SOCIAL SECURITY ACT 1991 - SECT 1067L Rate of austudy payment

(1) The rate of austudy payment of a person referred to in section 581 is to be calculated in accordance with the Rate Calculator in this section.

(a) a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person (whether the persons are the same sex or different sexes); and

(b) the other person is under the age of consent that applies in the State or Territory in which they are living;

the rate of the person's austudy payment is not to be more than the rate at which the austudy payment would be payable to the person if the other person were the person's partner.

1067L-A1 The rate of payment is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

The person's maximum basic rate is the amount in column 3 of the table that corresponds to the person's situation as described in column 2 of the table.

Table BA--Maximum basic rates (persons who are not long term income support students)
1	Does not have a dependent child or a YA child	$281.10
2	Is a member of a couple and has a dependent child	$308.70
3	Is not a member of a couple and has a dependent child or YA child	$368.30

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191- 1194).

"YA child" , in relation to a person who is not a member of a couple, means a child who is receiving youth allowance, is under 18 years of age and would be a dependent child of the person if he or she were not receiving the allowance.

The person's maximum basic rate is the amount in column 3 of the table that corresponds to the person's situation as described in column 2 of the table.

Table BB--Maximum basic rates (persons who are long term income support students)
1	Is a member of a couple	$308.70
2	Is not a member of a couple	$341.40

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

(a) if an election by the person under subsection 1061VA(1) is in force--the amount worked out under point 1067L-BA4; and

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

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 %
1	Not member of couple	66.33%
2	Partnered	50%
3	Member of illness separated couple	66.33%
4	Member of respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For combined couple rate of pension supplement , see subsection 20A(1).

(a) work out the amount for the person under point 1067L-BA3 as if the election were not in force;

1067L-C1 Subject to points 1067L-C1A and 1067L-C2, an amount by way of pharmaceutical allowance is to be added to a person's maximum basic rate if:

(c) the person has been receiving income support payments in respect of a continuous period of at least 9 months (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this paragraph).

Note 2: For the determination of the continuous period in respect of which a person received income support payments see section 38B.

No pharmaceutical allowance if partner receiving veterans supplement or MRCA supplement and not a service pensioner

1067L-C2 Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

1067L-C3 The amount of pharmaceutical allowance is the amount per fortnight worked out using the following table:

Table C--Pharmaceutical allowance amounts
1	Not a member of a couple	$5.40
2	Partnered	$2.70
3	Member of an illness separated couple	$5.40
4	Member of a respite care couple	$5.40
5	Partnered (partner getting service pension)	$2.70
6	Partnered (partner in gaol)	$5.40

Note 2: The amounts in column 3 are indexed or adjusted annually in line with CPI increases on 1 January (see sections 1191 to 1194 and 1206A).

Note 2: The application of the income test is affected by provisions concerning the following:

(b) as a result the person is entitled to a lump sum payment from the person's former employer;

the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.

(b) as a result the person is entitled to a lump sum payment from the person's former employer; and

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

(c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;

(b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

1067L-D8 If the person is covered by point 1067L-D5, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

1067L-D9 Subject to point 1067L-D10A, if the person is covered by point 1067L-D6, the income maintenance period starts, subject to point 1067L-D10, on the day on which the person is paid the termination payment.

(a) a person who is covered by point 1067L-D6 is subject to an income maintenance period (the first period ); and

(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.

1067L-D12 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

1067L-D13 For the purposes of points 1067L-D4 to 1067L-D12 (inclusive), a person ( first person ) is taken to receive a leave payment or termination payment if:

1067L-D14 If a person who is covered by point 1067L-D6 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1067L-D5 to 1067L-D13 (inclusive):

(a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and

(b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

"payment fortnight" means a fortnight in respect of which an austudy payment is paid, or would be paid apart from the application of an income maintenance period, to a person.

(b) if the payment is a redundancy payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the redundancy) have received from the employment that was terminated--the period for which the person would have received that amount of ordinary income; or

(c) if the payment is a redundancy payment and paragraph (b) does not apply--the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the redundancy payment if:

(a) a leave payment relating to a person's employment that has been terminated; or

"leave payment" includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.

1067L-D17 Subject to point 1067L-D18 (and despite paragraph 8(8)(z)), a person's ordinary income for the purposes of this Module includes a periodical payment or benefit by way of gift or allowance from a parent, child, brother or sister of the person.

1067L-D18 A person's ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.

1067L-D19 Subject to points 1067L-D20, 1067L-D21, 1067L-D23 and 1067L-D24 and section 1073, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

1067L-D20 If a person whose claim for austudy payment has been granted receives, after the claim was made, a lump sum amount that:

the person is, for the purposes of this Module, taken to receive one fifty-second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.

(b) after the person has made the claim, the person's partner receives a lump sum amount that:

the partner is, for the purposes of this Module, taken to receive one fifty-second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.

1067L-D22 Points 1067L-D20 and 1067L-D21 have effect even if the person who has made the claim:

(b) each payment is in respect of a period ( work period ) that is greater than a fortnight; and

the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by:

(e) dividing the amount received by the number of days in the work period ( daily rate ); and

(f) multiplying the daily rate by the number of days in the fortnight that are also within the work period.

(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving an austudy payment; and

(b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by:

(d) multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.

(a) if the person's partner is not receiving a social security benefit and has not turned 21--the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full-time study (see section 541B); or

(b) if the person's partner is not receiving a social security benefit and has turned 21--the amount of income of the partner (rounded up to the nearest dollar) beyond which newstart allowance would not be payable to the partner if the partner were qualified for a newstart allowance; or

(c) if the person's partner is receiving a social security benefit--the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.

(e) the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area.

1067L-D27 If a person has a partner income excess, the person's partner income reduction is an amount equal to 60% of the person's partner income excess.

Facts: Alice's partner Martin has an ordinary income of $800. Assume that the partner income free area under point 1067L-D25 is $640.

Result: Martin's ordinary income exceeds the partner income free area. Alice therefore has a partner income excess under point 1067L-D26 of:

1067L-D31 The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed $80.

1067L-D32 The person's upper range reduction is an amount equal to 60% of the part (if any) of the person's ordinary income excess that exceeds $80.

1067L-E1 A person's ordinary income under Module D may be reduced under this Module. This diagram sets out how to work out:

(a) whether the person's ordinary income for a particular fortnight in respect of which austudy payment may be payable to the person, is to be reduced; and

1067L-E2 A person's income bank credit for a particular income bank fortnight of the person is to be worked out as follows:

1067L-E3 For the purposes of point 1067L-E2, if the amount that would, apart from this Module, be the person's ordinary income for an income bank fortnight of the person is less than $236:

(b) the income credit is an amount equal to the difference between $236 and the first-mentioned amount.

1067L-E4 For the purposes of point 1067L-E2, if the amount that would, apart from this Module, be the person's ordinary income for an income bank fortnight of the person is greater than $236:

(a) the person is taken to have drawn from the person's income bank credit in respect of that fortnight; and

(b) the amount drawn is taken to be an amount equal to the difference between the first-mentioned amount and $236.

