

36 At the end of section 1070L

Add:

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

(a) the person's social security payment is disability support

pension; and

(b) the person has not turned 21.

Note:

The rate of rent assistance for a person who is receiving disability

support pension and has not turned 21 is worked out:

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

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

37 Subsection 1070N(1)

Repeal the subsection, substitute:

(1) The person's rate of rent assistance is worked out under this

section if:

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

(b) the person has not turned 18; and

Schedule 1 Increased pension rates on 20 September 2009

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

10 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

accordance with Pension Rate Calculator A or Pension Rate

Calculator D.

38 Subsection 1070P(1)

Repeal the subsection, substitute:

(1) The person's rate of rent assistance is worked out under this

section if:

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

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

accordance with Pension Rate Calculator A or Pension Rate

Calculator D.

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

column 4)

Omit "column 4B", substitute "column 4".

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

column 4)

Omit "column 4B", substitute "column 4".

41 Section 1190 (table item 1, column 2)

After "21", insert "and has no dependent children".

42 Section 1190 (table item 1A)

Repeal the item.

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

Omit "column 3B" (wherever occurring), substitute "column 3".

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

Repeal the subparagraphs.

45 Subparagraph 1195(1)(b)(ii)

Omit "column 3;", substitute "column 3.".

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

Increased pension rates on 20 September 2009 Schedule 1

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

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 11

Repeal the subparagraphs.

47 Section 1198B (table items 1 and 2)

Repeal the items.

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

Omit "column 3B", substitute "column 3".

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

Omit "column 3B", substitute "column 3".

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

Omit "column 3B", substitute "column 3".

Schedule 1 Increased pension rates on 20 September 2009

Part 3 Other amendments

12 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Part 3

Other amendments

Social Security Act 1991

51 Subsection 17(8)

Repeal the subsection, substitute:

(8) For the purposes of the definition of income cut-out amount in

subsection (1), the formula is as follows:

Maximum

Point 1064-BA3

Ordinary free area limit

basic rate

amount

where:

maximum basic rate means the amount specified in column 3 of

item 1 of the table in point 1064-B1.

ordinary free area limit means the amount specified in column 3

of item 1 in Table E-1 in point 1064-E4.

point 1064-BA3 amount means the pension supplement amount

worked out under point 1064-BA3 for a person who is not a

member of a couple:

(a) whether or not the person for whom the income cut-out

amount is being worked out is a member of a couple; and

(b) whether or not that point applies to the person for whom the

income cut-out amount is being worked out.

52 Section 93H

Repeal the section, substitute:

93H Annual pension rate

Application

(1) This section sets a person's annual pension rate for the purposes of

this Division if the start day for the age pension is on or after

20 September 2009.

Note:

See clause 144 of Schedule 1A if the start day is before 20 September

2009.

Increased pension rates on 20 September 2009 Schedule 1

Other amend ments Part 3

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 13

If person is not permanently blind

(2) If the person is not permanently blind, the person's annual

pension rate is the rate that would be the person's provisional

annual payment rate under step 11 of the method statement in point

1064-A1, worked out as at the start day for the age pension, if the

maximum payment rate under step 4 of the method statement were

the total of:

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

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

subsection (4).

If person is permanently blind

(3) If the person is permanently blind, the person's annual pension

rate is the sum of the following, worked out as at the start day for

the age pension:

(a) the person's maximum basic rate in the table in point

1065-B1;

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

subsection (4).

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

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

follows:

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

Column 1

Item

Column 2

Person's family situation

Column 3

Amount

Not member of a couple

$507.00

Partnered

$423.80

Member of illness separated couple

$507.00

Member of respite care couple

$507.00

Partnered (partner in gaol)

$507.00

Note 1:

For member of a couple, partnered, illness separated couple, respite

care couple and partnered (partner in gaol) see section 4.

Note 2:

The amounts are indexed 6 monthly in line with CPI increases (see

sections 1191 to 1194).

Schedule 1 Increased pension rates on 20 September 2009

Part 3 Other amendments

14 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

53 Section 1190 (after table item 36)

Insert:

Pension bonus

37.

Pension

supplement

component for

pension bonus

Pension

supplement

component for

pension bonus

[subsection 93H(4)--all

amounts]

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

Insert:

Pension

bonus

27.

Pension

supplement

component

for pension

bonus

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June

or December

quarter before

reference

quarter (but

not earlier

than June

quarter 2008)

$2.60

Increased pension rates on 20 September 2009 Schedule 1

Application of amend ments Part 4

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 15

Part 4

Application of amendments

55 Application of amendments

The amendments made by this Schedule apply for the purposes of

working out the rates of social security payments for days on or after

20 September 2009.

Note:

After applying those amendments, different rates for some social security payments may

be worked out under Schedule 1A to the Social Security Act 1991.

Schedule 2 Indexation using the Pensioner and Beneficiary Living Cost Index

16 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Schedule 2

Indexation using the Pensioner

and Beneficiary Living Cost Index

Social Security Act 1991

1 Point 1064-B1 (at the end of note 2)

Add "See also sections 1196 to 1198 (about Pensioner and Beneficiary

Living Cost Index indexation).".

2 Point 1065-B1 (at the end of note 2)

Add "See also sections 1196 to 1198 (about Pensioner and Beneficiary

Living Cost Index indexation).".

3 Point 1066-B1 (at the end of the note)

Add "See also sections 1196 to 1198 (about Pensioner and Beneficiary

Living Cost Index indexation).".

4 After paragraph 1189(a)

Insert:

(aa) the indexation of the maximum basic rates for certain social

security pensions using the Pensioner and Beneficiary Living

Cost Index; and

5 Subsection 1192(2) (method statement, step 4)

After "amount:", insert "subject to Division 3,".

6 Subsection 1192(2) (method statement, step 4)

After "(The indexed amount", insert "(including one replaced under

Division 3)".

7 After Division 2 of Part 3.16

Insert:

Indexation using the Pensioner and Beneficiary Liv ing Cost Index Schedule 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 17

Division 3--Social security pension indexation using

Pensioner and Beneficiary Living Cost Index

1196 Social security pension indexation using Pensioner and

Beneficiary Living Cost Index

(1) This section applies to the amount (the starting amount) referred

to in column 2 of item 1 of the table in subsection 1191(1), except

to the extent that it covers the maximum basic rate for pension PP

(single).

