Commonwealth Numbered Acts

SOCIAL SECURITY AND VETERANS' AFFAIRS LEGISLATION AMENDMENT (PENSION BONUS SCHEME) ACT 1998 .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#left .html#The Secretary .html#social security payment .html#payment No. 67, 1998 - SECT 3

1 Section 3

Insert in the appropriate alphabetical position (determined on a letter-by-letter basis):

pension bonus

23(1)

2 After subsection 11(3B)

Insert:

(3C) To avoid doubt, a person's entitlement to be paid a pension bonus is taken not to be an asset of the person for the purposes of this Act.

(3D) Subsection (3C) is to be disregarded in determining whether any other entitlement is an asset for the purposes of this Act.

3 Subsection 23(1)

Insert:

pension bonus means pension bonus under Part 2.2A.

4 Subsection 40(1)

Omit "dealing with", substitute "(other than Part 2.2A) that deals with".

5 At the end of section 49

Add:

(2) The approved form may require the claimant to disclose whether the claimant is registered as a member of:

(a) the pension bonus scheme (see Part 2.2A); or

(b) the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act.

Insert:

Part 2.2A--Pension bonus Division 1--Introduction SECT 92A Simplified outline The following is a simplified outline of this Part:

* A person who qualifies for an age pension but defers claiming that pension may be able to get a single lump-sum pension bonus .

* A person who wants to get a pension bonus must register as a member of the pension bonus scheme .

* To get a pension bonus, a person must accrue between 1 and 5 bonus periods while deferring age pension.

* Generally, a bonus period runs for 1 year.

* To accrue a bonus period, the person must pass the work test for that period.

* To pass the work test for a year, either the person, or the person's partner, must gainfully work for at least 960 hours during that year.

* The amount of a person's pension bonus depends on the number of accrued bonus periods and the person's annual rate of age pension. A person may get a bigger bonus by accruing more bonus periods.

SECT 92B Definitions In this Part:

accruing member of the pension bonus scheme has the meaning given by section 92N.

bonus period has the meaning given by section 92T.

carer preclusion period has the meaning given by section 93W.

compensation preclusion period has the meaning given by section 93V.

disposal preclusion period has the meaning given by section 93U.

full-year period means a continuous period of 365 days.

gainful work has the meaning given by sections 92X to 93A (inclusive).

non-accruing member of the pension bonus scheme has the meaning given by sections 92P and 92Q.

part-year period means a continuous period of less than 365 days.

passing the work test has the meaning given by sections 92U and 92V.

post-75 member of the pension bonus scheme has the meaning given by section 92S.

registration as a member of the pension bonus scheme means registration under section 92J.

Division 2--Qualification for pension bonus SECT 92C Qualification for pension bonus A person is qualified for a pension bonus if:

(a) both:

(i) the person starts to receive an age pension at or after the time when the person makes a claim for the pension bonus; and

(ii) that age pension is received otherwise than because of a scheduled international social security agreement (within the meaning of section 1208); and

(b) the person has not received an age pension at any time before making a claim for the pension bonus; and

(c) the person is registered as a member of the pension bonus scheme; and

(d) the person has accrued at least one full-year bonus period while registered as a member of the pension bonus scheme; and

(e) the person has not received:

(i) a social security pension (other than an age pension or a carer payment); or

(ii) a social security benefit; or

(iii) a service pension (other than a carer service pension); or

(iv) an income support supplement (other than an income support supplement that is payable as a result of the operation of subclause 8(3) of Schedule 5 to the Veterans' Entitlements Act);

at any time after the person qualified for an age pension; and

(f) the person has not already received:

(i) another pension bonus; or

(ii) a bonus under Part IIIAB of the Veterans' Entitlements Act.

Note: Subclause 8(3) of Schedule 5 to the Veterans' Entitlements Act deals with income support supplement for carers.

SECT 92E Form of application An application must be in writing and must be in accordance with a form approved by the Secretary.

SECT 92F Relevant information (1) An approved form may require the applicant to provide relevant information (see subsection (4)).

(2) The Secretary may, by written notice given to the applicant, require the applicant to give the Secretary, within a specified period, further relevant information. The Secretary may refuse to register the applicant until the applicant gives the Secretary the information.

(3) A period specified for the purposes of subsection (2) must run for at least 14 days after the notice was given.

(4) For the purposes of this section, relevant information includes (but is not limited to):

(a) information that would be likely to assist the Secretary in advising the applicant about the operation of this Part; and

(b) information that is relevant to determining whether a disposal preclusion period, compensation preclusion period or carer preclusion period has arisen, or is likely to arise, in relation to the applicant; and

(c) a statement of the applicant's present expectations in relation to any or all of the following matters:

(i) the number of bonus periods that the person is likely to accrue while registered as a member of the pension bonus scheme;

(ii) the likely nature and extent of the person's participation in the workforce during those periods;

(iii) if the person has a partner--the likely nature and extent of the partner's participation in the workforce during those periods.

