Commonwealth Numbered Acts

SOCIAL SECURITY ACT 1991 No. 46, 1991 - SECT 8

8. (1) In this Act, unless the contrary intention appears:

"dispose of income" has the meaning given by section 1106;

"domestic payment" has the meaning given by subsection (3);

"earned, derived or received" has the meaning given by subsection (2);

"home equity conversion agreement", in relation to a person, means an
agreement under which the repayment of an amount paid to or on behalf of the
person, or the person's partner, is secured by a mortgage of the principal
home of the person or the person's partner;
Note: see also subsection (7).

"income", in relation to a person, means:

   (a)  an income amount earned, derived or received by the person for the
        person's own use or benefit; or

   (b)  a periodical payment by way of gift or allowance; or

   (c)  a periodical benefit by way of gift or allowance; but does not include
        an amount that is excluded under subsection (4), (5) or (8); Note 1:
        see also sections 1073--1099 (investment income). Note 2: sections
        1075 to 1077 provide that a person who has an accruing return
        investment or market-linked investment is to be taken to receive a
        particular rate of return on the investment as income. Note 3: section
        1078 provides that any return actually received by a person from an
        investment to which section 1075 to 1077 applies is to be treated as
        if it were not income of the person. Note 4: where a person or a
        person's partner has disposed of income, the person's income may be
        taken to include the amount which has been disposed of - see sections
        1106-1112.

"income amount" means:

   (a)  valuable consideration; or

   (b)  personal earnings; or

   (c)  moneys; or

   (d)  profits; (whether of a capital nature or not);

"income from personal exertion" means an income amount that is earned, derived
or received by a person by way of payment for personal exertion by the person
but does not include an income amount received as compensation for the
person's inability to earn, derive or receive income through personal
exertion;

"ordinary income" means income that is not maintenance income.
Note 1: for "maintenance income" see subsection 10 (1). Note 2: amounts
received as a series of periodic compensation payments may result in reduction
of the person's rate of social security pension or benefit under Part 3.14: if
this happens the amounts are not counted as ordinary income (see section
1171). Earned, derived or received

(2) A reference in this Act to an income amount earned, derived or received is
a reference to:

   (a)  an income amount earned, derived or received by any means; and

   (b)  an income amount earned, derived or received from any source (whether
        within or outside Australia). Domestic payments

(3) A payment received by a person is a domestic payment for the purposes of
this Act if:

   (a)  the person receives the payment on the disposal of an asset of the
        person; and

   (b)  the asset was used, immediately before the disposal, by the person or
        the person's partner for private or domestic purposes; and

   (c)  the asset was used by the person or the person's partner for those
        purposes for:

   (i)  a period of 12 months before the disposal; or

   (ii) if the Secretary considers it appropriate - a period of less than 12
        months before the disposal. Excluded amounts - home equity conversion
        (not member of a couple)

(4) If a person is not a member of a couple, an amount paid to or on behalf of
the person under a home equity conversion agreement is an excluded amount for
the person to the extent that the total amount owed by the person from time to
time under home equity conversion agreements does not exceed $40,000. Excluded
amounts - home equity conversion (member of a couple)

(5) If a person is a member of a couple, an amount paid to or on behalf of the
person or the person's partner under a home equity conversion agreement is an
excluded amount for the person to the extent that the total amount owed by the
person and the person's partner under home equity conversion agreements from
time to time does not exceed $40,000. Home equity conversion (amount owed)

(6) For the purposes of this Act, the amount owed by a person under a home
equity conversion agreement is the principal amount secured by the mortgage
concerned and does not include:

   (a)  any amount representing mortgage fees; or

   (b)  any amount representing interest; or

   (c)  any similar liability whose repayment is also secured by the mortgage.
        Home equity conversion (principal home)
(7) For the purposes of the definition of "home equity conversion agreement"
in subsection (1), an asset cannot be a person's principal home unless the
person or the person's partner has a beneficial interest (but not necessarily
the sole beneficial interest) in the asset. Excluded amounts - general

(8) The following amounts are not income for the purposes of this Act:

   (a)  a payment under this Act;

   (b)  if the person has not reached pensionable age - any return on a
        compulsorily preserved superannuation benefit of the person;

   (c)  the value of emergency relief or like assistance;

   (d)  the value of any assistance that:

   (i)  is provided by an eligible organisation within the meaning of the
        Homeless Persons Assistance Act 1974; and

   (ii) is assistance that consists of providing:

                (A)  accommodation or meals; or

                (B)  a ticket, voucher or token that may be exchanged for
                     accommodation or meals;

   (e)  a payment under the Handicapped Persons Assistance Act 1974;

   (f)  a payment under Part III of the Disability Services Act 1986 or the
        value of any rehabilitation program (including any follow-up program)
        provided under that Part;

   (g)  a payment of domiciliary nursing care benefit under Part VB of the
        National Health Act 1953;

   (h)  a payment under a law of the Commonwealth, being a law having an
        object of assisting persons to purchase or build their own homes;

   (j)  a payment made to the person for or in respect of a dependent child of
        the person;