1067L-E5 For the purposes of this Module, an income bank fortnight of a person is any fortnight in respect of which an austudy payment may be payable to the person.

(b) the person had a working credit balance greater than nil immediately before the date of effect of the determination or cancellation; and

(d) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (b); and

(e) the person becomes a person to whom this Module applies on a day (the module application day ), being either the day with effect from which the claim is granted or a day following that day; and

the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following suspension and subsequent cancellation of another social security pension or benefit

(b) while the person's pension or benefit is suspended, there is a determination to cancel the person's pension or benefit; and

(c) the person had a working credit balance greater than nil immediately before the date of effect of the suspension determination; and

(d) the person makes a claim, or is taken to have made a claim, for an austudy payment; and

(e) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (c); and

(f) the person becomes a person to whom this Module applies on a day (the module application day ), being either the day with effect from which the claim is granted or a day following that day; and

the working credit balance mentioned in paragraph (c) becomes the opening balance of the income bank credit applicable to the person on the module application day.

1067L-F1 An amount by way of remote area allowance is to be added to a person's rate of austudy payment if:

(a) the person's rate of austudy payment apart from this point is greater than nil; and

1067L-F2 A person's rate of remote area allowance is worked out using Table F. Work out which family situation in the table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus the additional corresponding amount in column 4 for each FTB child, and each regular care child, of the person.

Table F--Remote area allowance
1	Not a member of a couple	$18.20	$7.30
2	Partnered	$15.60	$7.30
3	Member of an illness separated couple	$18.20	$7.30
4	Partnered (partner in gaol)	$18.20	$7.30

1067L-F3 In Table F, remote area allowance means an amount added to a person's austudy payment by way of remote area allowance.

Special rule if partner has an FTB or regular care child but is not receiving a pension

(a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule if partner has an FTB or regular care child but is not receiving additional allowance for the child

(a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

1067L-F9 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.

This compilation was prepared on 1 March 2012
taking into account amendments up to Act No. 179 of 2011

Volume 3 includes:     Table of Contents
                                    Sections 1068 - 1361A
                                    Schedule 1A

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Contents

Chapter 3--General provisions relating to payability and rates i

Part 3.6--Benefit Rate Calculator B 1

1068...... Rate of widow allowance, Newstart allowance (18 or over) sickness allowance (18 or over) partner allowance, and mature age allowance under Part 2.12B .............................................. 1

Benefit Rate Calculator B 2

Module A--Overall rate calculation process 2

Module B--Maximum basic rate [ see Appendix for CPI adjusted
figures] 4

Module BA--Pension supplement 10

Module D--Pharmaceutical allowance [see Appendix for CPI adjusted figures] 11

Module G--Income test 15

Module J--Remote area allowance 29

Part 3.6A -- Parenting Payment Rate Calculator 32

1068A... Rate of parenting payment--pension PP (single) .............................. 32

Pension PP (Single) Rate Calculator 32

Module A -- Overall rate calculation process 32

Module B--Maximum basic rate [ see Appendix for CPI adjusted
figures] 34

Module BA--Pension supplement 34

Module C -- Pharmaceutical allowance [ see Appendix for CPI adjusted figures] 35

Module E -- Ordinary income test 37

Module F -- Remote area allowance 44

1068B... Rate of parenting payment--PP (partnered) ...................................... 45

Benefit PP (Partnered) Rate Calculator 45

Module A--Overall rate calculation process 45

Module C -- Maximum basic rate [ see Appendix for CPI adjusted figures] 48

Module D -- Income test 49

Module DA--Pension supplement 57

Module E -- Pharmaceutical allowance [ see Appendix for CPI adjusted figures] 58

Module G -- Remote area allowance 62

Part 3.7--Rent assistance 65

Division 1--Operation of this Part 65

1070...... When this Part applies ....................................................................... 65

1070A... Effect of this Part .............................................................................. 65

Division 2--Qualification for rent assistance 66

1070B... Qualification--general rule ............................................................... 66

1070C... Common requirements (about aged care residence, home ownership and rent) 66

1070D... Specific requirement (carer payments and certain age, disability support and wife pensions) 66

1070E.... Specific requirement (bereavement allowance, widow B pension and certain parenting payments) 67

1070F.... Specific requirement (certain disability support pensions) ................ 68

1070G... Specific requirement (youth allowance) ............................................ 70

1070H... Specific requirement (austudy payment, mature age allowance under Part 2.12B, newstart allowance, partner allowance, sickness allowance or widow allowance) .......................................... 71

1070J.... Specific requirement (certain parenting payments) ............................ 73

Division 3--Rate of rent assistance 74

1070K... Rate depends on social security payment and family situation .......... 74

1070L.... Rate for carer payments and certain age, disability support and wife pensions 74

1070M.. Rate for bereavement allowance, widow B pension and certain parenting payments 77

1070N... Rate for disability support pension (person aged under 18) .............. 78

1070P.... Rate for disability support pension (person aged between 18 and 21) 81

1070Q... Rate for youth allowance, austudy payment, mature age allowance under Part 2.12B, newstart allowance, partner allowance, sickness allowance and widow allowance ....................... 84

1070R... Rate for certain parenting payments .................................................. 86

Division 4--Certain concepts used in this Part 88

1070S.... Division has effect for purposes of Part ............................................ 88

1070T.... Rent threshold amount ...................................................................... 88

1070U... Fortnightly rent ................................................................................. 88

1070V... Rent paid by a member of certain couples ......................................... 89

1070W.. Partner with a rent increased pension ................................................ 89

1070X... Partner with a rent increased benefit .................................................. 89

Division 5--Transitional indexation of rent assistance and rent threshold amounts 92

1070Y... Indexation of certain amounts for CPI increases before commencement 92

Part 3.9--Seniors Health Card Taxable Income Test Calculator 93

1071...... Seniors Health Card Taxable Income Test Calculator ....................... 93

Seniors Health Card Taxable Income Test Calculator 93

Part 3.9A--Health Care Card Income Test Calculator 98

1071A... Health care card income test .............................................................. 98

Health Care Card Income Test Calculator 98

Part 3.10--General provisions relating to the ordinary income test 102

Division 1--Ordinary income concept 102

1072...... General meaning of ordinary income .............................................. 102

1073...... Certain amounts taken to be received over 12 months ..................... 102

Division 1AAA--Work bonus 104

1073AA Work bonus .................................................................................... 104

1073AB Unused concession balance ............................................................. 107

Division 1AA--Employment income attribution rules 108

1073A... Employment income attribution over a period for social security pensioners 108

1073B... Daily attribution of employment income ......................................... 108

1073C... Fortnightly or yearly expression of attributed employment income . 109

Division 1AB--Working credit accrual and depletion rules and their consequences 110

1073D... To whom do working credit accrual and depletion rules apply? ...... 110

1073E.... Opening balance .............................................................................. 110

1073F.... Working out accruals and depletions of working credit for social security beneficiaries 113

1073G... Working out the effect of a working credit depletion on the fortnightly rate of ordinary income for a social security beneficiary ....................................................................................... 115

1073H... Working out accruals and depletions of working credit for social security pensioners 115

1073I..... Working out the effect of a working credit depletion on the yearly rate of ordinary income for a social security pensioner ........................................................................................................ 117