(a) at an office of the Department; or

(b) at a place approved by the Secretary; or

(c) with a person approved by the Secretary.

SECT 92H Timing of application and registration Age pension qualification date on or after 1 July 1998

(1) If a person's date of qualification for the age pension occurs on or after 1 July 1998:

(a) the person must lodge an application during the period that begins 13 weeks before the person's date of qualification for the age pension and ends 13 weeks after that date; and

(b) if registration occurs as a result of an application lodged within that period--the registration takes effect on the person's date of qualification for the age pension.

Note: The Secretary may extend the period: see subsection (3).

(2) If a person's date of qualification for the age pension occurs before 1 July 1998:

(a) the person must lodge an application during the period that begins on the commencement of this section and ends 13 weeks after 1 July 1998; and

(b) if registration occurs as a result of an application lodged within that period--the registration takes effect on 1 July 1998.

Note: The Secretary may extend the period: see subsection (3).

(3) The Secretary may extend the period within which a person must lodge an application. If registration occurs as a result of an application lodged during an extended period, the registration takes effect:

(a) on the date on which the application is lodged; or

(b) if the Secretary decides that it should take effect on another date--on that other date.

(a) the person would have been a non-accruing member for all of the pre-application period; or

(b) both:

(i) the person would have been an accruing member for some or all of the pre-application period; and

(ii) the person would have passed the work test for each test period that is applicable to the person.

Note 1: Pre-application period is defined by subsection (5).

Note 2: Test period is defined by subsection (6).

(a) in the case of a person whose date of qualification for the age pension occurs on or after 1 July 1998--the person's date of qualification for the age pension; or

(b) in the case of a person whose date of qualification for the age pension occurs before 1 July 1998--1 July 1998;

(6) For the purposes of this section, to work out what is a test period :

(a) identify the overall accruing period , which is that part of the pre-application period for which, if it were assumed that the person had been a member of the pension bonus scheme throughout the pre-application period, the person would have been an accruing member of the scheme;

(b) if the overall accruing period is 365 days or less--the overall accruing period is the only test period;

(c) if the overall accruing period is longer than 365 days--each of the following periods is a test period:

(i) the full-year period beginning at the start of the overall accruing period;

(ii) if 2 or more succeeding full-year periods are included in the overall accruing period--each of those full-year periods;

(iii) the remainder (if any) of the overall accruing period.

Date of qualification for the age pension

(8) For the purposes of this section, a person's date of qualification for the age pension is to be worked out on the assumption that being an Australian resident were an additional qualification for an age pension.

(9) For the purposes of this section, if a person would otherwise have 2 or more dates of qualification for the age pension, only the first date is to be counted.

SECT 92J Registration (1) If an application is made in accordance with this Subdivision, the Secretary must register the applicant as a member of the pension bonus scheme.

(2) This section has effect subject to subsection 92F(2).

SECT 92K Duration of membership A person's membership of the pension bonus scheme begins on the date on which the registration of that membership takes effect and continues until the membership is cancelled under this Act.

SECT 92L Cancellation of membership A person's membership of the pension bonus scheme is cancelled if:

(a) the person's claim for pension bonus is determined; or

(b) the person starts to receive:

(i) a social security pension (other than an age pension or a carer payment); or

(ii) a social security benefit; or

(iii) a service pension (other than a carer service pension); or

(iv) an income support supplement (other than an income support supplement that is payable as a result of the operation of subclause 8(3) of Schedule 5 to the Veterans' Entitlements Act);

at any time after the person qualified for an age pension; or

(c) the person does not make a proper claim for a pension bonus when the person claims age pension; or

(d) the person requests the Secretary, in writing, to cancel the person's membership.

Note: Subclause 8(3) of Schedule 5 to the Veterans' Entitlements Act deals with income support supplement for carers.

Subdivision B--Classification of membership of the pension bonus scheme SECT 92N Accruing membership For the purposes of this Part, a person's membership of the pension bonus scheme at a particular time is accruing unless the person's membership is non-accruing or post-75 at that time.

SECT 92P Non-accruing membership--preclusion periods Disposal preclusion period

(1) For the purposes of this Part, if a person is subject to a disposal preclusion period at a particular time when the person is a member of the pension bonus scheme, the person's membership of the scheme is non-accruing at that time.

Note: Disposal preclusion period is defined by section 93U.

(2) For the purposes of this Part, if a person is subject to a compensation preclusion period at a particular time when the person is a member of the pension bonus scheme, the person's membership of the scheme is non-accruing at that time.

