Commonwealth Numbered Acts

SOCIAL SECURITY AND VETERANS' ENTITLEMENTS (MAINTENANCE INCOME TEST) AMENDMENT ACT 1988 No. 13, 1988 - SECT 17

17. After section 37 of the Principal Act the following section is inserted:
Apportionment of capitalised maintenance income

"37A. (1) Capitalised maintenance income of a person shall be taken to be
received by the person over the course of the capitalisation period determined
under subsections (2) to (5) (inclusive) in relation to the income, and,
accordingly, the maintenance income of the person attributable to the
capitalised maintenance income during any period (in this subsection called
the 'relevant period') in the capitalisation period is an amount
calculated in accordance with the formula A X      R

--
C , where:
A is the capitalised maintenance income;
R is the relevant period; and
C is the capitalisation period.

"(2) Where:

   (a)  the capitalised maintenance income is received under or as a result
        of:

        (i)    the order of a court; or

        (ii)   a maintenance agreement registered in, or approved by, a court
               under the Family Law Act 1975 or the law of a State or
               Territory;

   (b)  the order or agreement specified the period in relation to which the
        capitalised maintenance income was to be provided; and

   (c)  the length of the period could be ascertained with reasonable
        certainty when the order was made or the agreement was so registered
        or approved; the capitalisation period is, subject to subsection (5),
        the period specified in the order or agreement.

"(3) Where, in a case not falling within subsection (2):

   (a)  the capitalised maintenance income relates to the maintenance of a
        child who is a dependant of the person and is wholly or substantially
        dependent on the person; and

   (b)  the child has not attained 18 years of age on the day on which the
        income is received; the capitalisation period is, subject to
        subsection (5), the period beginning on the day on which the income is
        received and ending on the day immediately before the day on which the
        child attains 18 years of age.

"(4) Where, in a case not falling within subsection (2):

   (a)  the capitalised maintenance income relates to the maintenance of the
        person by the person's spouse or former spouse; and

   (b)  the person has not attained 65 years of age on the day on which the
        income is received; the capitalisation period is, subject to
        subsection (5), the period beginning on the day on which the income is
        received and ending on the day immediately before the day on which the
        person attains 65 years of age.

"(5) Where:

   (a)  the Commission considers:

        (i)    in a case falling within subsection (2) where the period
               referred to in that subsection was specified in an order of a
               court that was made by consent or in a maintenance
               agreement-that the period is not appropriate in the
               circumstances of the case; or

        (ii)   in a case falling within subsection (3) or (4)-that the period
               referred to in that subsection is not appropriate in the
               circumstances of the case; or

   (b)  no capitalisation period is applicable in relation to the capitalised
        maintenance income under subsection (2), (3) or (4); the
        capitalisation period is such period as the Commission considers
        appropriate in the circumstances of the case.".