SOCIAL SECURITY LEGISLATION AMENDMENT (BUDGET AND OTHER MEASURES) ACT 1996 No. 84, 1996 - SCHEDULE 19

SOCIAL SECURITY LEGISLATION AMENDMENT (BUDGET AND OTHER MEASURES) ACT 1996 No. 84, 1996 - SCHEDULE 19

Schedule 19-Amendments of the Social Security Act 1991 to alter
the social security entitlements advance payment scheme 1 Paragraphs
1061A(1)(b) and (c) Repeal the paragraphs, substitute:

   (b)  the person has been receiving an income support payment for a
        continuous period of 3 months immediately before the day on which the
        person's application for the advance payment is made; and 2 Subsection
        1061A(1) (note 2) Repeal the note, substitute: Note 2: For income
        support payment and social security entitlement see subsection 23(1).
        Note 3: For the determination of the continuous period in respect of
        which a person received an income support payment see section 38B. 3
        Subsections 1061A(2) and (3) Repeal the subsections and the note to
        subsection (3). 4 Paragraph 1061A(4)(c) Repeal the paragraph,
        substitute:

   (c)  the person has received the amount of an advance payment in a single
        lump sum, or has received the first instalment of such an amount, on
        or after 1 January 1997, and the period of 12 months from the day the
        lump sum or instalment was paid has not elapsed; or

   (d)  the person owes a debt to the Commonwealth (whether arising under this
        Act or not) that is recoverable under Part 5.2 by means of deductions
        from the person's social security payment. 5 Subsection 1061C(2)
        Repeal the subsection, substitute:

(2) The application must specify the amount of advance payment sought. 6
Paragraph 1061EB(3)(b) After "paid in the", insert "two". 7 Section 1061EC
Repeal the section. 8 Sections 1061EE, 1061EF and 1061EG Repeal the sections,
substitute: 1061EE Amount of advance payment-widow allowance, mature age
allowance under Part 2.12B or newstart allowance Application

(1) The amount of an advance payment of widow allowance, mature age allowance
under Part 2.12B or newstart allowance is worked out according to this
section. Amount of advance

(2) Subject to section 1061EH, the amount of the advance payment is the
smallest of the following amounts:

   (a)  the amount of advance payment sought;

   (b)  the maximum amount of advance payment payable to the person as worked
        out under subsection (3) or (4), as the case requires;

   (c)  $500. Formula for maximum amount of advance: widow allowance and
        mature age allowance

(3) For the purpose of paragraph (2)(b), the maximum amount of advance payment
of widow allowance or mature age allowance under Part 2.12B payable to the
person is the amount worked out under the following formula:
6% x Fortnightly payment rate x 26 Formula for maximum amount of advance:
newstart allowance

(4) For the purpose of paragraph (2)(b), the maximum amount of advance payment
of newstart allowance payable to the person is the amount worked out under the
following formula:
7% x Fortnightly payment rate x 26 Rounding

(5) Amounts worked out under subsection (3) or (4) must be rounded to the
nearest cent (rounding 0.5 cents upwards). Meaning of fortnightly payment rate

(6) For the purposes of the formulae in subsections (3) and (4):
fortnightly payment rate means the fortnightly rate of widow allowance, mature
age allowance under Part 2.12B or newstart allowance (as the case requires)
payable under the relevant Benefit Rate Calculator to the person on the last
payday before the application for the advance payment was made, excluding any
amount payable by way of remote area allowance. Example: Facts: Veronique has,
at all times in the past 4 months, been receiving widow allowance. Her
fortnightly payment rate is $200. She applies for an advance payment of $300.
Result: The maximum amount of advance payment payable to Veronique is worked
out under subsection (3) as follows:
6% x $200 x 26 = $312.00 The smallest of the 3 amounts referred to in
subsection (2) is $300. Veronique can therefore be paid an advance payment of
$300. 9 Section 1206J Omit all the words after "worked out", substitute "by
dividing the full amount of the advance payment by 13". 10 Section 1206J
(example) Repeal the example.