Note: Compensation preclusion period is defined by section 93V.

(3) For the purposes of this Part, if a person is subject to a carer preclusion period at a particular time when the person is a member of the pension bonus scheme, the person's membership of the scheme is non-accruing at that time.

Note: Carer preclusion period is defined by section 93W.

(2) The kinds of members that may be specified under subsection (1) include (but are not limited to):

(a) a member who is a participant in the Community Development Employment Program; and

(b) a member who is in gaol (see subsection 23(5)); and

(c) a member who is undergoing psychiatric confinement (see subsections 23(8) and (9)) because the member has been charged with committing an offence; and

(d) a member who is not a participant in the workforce, but whose partner:

(i) is a participant in the workforce; and

(ii) is not a registered member of the pension bonus scheme or of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act; and

(iii) intends to become a registered member of the pension bonus scheme or of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act; and

(e) a member who is on sick leave for a continuous period of at least 4 weeks and not more than 26 weeks.

SECT 92R Continuity of accruing membership is not broken by a period of non-accruing membership If:

(a) a person has been an accruing member of the pension bonus scheme for a continuous period (the first accruing membership period ) (including a period that is applicable because of one or more applications of this section); and

(b) the first accruing membership period is followed by a continuous period of non-accruing membership of the scheme; and

(c) the period of non-accruing membership is followed by a further continuous period of accruing membership of the scheme (the second accruing membership period );

SECT 92S Post-75 membership A person's membership of the pension bonus scheme is post-75 at all times after the person reaches age 75.

Division 4--Accrual of bonus periods SECT 92T Accrual of bonus periods Full-year bonus period

(1) The first bonus period that accrues to a person is the full-year period of the person's accruing membership of the pension bonus scheme:

(a) that began on whichever of the following dates is applicable:

(i) if the person was an accruing member of the pension bonus scheme on the date the person's registration as a member took effect--the date the registration took effect;

(ii) in any other case--the date on which the person first became an accruing member of the pension bonus scheme; and

(b) for which the person passes the work test.

Note: Accruing membership is defined by section 92N.

(a) that is specified in the person's claim for pension bonus; and

(b) for which the person passes the work test;

Part-year bonus period

(3) A part-year period of the person's accruing membership of the pension bonus scheme is a bonus period that accrues to the person if:

(a) the person passes the work test for that period; and

(b) the person specifies the period in the person's claim for pension bonus; and

(c) the period begins immediately after the end of a full-year bonus period that accrues to the person; and

(d) the period is the last bonus period that accrues to the person.

Note: Accruing membership is defined by section 92N.

(4) A person cannot accrue more than one bonus period unless:

(a) the bonus periods are consecutive; or

(b) the bonus periods are separated only by a period of non-accruing membership.

(a) in any case--the person satisfies the Secretary that the total number of hours gainfully worked by the person during that period was at least 960 and that at least 640 of that total number of hours were worked in Australia; or

(b) if the person had only one partner during that period--the person satisfies the Secretary that the total number of hours gainfully worked by the person's partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

was at least 960 and that at least 640 of that total number of hours were worked in Australia; or

(c) if the person had 2 or more partners during that period--the person satisfies the Secretary that the total number of hours gainfully worked by those partners during that period while they were partners of the person and were:

(i) accruing members, or post-75 members, of the pension bonus scheme; or

(ii) accruing members, or post-70/75 members, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

was at least 960 and that at least 640 of that total number of hours were worked in Australia;

(d) the person satisfies the Secretary that the applicable record-keeping requirements (see section 93C) have been complied with in relation to that period; or

(e) the Secretary decides to waive compliance with the applicable record-keeping requirements in relation to that period.

(a) in any case--the person satisfies the Secretary that the total number of hours gainfully worked by the person during that period was at least the pro-rated number of hours (see subsection (2)) and that at least two-thirds of that total number of hours were worked in Australia; or

(b) if the person had only one partner during that period--the person satisfies the Secretary that the total number of hours gainfully worked by the person's partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

was at least the pro-rated number of hours (see subsection (2)) and that at least two-thirds of that total number of hours were worked in Australia; or

(c) if the person had 2 or more partners during that period--the person satisfies the Secretary that the total number of hours gainfully worked by those partners during that period while they were partners of the person and were:

(i) accruing members, or post-75 members, of the pension bonus scheme; or

(ii) accruing members, or post-70/75 members, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

was at least the pro-rated number of hours (see subsection (2)) and that at least two-thirds of that total number of hours were worked in Australia;

(d) the person satisfies the Secretary that the applicable record-keeping requirements (see section 93C) have been complied with in relation to that period; or

(e) the Secretary decides to waive compliance with the applicable record-keeping requirements in relation to that period.