(2) If the indexed amount for the starting amount, worked out under

section 1192 on an indexation day and disregarding section 1195

and this Division, is less than the living cost amount worked out on

that indexation day using the following method statement, then that

indexed amount is taken to be an amount equal to that living cost

amount:

Method statement

Step 1. Use section 1197 to work out the living cost indexation

factor on that indexation day.

Step 2. Work out the current figure for the starting amount

immediately before that indexation day.

Note:

For current figure see subsection 20(1).

Step 3. Multiply the current figure by the living cost indexation

factor: the result is the provisional living cost amount.

Step 4. Use section 1198 to round off the provisional living cost

amount: the result is the living cost amount.

Note:

If the indexed amount for the starting amount, worked out under

section 1192, is taken to be an amount equal to that living cost

amount, there may be a further increase of that replaced indexed

amount under section 1195.

1197 Living cost indexation factor

(1) Subject to subsections (5) and (6), the living cost indexation factor

on an indexation day is:

Schedule 2 Indexation using the Pensioner and Beneficiary Living Cost Index

18 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Living cost index number for reference quarter

Living cost index number for base quarter

worked out to 3 decimal places.

Definitions

(2) For the purposes of this section, the living cost index number, in

relation to a quarter, is the All Groups Pensioner and Beneficiary

Living Cost Index number that is the weighted average of the 8

capital cities and is published by the Australian Statistician in

respect of that quarter.

(3) For the purposes of this section, the reference quarter is:

(a) if the indexation day is a 20 March--the most recent

December quarter before the indexation day; and

(b) if the indexation day is a 20 September--the most recent

June quarter before the indexation day.

(4) For the purposes of this section, the base quarter is the June or

December quarter that:

(a) is a quarter before the reference quarter; and

(b) has the highest living cost index number.

Rounding

(5) If a living cost indexation factor worked out under subsection (1)

would, if it were worked out to 4 decimal places, end in a number

that is greater than 4, that indexation factor is to be increased by

0.001.

(6) If a living cost indexation factor worked out under subsections (1)

and (5) would be less than 1, that indexation factor is to be

increased to 1.

Publication of substituted living cost index numbers

(7) Subject to subsection (8), if at any time (whether before or after the

commencement of this section) the Australian Statistician

publishes a living cost index number for a quarter in substitution

for a living cost index number previously published by the

Australian Statistician for that quarter, the publication of the later

Indexation using the Pensioner and Beneficiary Liv ing Cost Index Schedule 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 19

living cost index number is to be disregarded for the purposes of

this section.

Change to reference base

(8) If at any time (whether before or after the commencement of this

section) the Australian Statistician changes the reference base for

the Pensioner and Beneficiary Living Cost Index, regard is to be

had, for the purposes of applying this section after the change takes

place, only to living cost index numbers published in terms of the

new reference base.

1198 Rounding off amounts

(1) If a provisional living cost amount is a multiple of $2.60, the

provisional living cost amount becomes the living cost amount.

(2) Subject to subsection (3), if a provisional living cost amount is not

a multiple of $2.60, the living cost amount is the provisional living

cost amount rounded up or down to the nearest multiple of $2.60.

(3) If a provisional living cost amount is not a multiple of $2.60 but is

a multiple of $1.30, the living cost amount is the provisional living

cost amount rounded up to the nearest multiple of $2.60.

Schedule 3 Indexation using combined couple benchmark

20 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Schedule 3

Indexation using combined

couple benchmark

Social Security Act 1991

1 Point 1064-B1 (note 2)

Repeal the note, substitute:

Note 2:

The maximum basic rates are adjusted 6 monthly: see sections 1191 to

1198A.

2 Point 1065-B1 (note 2)

Repeal the note, substitute:

Note 2:

The maximum basic rates are adjusted 6 monthly: see sections 1191 to

1198A.

3 Point 1066-B1 (note)

Repeal the note, substitute:

Note:

The maximum basic rate is adjusted 6 monthly: see section 1198A.

4 Section 1190 (table item 1, column 2)

After "social security pension", insert "payable to a person who is

partnered or for pension PP (single)".

5 Section 1190 (table item 1, column 4)

Omit:

[Pension Rate Calcu lator A--point 1064-B1--Table B--co lu mn 3--all amounts]

[Pension Rate Calcu lator B--point 1065-B1--Table B--colu mn 3--all amounts]

[Pension Rate Calcu lator C--point 1066-B1--the annual rate]

substitute:

[Pension Rate Calcu lator A--point 1064-B1--Table B--item 2--co lu mn 3]

[Pension Rate Calcu lator B--point 1065-B1--Table B--item 2--colu mn 3]

6 Section 1190 (after table item 1)

Insert:

Indexation using combined couple benchmark Schedule 3

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 21

1AAA.

Maximu m basic

rates for a social

security pension

that are to be

worked out by

reference to the

maximu m basic

rates for a social

security pension

payable to a person

who is partnered

single pension

rate MBR

[Pension Rate Calcu lator A--point

1064-B1--Table B--items 1, 3, 4

and 5--colu mn 3]

[Pension Rate Calcu lator B--point

1065-B1--Table B--items 1, 3, 4

and 5--colu mn 3]

[Pension Rate Calcu lator C--point

1066-B1--the annual rate]

7 Paragraph 1195(1)(a)

Repeal the paragraph, substitute:

(a) a category A amount is the annual rate specified in point

1068A-B1; and

8 Subsection 1195(2)

Repeal the subsection, substitute:

(2) If:

(a) a category A amount is to be indexed under this Division on

an indexation day; and

(b) 25% of the annualised MTAWE figure for whichever of the

following quarters is applicable:

(i) if the indexation day is a 20 March--the most recent

December quarter;

(ii) if the indexation day is a 20 September--the most

recent June quarter;

exceeds the indexed amount for the category A amount;

then:

increased by an amount equal to the excess; and

(d) if the indexed amount for the category A amount (as

increased under paragraph (c)) is not a multiple of $2.60, the

indexed amount (as increased under paragraph (c)) is to be

further increased by rounding up to the next highest multiple

of $2.60.

