Contents

Chapter 1--Introductory                                                                                                      1

Part 1.1--Formal matters                                                                                                    1

1............ Short title [see Note 1] ....................................................................... 1

2............ Commencement .................................................................................. 1

3............ Application of the Criminal Code ...................................................... 1

Part 1.2--Definitions                                                                                                              2

3A......... Power of Secretary to make determinations etc. ................................ 2

4............ Family relationships definitions--couples ......................................... 2

5............ Family relationships definitions--children [see Appendix
for CPI adjusted figures] ..................................................................... 9

5A......... Single person sharing accommodation .............................................. 18

5B......... Registered and active foster carers .................................................... 20

5C......... Home educators ................................................................................ 21

5D......... Distance educators ............................................................................ 21

5E.......... Relatives (other than parents) .......................................................... 21

6............ Double orphan pension definitions .................................................. 22

6A......... Concession card definitions .............................................................. 22

7............ Australian residence definitions ....................................................... 23

8............ Income test definitions ...................................................................... 30

9............ Financial assets and income streams definitions [see Note 7] .......... 45

9A......... Meaning of asset‑test exempt income stream--lifetime income streams 54

9B......... Meaning of asset‑test exempt income stream--life expectancy income streams      61

9BA...... Meaning of asset‑test exempt income stream--market‑linked income streams        68

9C......... Family law affected income streams ................................................. 74

9D......... Asset‑tested status of secondary FLA income streams ................... 74

10.......... Maintenance income definitions ....................................................... 75

10A....... Definitions for Seniors Health Card provisions ............................... 75

10B....... Family actual means test definitions ................................................ 86

11.......... Assets test definitions ........................................................................ 91

11A....... Principal home definition for the purpose of the assets test ........... 96

12.......... Retirement villages definitions ........................................................ 101

12A....... Granny flat definitions .................................................................... 103

12B....... Sale leaseback definitions ............................................................... 104

12C....... Special residence and residents definitions .................................... 106

13.......... Rent definitions ............................................................................... 107

14.......... Remote area definitions .................................................................. 112

14A....... Social security benefit liquid assets test definitions ......................... 113

15.......... NS activity test definitions ............................................................... 116

16.......... Industrial action definitions ............................................................ 117

16A....... Seasonal work definitions .............................................................. 118

16B....... Partial capacity to work ................................................................. 127

16C....... Meaning of applicable statutory conditions .................................... 129

17.......... Compensation recovery definitions ................................................ 130

17A....... Retirement assistance for farmers definitions ................................. 137

17B....... Retirement assistance for sugarcane farmers definitions ................ 141

18.......... Parenting payment definitions ........................................................ 146

19.......... Mobility allowance definitions ........................................................ 146

19A ....... Fares allowance definitions ............................................................. 146

19AA.... Fares allowance definitions ............................................................. 148

19AB.... Student Financial Supplement Scheme definitions ......................... 150

19B....... Financial hardship (Carer payment) liquid assets test definition ... 154

19C....... Severe financial hardship definitions .............................................. 155

19D....... Severe financial hardship--crisis payment definition .................... 160

19E........ Exempt funeral investments ........................................................... 162

20.......... Indexation and rate adjustment definitions ..................................... 163

21.......... Bereavement definitions ................................................................. 164

22.......... Review of decisions definitions ....................................................... 165

23.......... General definitions .......................................................................... 165

Part 1.3--Determinations having interpretative effect                                  194

24.......... Person may be treated as not being a member of a couple (subsection 4(2))           194

24A....... Approved scholarship .................................................................... 194

25.......... Refugee visas .................................................................................. 195

28.......... Approved programs of work for income support payment .......... 195

28A....... Approval of programs of assistance ............................................... 196

29.......... Approval of friendly societies ........................................................ 196

30.......... Approval of mental hospitals ......................................................... 196

31.......... Approval of follow‑up rehabilitation programs ............................. 197

32.......... Approval of sheltered employment--non‑profit organisation ...... 197