SECT 92W Secretary's discretion to treat gainful work outside Australia as gainful work in Australia (1) If a person satisfies the Secretary that:

(a) the person, or the person's partner, has carried on gainful work outside Australia; and

(b) because of special circumstances, the gainful work should be treated as gainful work carried on in Australia;

(2) The determination has effect accordingly.

Subdivision B--Gainful work SECT 92X Gainful work--basic rule (1) For the purposes of this Part, gainful work is work for financial gain or reward, whether as an employee, a self-employed person or otherwise, where:

(a) the work involves a substantial degree of personal exertion on the part of the person concerned; and

(b) the work is carried on within or outside Australia.

SECT 92Y Secretary's discretion to treat activity as gainful work (1) If a person satisfies the Secretary that:

(a) the person, or the person's partner, has engaged in a particular activity; and

(b) the activity involves a substantial degree of personal exertion on the part of the person or the person's partner, as the case may be; and

(c) the activity does not consist of voluntary work for a charitable, welfare or community organisation; and

(d) because of special circumstances, the activity should be treated as gainful work;

(2) The determination has effect accordingly.

SECT 92Z Irregular, infrequent and minor absences from a workplace count as gainful work For the purposes of this Part, if a person is engaged in gainful work, the total hours gainfully worked by the person during a period are to be determined as if the person had been engaged in gainful work during any absences from the workplace that are irregular, infrequent and minor.

SECT 93 Management of family financial investments does not count as gainful work (1) Unless the Secretary otherwise determines, work undertaken by a person is taken not to be gainful work for the purposes of this Part to the extent to which the work consists of the management or administration of one or more financial investments in which any of the following has a legal or equitable interest:

(a) a member of the person's family group (see subsection (2));

(b) a company that is a family company in relation to the person (see subsection (2));

(c) the trustee or trustees of a trust that is a family trust in relation to the person (see subsection (2)).

Note: Financial investment is defined by section 9.

family company , in relation to a person, means a company where:

(a) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of any or all of the members of the person's family group; or

(b) any or all of the members of the person's family group are in a position to cast, or control the casting of, more than 50% of the maximum number of votes that may be cast at a general meeting of the company; or

(c) both:

(i) the company has one or more shareholders; and

(ii) each shareholder is a member of the person's family group.

Note: Family member is defined by subsection 23(1).

SECT 93A Domestic duties in relation to a person's place of residence do not count as gainful work (1) Unless the Secretary otherwise determines, work undertaken by a person is taken not to be gainful work for the purposes of this Part if the work consists of carrying out:

(a) domestic tasks; or

(b) household maintenance tasks; or

(c) gardening tasks; or

(d) similar tasks;

(e) the person's place of residence; or

(f) if the person has 2 or more places of residence--any of those places of residence.

(a) if the place is a dwelling-house--any land or building that is adjacent to the dwelling-house and that is used primarily for private or domestic purposes in association with that dwelling-house; or

(b) if the place is a flat or home unit--a garage or storeroom that is used for private or domestic purposes in association with the flat or home unit.

(1) The Secretary may, if requested to do so by a member of the pension bonus scheme, issue a written certificate stating that:

(a) the member was an accruing member of the scheme throughout a specified full-year period; and

(b) the total number of hours gainfully worked by the member during that period was at least a specified number of hours; and

(c) the total number of hours gainfully worked in Australia by the member during that period was at least a specified number of hours.

(a) the member was an accruing member of the scheme throughout a specified full-year period; and

(b) the total number of hours gainfully worked by a specified person during that period while the person was the partner of the member and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

was at least a specified number of hours; and

(c) the total number of hours gainfully worked in Australia by a specified person during that period while the person was the partner of the member and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

was at least a specified number of hours.

(3) The Secretary may, if requested to do so by a member of the pension bonus scheme, issue a written certificate stating:

(a) that the member was an accruing member of the scheme throughout a specified part-year period; and

(b) the total number of hours gainfully worked by the member during that period; and

(c) the total number of hours gainfully worked in Australia by the member during that period.

(a) that the member was an accruing member of the scheme throughout a specified part-year period; and

(b) the total number of hours gainfully worked by a specified person during that period while the person was the partner of the member and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act; and

(c) the total number of hours gainfully worked in Australia by a specified person during that period while the person was the partner of the member and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act.

(5) If:

(a) a person makes a request for a certificate under subsection (1), (2), (3) or (4) relating to a particular period; and

(b) the applicable record-keeping requirements have not been complied with in relation to that period (see section 93C);

Non-accruing membership

(6) The Secretary may, if requested to do so by a member of the pension bonus scheme, issue a written certificate stating that the member was a non-accruing member of the scheme throughout a specified period.

Evidence

(7) In any proceedings relating to this Part, a certificate under this section is prima facie evidence of the matters in the certificate.