   (k)  insurance or compensation payments made by reason of the loss of, or
        damage to, buildings, plant or personal effects;

   (m)  money from an investment that is:

   (i)  an investment of payments of the kind referred to in paragraph (k);
        and

   (ii) an investment for:

                (A)  a period of not more than 12 months after the person
                     receives the payments; or

                (B)  if the Secretary thinks it appropriate - of 12 months or
                     more after the person receives those payments;

   (n)  an amount paid:

   (i)  by the Federal Republic of Germany under the laws of that Republic; or

   (ii) by a State of the Federal Republic of Germany under the laws of that
        State; by way of compensation for a victim of National Socialist
        persecution;

   (p)  an amount paid by the Republic of Austria under the laws of that
        Republic by way of compensation to a victim of National Socialist
        persecution;

   (q)  in the case of a person who pays or who is liable to pay rent, a
        payment by way of rent subsidy made by the Commonwealth, by a State or
        Territory or by an authority of the Commonwealth or of a State or
        Territory to or on behalf of the person who pays or who is liable to
        pay rent;

   (r)  a payment received by a trainee in full-time training under a program
        included in the programs known as the Labour Force Programs, to the
        extent that the payment includes one or more of the following amounts:

        (i)    an amount calculated by reference to a rate of unemployment
               benefit or job search allowance;

        (ii)   an amount known as the training component;

        (iii)  an amount by way of a living away from home allowance;

   (s)  a payment received by a trainee in part-time training under a program
        included in the programs known as the Labour Force Program, if the
        trainee is also receiving:

   (i)  an age pension; or

   (ii) an invalid pension; or

   (iii) a wife pension; or

   (iv) a carer pension; or

   (v)  a sole parent pension; or

   (vi) a sheltered employment allowance; or

   (vii) a rehabilitation allowance;

   (t)  a payment received by the person under the scheme known as the New
        Enterprise Incentive Scheme;

   (u)  a benefit under a law of the Commonwealth that relates to the
        provision of:

   (i)  pharmaceutical, sickness or hospital benefits; or

   (ii) medical or dental services;

   (v)  a payment (other than a periodical payment or a payment representing
        an accumulation of instalments) made for or in respect of expenses
        incurred by a person for hospital, medical, dental or similar
        treatment;

   (w)  in the case of a member of:

        (i)    the Australian Naval Reserve; or

        (ii)   the Naval Emergency Reserve Forces; or

        (iii)  the Australian Army Reserve; or

        (iv)   the Australian Air Force Reserve; or

        (v)    the Air Force Emergency Force; or

        (vi)   the Regular Army Emergency Reserve; the pay and allowances paid
               to the person as such a member (other than pay and allowances
               in respect of continuous full-time service) and, in the case of
               a member of a Force referred to in subparagraph (ii), (v) or
               (vi), any gratuity paid to the person by reason of a calling
               out for continuous service of that Force or of a part of that
               Force;

   (y)  a payment by way of:

   (i)  service pension; or

   (ii) attendant allowance under section 98 of the Veterans' Entitlements
        Act; or

   (iii) recreation allowance under section 104 of that Act; or

   (iv) an allowance for the running and maintenance of a motor vehicle under
        the Vehicle Assistance Scheme referred to in section 105 of that Act;
        or

   (v)  decoration allowance under section 102 of that Act; or

   (vi) Victoria Cross allowance under section 103 of that Act; or

   (vii) clothing allowance under section 97 of that Act; or

   (viii) a bereavement payment under Division 5A of Part III, or section 98A
        of that Act; or

   (ix) a funeral benefit under Part VI of that Act; or

   (x)  a bereavement payment under section 24B of the Seamen's War Pensions
        and Allowances Act 1940; or

   (xi) a funeral benefit under the Seamen's War Pensions and Allowances
        Regulations;

   (z)  a periodical payment by way of gift or allowance, or a periodical
        benefit by way of gift or allowance, from the person's father, mother,
        son, daughter, brother or sister;

   (za) the value of board or lodging received by the person;

   (zb) a domestic payment;

   (zc) so much of a payment received by the person as is, in accordance with
        an agreement between the Commonwealth and a foreign country, applied
        in reduction of the amount of pension, benefit or allowance that would
        otherwise be payable to the person under this Act;

   (zd) a payment made to the person by the Government of New Zealand, being a
        payment known as:

        (i)    accommodation benefit; or

        (ii)   disability allowance; or

        (iii)  home help payment; or

        (iv)   special benefit; or

        (v)    training incentive allowance;

   (ze) a payment made to the person by the Government of the United Kingdom,
        being a payment known as:

        (i)    clothing allowance; or

        (ii)   constant attendance allowance; or

        (iii)  decoration allowance; or

        (iv)   mobility supplement;

   (zf) a payment of an education supplement to a person who:

        (i)    is receiving:

                (A)  a social security or service pension; or

                (B)  a social security benefit; and

        (ii)   would, if the person were not receiving that pension or
               benefit, be eligible to receive payments under:

                (A)  the AUSTUDY scheme; or

                (B)  the ABSTUDY Tertiary Scheme.
Note: "social security pension" includes a sheltered employment or
rehabilitation allowance.