1073J.... Working credit balance prevents loss of qualification in certain cases 118

Division 1A--Business income 120

1074...... Ordinary income from a business--treatment of trading stock ....... 120

1075...... Permissible reductions of business income ..................................... 120

Division 1B--Deemed income from financial assets 122

1076...... Deemed income from financial assets--persons other than members of couples 122

1077...... Deemed income from financial assets--members of pensioner couples .. 123

1078...... Deemed income from financial assets--members of non-pensioner couples 124

1081...... Deeming threshold .......................................................................... 125

1082...... Below threshold rate, above threshold rate ...................................... 126

1083...... Actual return on financial assets not treated as ordinary income ..... 126

1084...... Certain money and financial investments not taken into account ..... 127

1084A... Valuation and revaluation of certain financial investments .............. 127

Division 1C--Income from income streams 128

Subdivision B--Income streams that are not family law affected income streams 128

1097A... Scope of Subdivision ...................................................................... 128

1098...... Income from asset-test exempt income stream ................................ 128

1099...... Income--income stream not a defined benefit income stream ......... 128

1099A... Income--income stream is a defined benefit income stream ........... 129

1099AA Income from market-linked asset-test exempt income stream .......... 129

1099B... Income from asset-tested income stream (long term) ...................... 131

1099C... Income--income stream not a defined benefit income stream ......... 131

1099D... Income--income stream is a defined benefit income stream ........... 132

1099DAAIncome from certain low-payment asset-tested income
streams ............................................................................................ 133

Subdivision C--Family law affected income streams 134

1099DA Scope of Subdivision ...................................................................... 134

1099DB Income from asset-test exempt income streams ............................... 135

1099DC Income from asset-tested income stream (long term) ...................... 135

1099DD Decision-making principles ............................................................. 135

Division 1D--Aged care accommodation bonds: certain transactions before 6 November 1997 136

1099E.... Scope of Division ........................................................................... 136

1099F.... Exempt bond amount does not count as income .............................. 137

1099G... Person's ordinary income reduced using financial asset rules ......... 137

1099H... Meaning of exempt bond amount .................................................... 137

Division 1E--Refunds to charge exempt residents 139

1099J.... Scope of Division ........................................................................... 139

1099K... Refunded amount does not count as income ................................... 139

1099L.... Person's ordinary income reduced using financial asset rules ......... 139

1099M.. Application of Division ................................................................... 140

Division 2--Conversion of foreign currency amounts 141

1100...... How value of a payment received in a foreign currency is to be determined 141

1100A... Determining value of a payment originally denominated in a foreign currency but made in Australian currency 142

Division 3--Disposal of ordinary income 144

1106...... Disposal of ordinary income ........................................................... 144

1107...... Amount of disposition .................................................................... 145

1108...... Disposal of ordinary income--individuals ...................................... 145

1109...... Disposal of ordinary income--members of couples ....................... 146

1111...... Dispositions more than 5 years old to be disregarded ..................... 147

Part 3.12--General provisions relating to the assets test 149

Division 1--Value of person's assets 149

1118...... Certain assets to be disregarded in calculating the value of a person's assets 149

1118B... Value of superannuation investments determined by Minister to be disregarded 156

1118AA Value of assets reduced by amounts received from Mark Fitzpatrick Trust 157

1118AB Value of person's assets reduced: certain transactions to do with aged care accommodation bonds 158

1118AC Value of person's assets reduced: refunds to charge exempt residents 158

1119...... Value of asset-tested income streams that are not defined benefit income streams 158

1120...... Value of asset-tested income streams that are defined benefit income streams 159

1120A... Value of asset-tested FLA income streams ..................................... 160

1120B... Value of partially asset-test exempt income streams ........................ 160

1120C... Value of superannuation reserves for superannuation funds of 4 members or less 161

1121...... Effect of charge or encumbrance on value of assets ........................ 161

1121A... Effect of certain liabilities on value of assets used in primary production 162

1122...... Loans .............................................................................................. 163

Division 2--Disposal of assets 164

1123...... Disposal of assets ........................................................................... 164

1124...... Amount of disposal or disposition .................................................. 165

1124A... Disposal of assets in pre-pension years--individuals ..................... 166

1125...... Disposal of assets in pension years--individuals ........................... 167

1125A... Disposal of assets in pre-pension years--members of couples ....... 167

1126...... Disposal of assets in pension years--members of couples ............. 170

1126AA Disposal of assets in income year--individuals .............................. 172

1126AB Disposals of assets in 5 year period--individuals ........................... 172

1126AC Disposal of assets in income year--members of couples ................ 173

1126AD Disposal of assets in 5 year period--members of couples .............. 175

1126A... Disposal of assets in pre-pension year--family members ............... 176

1126B... Disposal of assets in pension year--family members ..................... 178

1126C... Disposal of assets in income year--family members ...................... 179

1126D... Disposals of assets in 5 year period--family members ................... 180

1126E.... Modification of this Division in respect of certain assets ................ 181

1127...... Disposition more than 5 years old to be disregarded ....................... 183

1127A... Division does not apply for purposes of care receiver assets test .... 183

Division 3--Financial hardship 184

1129...... Access to financial hardship rules--pensions ................................. 184

1130...... Application of financial hardship rules--pensions .......................... 185

1130A... Division does not apply for purposes of care receiver assets test .... 188

1130B... Access to financial hardship rules--pension PP (single) ................ 188

1130C... Application of financial hardship rules--pension PP (single) ......... 189

1131...... Access to financial hardship rules--benefits ................................... 191

1132...... Application of financial hardship rules--benefits ........................... 192

Division 4--Pension loans scheme 195

1133AA Pension loans scheme definitions ................................................... 195

1133...... Qualification for participation in pension loans scheme .................. 195

1134...... Effect of participation in pension loans scheme--pension or allowance rate 197

1135...... Effect of participation in pension loans scheme--creation of debt .. 198

1135A... Effect of participation in pension loans scheme--maximum loan available 199

1136...... Need for a request to participate ...................................................... 201

1137...... Need for a request to later nominate or change guaranteed amount or rate of pension or allowance 202

1138...... Existence of debt results in charge over real assets ......................... 203

1139...... Debt not to be recovered until after death ........................................ 204

1140...... Enforcement of charge .................................................................... 205

1141...... Person ceases to participate in pension loans scheme if debt exceeds maximum loan available 205

1142...... Person withdraws from pension loans scheme ............................... 206

1142A... Repayment or recovery of debt after pension loans scheme ceases to operate because debt exceeds maximum loan available or person withdraws ......................................................... 206

1143...... Registration of charge ..................................................................... 207

1144...... Manner of enforcement of charge ................................................... 207

1144A... Division does not apply for purposes of care receiver assets test .... 208

Division 5--Provisions relating to special residences and special residents 209

Subdivision A--General 209

1145A... Application of Division to granny flat residents .............................. 209

1146...... Basis for different treatment ............................................................ 209

1147...... Entry contribution ........................................................................... 209

1148...... Extra allowable amount ................................................................... 211

1149...... Renegotiation of retirement village agreement ................................. 213