Subdivision C--Record-keeping requirements SECT 93C Record-keeping requirements Record-keeping requirements for person

(1) For the purposes of the application of paragraph 92U(a) or 92V(1)(a) or subsection 93B(1) or (3) to a person, the applicable record-keeping requirements have been complied with in relation to a period of the person's accruing membership of the pension bonus scheme if:

(a) in a case where the person has:

(i) been given a group certificate in respect of any gainful work carried on by the person during that period; or

(ii) lodged an income tax return that relates to any gainful work carried on by the person during that period;

the person would be in a position to produce a copy of the certificate or of the return, as the case may be, to the Secretary if the Secretary were to require the person to produce that copy; and

(b) both:

(i) the person has kept a recognised work record (see subsection (3)) in relation to gainful work carried on by the person during that period; and

(ii) the person would be in a position to produce that record to the Secretary if the Secretary were to require the person to produce that record.

(2) For the purposes of the application of paragraph 92U(b) or (c) or 92V(1)(b) or (c) or subsection 93B(2) or (4) to a partner of a person, the applicable record-keeping requirements have been complied with in relation to a period of the person's accruing membership of the pension bonus scheme if:

(a) in a case where the partner has been given a group certificate in respect of any gainful work carried on by the partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

the person would be in a position to produce a copy of the certificate to the Secretary if the Secretary were to require the person to produce that copy; and

(b) in a case where the partner has lodged an income tax return that relates to any gainful work carried on by the partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

the person would be in a position to produce a copy of the return to the Secretary if the Secretary were to require the person to produce that copy; and

(c) in any case--the partner has kept a recognised work record (see subsection (3)) in relation to any gainful work carried on by the partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post-75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post-70/75 member, of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act;

and the person would be in a position to produce that record to the Secretary if the Secretary were to require the person to produce that record.

(3) For the purposes of this section, a recognised work record , in relation to a person, is a written statement signed by the person that sets out, in relation to gainful work carried on by the person during a particular period:

(a) the nature of the gainful work; and

(b) the dates on which the gainful work was carried on; and

(c) the total number of hours gainfully worked; and

(d) the total number of hours gainfully worked in Australia; and

(e) in a case where any of the gainful work was carried on in the capacity of employee--the name or names of the employer or employers concerned; and

(f) such other particulars as the Secretary requires.

(a) work out which of the person's bonus periods count as qualifying bonus periods (see section 93E);

(b) work out the person's overall qualifying period (see section 93F);

(c) work out the person's pension multiple (see section 93G);

(d) work out the person's annual pension rate (see section 93H);

(e) apply the appropriate formula in section 93J.

Note: Bonus period is defined by section 92T.

SECT 93E Qualifying bonus periods (1) For the purposes of this Division, if a person has accrued only one bonus period, that bonus period is the person's qualifying bonus period .

(2) For the purposes of this Division, if a person has accrued only 2 bonus periods, each of those bonus periods is a qualifying bonus period .

(3) For the purposes of this Division, if a person has accrued only 3 bonus periods, each of those bonus periods is a qualifying bonus period .

(4) For the purposes of this Division, if a person has accrued only 4 bonus periods, each of those bonus periods is a qualifying bonus period .

(5) For the purposes of this Division, if a person has accrued only 5 bonus periods, each of those bonus periods is a qualifying bonus period .

(6) For the purposes of this Division, if:

(a) a person has accrued more than 5 bonus periods; and

(b) the last bonus period is a full-year period;

(7) For the purposes of this Division, if:

(a) a person has accrued more than 5 bonus periods; and

(b) the last bonus period is a part-year period;

SECT 93F Overall qualifying period (1) For the purposes of this Division, if a person has only one qualifying bonus period, that period is the person's overall qualifying period .

(2) For the purposes of this Division, if a person has 2 or more qualifying bonus periods, the person's overall qualifying period is the period:

(a) beginning at the start of the first qualifying bonus period; and

(b) ending at the end of the last qualifying bonus period.

SECT 93G Pension multiple For the purposes of this Division, a person's pension multiple is worked out using the formula:

SECT 93H Annual pension rate For the purposes of this Division, a person's annual pension rate is:

(a) if the person is not permanently blind--the rate that would be the person's provisional payment rate under the 1064-A1 Method statement, ascertained as at the date of grant of the age pension, if it were assumed that Steps 2 and 3 were omitted from that Method statement; or

(b) if the person is permanently blind--the person's maximum basic rate under the 1065-B1 Table, ascertained as at the date of grant of the age pension.

