Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 676

             (1)  Subject to subsections (2), (6) and (7), if the value of a person's liquid assets exceeds the person's maximum reserve on:

                     (a)  the day on which the person becomes incapacitated for work or study; or

                     (b)  the day on which the person claims sickness allowance;

the person is not qualified for sickness allowance for a period unless the person has served the liquid assets test waiting period in relation to the claim before the beginning of that period.

Note 1:       for liquid assets see section 14A.

Note 2:       for maximum reserve see section 14A.

Note 4:       for serving the liquid assets test waiting period see subsection 23(10A).

             (2)  Subsection (1) does not apply to a person if:

                     (a)  the person is a transferee to sickness allowance; or

                     (b)  the person has been in receipt of sickness allowance in respect of any period during the 4 weeks immediately before the person's current claim for sickness allowance is made.

             (3)  The liquid assets test waiting period in relation to the claim is to be worked out under subsections (3A), (3B) and (3C).

          (3A)  Work out the number of formula weeks (disregarding any fractions of a week) in relation to the claim using the formula:

where:

"liquid assets" means the person's liquid assets.

"maximum reserve amount" means the maximum reserve in relation to the person under subsection 14A(1).

"divisor" means, in relation to a person:

                     (a)  if the person is not a member of a couple and does not have a dependent child--$500; or

                     (b)  otherwise--$1,000.

          (3B)  If the number of formula weeks is equal to or greater than 13 weeks, the liquid assets test waiting period in relation to the claim is 13 weeks.

          (3C)  If subsection (3B) does not apply, the liquid assets test waiting period in relation to the claim is the number of weeks equal to the number of formula weeks.

             (4)  Subject to subsection (5), if the person is not a member of a couple, the liquid assets test waiting period in relation to the claim starts on the day on which the person became incapacitated for work or study.

          (4A)  Subject to subsection (5), if the person is a member of a couple, the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:

                     (a)  the day on which the person became incapacitated for work or study;

                     (b)  if, when the claim is made, the person's partner is unemployed--the day on which the person's partner became unemployed;

                     (c)  if, when the claim is made, the person's partner is incapacitated for work or study--the day on which the person's partner became incapacitated for work or study.

             (5)  If:

                     (a)  a person becomes qualified for austudy payment; and

                     (b)  because of paragraph 572(c), austudy payment is not payable to the person while the person is subject to a liquid assets test waiting period (see section 575A); and

                     (c)  within the liquid assets test waiting period referred to in paragraph (b):

                              (i)  the person becomes incapacitated for study; and

                             (ii)  the person claims sickness allowance;

the liquid assets test waiting period in relation to the claim for sickness allowance starts on the day on which the person becomes qualified for austudy payment.

             (6)  Subsection (1) does not apply to a person if, at any time during the 12 months preceding:

                     (a)  the day on which the person becomes incapacitated for work; or

                     (b)  the day on which the person claims sickness allowance;

the person or their partner was serving a liquid assets test waiting period that started during that 12 months.

             (7)  If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

Note 1:       For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2:       For unavoidable or reasonable expenditure see subsection 19C(4).