Subdivision B--Residents who are not members of a couple 213

1150...... Residents who are not members of a couple ................................... 213

Subdivision C--Residents who are members of couple and share principal home 214

1151...... Members of couples ........................................................................ 214

Subdivision D--Residents who are members of illness separated couple 215

1152...... Members of illness separated couples (both in special residences) [ see Appendix for CPI adjusted figures] 215

1153...... Members of illness separated couples (partner not in special residence and partner homeowner) 218

1154...... Members of illness separated couples (partner not in special residence and partner not homeowner) [ see Appendix for CPI
adjusted figures] .............................................................................. 219

Subdivision E--Residents who are members of ordinary couple with different principal homes 221

1155...... Members of ordinary couple with different principal homes (both in special residences) 221

1156...... Members of ordinary couple with different principal homes (partner not in special residence and partner homeowner) ........................................................................................................ 222

1157...... Members of ordinary couple with different principal homes (partner not in special residence and partner not homeowner) ........................................................................................................ 223

Part 3.12A--Provisions for Seniors Health Card taxable income test 225

Division 1--Purpose of this Part 225

1157A... Purpose of Part ............................................................................... 225

Division 2--Benefits that may be assessable fringe benefits 226

1157B... Benefits received in or outside Australia ......................................... 226

1157C... Car benefits ..................................................................................... 226

1157D... Exempt car benefits ......................................................................... 228

1157E.... School fees benefits ........................................................................ 228

1157F.... Health insurance benefits ................................................................ 230

1157G... Loan benefits ................................................................................... 231

1157H... Exempt loan benefit ......................................................................... 233

1157I..... Housing benefits ............................................................................. 233

1157J.... Exempt housing benefits--live-in residential care workers ............. 235

1157JA. Expense benefits ............................................................................. 236

1157JB.. Exempt expense benefit ................................................................... 236

1157JC.. Financial investment benefit ............................................................ 237

Division 3--Value of car fringe benefits 238

1157K... Method of valuing car fringe benefits ............................................. 238

1157L.... Value of car fringe benefits ............................................................. 238

1157M.. Minister may determine alternative method of valuing car fringe benefits 240

Division 4--Value of school fees fringe benefits 241

1157N... Value of school fees fringe benefits ................................................ 241

Division 5--Value of health insurance fringe benefits 242

1157O... Value of health insurance fringe benefits ........................................ 242

Division 6--Value of loan fringe benefits 243

1157P.... Method of valuing loan fringe benefits ........................................... 243

1157Q... Value of loan fringe benefits ........................................................... 243

1157R... Minister may determine alternative method of valuing loan fringe benefits 245

Division 7--Value of housing fringe benefits 247

Subdivision A--Grants of housing rights 247

1157S.... Methods of valuing housing fringe benefits--grants of housing rights 247

1157T.... Value of grants of housing rights--general .................................... 247

1157TA. Value of grants of housing rights--employees of the Defence Force 249

Subdivision B--Payments associated with loans 251

1157TB. Method of valuing housing fringe benefits--payments associated with loans 251

1157TC. Value of payments associated with loans ........................................ 252

Subdivision C--Payments associated with enjoying housing rights 252

1157TD. Methods of valuing housing fringe benefits--payments associated with enjoying housing rights 252

1157TE. Value of payments associated with enjoying housing rights--general 253

1157TF. Value of payments associated with enjoying housing rights--employees of the Defence Force 255

Subdivision D--Alternative methods of valuing housing fringe benefits 257

1157U... Minister may determine alternative method of valuing housing fringe benefits 257

Division 8--Value of expense fringe benefit 258

1157UA Value of expense fringe benefits ..................................................... 258

Division 9--Value of financial investment fringe benefit 259

1157UB Value of financial investment fringe benefit .................................... 259

Division 8--Foreign currency rates 260

1157V... Foreign currency rates ..................................................................... 260

Part 3.13--Imprisonment 261

1158...... Some social security payments not payable during period in gaol or in psychiatric confinement following criminal charge ........................................................................................................ 261

1159...... Payment may be redirected to dependent partner or child ................ 261

1159A... Person not qualified for some concession cards when in gaol or in psychiatric confinement following criminal charge ........................................................................................................ 262

Part 3.14--Compensation recovery 263

Division 1--General 263

1160...... General effect of Part ...................................................................... 263

1161...... Application of Part .......................................................................... 263

1161A... Application of Part to supplementary compensation affected payments 265

1162...... Part to bind Crown .......................................................................... 268

1163...... Interpretation ................................................................................... 268

1164...... Certain lump sums to be treated as though they were received as periodic compensation payments 268

1165...... Effect of certain State and Territory laws ........................................ 269

Division 2--Enforcement of compensation rights 270

1166...... Secretary may require person to take action to obtain compensation 270

1167...... Failure to comply with a requirement to take action to obtain compensation 271

Division 3--Receipt of compensation 272

1168...... Application ...................................................................................... 272

1169...... Compensation affected payment not payable during lump sum preclusion period 272

1170...... Lump sum preclusion period ........................................................... 272

1171...... Deemed lump sum payment arising from separate payments .......... 273

1172...... Lump sum compensation not counted as ordinary income .............. 274

1173...... Effect of periodic compensation payments on rate of person's compensation affected payment 274

1174...... Effect of periodic compensation payments on rate of partner's compensation affected payment 275

1175...... Rate reduction under both income/assets test and this Part .............. 276

1176...... Periodic compensation not counted as ordinary income .................. 276

Division 4--Recoverable amounts 277

Subdivision A--Preliminary 277

1177...... Interpretation ................................................................................... 277

Subdivision B--Recovery from recipient of compensation affected payment 277

1178...... Repayment of amount where both lump sum and payments of compensation affected payment have been received ........................................................................................................ 277

1179...... The section 1178 recoverable amount ............................................. 278

1180...... Repayment where both periodic compensation payments and payments of compensation affected payment have been received ........................................................................................... 278

1181...... The section 1180 recoverable amount ............................................. 278

Subdivision C--Recovery from compensation payers and insurers 279

1182...... Secretary may send preliminary notice to potential compensation payer or insurer 279

1183...... Potential compensation payer or insurer must notify Secretary of liability 280

1184...... Secretary may send recovery notice to compensation payer or insurer 281

1184A... The section 1184 recoverable amount ............................................. 282

1184B... Preliminary notice or recovery notice suspends liability to pay compensation 285

1184C... Compensation payer's or insurer's payment to Commonwealth discharges liability to compensation claimant 285

1184D... Offence to make compensation payment after receiving preliminary notice or recovery notice 286

1184E.... Liability of compensation payer or insurer to pay the Commonwealth if there is a contravention of section 1184D ........................................................................................................ 287

Division 5--Recoverable debts 288

1184F.... Debts resulting from notices under section 1178 or 1180 ............... 288

1184G... Debts resulting from notices under section 1184 ............................ 288

1184H... Debts resulting from contravention of section 1184D ..................... 288

1184I..... Compensation arrears debts ............................................................ 288

Division 6--Miscellaneous 289

1184J.... Secretary may give recovery notice either to compensation payer or to insurer but not to both 289

1184K... Secretary may disregard some payments ......................................... 289