(1) If:

(a) a person was a member of a couple throughout the person's overall qualifying period; or

(b) a person was not a member of a couple at any time during the person's overall qualifying period;

Change in marital status during overall qualifying period

(2) If subsection (1) does not apply to a person, the amount of the person's pension bonus is worked out using the following formula (for rounding up, see subsection (7)):

(3) For the purposes of this section, a person's annual notional single pension rate is equal to:

(a) if the person is not permanently blind--the adjusted percentage of the person's maximum basic rate under the 1064-B1 Table, ascertained as at the date of grant of the age pension, if it were assumed that the person were not a member of a couple as at that date; or

(b) if the person is permanently blind--the person's maximum basic rate under the 1065-B1 Table, ascertained as at the date of grant of the age pension, if it were assumed that the person were not a member of a couple as at that date.

(a) if the person is not permanently blind--the adjusted percentage of the person's maximum basic rate under the 1064-B1 Table, ascertained as at the date of grant of the age pension, if it were assumed that the person were a member of a couple as at that date; or

(b) if the person is permanently blind--the person's maximum basic rate under the 1065-B1 Table, ascertained as at the date of grant of the age pension, if it were assumed that the person were a member of a couple as at that date.

where:

maximum basic rate is the person's maximum basic rate under the 1064-B1 Table, ascertained as at the date of grant of the age pension.

(6) For the purposes of this section:

(a) the number of single years during the overall qualifying period is the number of years during the overall qualifying period when the person was not a member of a couple; and

(b) the number of partnered years during the overall qualifying period is the number of years during the overall qualifying period when the person was a member of a couple.

(7) An amount calculated under subsection (1) or (2) is to be rounded to the nearest 10 cents (with 5 cents being rounded up).

(8) A percentage worked out under subsection (5) is to be calculated to 3 decimal places. However, if a percentage worked out under subsection (5) would, if it were calculated to 4 decimal places, end in a digit that is greater than 4, the percentage is to be increased by 0.001.

Division 7--Claim for pension bonus SECT 93K Need for a claim A person who wants to be granted a pension bonus must make a proper claim for the bonus.

SECT 93L Proper claim (1) To be a proper claim, a claim for pension bonus must be:

(a) in writing; and

(b) in accordance with a form approved by the Secretary; and

(c) either:

(i) attached to a proper claim made by the person for age pension and lodged together with that claim for age pension; or

(ii) made in accordance with an invitation under subsection (3); and

(d) made within the applicable lodgment period (see section 93M).

(3) If:

(a) a person makes a proper claim for an age pension; and

(b) the claim is in accordance with a form that does not require the claimant to disclose whether the claimant is registered as a member of:

(i) the pension bonus scheme; or

(ii) the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act; and

(c) the person is, to the knowledge of the Secretary, registered as a member of the pension bonus scheme; and

(d) a claim by the person for pension bonus is not attached to the claim for age pension;

(e) within such period after the lodgment of the claim for age pension as is specified in the invitation; and

(f) at such place as in specified in the invitation.

SECT 93M Lodgment period for claim (1) This section sets out rules for determining the period (the lodgment period ) within which a claim for pension bonus must be made.

Lodgment period where last bonus period is a full-year period

(2) If a person's last bonus period is a full-year period, the lodgment period applicable to the person's claim for pension bonus is the period of 13 weeks beginning at the end of that bonus period. However, this rule does not apply if:

(a) the person is an exempt partnered person (see subsection (8)) as at the end of the person's last bonus period; or

(b) the person's membership of the pension bonus scheme becomes non-accruing immediately after the end of the person's last bonus period; or

(c) the person is a post-75 member of the pension bonus scheme and has a post-75 work period (see subsection (9)).

Note: For the rule in these cases, see subsections (5), (6) and (7).

(3) If a person's last bonus period is a part-year period, the lodgment period applicable to the person's claim for pension bonus is:

(a) the period of 13 weeks beginning at the end of that bonus period; or

(b) if the Secretary allows a longer period--that longer period.

(c) the person is an exempt partnered person (see subsection (8)) as at the end of the person's last bonus period; or

(d) the person's membership of the pension bonus scheme becomes non-accruing immediately after the end of the person's last bonus period; or

(e) the person is a post-75 member of the pension bonus scheme and has a post-75 work period (see subsection (9)).

Note: For the rule in these cases, see subsections (5), (6) and (7).

(a) subsection (3) applies to a person's claim for pension bonus; and

(b) the claim is lodged within a period allowed under paragraph (3)(b);

Lodgment period for exempt partnered person

(5) If a person is an exempt partnered person as at the end of the person's last bonus period because the person is a member of a couple, the lodgment period applicable to the person's claim for pension bonus is the period:

(a) beginning at the end of that bonus period; and

(b) ending at:

(i) the time of the last occasion on which the person's partner could have lodged a claim for a pension bonus; or

(ii) the end of the period of 13 weeks after the person ceases to be a member of the same couple (whether because of the death of the person's partner or for any other reason);

whichever comes first.