Schedule 3 Indexation using combined couple benchmark

22 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(2A) If:

(a) a category B amount is to be indexed under this Division on

an indexation day; and

(b) 50% of the combined couple benchmark for that indexation

day exceeds the indexed amount for the category B amount;

then:

increased by an amount equal to the excess; and

(d) if the indexed amount for the category B amount (as

increased under paragraph (c)) is not a multiple of $2.60, the

indexed amount (as increased under paragraph (c)) is to be

further increased by rounding up to the next highest multiple

of $2.60.

(2B) For the purposes of this section, the combined couple benchmark,

for an indexation day, is 41.76% of the annualised MTAWE figure

for whichever of the following quarters is applicable:

(a) if the indexation day is a 20 March--the most recent

December quarter;

(b) if the indexation day is a 20 September--the most recent

June quarter.

9 Before section 1198B

Insert:

1198A Adjustment of single pension rate MBR amounts

(1) This Act has effect as if, on 20 March (an indexation day) and

20 September (an indexation day) each year, the adjusted single

pension amount were substituted for each single pension rate MBR

amount (see item 1AAA of the table in section 1190).

(2) For the purposes of this section, the adjusted single pension

amount is worked out as follows:

Method statement

Step 1. Work out the amount substituted for the amount specified

in column 3 of item 2 of Table B in point 1064-B1 on

that indexation day under section 1192.

Indexation using combined couple benchmark Schedule 3

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 23

Step 2. Multiply the amount worked out at step 1 by 2.

Step 3. Work out 66.33% of the amount worked out at step 2.

Step 4. Round the amount worked out at step 3 to the nearest

multiple of $2.60 (rounding up if necessary): the result is

the adjusted single pension amount.

Schedule 4 Pension supplements

Part 1 Key concepts

24 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Schedule 4

Pension supplements

Part 1

Key concepts

Social Security Act 1991

1 After section 20

Insert:

20A Pension supple ment rate definitions

(1) The combined couple rate of pension supplement is the sum of the

following:

(a) 4 times the annual rate of utilities allowance for a person who

is a member of a couple (other than an illness separated

couple, respite care couple or temporarily separated couple);

(b) twice the annual rate of telephone allowance for a person:

(i) to whom section 1061SB (increased rate for home

internet) applies; and

(ii) who is partnered (partner getting pension or benefit, and

partner getting telephone allowance at the increased

rate);

person who is partnered;

(d) twice the pension supplement basic amount for a person who

is partnered;

(e) if $525.20 exceeds twice the annual rate of utilities allowance

for a person who is a member of a couple (other than an

illness separated couple, respite care couple or temporarily

separated couple)--the amount of the excess;

rounded up to the nearest multiple of $5.20.

Note 1:

This rate is indexed 6 monthly in line with CPI increases (see

sections 1191 to 1194).

Note 2:

This rate is an annual rate.

(2) The combined couple rate of minimum pension supplement is the

sum of the following:

Pension supplements Schedule 4

Key concepts Part 1

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 25

(a) 4 times the annual rate of utilities allowance for a person who

is a member of a couple (other than an illness separated

couple, respite care couple or temporarily separated couple);

(b) twice the annual rate of telephone allowance for a person:

(i) to whom section 1061SB (increased rate for home

internet) applies; and

(ii) who is partnered (partner getting pension or benefit, and

partner getting telephone allowance at the increased

rate);

rounded up to the nearest multiple of $5.20.

Note 1:

This rate is indexed 6 monthly in line with CPI increases (see

sections 1191 to 1194).

Note 2:

This rate is an annual rate.

(3) For the purposes of subsection (1) or (2), a rate mentioned in a

paragraph of that subsection is that rate as at 20 September 2009.

Note:

Those subsections adopt those rates as indexed on 20 September 2009.

(4) A person's minimum pension supplement amount is the amount

worked out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of minimum pension supplement;

and

(b) if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a

multiple of $2.60;

rounding the amount up or down to the nearest multiple of

$2.60 (rounding up if the amount is not a multiple of $2.60

but is a multiple of $1.30).

Item

Person's family situation

Use this %

Not member of couple

66.33%

Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

A person's minimum pension supplement amount is an annual rate.

Schedule 4 Pension supplements

Part 1 Key concepts

26 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(5) A person's pension supplement basic amount depends on which

family situation in the following table applies to the person. The

person's pension supplement basic amount immediately before

20 September 2009 is the corresponding amount set out in the

table.

Item

Person's family situation

Amount as at

19 September 2009

Not member of couple

$507

Partnered

$423.80

Member of illness separated couple

$507

Member of respite care couple

$507

Partnered (partner in gaol)

$507

Note 1:

The amount in each item of the table will be indexed on 20 September

2009 in line with any increase in CPI (see subsection 1192(3C)).

Note 2:

For the purposes of provisions other than subsection (1), each of those

indexed amounts will be further indexed 6 monthly in line with CPI

increases (see sections 1191 to 1194).

Note 3:

A person's pension supplement basic amount is an annual rate.

(6) The daily rate of tax-exempt pension supplement, for a person

who is receiving a social security payment calculated for that day

using a pension supplement amount, is the amount worked out as

follows:

(a) subtract the person's pension supplement basic amount from:

(i) if the Rate Calculator produces an annual rate--the

person's pension supplement amount; or

(ii) if the Rate Calculator produces a fortnightly rate--26

times the person's pension supplement amount;

(b) divide the result of paragraph (a) by 364.

Note:

The portion of the person's social security payment equal to the

tax-exempt pension supplement is exempt from income tax (see

sections 52-10 and 52-15 of the Income Tax Assessment Act 1997).

Pension supplements Schedule 4

Amend ment of Rate Ca lculators Part 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 27

Part 2

Amendment of Rate Calculators

Social Security Act 1991

2 Point 1064-A1 (method statement, step 2)

Repeal the step.

3 Point 1064-A1 (method statement, step 4)

Omit ", 2".

4 Section 1064 (Module BA)

Repeal the Module, substitute:

Module BA--Pension supplement

Pension supplement

1064-BA1 A pension supplement amount is to be added to the person's

maximum basic rate.

Residents in Australia etc.

1064-BA2 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;

the person's pension supplement amount is:

force--the amount worked out under point 1064-BA4; and

(d) otherwise--the amount worked out under point 1064-BA3.