1184L.... Application to review compensation decision--disability support pension 290

1185...... Special provision for certain recipients of dependency-based payments .. 290

Part 3.14A--Retirement assistance for farmers 292

Division 1--General 292

1185A... Purpose of Part ............................................................................... 292

1185AA Applicable cut-off date .................................................................... 292

1185AB Pre-assessment request ................................................................... 293

1185B... Part to apply to certain transfers of estates in farms etc. .................. 294

1185C... How to assess the value of farms etc. subject to a transfer .............. 297

Division 2--Modification of provisions relating to assets test 299

1185D... Transfer of estate in farm etc. not disposal of an asset .................... 299

Division 4--Requests for increase in rate of social security payment 301

1185F.... Application ...................................................................................... 301

1185G... Request for increase ........................................................................ 301

1185H... Form of request ............................................................................... 301

1185J.... Determination of request ................................................................. 301

Division 5--Farmers' income test 303

1185K... Does a person satisfy the farmers' income test? .............................. 303

Division 6--Transitional: ex gratia payments 308

1185L.... Ex gratia payments .......................................................................... 308

Part 3.14B--Retirement assistance for sugarcane farmers 309

Division 1--General 309

1185M.. Purpose of Part ............................................................................... 309

1185N... RASF commencement and closing days ......................................... 309

1185P.... Applicable cut-off date .................................................................... 309

1185Q... Pre-assessment request ................................................................... 310

1185R... Part to apply to certain transfers of estates in sugarcane farms etc. . 311

1185S.... How to assess the total net value of sugarcane farms etc. subject to a transfer 315

Division 2--Modification of provisions relating to assets test 318

1185T.... Transfer of estate in sugarcane farm etc. not disposal of an asset .... 318

Division 3--Requests for increase in rate of social security payment 320

1185U... Application ...................................................................................... 320

1185V... Request for increase ........................................................................ 320

1185W.. Form of request ............................................................................... 320

1185X... Determination of request ................................................................. 320

Division 4--Sugarcane farmers' income test 322

1185Y... Does a person satisfy the sugarcane farmers' income test? ............. 322

Part 3.15--New Enterprise Incentive Scheme 327

1186...... General effect of Part ...................................................................... 327

1187...... Reduction in rate of payments under this Act if recipient or partner also receiving payments under New Enterprise Incentive Scheme (NEIS) ................................................................ 327

1188...... Rate reduction under this Part ......................................................... 328

Part 3.15A--Community Development Employment Projects Scheme 330

Division 1--Preliminary 330

1188A... General effect of Part ...................................................................... 330

1188B... CDEP Scheme participants ............................................................. 330

1188BA Approval of Northern Territory CDEP transitional activities .......... 330

1188BB. Effect of undertaking Northern Territory CDEP transitional activities 331

Division 2--Reduction in rate of pension or allowance 332

1188C... Reductions in rate of payments under this Act if recipient or partner also receiving payments under CDEP Scheme ........................................................................................................ 332

Division 3--CDEP Scheme Participant Supplement 343

1188D... Entitlement to Supplement: people receiving pension-type payments on or after 20 March 1999 343

1188E.... Entitlement to Supplement between 20 March 1999 and 19 March 2000: people not covered by section 1188D 344

1188F.... Entitlement to Supplement on or after 20 March 2000: people not covered by section 1188D 347

1188G... Notification of periods in respect of which a CDEP Scheme payment is not payable 351

1188H... Person receiving CDEP Scheme Participant Supplement to be taken to be in receipt of social security benefit or pension ........................................................................................................ 352

1188J.... CDEP Scheme participant may accumulate supplement .................. 352

1188K... Need for a claim .............................................................................. 353

1188KA CDEP Scheme Participant Supplement not payable in certain circumstances 353

Division 4--Transitional 354

1188L.... Existing CDEP Scheme participants to be treated as long-term social security recipients 354

1188M.. Certain people receiving CDEP Scheme Participant Supplement to be taken to have been receiving social security benefit for 9 months .................................................................................... 354

Part 3.16--Indexation and adjustment of amounts 355

Division 1--Preliminary 355

1189...... Analysis of Part .............................................................................. 355

1190...... Indexed and adjusted amounts [ see Note 3] .................................... 355

Division 2--CPI indexation 376

1191...... CPI Indexation Table ...................................................................... 376

1192...... Indexation of amounts ..................................................................... 391

1193...... Indexation factor ............................................................................. 393

1194...... Rounding off indexed amounts ....................................................... 393

1195...... Certain indexed amounts to be increased in line with increases in Male Total Average Weekly Earnings 394

Division 3--Social security pension indexation using Pensioner and Beneficiary Living Cost Index 397

1196...... Social security pension indexation using Pensioner and Beneficiary Living Cost Index 397

1197...... Living cost indexation factor ........................................................... 398

1198...... Rounding off amounts .................................................................... 399

Division 4--Adjustment of other rates 400

1198A... Adjustment of single pension rate MBR amounts ........................... 400

1198B... Adjustment of disability support pension (under 21) MBRs .......... 400

1198C... Adjustment of youth disability supplement ..................................... 401

1203...... Adjustment of pension "single non-homeowner" AVL .................. 401

1204...... Adjustment of benefit AVLs ........................................................... 402

1205...... Adjustment of special illness separated special resident AVL ......... 403

1206A... Adjustment of certain pharmaceutical allowance rates ..................... 403

1206B... Adjustment of certain telephone allowance rates ............................. 405

Division 5--One-off adjustments of certain amounts 408

1206D... Rent assistance threshold for social security pensions increased on 20 March 1996 408

1206E.... Rent assistance threshold for some social security payments increased on 20 March 1996 408

1206F.... Rent assistance for family allowance increased on 20 March 1996 . 408

1206G... Increased rent assistance for pensioners with service pensioner partners with children 409

Division 6--One-off adjustments on 1 July 2000 relating to the introduction of the goods and services tax 410

1206GA 1 July 2000 increase in certain indexed and adjusted amounts ........ 410

1206GAA1 July 2000 increase in rent assistance amounts ............................ 412

1206GB Adjustment of amounts following 1 July 2000 increase ................. 413

1206GC 1 July 2000 increase in income and assets test free areas ................ 417

1206GD Rounding off provisional replacement amounts .............................. 421

Division 7--Increase in maximum basic rate of some pensions on 20 September 2009 422

1206GE. Maximum basic rate of some single pensions increased on 20 September 2009 422

Part 3.16A--Advance payment deductions 423

1206H... Advance payment deduction ........................................................... 423

1206J.... Amount of advance payment deduction--basic calculation ............. 423

1206K... Person may request larger advance payment deduction ................... 423

1206L.... Reduction of advance payment deduction in cases of severe financial hardship 424

1206M.. The final advance payment deduction .............................................. 425

1206N... Provisional payment rate insufficient to cover advance payment deduction 425

1206P.... Rounding of amounts ...................................................................... 426

Part 3.16B--Special employment advance deductions 427

1206Q... Special employment advance deduction .......................................... 427

1206R... Amount of special employment advance deduction--basic calculation 427

1206S.... Person may request larger special employment advance deduction . 427

1206T.... Reduction of special employment advance deduction in cases of severe financial hardship 428