33.......... Approval of sheltered employment--supported employment ..... 197

35.......... Approval of care organisation ........................................................ 198

35A....... Personal Care Support .................................................................... 198

36.......... Major disaster ................................................................................. 198

37.......... Dependent child--inmate of a mental hospital .............................. 199

38B....... Notional continuous period of receipt of income support payments 200

38C....... Adult Disability Assessment Tool ................................................. 202

38D....... Child Disability Assessment Tool ................................................. 202

Part 1.4--Miscellaneous                                                                                                  204

39.......... Tables, calculators etc. form part of section ................................... 204

Chapter 2--Pensions, benefits and allowances                                                   206

Part 2.2--Age pension                                                                                                       206

Division 1--Qualification for and payability of age pension                  206

Subdivision A--Qualification                                                                                206

43.......... Qualification for age pension .......................................................... 206

Subdivision B--Payability                                                                                      207

44.......... Age pension not payable if pension rate nil ................................... 207

47.......... Multiple entitlement exclusion ....................................................... 207

47A....... Exclusion of certain participants in ABSTUDY Scheme ............... 209

Division 4--Rate of age pension                                                                         210

55.......... How to work out a person's age pension rate ................................ 210

Division 9--Bereavement payments                                                                 211

Subdivision A--Death of partner                                                                           211

82.......... Qualification for payments under this Subdivision ........................ 211

83.......... Continued payment of deceased partner's previous entitlement ... 213

84.......... Lump sum payable in some circumstances .................................... 213

85.......... Adjustment of person's age pension rate ....................................... 215

86.......... Effect of death of person entitled to payments under this Subdivision   215

87.......... Matters affecting payment of benefits under this Subdivision ...... 217

Subdivision C--Death of recipient                                                                        218

91.......... Death of recipient ........................................................................... 218

Part 2.2A--Pension bonus                                                                                               220

Division 1--Introduction                                                                                         220

92A....... Simplified outline ............................................................................ 220

92B....... Definitions ...................................................................................... 220

Division 2--Qualification for pension bonus                                                 222

92C....... Qualification for pension bonus ..................................................... 222

Division 3--Registration as a member of the pension bonus scheme 224

Subdivision A--Membership of the pension bonus scheme                             224

92D....... Application for registration ............................................................ 224

92E........ Form of application ........................................................................ 224

92F........ Relevant information ...................................................................... 224

92G....... Lodgment of application ................................................................. 225

92H....... Timing of application and registration ............................................ 225

92J........ Registration ..................................................................................... 227

92K....... Duration of membership ................................................................. 227

92L........ Cancellation of membership ........................................................... 228

92M...... Application for registration is not to be treated as a claim ............. 228

Subdivision B--Classification of membership of the pension bonus scheme 228

92N....... Accruing membership ..................................................................... 228

92P........ Non‑accruing membership--preclusion periods ............................ 229

92Q....... Non‑accruing membership--Secretary's discretion ....................... 229

92R....... Continuity of accruing membership is not broken by a period of non‑accruing membership 230

92S........ Post‑75 membership ....................................................................... 230

Division 4--Accrual of bonus periods                                                              231

92T....... Accrual of bonus periods ................................................................ 231

Division 5--Passing the work test                                                                     233

Subdivision A--The work test                                                                               233

92U....... Work test--full‑year period ........................................................... 233

92V....... Work test--part‑year period .......................................................... 234

92W...... Secretary's discretion to treat gainful work outside Australia as gainful work in Australia     235

Subdivision B--Gainful work                                                                                235

92X....... Gainful work--basic rule ................................................................ 235

92Y....... Secretary's discretion to treat activity as gainful work .................. 236

92Z....... Irregular, infrequent and minor absences from a workplace count as gainful work 236

93.......... Management of family financial investments does not count as gainful work         236

93A....... Domestic duties in relation to a person's place of residence do not count as gainful work     237

93B....... Evidentiary certificate ..................................................................... 238

Subdivision C--Record‑keeping requirements                                                  240