Residents in Australia etc.--no election in force

1064-BA3 The person's pension supplement amount is the amount worked

out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of pension supplement; and

(b) if:

(i) the person is not partnered; and

Schedule 4 Pension supplements

Part 2 A mend ment of Rate Calculators

28 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(ii) the amount resulting from paragraph (a) is not a

multiple of $2.60;

rounding the amount up or down to the nearest multiple of

$2.60 (rounding up if the amount is not a multiple of $2.60

but is a multiple of $1.30).

Item

Person's family situation

Use this %

Not member of couple

66.33%

Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

For combined couple rate of pension supplement, see subsection

20A(1).

Residents in Australia etc.--election in force

1064-BA4 The person's pension supplement amount is the amount worked

out as follows:

(a) work out the amount for the person under point 1064-BA3 as

if the election were not in force;

(b) from that amount, subtract the person's minimum pension

supplement amount.

Persons absent from Australia for more than 13 weeks

1064-BA5 If the person is not covered by point 1064-BA2, the person's

pension supplement amount is the person's pension supplement

basic amount.

5 Section 1064 (Module C)

Repeal the Module.

6 Point 1065-A1 (method statement, step 3)

Repeal the step.

7 Point 1065-A1 (method statement, step 4)

Omit ", 2A and 3", substitute: "and 2A".

Pension supplements Schedule 4

Amend ment of Rate Calculators Part 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 29

8 Section 1065 (Module BA)

Repeal the Module, substitute:

Module BA--Pension supplement

Pension supplement

1065-BA1 A pension supplement amount is to be added to the person's

maximum basic rate.

Residents in Australia etc.

1065-BA2 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;

the person's pension supplement amount is:

force--the amount worked out under point 1065-BA4; and

(d) otherwise--the amount worked out under point 1065-BA3.

Residents in Australia etc.--no election in force

1065-BA3 The person's pension supplement amount is the amount worked

out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of pension supplement; and

(b) if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a

multiple of $2.60;

rounding the amount up or down to the nearest multiple of

$2.60 (rounding up if the amount is not a multiple of $2.60

but is a multiple of $1.30).

Item

Person's family situation

Use this %

Not member of couple

66.33%

Partnered

50%

Member of illness separated couple

66.33%

Schedule 4 Pension supplements

Part 2 A mend ment of Rate Calculators

30 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Item

Person's family situation

Use this %

Member of respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

For combined couple rate of pension supplement, see subsection

20A(1).

Residents in Australia etc.--election in force

1065-BA4 The person's pension supplement amount is the amount worked

out as follows:

(a) work out the amount for the person under point 1065-BA3 as

if the election were not in force;

(b) from that amount, subtract the person's minimum pension

supplement amount.

Persons absent from Australia for more than 13 weeks

1065-BA5 If the person is not covered by point 1065-BA2, the person's

pension supplement amount is the person's pension supplement

basic amount.

9 Section 1065 (Module C)

Repeal the Module.

10 Point 1066-A1 (method statement, step 2)

Repeal the step.

11 Point 1066-A1 (method statement, step 4)

Omit ", 2".

12 Section 1066 (Module BA)

Repeal the Module, substitute:

Module BA--Pension supplement

Pension supplement

1066-BA1 A pension supplement amount is to be added to the person's

maximum basic rate.

Pension supplements Schedule 4

Amend ment of Rate Calculators Part 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 31

Residents in Australia etc.

1066-BA2 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;

the person's pension supplement amount is:

force--the amount worked out under point 1066-BA4; and

(d) otherwise--the amount worked out under point 1066-BA3.

Residents in Australia etc.--no election in force

1066-BA3 The person's pension supplement amount is the amount worked

out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of pension supplement; and

(b) if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a

multiple of $2.60;

rounding the amount up or down to the nearest multiple of

$2.60 (rounding up if the amount is not a multiple of $2.60

but is a multiple of $1.30).

Item

Person's family situation

Use this %

Not member of couple

66.33%

Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

For combined couple rate of pension supplement, see subsection

20A(1).

Residents in Australia etc.--election in force

1066-BA4 The person's pension supplement amount is the amount worked

out as follows:

Schedule 4 Pension supplements

Part 2 A mend ment of Rate Calculators

32 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(a) work out the amount for the person under point 1066-BA3 as

if the election were not in force;

(b) from that amount, subtract the person's minimum pension

supplement amount.

Persons absent from Australia for more than 13 weeks

1066-BA5 If the person is not covered by point 1066-BA2, the person's

pension supplement amount is the person's pension supplement

basic amount.

13 Section 1066 (Module C)

Repeal the Module.

14 Point 1067G-B3A (notes 1 and 2)

Repeal the notes, substitute:

Note:

A person's maximum basic rate under Module B of the Pension PP

(Single) Rate Calculator is indexed 6 monthly in line with increases in

Male Total Average Weekly Earnings (see section 1195).

15 Point 1067L-A1 (method statement, step 1)

After the step, insert:

Step 1A. Work out the pension supplement amount (if any) using

Module BA below.

16 Point 1067L-A1 (method statement, step 3)

After "1,", insert "1A,".

17 Section 1067L (after Module B)

Insert:

Module BA--Pension supplement

Pension supplement

1067L-BA1 A pension supplement amount is to be added to the person's

maximum basic rate if the person is residing in Australia, has

reached pension age and:

(a) is in Australia; or

Pension supplements Schedule 4

Amend ment of Rate Calculators Part 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 33

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

1067L-BA2 The person's pension supplement amount is:

(a) if an election by the person under subsection 1061VA(1) is in

force--the amount worked out under point 1067L-BA4; and

(b) otherwise--the amount worked out under point 1067L-BA3.

Amount if no election in force

1067L-BA3 The person's pension supplement amount is the amount worked

out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of pension supplement; and

(b) dividing the result by 26; and

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (b) is not a

multiple of 10 cents;

rounding the amount up or down to the nearest multiple of 10

cents (rounding up if the amount is not a multiple of 10 cents

but is a multiple of 5 cents).

Item

Person's family situation

Use this %

Not member of couple

66.33%

Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

For combined couple rate of pension supplement, see subsection

20A(1).

Amount if election in force

1067L-BA4 The person's pension supplement amount is the amount worked

out as follows:

(a) work out the amount for the person under point 1067L-BA3

as if the election were not in force;

Schedule 4 Pension supplements

Part 2 A mend ment of Rate Calculators

34 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(b) from that amount, subtract

of the person's minimum

pension supplement amount.