1206U... The final special employment advance deduction ............................ 429

1206V... Provisional payment rate insufficient to cover special employment advance deduction 429

1206W.. Rounding of amounts ...................................................................... 430

Part 3.18--Means test treatment of private companies and private trusts 431

Division 1--Introduction 431

1207...... Simplified outline ............................................................................ 431

1207A... Definitions ...................................................................................... 432

1207B... Relatives .......................................................................................... 435

1207C... Associates ....................................................................................... 436

1207D... When a company is sufficiently influenced by an entity .................. 437

1207E.... Majority voting interest in a company ............................................. 438

1207F.... Entitled to acquire ............................................................................ 438

1207G... Transfer of property or services ...................................................... 438

1207H... Constructive transfers of property or services to an entity .............. 439

1207J.... Active involvement with a primary production enterprise ............... 440

1207K... Power to veto decisions of a trustee ................................................ 440

1207L.... Extra-territorial operation ................................................................ 440

1207M.. Application to things happening before commencement ................. 440

Division 2--Designated private companies 441

1207N... Designated private companies ......................................................... 441

Division 3--Designated private trusts 443

1207P.... Designated private trusts ................................................................. 443

Division 4--Controlled private companies 445

1207Q... Controlled private companies .......................................................... 445

1207R... Direct voting interest in a company ................................................. 446

1207S.... Voting power .................................................................................. 447

1207T.... Direct control interest in a company ................................................ 447

1207U... Interest in a share ............................................................................ 448

Division 5--Controlled private trusts 450

1207V... Controlled private trusts .................................................................. 450

1207W.. Interest in a trust .............................................................................. 453

Division 6--Attributable stakeholders and attribution percentages 454

1207X... Attributable stakeholder, asset attribution percentage and income attribution percentage 454

Division 7--Attribution of income of controlled private companies and controlled private trusts 456

1207Y... Attribution of income ...................................................................... 456

1207Z.... No double counting of attributed income ........................................ 457

1208...... Ordinary income of a company or trust ........................................... 458

1208A... Ordinary income from a business--treatment of trading stock ....... 458

1208B... Permissible reductions of business and investment income ............ 459

1208C... Derivation periods ........................................................................... 460

1208D... Attribution periods .......................................................................... 461

Division 8--Attribution of assets of controlled private companies and controlled private trusts 462

1208E.... Attribution of assets ........................................................................ 462

1208F.... When attributed asset is unrealisable ............................................... 462

1208G... Effect of charge or encumbrance on value of assets ........................ 463

1208H... Effect of unsecured loan on value of assets ..................................... 465

1208J.... Value of company's or trust's assets etc. ........................................ 465

Division 9--Modification of asset deprivation rules 466

1208K... Individual disposes of asset to company or trust ............................. 466

1208L.... Disposal of asset by company or trust ............................................ 466

1208M.. Individual ceases to be an attributable stakeholder of a company or trust 469

1208N... Individual disposes of asset to company or trust before 1 January 2002--individual is attributable stakeholder 470

1208P.... Individual disposes of asset to company or trust before 1 January 2002--individual's spouse is attributable stakeholder ........................................................................................................ 471

Division 10--Modification of income deprivation rules 473

1208Q... Individual disposes of ordinary income to company or trust ........... 473

1208R... Disposal of income by company or trust ......................................... 473

1208S.... Individual disposes of income to company or trust before 1 January 2002--individual is attributable stakeholder 476

1208T.... Individual disposes of income to company or trust before 1 January 2002--individual's spouse is attributable stakeholder ...................................................................................... 477

Division 11--Concessional primary production trusts 479

1208U... Concessional primary production trusts .......................................... 479

1208V... Individual ceases to be an attributable stakeholder of trust--receipt of remuneration or other benefits from trust during asset deprivation period ................................................................... 483

1208W.. Net value of asset ............................................................................ 485

1208X... Value of entity's assets ................................................................... 485

1208Y... When asset is controlled by an individual ....................................... 485

1208Z.... Adjusted net value of asset .............................................................. 486

1209...... Adjusted net primary production income ........................................ 487

1209A... Net income of a primary production enterprise ............................... 488

1209B... Net income from a primary production enterprise--treatment of trading stock 488

1209C... Permissible reductions of income from carrying on a primary production enterprise 489

Division 12--Anti-avoidance 490

1209D... Anti-avoidance ................................................................................ 490

Division 13--Decision-making principles 492

1209E.... Decision-making principles ............................................................. 492

Division 14--Information management 493

1209F.... Transitional period .......................................................................... 493

1209G... Information-gathering powers ......................................................... 493

1209H... Secretary may obtain tax information .............................................. 494

1209J.... Disclosure of tax information .......................................................... 495

1209K... Disclosure of tax file number information ....................................... 496

Part 3.18A--Private financial provision for certain people with disabilities 498

Division 1--Special disability trusts 498

1209L.... What is a special disability trust ? .................................................... 498

1209M.. Beneficiary requirements ................................................................. 498

1209N... Trust purpose requirements ............................................................. 500

1209P.... Trust deed requirements .................................................................. 501

1209Q... Trustee requirements ....................................................................... 502

1209R... Trust property requirements ............................................................ 502

1209RA Trust expenditure requirements ....................................................... 503

1209S.... Reporting requirements ................................................................... 504

1209T.... Audit requirements .......................................................................... 504

1209U... Waiver of contravention of this Division ........................................ 506

Division 2--Income of special disability trusts 507

1209V... Attribution of income ...................................................................... 507

1209X... Income amounts from special disability trusts ................................. 507

Division 3--Assets of special disability trusts 508

1209Y... Attribution of assets ........................................................................ 508

Division 4--Transfers to special disability trusts 509

1209Z.... Effect of certain transfers to special disability trusts ........................ 509

1209ZA. The effect of exceeding the $500,000 limit ...................................... 510

1209ZB. Transfers by the immediate family members prior to reaching pension age etc. 511

1209ZC. Transfers by principal beneficiaries or partners ............................... 512

1209ZD. Cessation of special disability trusts ................................................ 512

1209ZE. Effect of this Division ..................................................................... 513

Part 3.19--Miscellaneous 514

1210...... Application of income and assets test reductions and of compensation reductions for income tax purposes 514

1210A... Effect of nil rate of pension etc. ....................................................... 516

Chapter 4--International agreements and portability 517

Part 4.2--Overseas portability 517

Division 1--Preliminary 517

1211...... Social Security (International Agreements) Act overrides Part ....... 517

1212...... Meaning of terms used in this Part .................................................. 517

1212A... Meaning of acute family crisis ........................................................ 518

1212B... Meaning of humanitarian purpose ................................................. 518

1212C... Meaning of temporary absence ...................................................... 519

1212D... Part does not affect need for qualification ....................................... 519

Division 2--Portability of social security payments 520

Subdivision A--Basic portability provisions 520

1213...... Persons to whom Division applies .................................................. 520

1214...... Some payments generally portable with no time limit ..................... 520

1215...... Some payments generally portable with time limit .......................... 520