93C....... Record‑keeping requirements ......................................................... 240

Division 6--Amount of pension bonus                                                             243

93D....... How to calculate the amount of pension bonus ............................. 243

93E........ Qualifying bonus periods ............................................................... 243

93F........ Overall qualifying period ................................................................ 244

93G....... Pension multiple ............................................................................. 244

93H....... Annual pension rate ........................................................................ 244

93J........ Amount of pension bonus .............................................................. 245

93K....... Top up of pension bonus for increased rate of age pension ........... 247

93L........ Top up of pension bonus in specified circumstances .................... 248

Division 11--Preclusion periods                                                                         250

93U....... Disposal preclusion period--disposals before 1 July 2002 ........... 250

93UA.... Disposal preclusion period--disposals on or after 1 July 2002 .... 251

93V....... Compensation preclusion period .................................................... 251

93W...... Carer preclusion period .................................................................. 251

Division 12--Pension bonus bereavement payment                                252

93WA... Qualification for pension bonus bereavement payment ................. 252

93WB.... Amount of pension bonus bereavement payment .......................... 252

93WC.... Definition of PBBP employment income ......................................... 252

Part 2.2B--One‑off payments to the aged and older Australians            254

Division 1--One‑off payment to the aged                                                       254

93X....... One‑off payment to the aged .......................................................... 254

Division 2--2006 one‑off payment to older Australians                         255

93Y....... 2006 one‑off payment to older Australians ................................... 255

93Z....... Amount of the one‑off payment .................................................... 256

Division 3--2007 one‑off payment to older Australians                         258

93ZA.... 2007 one‑off payment to older Australians ................................... 258

93ZB..... Amount of the one‑off payment .................................................... 259

Division 4--2008 one‑off payment to older Australians                         260

93ZC..... 2008 one‑off payment to older Australians ................................... 260

93ZD.... Amount of the one‑off payment .................................................... 261

Part 2.3--Disability support pension                                                                        262

Division 1--Qualification for and payability of disability support pension             262

Subdivision A--Qualification                                                                                262

94.......... Qualification for disability support pension .................................. 262

94A....... Qualification for disability support pension--person transferring to that pension                 265

95.......... Qualification for disability support pension--permanent blindness 268

Subdivision B--Payability                                                                                      269

98.......... Disability support pension not payable if pension rate nil ........... 269

103........ Multiple entitlement exclusion ....................................................... 269

103A..... Exclusion of certain participants in ABSTUDY Scheme ............... 271

104........ Seasonal workers--preclusion period ............................................ 272

Division 5--Rate of disability support pension                                            274

117........ How to work out a person's disability support pension rate ........ 274

118........ Approved program of work supplement ....................................... 274

119........ Approved program of work supplement not payable in certain circumstances       274

120........ Effect of participation in an approved program of work for income support payment          275

Division 10--Bereavement payments                                                              276

Subdivision A--Death of partner                                                                           276

146F...... Qualification for payments under this Subdivision ........................ 276

146G..... Continued payment of deceased partner's previous entitlement ... 278

146H..... Lump sum payable in some circumstances .................................... 278

146J...... Adjustment of person's disability support pension rate ............... 280

146K..... Effect of death of person entitled to payments under this Subdivision   280

146L...... Matters affecting payment of benefits under this Subdivision ...... 282

Subdivision C--Death of recipient                                                                        283

146Q..... Death of recipient ........................................................................... 283

Part 2.4--Wife pension                                                                                                     284

Division 1A--Time limit on grant of wife pension                                     284

146V..... Wife pension not to be granted after 30 June 1995 ........................ 284

Division 1--Qualification for and payability of wife pension                 285

Subdivision A--Qualification                                                                                285

147........ Qualification for wife pension ........................................................ 285

Subdivision B--Payability                                                                                      285

148........ Wife pension not payable if pension rate nil .................................. 285

151........ Multiple entitlement exclusion ....................................................... 285

151A..... Exclusion of certain participants in ABSTUDY Scheme ............... 287