18 Point 1067L-C1

Omit "point 1067L-C2", substitute "points 1067L-C1A and 1067L-C2".

19 After point 1067L-C1

Insert:

No pharmaceutical allowance if person receiving pension

supplement

1067L-C1A Pharmaceutical allowance is not to be added to a person's

maximum basic rate if a pension supplement amount has been

added to that rate.

20 Point 1068-A1 (method statement, step 1)

After the step, insert:

Step 1A. Work out the pension supplement amount (if any) using

Module BA below.

21 Point 1068-B5 (notes 1 and 2)

Repeal the notes, substitute:

Note:

A person's maximum basic rate under Module B of the Pension PP

(Single) Rate Calculator is indexed 6 monthly in line with increases in

Male Total Average Weekly Earnings (see section 1195).

22 Section 1068 (after Module B)

Insert:

Module BA--Pension supplement

Pension supplement

1068-BA1 A pension supplement amount is to be added to the person's

maximum basic rate if the person is residing in Australia, has

reached pension age and:

(a) is in Australia; or

Pension supplements Schedule 4

Amend ment of Rate Calculators Part 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 35

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

1068-BA2 The person's pension supplement amount is:

(a) if an election by the person under subsection 1061VA(1) is in

force--the amount worked out under point 1068-BA4; and

(b) otherwise--the amount worked out under point 1068-BA3.

Amount if no election in force

1068-BA3 The person's pension supplement amount is the amount worked

out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of pension supplement; and

(b) dividing the result by 26; and

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (b) is not a

multiple of 10 cents;

rounding the amount up or down to the nearest multiple of 10

cents (rounding up if the amount is not a multiple of 10 cents

but is a multiple of 5 cents).

Item

Person's family situation

Use this %

Not member of couple

66.33%

Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

For combined couple rate of pension supplement, see subsection

20A(1).

Amount if election in force

1068-BA4 The person's pension supplement amount is the amount worked

out as follows:

(a) work out the amount for the person under point 1068-BA3 as

if the election were not in force;

Schedule 4 Pension supplements

Part 2 A mend ment of Rate Calculators

36 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(b) from that amount, subtract

of the person's minimum

pension supplement amount.

23 Point 1068-D1

Before "1068-D4", insert "1068-D3A,".

24 After point 1068-D3

Insert:

No pharmaceutical allowance if person receiving pension

supplement

1068-D3A Pharmaceutical allowance is not to be added to a person's

maximum basic rate if a pension supplement amount has been

added to that rate.

25 Section 1068A (Module BA)

Repeal the Module, substitute:

Module BA--Pension supplement

Pension supplement

1068A-BA1 A pension supplement amount is to be added to the person's

maximum basic rate.

Residents of pension age who are in Australia etc.

1068A-BA2 If the person is residing in Australia, has reached pension age and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks;

the person's pension supplement amount is:

force--the amount worked out under point 1068A-BA4; and

(d) otherwise--the amount worked out under point 1068A-BA3.

Residents of pension age in Australia etc.--no election in force

1068A-BA3 The person's pension supplement amount is the amount worked

out by:

Pension supplements Schedule 4

Amend ment of Rate Calculators Part 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 37

(a) working out 66.33% of the combined couple rate of pension

supplement; and

(b) if the result is not a multiple of $2.60, rounding the result up

or down to the nearest multiple of $2.60 (rounding up if the

result is not a multiple of $2.60 but is a multiple of $1.30).

Note:

For combined couple rate of pension supplement, see subsection

20A(1).

Residents of pension age in Australia etc.--election in force

1068A-BA4 The person's pension supplement amount is the amount worked

out as follows:

(a) work out the amount for the person under point 1068A-BA3

as if the election were not in force;

(b) from that amount, subtract the person's minimum pension

supplement amount.

Other persons

1068A-BA5 If the person is not covered by point 1068A-BA2, the person's

pension supplement amount is the person's pension supplement

basic amount.

26 Point 1068A-C1

Before "1068A-C2", insert "1068A-C1A,".

27 After point 1068A-C1

Insert:

No pharmaceutical allowance if person has reached pension age

1068A-C1A Pharmaceutical allowance is not to be added to a person's

maximum basic rate if the person has reached pension age.

28 Point 1068B-A2 (method statement, step 2)

After the step, insert:

Step 2A. Work out the pension supplement amount (if any) using

Module DA below.

29 Point 1068B-A3 (method statement, step 2)

Schedule 4 Pension supplements

Part 2 A mend ment of Rate Calculators

38 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

After the step, insert:

Step 2A. Work out the pension supplement amount (if any) using

Module DA below.

30 Section 1068B (after Module D)

Insert:

Module DA--Pension supplement

Pension supplement

1068B-DA1 A pension supplement amount is to be added to the person's

maximum basic rate if the person is residing in Australia, has

reached pension age and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks.

1068B-DA2 The person's pension supplement amount is:

(a) if an election by the person under subsection 1061VA(1) is in

force--the amount worked out under point 1068B-DA4; and

(b) otherwise--the amount worked out under point 1068B-DA3.

Amount if no election in force

1068B-DA3 The person's pension supplement amount is the amount worked

out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of pension supplement; and

(b) dividing the result by 26; and

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (b) is not a

multiple of 10 cents;

rounding the amount up or down to the nearest multiple of 10

cents (rounding up if the amount is not a multiple of 10 cents

but is a multiple of 5 cents).

Pension supplements Schedule 4

Amend ment of Rate Calculators Part 2

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 39

Item

Person's family situation

Use this %

Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

For combined couple rate of pension supplement, see subsection

20A(1).

Amount if election in force

1068B-DA4 The person's pension supplement amount is the amount worked

out as follows:

(a) work out the amount for the person under point 1068B-DA3

as if the election were not in force;

(b) from that amount, subtract

of the person's minimum

pension supplement amount.

31 Point 1068B-E1

Before "1068B-E2", insert "1068B-E1A,".

32 After point 1068B-E1

Insert:

No pharmaceutical allowance if person receiving pension

supplement

1068B-E1A Pharmaceutical allowance is not to be added to a person's

maximum basic rate if a pension supplement amount has been

added to that rate.