1216...... Amounts added to rate .................................................................... 521

1217...... Meaning of maximum portability period , allowable absence and portability period 521

Subdivision B--Exceptions to Subdivision A rules 526

1218AA Unlimited portability period for disability support pension ............. 526

1218AB Extended portability period for disability support pension .............. 527

1218...... Exception--full-time students outside Australia for purposes of Australian course 528

1218A... Exception--Reserve service ............................................................ 528

1218B... Exception--waiting period in Australia before parenting payment is portable 528

1218C... Extension of person's portability period--general .......................... 529

1218D... Extension of person's portability period--life-saving medical treatment overseas 530

1220...... No portability where claim based on short residence ...................... 530

Division 3--Rate of portable pensions 533

1220A... Proportionality--age pension rate ................................................... 533

1220B... Proportionality--disability support pension rate for a severely disabled person 533

1221...... Proportionality--wife pension and widow B pension rate for entitled persons 534

Pension Portability Rate Calculator 534

Module A--Overall rate calculation process 534

Module B--Australian working life residence 535

Module C--Residence factor 536

Chapter 5--Overpayments and debt recovery 537

Part 5.1--Effect of Chapter 537

1222...... General effect of Chapter ................................................................ 537

Part 5.2--Amounts recoverable under this Act 541

1222A... Debts due to the Commonwealth .................................................... 541

1223...... Debts arising from lack of qualification, overpayment etc. [ see Note 5] .. 541

1223A... Debt resulting from commutation of asset-test exempt income stream contrary to subsection 9A(2), 9B(2) or 9BA(2) ........................................................................................................ 546

1223AA Debts arising from prepayments and certain other payments .......... 550

1223AB Debts arising from AAT stay orders ............................................... 552

1223ABAADebts arising in respect of one-off payments to older
Australians ...................................................................................... 552

1223ABADebts arising in respect of one-off payments to carers .................. 554

1223ABAAADebts arising in respect of economic security strategy
payments ......................................................................................... 561

1223ABAABDebts arising in respect of training and learning bonuses
etc. ................................................................................................... 563

1223ABBDebts in respect of child disability assistance ................................ 565

1223ABCDebts in respect of carer supplement for 2009 ............................... 566

1223ABDDebts in respect of carer supplement for 2010 and later years ....... 567

1223ABEDebts in respect of scholarship payments ...................................... 568

1224AA Person other than payee obtaining payment of a cheque ................. 570

1224AB Joint and several liability for persons involved in contravention of Act 570

1224B... Education entry payment debt ......................................................... 570

1224C... Data-matching Program (Assistance and Tax) Acts debts .............. 571

1224D... Mobility allowance advance debts ................................................... 571

1224E.... Debts arising from advance payments of social security entitlements 572

1224EA. Debts arising from special employment advances of special employment advance qualifying entitlements 573

1227...... Assurance of support debt .............................................................. 573

1227A... Debts arising under the Farm Household Support Act 1992 in respect of re-establishment grant, exceptional circumstances relief payment or farm help income support ............. 574

1227B... Debts arising under Part 8 of the Student Assistance Act 1973 as in force before 1 July 1998 575

1228...... Overpayments arising under other Acts and schemes ..................... 575

1228A... Comparable foreign payment debt recovery .................................... 577

1228B... Additional 10% penalty for understatement etc. of income ............. 578

1229...... Notices in respect of debt ................................................................ 579

1229A... Interest on debt ................................................................................ 580

1229AA Determination that interest not to be payable ................................... 582

1229AB Administrative charge ..................................................................... 583

1229B... Penalty interest rate ......................................................................... 583

1229C... Guidelines on the penalty interest provisions .................................. 583

1230...... Debt from failure to comply with garnishee notice .......................... 583

1230A... Debt from failure before 1 July 1991 to comply with garnishee notice under the 1947 Act 585

1230B... Overseas application of provisions ................................................. 586

1230C... Methods of recovery of debt ........................................................... 586

Part 5.3--Methods of recovery 588

1231AA Application of sections dealing with deductions ............................. 588

1231...... Deductions from debtor's pension, benefit or allowance ................ 588

1231A... Deductions from debtor's drought relief payment [ see Note 4] ...... 591

1232...... Legal proceedings ........................................................................... 591

1233...... Garnishee notice .............................................................................. 593

1234...... Arrangement for payment of debt ................................................... 596

1234AA Recovery of amounts from financial institutions ............................. 597

1234A... Deductions by consent from social security payment of person who is not a debtor 598

Part 5.4--Non-recovery of debts 600

1235...... Meaning of debt .............................................................................. 600

1236...... Secretary may write off debt ........................................................... 600

1236A... Application ...................................................................................... 601

1237...... Power to waive Commonwealth's right to recover debt .................. 602

1237A... Waiver of debt arising from error .................................................... 602

1237AA Waiver of debt relating to an offence ............................................... 603

1237AAAWaiver of small debt ..................................................................... 603

1237AABWaiver in relation to settlements .................................................... 604

1237AACWaiver where debtor or debtor's partner would have been
entitled to an allowance ................................................................... 606

1237AADWaiver in special circumstances .................................................... 609

1237AAEExtra rules for waiver of assurance of support debts ..................... 609

1237AB Secretary may waive debts of a particular class ............................... 610

1361A... [ see Note 5] ..................................................................................... 610

Schedule 1A--Savings and transitional provisions 611

Part 1--General 611

1............ Correspondence of pensions, benefits and allowances .................... 611

2............ Correspondence of provisions ........................................................ 612

2A......... References in other Acts and instruments to provisions of the 1947 Act 613

Part 2--Savings and Transitional Provisions Applicable on the Transition from the 1947 Act to this Act 614

Division 4--Continuation of earlier savings provisions 614

21.......... Widow's pension--mental hospital patient partners (changes introduced on 1 November 1980) 614

22.......... Benevolent homes (changes introduced on 1 January 1981) ........... 615

27.......... Rent assistance--boarders and lodgers (changes introduced on 13 June 1989) 616

28.......... Rent assistance--retirement village residents (changes introduced on 13 June 1989) 619

Part 3--Saving and Transitional Provisions Applicable after the Commencement of this Act 622

36.......... Incentive allowance (changes introduced on 12 November 1991) .. 622

41.......... Members of couples (changes made on 12 March 1992) ................ 623

42.......... Modifications of Pension Rate Calculator A (changes made on 12 March 1992) 624

43.......... Modifications of Pension Rate Calculator B (changes made on 12 March 1992) 625

44.......... Modifications of Pension Rate Calculator C (changes made on 12 March 1992) 626

45.......... Modifications of Pension Rate Calculator D (changes made on 12 March 1992) 627

46.......... Modifications of Pension Rate Calculator E (changes made on 12 March 1992) 627

48.......... Modifications of Benefit Rate Calculator B (changes made on 12 March 1992) 628

49.......... Modifications of pharmaceutical allowance rates (changes made on 12 March 1992) 631

63.......... Rent assistance (changes introduced on 20 March 1993) ................ 634

67.......... Sickness allowance for people on rehabilitation programs (changes introduced on 20 March 1994) 637

69B....... Saving of job search allowance and newstart allowance deferment determinations 638