Division 4--Rate of wife pension                                                                        289

159........ How to work out the rate of wife pension ..................................... 289

Division 9--Bereavement payments                                                                 290

Subdivision A--Continuation of wife pension where partner dies                  290

186........ Continuation of wife pension for bereavement period ................... 290

187........ Continued wife pension rate ........................................................... 290

Subdivision B--Death of pensioner partner                                                        291

188........ Qualification for payments under this Subdivision ........................ 291

189........ Continued payment of partner's pension or allowance ................. 291

190........ Lump sum payable in some circumstances .................................... 292

191........ Effect of death of person entitled to payments under this Subdivision   293

192........ Matters affecting payment of benefits under this Subdivision ...... 295

Part 2.5--Carer payment                                                                                                 296

Division 1A--Interpretation                                                                                  296

197........ Definitions ...................................................................................... 296

Division 1--Qualification for and payability of carer payment             299

Subdivision A--Qualification                                                                                299

198........ Qualification for carer payment ...................................................... 299

198AAA Continuation of qualification when person receiving care admitted to institution   302

198AA.. Qualification for carer payment--hospitalisation .......................... 302

198AB.. Care not required to be in private residence during portability period 303

198AC.. Effect of cessation of care etc. on carer payment ........................... 303

198A..... Income test [see Appendix for CPI adjusted figures] ..................... 305

198B..... Taxable income ............................................................................... 305

198C..... Appropriate tax year ...................................................................... 307

198D..... Assets test [see Appendix for CPI adjusted figures] ..................... 310

198E...... Working out the value of assets ...................................................... 312

198F...... Disposal of assets--care receiver assets test ................................. 312

198G..... Amount of disposition--care receiver assets test .......................... 313

198H..... Disposal of assets in pre‑pension years--individual higher ADAT score adults    314

198HA.. Disposal of assets in pre‑pension years--profoundly disabled child or disabled children      315

198HB.. Disposal of assets in pre‑pension years--lower ADAT score adult and dependent child      316

198J...... Disposal of assets before 1 July 2002--individual higher ADAT score adults       317

198JA... Disposal of assets before 1 July 2002--profoundly disabled children or disabled children    318

198JB.... Disposal of assets before 1 July 2002--lower ADAT score adult and dependent child         319

198JC.... Disposal of assets in income year--individual higher ADAT score adults              321

198JD... Disposal of assets in 5 year period--individual higher ADAT score adults            322

198JE.... Disposal of assets in income year--profoundly disabled children 323

198JF.... Disposal of assets in 5 year period--profoundly disabled children 324

198JG... Disposal of assets in income year--lower ADAT score adult and dependent child                325

198JH... Disposal of assets in 5 year period--lower ADAT score adult and dependent child              326

198K..... Disposal of assets in pre‑pension years--members of couples including higher ADAT score adults    328

198L...... Disposal of assets before 1 July 2002--members of couples including higher ADAT score adults       330

198LA... Disposal of assets in income year--members of couples including higher ADAT score adults              331

198LB... Disposal of assets in 5 year period--members of couples including higher ADAT score adults            333

198M.... Certain dispositions to be disregarded for care receiver assets test 335

198MA. Other dispositions to be disregarded for care receiver assets test .. 335

198N..... Exemption from care receiver assets test [see Appendix for CPI adjusted figures]                 336

198P...... Date of effect of favourable decision under section 198N .............. 341

198Q..... Date of effect of adverse decision under section 198N .................. 343

Subdivision B--Payability                                                                                      343

199........ Carer payment not payable if payment rate nil ............................. 343

201AA.. Newly arrived resident's waiting period ........................................ 344

201AB.. Duration of newly arrived resident's waiting period ...................... 345

202........ Multiple entitlement exclusion ....................................................... 345

202A..... Exclusion of certain participants in ABSTUDY Scheme ............... 347

203........ Seasonal workers--preclusion period ............................................ 348

Division 4--Rate of carer payment                                                                    349

210........ How to work out a person's carer payment rate ........................... 349