Schedule 4 Pension supplements

Part 3 Sen iors supplement and quarterly pension supplement

40 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Part 3

Seniors supplement and quarterly pension

supplement

Social Security Act 1991

33 Part 2.25B

Repeal the Part, substitute:

Part 2.25B--Seniors supplement

Division 1--Qualification and payability

1061U Qualification for seniors supple ment

A person is qualified for seniors supplement if the person is the

holder of a seniors health card.

1061UA When seniors supple ment is payable

(1) Seniors supplement is payable to a person in relation to each day

on which the person is qualified for the supplement.

(2) However, seniors supplement is not payable to the person in

relation to a day if:

(a) before that day:

(i) the person had elected not to be covered by this Part;

and

(ii) that election had not been withdrawn; or

(b) subsection 55(5) (failing to nominate a bank account) of the

Administration Act applies to the person.

Pension supplements Schedule 4

Seniors supplement and quarterly pension supplement Part 3

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 41

Division 2--Rate of seniors supplement

1061UB Rate of seniors supplement

(1) The person's annual rate of seniors supplement is the amount

worked out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of minimum pension supplement;

and

(b) if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a

multiple of $2.60;

rounding the amount up or down to the nearest multiple of

$2.60 (rounding up if the amount is not a multiple of $2.60

but is a multiple of $1.30).

Item

Person's family situation

Use this %

Not member of couple

66.33%

Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Partnered (partner in gaol)

66.33%

Note:

For combined couple rate of minimum pension supplement, see

subsection 20A(2).

(2) The person's daily rate of seniors supplement is worked out by

dividing the person's annual rate by 364.

Part 2.25C--Quarterly pension supplement

1061V When this Part applies

(1) This Part applies to a person if:

(a) a pension supplement amount is used to work out the rate of

the person's social security payment (the main payment);

and

Schedule 4 Pension supplements

Part 3 Sen iors supplement and quarterly pension supplement

42 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(b) the annual rate of that pension supplement amount is more

than the person's pension supplement basic amount.

Note:

A pension supplement amount that is more than the person's pension

supplement basic amount contains a minimum component. The person

may elect under this Part to receive that minimum component on a

quarterly basis as a separate social security payment.

(2) For the purposes of paragraph (1)(b), if the Rate Calculator for the

main payment produces a fortnightly rate, then multiply the

person's pension supplement amount by 26 to get the annual rate

of that pension supplement amount.

(3) For the purposes of subsection (1), it does not matter if the rate of

the person's main payment would become nil were an election by

the person under subsection 1061VA(1) to come into force.

1061VA Quarterly pension supple ment

(1) The person may, in a manner or way approved by the Secretary,

make an election to receive the person's minimum pension

supplement amount on a quarterly basis as a separate social

security payment.

(2) An election comes into force as soon as practicable after it is made.

(3) The person may, in a manner or way approved by the Secretary,

revoke an election. A revocation takes effect as soon as practicable

after it happens.

(4) Quarterly pension supplement is payable to the person in relation

to each day on which an election is in force.

1061VB Rate of quarterly pension supple ment

(1) The person's annual rate of quarterly pension supplement is the

person's minimum pension supplement amount.

(2) The person's daily rate of quarterly pension supplement is worked

out by dividing the person's annual rate by 364.

(3) This section has effect subject to subsection 1210(3).

Pension supplements Schedule 4

Seniors supplement and quarterly pension supplement Part 3

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 43

Social Security (Administration) Act 1999

34 Section 48B

Repeal the section, substitute:

48B Payment of seniors supplement

(1) Seniors supplement is to be paid by instalments.

(2) An instalment of seniors supplement is to be paid to a person as

soon as is reasonably practicable on or after the first seniors

supplement test day (the current test day) that follows a day on

which the person is qualified for seniors supplement.

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

person's daily rate of seniors supplement by the number of days

during the test period on which the person was qualified for seniors

supplement.

(4) In this section:

seniors supplement test day means:

(a) 20 March; or

(b) 20 June; or

(d) 20 December.

test period means the period:

(a) starting on the most recent supplement test day before the

current test day; and

(b) ending on the day immediately before the current test day.

48C Payme nt of quarterly pension supple ment

(1) Quarterly pension supplement is to be paid by instalments.

(2) An instalment of quarterly pension supplement is to be paid to a

person as soon as is reasonably practicable on or after the first

supplement test day (the current test day) that follows a day on

which an election by the person under subsection 1061VA(1) is in

force.

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

Schedule 4 Pension supplements

Part 3 Sen iors supplement and quarterly pension supplement

44 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Method statement

Step 1. Divide the person's annual rate of quarterly pension

supplement by 4.

Step 2. Multiply the person's daily rate of quarterly pension

supplement by the number of days (if any) during the test

period for which an election by the person under

subsection 1061VA(1) was not in force.

Step 3. Multiply the person's daily rate of quarterly pension

supplement by the number of days (if any) during the test

period:

(a) on which the person was qualified for seniors

supplement; and

(b) for which an election by the person under

subsection 1061VA(1) was in force.

Step 4. From the result of step 1, subtract the results of steps 2

and 3.

(4) In this section:

supplement test day means:

(a) 20 March; or

(b) 20 June; or

(d) 20 December.

test period means the period:

(a) starting on the most recent supplement test day before the

current test day; and

(b) ending on the day immediately before the current test day.

Pension supplements Schedule 4

Other amend ments Part 4

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 45

Part 4

Other amendments

Income Tax Assessment Act 1997

35 Section 52-10 (table item 22B.1)

Repeal the item, substitute:

22B.1

Seniors

supplement

Exempt

Not applicable Not applicable

22C.1

Quarterly

pension

supplement

Exempt

Not applicable Not applicable

36 Section 52-15 (table)

Repeal the table, substitute:

Supplementary amount of a social security payment

Item

For this category of social

security payment:

the supplementary amount is the

total of:

Age pension

Bereavement allowance

Carer pay ment

Sickness allowance

Special benefit

Special needs age pension

Special needs disability support

pension

Special needs widow B pension

Special needs wife pension

Widow B pension

Wife pension

(a) so much of the payment as is

included by way of rent

assistance; and

(b) so much of the payment as is

included by way of remote area

allo wance; and

included by way of

pharmaceutical allowance; and

(d) so much of the payment as is

included by way of tax-exempt

pension supplement

Schedule 4 Pension supplements

Part 4 Other amendments

46 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Supplementary amount of a social security payment

Item

For this category of social

security payment:

the supplementary amount is the

total of:

Disability support pension

(a) so much of the payment as is

included by way of rent

assistance; and

(b) so much of the payment as is

included by way of remote area

allo wance; and

included by way of

pharmaceutical allowance; and

(d) so much of the payment as is

included by way of incentive

allo wance; and

(e) so much of the payment as is

included by way of language,

literacy and nu meracy

supplement; and

(f) so much of the pay ment as is

included by way of tax-exempt

pension supplement

Newstart allowance

Parenting payment (benefit (PP

partnered))

Parenting payment (pension (PP

single))

Partner allowance

Widow allowance

Youth allowance

(a) so much of the payment as is

included by way of rent

assistance; and

(b) so much of the payment as is

included by way of remote area

allo wance; and

included by way of

pharmaceutical allowance; and

(d) so much of the payment as is

included by way of language,

literacy and nu meracy

supplement; and

(e) so much of the payment as is

included by way of tax-exempt

pension supplement

Pension supplements Schedule 4

Other amend ments Part 4

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 47

Supplementary amount of a social security payment

Item

For this category of social

security payment:

the supplementary amount is the

total of:

Austudy payment

(a) so much of the payment as is

included by way of rent

assistance; and

(b) so much of the payment as is

included by way of remote area

allo wance; and

included by way of

pharmaceutical allowance; and

(d) so much of the payment as is

included by way of tax-exempt

pension supplement

37 Subsection 52-25(3) (example)

Omit "rental assistance", substitute "rent assistance".

38 Section 52-40 (table item 22B)

Repeal the item, substitute:

22B

Seniors

supplement

Part 2.25B

Not applicable

22C

Quarterly

pension

supplement

Part 2.25C

Not applicable

39 Paragraph 52-70(a)

Omit "rental assistance", substitute "rent assistance".

40 Paragraph 53-15(a)

Omit "rental assistance", substitute "rent assistance".

Social Security Act 1991

41 Subsection 23(1)

Insert:

combined couple rate of minimum pension supplement has the

meaning given by subsection 20A(2).

Schedule 4 Pension supplements

Part 4 Other amendments

48 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

42 Subsection 23(1)

Insert:

combined couple rate of pension supplement has the meaning

given by subsection 20A(1).

43 Subsection 23(1)

Insert:

minimum pension supplement amount has the meaning given by

subsection 20A(4).

44 Subsection 23(1)

Insert:

pension supplement amount, for a person, means the amount

added under the pension supplement Module (if any) of the Rate

Calculator when working out the rate of the person's social

security payment.

45 Subsection 23(1)

Insert:

pension supplement basic amount has the meaning given by

subsection 20A(5).

46 Subsection 23(1)

Insert:

quarterly pension supplement means the separate social security

payment described in subsection 1061VA(1).

47 Subsection 23(1) (definition of seniors concession

allowance)

Repeal the definition.

48 Subsection 23(1)

Insert:

seniors supplement means seniors supplement under Part 2.25B.

Pension supplements Schedule 4

Other amend ments Part 4

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 49

49 Subsection 23(1)

Insert:

tax-exempt pension supplement has the meaning given by

subsection 20A(6).

50 Subsection 44(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

51 Subparagraph 93H(b)(ii)

Omit "point 1065-BA2", substitute "Module BA of Pension Rate

Calculator B".

52 Subparagraph 93J(3)(a)(ii)

Omit "point 1064-BA2", substitute "Module BA of Pension Rate

Calculator A".

53 Subparagraph 93J(3)(b)(ii)

Omit "point 1065-BA2", substitute "Module BA of Pension Rate

Calculator B".

54 Subparagraph 93J(4)(a)(ii)

Omit "point 1064-BA2", substitute "Module BA of Pension Rate

Calculator A".

55 Subparagraph 93J(4)(b)(ii)

Omit "point 1065-BA2", substitute "Module BA of Pension Rate

Calculator B".

56 Subsection 98(2)

Repeal the subsection, substitute:

Schedule 4 Pension supplements

Part 4 Other amendments

50 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

57 Subsection 148(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

58 Subsection 199(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

59 Subsection 236A(3) (definition of pension supplement)

Omit "point 1064-BA2", substitute "Module BA of Pension Rate

Calculator A".

60 Subsection 316(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

Pension supplements Schedule 4

Other amend ments Part 4

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 51

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

61 Subsection 364(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

62 Subsection 408CA(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

63 Subsection 500I(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

64 Subsection 572(2)

Repeal the subsection, substitute:

Schedule 4 Pension supplements

Part 4 Other amendments

52 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

65 Subsection 608(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

66 Subsection 677(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

67 Subsection 732(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

Pension supplements Schedule 4

Other amend ments Part 4

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 53

68 Subsection 771HC(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in

force; or

(b) the person has been paid an advance pharmaceutical

allowance under the social security law or Division 2 of

Part VIIA of the Veterans' Entitlements Act.

69 At the end of section 1061G

Add:

(3) Even though a person is qualified for an advance pharmaceutical

allowance, the allowance is not payable to the person if

pharmaceutical allowance is not used to work out the rate of the

person's social security pension.

70 Before paragraph 1061R(a)

Insert:

(aa) if the person is receiving a social security payment for which

a pension supplement amount is used to work out the rate of

the payment, with a pension supplement amount that is more

than the person's pension supplement basic amount; or

(ab) if the person is receiving seniors supplement; or

(ac) if an election by the person under subsection 1061VA(1) is in

force; or

71 Section 1061T

Before "A", insert "(1)".

72 At the end of section 1061T

Add:

(2) Even though a person is qualified for utilities allowance, the

allowance is not payable to the person:

(a) if the person is receiving a social security payment for which

a pension supplement amount is used to work out the rate of

Schedule 4 Pension supplements

Part 4 Other amendments

54 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

the payment, with a pension supplement amount that is more

than the person's pension supplement basic amount; or

(b) if the person is receiving seniors supplement; or

force.

73 Paragraph 1061TA(2)(b)

Repeal the paragraph, substitute:

(b) seniors concession allowance under the Veterans'

Entitlements Act is payable in relation to that day; or

74 Subparagraph 1064-H1(aa)(ii)

After "because", insert "an election by the person under subsection

1061VA(1) is in force, or merely because".

75 Subparagraph 1065-E1(aa)(ii)

After "because", insert "an election by the person under subsection

1061VA(1) is in force, or merely because".