(6) If a person's membership of the pension bonus scheme becomes non-accruing immediately after the end of the person's last bonus period, the lodgment period applicable to the person's claim for pension bonus is the period:

(a) beginning at the end of the person's last bonus period; and

(b) ending 13 weeks after the time when the person's membership of the scheme ceases to be non-accruing.

(7) If a post-75 member of the pension bonus scheme has a post-75 work period, the lodgment period applicable to the person's claim for pension bonus is the period of 13 weeks beginning at the end of the period nominated in the claim as the person's post-75 work period.

Exempt partnered person

(8) For the purposes of this section, a person is an exempt partnered person at a particular time if, at that time, the person is a member of a couple, and:

(a) the person's partner is an accruing or non-accruing member of the pension bonus scheme; or

(b) the person's partner is an accruing or non-accruing member of the corresponding scheme under Part IIIAB of the Veterans' Entitlements Act.

(9) For the purposes of this section, a post-75 member of the pension bonus scheme has a post-75 work period if:

(a) the person's claim for pension bonus nominates a particular period as the person's post-75 work period; and

(b) the nominated period begins immediately after the end of the person's last bonus period; and

(c) if it were assumed that the person had been an accruing member of the pension bonus scheme throughout each test period that is applicable to the person, the person would have passed the work test for each test period.

Note: Test period is defined by subsection (10).

(a) identify the extended period , which is that part of the nominated period when the person was neither:

(i) subject to a compensation preclusion period or a carer preclusion period; nor

(ii) covered by a declaration under section 92Q;

(b) if the extended period is 365 days or less--the extended period is the only test period;

(c) if the extended period is longer than 365 days--each of the following periods is a test period:

(i) the full-year period beginning at the start of the extended period;

(ii) if 2 or more succeeding full-year periods are included in the extended period--each of those full-year periods;

(iii) the remainder (if any) of the extended period.

Last bonus period

(12) For the purposes of this section, if a person has accrued only one full year bonus period, that period is the person's last bonus period .

SECT 93N Withdrawal of claim (1) A claimant for a pension bonus may withdraw a claim that has not been determined.

(2) A claim that is withdrawn is taken not to have been made.

(3) A withdrawal may be made orally or in writing.

(4) If:

(a) a person claims both a pension bonus and an age pension; and

(b) the claim for age pension is withdrawn;

(5) If:

(a) a person claims both a pension bonus and an age pension; and

(b) the claim for age pension is rejected as a direct or indirect result of the operation of:

(i) Division 2 of Part 3.12 (disposals of assets); or

(ii) Part 3.14 (compensation);

Division 8--Determination of claim SECT 93P Secretary to determine claim (1) The Secretary must, in accordance with this Act, determine a claim for pension bonus.

(2) If a person claims both a pension bonus and an age pension, the Secretary must not determine the claim for pension bonus until the claim for age pension has been granted.

SECT 93Q Grant of claim The Secretary must determine that a claim for pension bonus is to be granted if the Secretary is satisfied that the person is qualified for the pension bonus.

Division 9--Payment of pension bonus SECT 93R Payment of pension bonus If a claim for pension bonus is granted, the bonus is payable to the person concerned on:

(a) the first pension payday after the grant; or

(b) if the Secretary considers that it is not practicable to pay the bonus on that payday--the next practicable day.

Claim granted before death

(2) If:

(a) a person claims a pension bonus; and

(b) the person dies; and

(c) at the time of the person's death, the claim had been granted, but the person had not received the bonus;

Claim not granted before death

(3) If:

(a) a person claims a pension bonus; and

(b) the person dies; and

(c) at the time of the person's death, the claim had not been determined;

(d) the Secretary must determine the claim after the person's death as if the person had not died; and

(e) if the claim is granted--the bonus is payable to the legal personal representative of the person.

(a) under paragraph (3)(d), the Secretary is required to determine a claim for pension bonus after a person's death; and

(b) at the time of the person's death, the person's claim for age pension had not been determined;

Modifications
Item	This provision:	is modified in this way:
1	Paragraph 92C(a)	The conditions in this paragraph are taken to be satisfied if: (a) the person would have started to receive an age pension if the person had not died; and (b) that age pension would have been received otherwise than because of a scheduled international social security agreement (see section 1208).
2	Division 6	A reference in the Division to a particular rate is taken to be a reference to the rate that would have been applicable to the person if the person had not died.
3	Division 6	A reference in the Division to the date of grant of the age pension is taken to be a reference to the date that the age pension would have been granted if the person had not died.
4	Subsection 93L(2)	The subsection is to be disregarded.
5	Subsection 93P(2)	The subsection is to be disregarded.