Division 9--Bereavement payments                                                                 350

Subdivision A--Continuation of carer payment                                                 350

235........ Continuation of carer payment for bereavement period where person cared for dies              350

236........ Continued carer payment rate ........................................................ 351

236A..... Lump sum payable in some circumstances .................................... 351

236B..... Subdivision not to apply in certain cases involving simultaneous death 352

Subdivision B--Death of partner                                                                           352

237........ Qualification for payments under this Subdivision ........................ 352

238........ Continued payment of deceased partner's previous entitlement ... 354

239........ Lump sum payable in some circumstances .................................... 355

240........ Adjustment of person's carer payment rate ................................... 357

241........ Effect of death of person entitled to payments under this Subdivision   357

242........ Benefits under this Subdivision ...................................................... 359

243........ Subdivision not to apply in certain cases involving simultaneous death 360

Subdivision D--Death of recipient                                                                        360

246........ Death of recipient ........................................................................... 360

Part 2.5A--One‑off payments to carers eligible for carer payment       362

Division 1--One‑off payment to carers eligible for carer payment   362

247........ One‑off payment to carers (carer payment related) ....................... 362

248........ What is the amount of the payment? ............................................. 362

Division 2--2005 one‑off payment to carers eligible for carer payment                363

249........ 2005 one‑off payment to carers (carer payment related) ............... 363

250........ What is the amount of the payment? ............................................. 363

Division 3--2005 one‑off payment to carers eligible for carer service pension                364

251........ 2005 one‑off payment to carers (carer service pension related) ..... 364

252........ What is the amount of the payment? ............................................. 364

Division 4--2006 one‑off payment to carers eligible for carer payment                365

253........ 2006 one‑off payment to carers (carer payment related) ............... 365

254........ Amount of the one‑off payment .................................................... 365

Division 5--2006 one‑off payment to carers eligible for wife pension 366

255........ 2006 one‑off payment to carers (wife pension related) ................. 366

256........ Amount of the one‑off payment .................................................... 366

Division 6--2006 one‑off payment to carers eligible for partner service pension            367

257........ 2006 one‑off payment to carers (partner service pension related) . 367

258........ Amount of the one‑off payment .................................................... 367

Division 7--2006 one‑off payment to carers eligible for carer service pension                368

259........ 2006 one‑off payment to carers (carer service pension related) ..... 368

260........ Amount of the one‑off payment .................................................... 368

Division 8--2007 one‑off payment to carers eligible for carer payment                369

261........ 2007 one‑off payment to carers (carer payment related) ............... 369

262........ Amount of the one‑off payment .................................................... 369

Division 9--2007 one‑off payment to carers eligible for wife pension 370

263........ 2007 one‑off payment to carers (wife pension related) ................. 370

264........ Amount of the one‑off payment .................................................... 370

Division 10--2007 one‑off payment to carers eligible for partner service pension         371

265........ 2007 one‑off payment to carers (partner service pension related) . 371

266........ Amount of the one‑off payment .................................................... 371

Division 11--2007 one‑off payment to carers eligible for carer service pension              372

267........ 2007 one‑off payment to carers (carer service pension related) ..... 372

268........ Amount of the one‑off payment .................................................... 372

Division 12--2008 one‑off payment to carers eligible for carer payment              373

269........ 2008 one‑off payment to carers (carer payment related) ............... 373

270........ Amount of the one‑off payment .................................................... 373

Division 13--2008 one‑off payment to carers eligible for wife pension 374

271........ 2008 one‑off payment to carers (wife pension related) ................. 374

272........ Amount of the one‑off payment .................................................... 374

Division 14--2008 one‑off payment to carers eligible for partner service pension         375

273........ 2008 one‑off payment to carers (partner service pension related) . 375

274........ Amount of the one‑off payment .................................................... 375

Division 15--2008 one‑off payment to carers eligible for carer service pension              376

275........ 2008 one‑off payment to carers (carer service pension related) ..... 376

276........ Amount of the one‑off payment .................................................... 376