74.......... Partner allowance for persons born on or before 1 July 1955 (changes made on 1 July 1995) 638

80.......... Income determinations (changes made on 1 January 1996) ............ 638

86.......... Transitional and saving provisions applicable to the amendments relating to the pension loans scheme 639

88.......... Saving: Determinations under repealed sections 1099E and 1099L 640

96.......... Application and saving provisions: advance payment provisions ... 640

96A....... Application of revised Schedule 1B ................................................ 641

98.......... Application and transitional provisions: amendments relating to tightening the activity test administration and simplifying the penalty periods that apply to youth training allowance .............. 642

99.......... Application provision: amendments relating to unemployment due to industrial action 643

100........ Application provision: amendments relating to the abolition of the minimum rate of payment to under 18 year old sickness allowance and newstart allowance recipients .................... 643

101........ Application provision: abolition of the earnings credit scheme ....... 643

102........ Application provision: amendments relating to the application of the below threshold deeming rate 644

102A..... Application and transitional provisions: amendments relating to simplifying the penalty periods that apply to newstart allowance ........................................................................................ 645

102AA.. Review of decisions under section 5 of the Aged Care Income Testing Act 1997 646

102B..... Applications for review of decisions made under section 5 of the Aged Care Income Testing Act 1997 647

102C..... Review by SSAT of decisions relating to determinations under section 5 of the Aged Care Income Testing Act 1997 ........................................................................................................ 647

102D..... Review by AAT of decisions relating to determinations under section 5 of the Aged Care Income Testing Act 1997 ........................................................................................................ 648

102E...... Application provision--abolition of residential care allowance and amendments relating to rent assistance 648

103........ Application provision: income maintenance periods ....................... 649

104........ Application provision: amendments relating to the liquid assets test waiting period 649

104A..... Application provision: amendments relating to means test exemption for superannuation assets 649

105........ Application and saving provisions: debts due to the Commonwealth and their recovery 650

105A..... Parenting payment (changes introduced 20 March 1998) ............... 651

106........ Determinations etc. relating to family payment continue in force as determinations etc. relating to family allowance ........................................................................................................ 657

107........ Pending claims for family payment ................................................. 657

108........ Savings--Disabled child (changes made on 1 July 1998) .............. 657

108A..... Disabled child (changes made on 1 July 1999) ............................... 658

109........ Application of liquid assets test waiting period for sickness allowance 659

109A..... Application provision: amendments relating to the consistent treatment of lump sums 659

110........ Youth allowance in place of newstart allowance (under 21 years), sickness allowance (under 21 years), youth training allowance and AUSTUDY living allowance (youth allowance age) 660

111........ Austudy payment in place of AUSTUDY living allowance ........... 662

111A..... $3,000 opening balance for student income bank for students transferring from AUSTUDY 663

112........ Pensioner education supplement under the Social Security Act in place of pensioner education supplement under the Austudy Regulations ....................................................................... 663

113........ Certain persons receiving benefit PP (partnered) and pensioner education supplement immediately before 1 July 1998 ........................................................................................................ 664

114........ Claims for newstart allowance (under 21 years) or sickness allowance (under 21 years) made on or after 1 July 1998 in respect of period before that date ..................................................... 665

115........ Persons under 21 receiving newstart allowance or sickness allowance on 17 June 1997 665

116........ Newstart or sickness allowance bereavement payment in respect of death of partner 666

117........ Youth training allowance bereavement payment in respect of death of partner 666

118........ Qualification for double orphan pension for certain young persons who were qualified to receive payments under the AUSTUDY scheme immediately before 1 July 1998 ..................... 667

119........ Payment of family allowance--young person ceasing to be a FA child on becoming youth allowance recipient 667

120........ Application--income maintenance period rules .............................. 668

120A..... Amendments relating to treatment of income streams ..................... 670

122........ Issue of notice before 1 July 1999 to person to whom domiciliary nursing care benefit is being paid requiring notification of events affecting the payment of carer allowance on and after that day 671

123........ Carer payment provisions (changes to "severely handicapped person" category with effect from 1 July 1999) 672

124........ Carer allowance (changes introduced on 1 July 1999) .................... 672

125........ Transitional regulations arising out of carer allowance changes introduced on 1 July 1999 676

121........ Changes to newly arrived resident's waiting period ........................ 676

126........ Application and transitional provisions relating to fares allowance . 677

127........ Seasonal work carried out in what would have been a seasonal work non-benefit period extending beyond 30 June 2000 ........................................................................................................ 677

128........ Saving provision--portability rules relating to rates of pension ...... 678

128A..... Saving of certain pensions payable under 1986 Agreement between Australia and Italy 679

129........ Application of amendments relating to short residence ................... 680

130........ Saving provision--other portability rules ....................................... 680

131........ Certain payments not recoverable .................................................... 681

132........ Saving--ABSTUDY recipients ...................................................... 681

133........ Meaning of Australian resident ...................................................... 682

134........ Transitional and saving provisions--substitution of Part 3.14 ........ 682

135........ Unlimited maximum portability period for disability support pension 686

136........ Transitional definition of deductible amount (commencing 1 July 2007) 687

137 ........ Application--general ...................................................................... 689

138........ Application--subsections 198AA(1) and (3) ................................. 689

139........ Application--subsection 955(2) ..................................................... 689

139A..... Application--general ...................................................................... 689

139B..... Application--sections 198AAA and 198AB .................................. 690

139C..... Application--subsections 731J(2) and (6) ...................................... 690

139D..... Saving--principal beneficiary of a special disability trust ............... 690

140........ Person whose carer payment was cancelled on or after 1 July 2008 and before 1 July 2010 691

141........ Saving--profoundly disabled child and disabled child ................... 691

142........ Person whose special benefit was cancelled on or after 1 July 2008 and before 1 July 2010 693

143........ Saving--profoundly disabled child and disabled child ................... 694

144........ Saving and transitional provisions for section 93H ......................... 695

145........ Saving provision for income test taper rate for disability support pensioners under 21 without dependent children ........................................................................................................ 695

146........ Transitional provision for rates of certain social security pensions on and after 20 September 2009 696

147........ Amounts for subparagraph 146(4)(a)(i) .......................................... 700

148........ Rate of social security payments to partners of persons affected by clause 146 705

149........ Payment and income tax consequences of receiving social security pension at rate affected by clause 146 705

150........ Persons exempt from requirement to be Australian residents to qualify for disability support pension 706

Table BA--Maximum basic rates (persons who are not long term income support students)
Column 1 Item	Column 2 Person's situation	Column 3 Rate
1	Does not have a dependent child or a YA child	$281.10
2	Is a member of a couple and has a dependent child	$308.70
3	Is not a member of a couple and has a dependent child or YA child	$368.30

Table C--Pharmaceutical allowance amounts
Column 1 Item	Column 2 Person's family situation	Column 3 Amount per fortnight
1	Not a member of a couple	$5.40
2	Partnered	$2.70
3	Member of an illness separated couple	$5.40
4	Member of a respite care couple	$5.40
5	Partnered (partner getting service pension)	$2.70
6	Partnered (partner in gaol)	$5.40

Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1067L