Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 198N

Application by higher ADAT score adult

             (1)  If:

                     (a)  subparagraph 198(5)(d)(i) would disqualify for carer payment a person caring for a care receiver who is a higher ADAT score adult; and

                     (b)  the higher ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the adult not be disqualified by that subparagraph; and

                     (c)  the request includes a written estimate of the higher ADAT score adult's taxable income for the current financial year under subsection 198B(3); and

                     (d)  the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Application by parent or carer of profoundly disabled child or disabled child

          (1A)  If:

                     (a)  subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for a care receiver who is a profoundly disabled child or care receivers each of whom is a disabled child; and

                     (b)  the parent or the carer of the profoundly disabled child or of any of the disabled children lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

                     (c)  the request includes a written estimate of the taxable income of the profoundly disabled child, or written estimates of the taxable incomes of the disabled children, for the current financial year under subsection 198B(3); and

                     (d)  the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Application by lower ADAT score adult

          (1B)  If:

                     (a)  subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for care receivers who are a lower ADAT score adult and a dependent child; and

                     (b)  the lower ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

                     (c)  the request includes written estimates of the taxable incomes of the lower ADAT score adult and the dependent child under subsection 198B(3); and

                     (d)  the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Failing assets test but passing special income test

             (2)  The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if:

                     (a)  the value of the assets of the care receiver or the sum of the values of the assets of the care receivers is more than $410,000 but not more than $608,500; and

                     (b)  the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

                     (c)  the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is less than the threshold amount worked out under subsection (6).

Note 1:       The amounts specified in paragraph (2)(a) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2:       For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3:       For liquid assets see subsection 19B(1).

Note 4:       For liquid assets limit see paragraph (5)(b).

Note 5:       For accepted estimated taxable income see subsection 198B(5).

Failing assets and special income tests

             (3)  The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $410,000 and not more than $608,500 and:

                     (a)  the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is equal to or greater than the liquid assets limit; or

                     (b)  the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is equal to or more than the threshold amount worked out under subsection (6).

Note 1:       The amounts specified in subsection (3) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2:       For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3:       For liquid assets see subsection 19B(1).

Note 4:       For liquid assets limit see paragraph (5)(b).

Note 5:       For accepted estimated taxable income see subsection 198B(5).

Failing assets test by large margin but passing special income test

             (4)  The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if:

                     (a)  the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $608,500; and

                     (b)  the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

                     (c)  the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is less than the threshold amount worked out under subsection (6).

Note 1:       The amount specified in paragraph (4)(a) is indexed each year on 1 January (see sections 1190 and 1191).

Note 2:       For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3:       For liquid assets see subsection 19B(1).

Note 4:       For liquid assets limit see paragraph (5)(b).

Note 5:       For accepted estimated taxable income see subsection 198B(5).

Definitions--assets and income

             (5)  For the purposes of this section:

                     (a)  the value of the assets or liquid assets of a care receiver who is a higher ADAT score adult is the sum of the values of the assets or liquid assets (as the case requires) of the following people:

                              (i)  the care receiver;

                             (ii)  if the care receiver has a partner--the partner;

                            (iii)  if the care receiver or the care receiver's partner has one or more FTB children--those FTB children; and

                    (aa)  the value of the liquid assets of a care receiver who is a profoundly disabled child or a disabled child is the sum of the values of the liquid assets of the following people:

                              (i)  the care receiver;

                             (ii)  if the care receiver lives with his or her parent--the parent;

                            (iii)  if the parent with whom the care receiver lives is a member of a couple--the parent's partner;

                            (iv)  if the parent with whom the care receiver lives or the parent's partner has one or more FTB children--those FTB children.

                            However, if the care receiver is one of 2 or more care receivers each of whom is a disabled child, liquid assets of the same person are not to be taken into account in respect of any of the other care receivers; and

                    (ab)  the value of the liquid assets of a care receiver who is a lower ADAT score adult is the sum of the values of the liquid assets of the following people:

                              (i)  the care receiver;

                             (ii)  if the care receiver is a member of a couple--the care receiver's partner and any FTB child (except the dependent child who is the other care receiver) of the care receiver or the care receiver's partner;

                            (iii)  if the care receiver is not a member of a couple--any FTB child (except the dependent child who is the other care receiver); and

Note:       The value of the liquid assets of the dependent child who is the other care receiver is not adjusted by adding any other person's liquid assets.

                     (b)  the liquid assets limit is $10,000 if the care receiver or any of the care receivers is a member of a couple, or $6,000 if not; and

                     (c)  the taxable income of a care receiver or of any of 2 or more care receivers for a particular financial year is the taxable income of the care receiver for that year as worked out under section 198B.

Note 1:       For liquid assets see subsection 19B(1).

Note 2:       Subsections 198D(1B) and (1D) provide that if a profoundly disabled or a disabled child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

Working out the threshold amount

             (6)  For the purposes of paragraphs (2)(c), (3)(b) and (4)(c), the threshold amount is the amount worked out using the following formula:

where:

"MBR " is the maximum basic rate of age pension payable, as at the last 1 January, to a person who has a partner.

"FPC" is:

                     (a)  in the case of a care receiver who is a higher ADAT score adult--the number of FTB children of the care receiver or the care receiver's partner (if the care receiver has a partner); or

                     (b)  in the case of a care receiver who is a profoundly disabled child who lives with his or her parent--the number of FTB children of the parent or the parent's partner (if the parent has a partner); or

                     (c)  in the case of a care receiver who is a profoundly disabled child who does not live with his or her parent--0; or

                     (d)  in the case of care receivers who are 2 or more disabled children:

                              (i)  if any of the children lives with his or her parent--the sum of the number of FTB children of each such parent or of the partner (if the parent has a partner) of each such parent; or

                             (ii)  in any other case--0; or

                     (e)  in the case of care receivers who are a lower ADAT score adult and a dependent child--the number of FTB children of the care receiver or the care receiver's partner (if the care receiver has a partner).

Note:          For the maximum basic rate of age pension see point 1064‑B1 of Pension Rate Calculator A in section 1064.