76 Subparagraph 1066-H1(aa)(ii)

After "because", insert "an election by the person under subsection

1061VA(1) is in force, or merely because".

77 Subparagraph 1068-J1(aa)(ii)

After "because", insert "an election by the person under subsection

1061VA(1) is in force, or merely because".

78 Subparagraph 1068A-F1(a)(ii)

After "because", insert "an election by the person under subsection

1061VA(1) is in force, or merely because".

79 Subparagraph 1068B-G1(b)(ii)

After "because", insert "an election by the person under subsection

1061VA(1) is in force, or merely because".

80 Subsection 1185K(4)

Omit "point 1064-BA2" (wherever occurring), substitute "Pension Rate

Calculator A".

Pension supplements Schedule 4

Other amend ments Part 4

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 55

81 Subsection 1185Y(4)

Omit "point 1064-BA2" (wherever occurring), substitute "Pension Rate

Calculator A".

82 Section 1190 (table item 1AA)

Repeal the item, substitute:

1AA

Co mbined couple

rate of pension

supplement

PS rate

[subsection 20A(1)]

1AB

Co mbined couple

rate of minimu m

pension supplement

PS min imu m rate [subsection 20A(2)]

1AC

Pension

supplement basic

amount

PS basic rate

[each item of the table in

subsection 20A(5)]

83 Section 1190 (table item 44)

Repeal the item, substitute:

Pharmaceutical

allowance

Rate of

pharmaceutical

allo wance for a

person who is

receiving a social

security pension

and is not a

member of a couple

Pension PA

"single" rate

[Pension Rate Calcu lator D--point

1066A-D8--Table--colu mn 3--

item 1]

[Pension Rate Calcu lator E--point

1066B-D8--Table--co lu mn 3--

item 1]

[Pension PP (Single) Rate

Calculator--point 1068A-C7]

84 Section 1190 (table item 46)

Repeal the item, substitute:

Rate of

pharmaceutical

allo wance for a

person who is

receiving a social

security pension

and has a partner

Pension PA

"partnered"

(item 2) rate

[Pension Rate Calcu lator D--point

1066A-D8--Table--colu mn 3--

item 2]

[Pension Rate Calcu lator E--point

1066B-D8--Table--co lu mn 3--

item 2]

85 Section 1190 (table item 48)

Schedule 4 Pension supplements

Part 4 Other amendments

56 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

Repeal the item, substitute:

Rate of

pharmaceutical

allo wance for a

person who is

receiving a social

security pension

and is a member of

an illness separated

or respite care

couple

Pension PA

"illness separated

or respite care"

rate

[Pension Rate Calcu lator D--point

1066A-D8--Table--colu mn 3--

items 3 and 4]

[Pension Rate Calcu lator E--point

1066B-D8--Table--co lu mn 3--

items 3 and 4]

86 Section 1190 (table items 49A and 49B)

Repeal the items, substitute:

49A

Rate of

pharmaceutical

allo wance for a

person who is

receiving a social

security pension

and has a partner

who is getting a

service pension

Pension PA

"partnered"

(item 4) rate

[Pension Rate Calcu lator D--point

1066A-D8--Table--colu mn 3--

item 4]

[Pension Rate Calcu lator E--point

1066B-D8--Table--co lu mn 3--

item 4]

49B

Rate of

pharmaceutical

allo wance for a

person who is

receiving a social

security benefit and

has a partner who is

getting a service

pension

Pension PA

"partnered"

(item 6) rate

[Pension Rate Calcu lator D--point

1066A-D8--Table--colu mn 3--

item 6]

[Pension Rate Calcu lator E--point

1066B-D8--Table--co lu mn 3--

item 6]

87 Section 1190 (table item 56E)

Repeal the item.

88 At the end of section 1190

Add:

Note:

Indexing the PS minimum rate will also result in the indexation of the

rate of seniors supplement (see section 1061UB) and the rate of

quarterly pension supplement (see section 1061VB).

Pension supplements Schedule 4

Other amend ments Part 4

Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget

Measures) Bill 2009 No. , 2009 57

89 Subsection 1191(1) (table item 1A)

Repeal the item, substitute:

PS rate

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June

December

quarter

before

reference

quarter (but

not earlier

than June

quarter

2009)

$5.20

PS min imu m

rate

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June

December

quarter

before

reference

quarter (but

not earlier

than June

quarter

2009)

$5.20

PS basic rate

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June

December

quarter

before

reference

quarter (but

not earlier

than

December

quarter

2008)

$2.60

90 Subsection 1191(1) (table item 33AE)

Repeal the item.

91 After subsection 1192(3A)

Insert:

Schedule 4 Pension supplements

Part 4 Other amendments

58 Social Security and Other Legislation Amendment (Pension Reform and Other 2009

Budget Measures) Bill 2009 No. , 2009

(3B) The first indexation of amounts under items 1A and 1B of the CPI

Indexation Table in subsection 1191(1) is to take place on

20 March 2010.

(3C) For the purposes of the first indexation of an amount under item 1C

of the CPI Indexation Table in subsection 1191(1):

(a) that first indexation is to take place on 20 September 2009;

and

(b) the current figure for the amount immediately before

20 September 2009 is taken to be the amount specified in the

relevant item of the table in subsection 20A(5).

92 Subsection 1192(6A)

Repeal the subsection.

93 Section 1210

Repeal the section, substitute:

1210 Application of income and assets test reductions and of

compensation reductions for income tax purposes

(1) If:

(a) the rate of a person's social security payment is increased

under Part 3.7 (rent assistance) and/or either of the following

Modules of the Rate Calculator:

(i) the pension supplement Module (the PS Module) (if

any);

(ii) the pharmaceutical allowance Module (the PA Module)

(if any); and

(b) that rate is to be reduced under:

(i) the income test Module or the assets test Module of the

Rate Calculator; or

(ii) section 1168 (compensation reductions);

the reduction is to be applied as follows (in descending order):

Item

Component of the rate

all of the rate apart fro m any increase mentioned in paragraph (a)

the portion of the person's pension supplement amount (if any) equal to:

(a) if the Rate Calculator pr

Commonwealth of Australia Bills

SOCIAL SECURITY AND OTHER LEGISLATION AMENDMENT (PENSION REFORM AND OTHER 2009 BUDGET MEASURES) BILL 2009