Part 2.7--Bereavement allowance                                                                             377

Division 1--Qualification for and payability of bereavement allowance 377

Subdivision A--Qualification                                                                                377

315........ Qualification for bereavement allowance ........................................ 377

Subdivision B--Payability                                                                                      378

316........ Bereavement allowance not payable if allowance rate nil ............... 378

321........ Multiple entitlement exclusion ....................................................... 378

321A..... Exclusion of certain participants in ABSTUDY Scheme ............... 379

Division 4--Rate of bereavement allowance                                                381

329........ How to work out a person's bereavement allowance rate .............. 381

Division 9--Bereavement payments                                                                 382

Subdivision B--Death of recipient                                                                        382

359........ Death of recipient ........................................................................... 382

Part 2.8--Widow B pension                                                                                            383

Division 1--Qualification for and payability of widow B pension        383

Subdivision A--Qualification                                                                                383

362A..... Widow B pension not to be granted in certain cases ...................... 383

362........ Qualification for widow B pension ................................................ 383

Subdivision B--Payability                                                                                      386

364........ Widow B pension not payable if pension rate nil .......................... 386

368........ Multiple entitlement exclusion ....................................................... 386

368A..... Exclusion of certain participants in ABSTUDY Scheme ............... 387

Division 4--Rate of widow B pension                                                               388

376........ How to work out the rate of widow B pension ............................. 388

Division 9--Bereavement payments                                                                 389

Subdivision B--Death of recipient                                                                        389

407........ Death of recipient ........................................................................... 389

Part 2.8A--Widow allowance                                                                                        390

Division 1--Time limit on grants of widow allowance                              390

408AA.. Time limit on grants ........................................................................ 390

Division 2--Qualification for and payability of widow allowance         391

Subdivision A--Qualification                                                                                391

408BA.. Qualification for widow allowance ................................................. 391

408BB... Assurance of support ..................................................................... 392

Subdivision B--Payability                                                                                      392

408CA.. Widow allowance not payable if allowance rate nil ........................ 392

408CE... Assets test--allowance not payable if assets value limit exceeded [see Appendix for CPI adjusted figures]         393

408CF... Multiple entitlement exclusion ....................................................... 393

408CG.. Maximum basic rate and remote area allowance not payable to CDEP Scheme participant    395

408CH.. Seasonal workers ............................................................................ 395

Division 5--Rate of widow allowance                                                                397

408FA... How to work out a woman's widow allowance rate ...................... 397

408GI.... CDEP Scheme participant may accumulate widow allowance ....... 397

Part 2.10--Parenting payment                                                                                      398

Division 1--Qualification for and payability of parenting payment    398

Subdivision A--Qualification                                                                                398

500........ Qualification for parenting payment .............................................. 398

500A..... Participation requirements .............................................................. 399

500B..... Qualification affecting member of couple--assurance of support . 399

500C..... Qualification affecting member of couple--unemployment due to industrial action               399

500D..... PP child ........................................................................................... 400

500E...... Prospective determinations for some recipients ............................. 401

Subdivision AA--Parenting payment transitional arrangement                    402

500F...... When a person is covered by the parenting payment transitional arrangement       402

500G..... When determinations are taken to be in force ................................. 404

500H..... The effect of cancellation ................................................................ 405

Subdivision B--General principles relating to payability                                405

500I....... Parenting payment not payable if payment rate nil ....................... 405

500J...... Situations where payment not payable for failure to comply with certain requirements        405

500Q..... Assets test--payment not payable if assets value limit exceeded [see Appendix for CPI adjusted figures]           406

500S...... Multiple entitlement exclusion ....................................................... 408

500V..... Educational schemes exclusion--person member of a couple ........ 409

500VA.. Exclusion of certain participants in ABSTUDY Scheme ............... 409

500W.... Maximum basic rate and remote area allowance not payable to CDEP Scheme participant who is a member of a couple ........................................................................................................ 410

500Z..... Seasonal workers--preclusion period ............................................