Liability of Commonwealth

(5) If a pension bonus is paid under subsection (2) or (3), the Commonwealth has no further liability to any person in respect of that bonus.

Division 10--Protection of pension bonus SECT 93T Pension bonus to be absolutely inalienable (1) A pension bonus is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise. This subsection has effect subject to subsections (2) and (3) and section 1359.

Deduction from bonus to pay tax debts that are unrelated to the bonus

(2) The Secretary may make a deduction from a pension bonus payable to a person if the person asks the Secretary:

(a) to make the deduction; and

(b) to pay the amount to be deducted to the Commissioner of Taxation.

Note 1: The Secretary must make deductions from a person's social security payment if requested by the Commissioner of Taxation--see section 1359.

Note 2: Under the Income Tax Assessment Act 1997 , pension bonus is exempt from income tax.

(3) The Secretary may make a deduction from a pension bonus payable to a person if the person consents under section 1234A to the Secretary making the deduction.

Note: Section 1234A enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a social security payment.

(a) either:

(i) a person has, during a designated year of the person, disposed of an asset of the person; or

(ii) the partner of a person has, during a designated year of the person, disposed of an asset of the partner; and

(b) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the person and/or the person's partner during that designated year, exceeds $10,000;

Note: Designated year is defined by subsection (3).

(a) a person ceases to be a member of a couple (whether because of the death of the person's partner or for any other reason); and

(b) immediately before the cessation, the person was subject to a particular disposal preclusion period that arose wholly because the person's partner disposed of a particular asset; and

(c) if that disposition had been disregarded, the person would not have been subject to that disposal preclusion period;

(3) For the purposes of this section, a designated year of a person is:

(a) the 12-month period ending on the day the person qualified for age pension; and

(b) each preceding 12-month period; and

(c) each succeeding 12-month period.

SECT 93V Compensation preclusion period (1) For the purposes of this Part, if a person receives a lump sum compensation payment, the person is subject to a compensation preclusion period throughout the lump sum preclusion period.

(2) For the purposes of this Part, if a person receives a series of periodic compensation payments, the person is subject to a compensation preclusion period throughout the periodic payments period.

(3) This section applies to a payment even if it was received before the commencement of this section.

SECT 93W Carer preclusion period (1) For the purposes of this Part, if a person receives:

(a) a carer payment; or

(b) a carer service pension; or

(c) an income support supplement that is payable as a result of the operation of subclause 8(3) of Schedule 5 to the Veterans' Entitlements Act;

Note: Subclause 8(3) of Schedule 5 to the Veterans' Entitlements Act deals with income support supplement for carers.

7 Paragraph 1224AA(1)(a)

Repeal the paragraph, substitute:

(a) either:

(i) an instalment of a social security payment is paid by cheque; or

(ii) a pension bonus is paid by cheque; and

Omit all the words after "following way:", substitute:

(e) if the social security payment is not pension bonus--each payment of the person's social security payment is to be reduced by the amount decided under subsection (1A), until the sum of:

(i) those amounts; and

(ii) any amount deducted under paragraph (f) in respect of the debt or overpayment;

is equal to the debt or overpayment; or

(f) if the social security payment is pension bonus--the payment of the bonus is to be reduced by so much of the debt or overpayment as does not exceed the bonus, even if this results in reducing the bonus to nil.

Omit "The Secretary", substitute "If the social security payment is not pension bonus, the Secretary".

10 Paragraph 1234A(1)(b)

After "is receiving", insert ", or is about to receive,".

11 Subsection 1240(1)

After "(1AA)", insert ", (1B)".

12 After subsection 1240(1A)

Insert:

(1B) If:

(a) an officer makes a decision under Part 2.2A (which deals with pension bonus); and

(b) notice of the decision is given to the person concerned;

13 Subsection 1253(2)

After "social security payment" (first occurring), insert "(other than pension bonus)".

14 After subsection 1253(2)

Insert:

(2A) If the Social Security Appeals Tribunal sets a decision aside and substitutes for it a decision that a person is entitled to a pension bonus, the SSAT must:

(a) assess the amount of the pension bonus that is to be paid to the person; or

(b) ask the Secretary to assess the amount of the pension bonus that is to be paid to the person.

After "payment" (first occurring), insert "(other than pension bonus)".

16 After paragraph 1304(1)(a)

Insert:

(aa) whether a person who has made a claim for a pension bonus under this Act is or was qualified for the pension bonus (for the purposes of this question, it is to be assumed that the person started to receive an age pension after making that claim); or

Add:

(3) If a written statement signed by a person referred to in subsection (1) is to the effect that, on a specified day, a specified person received a specified amount by way of pension bonus under this Act, the statement is prima facie evidence of the matters in the statement.