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VETERANS' AFFAIRS (1994-95 BUDGET MEASURES) LEGISLATION AMENDMENT ACT 1994 No. 98 of 1994 - SECT 44
Insertion of Part
44. After section 45 of the Principal Act the following Part is inserted:
"PART IIIA - INCOME SUPPORT SUPPLEMENT
"Division 1 - Eligibility for and payability of income
support supplement Eligibility for income support supplement
"45A.(1) A person who has made a claim for income support supplement but whose
claim has not yet been determined is eligible for income support supplement
if:
(a) the person:
(i) is a war widow or war widower; and
(ii) is an Australian resident; and
(iii) is in Australia; and
(b) the person:
(i) has reached the qualifying age (see subsection (2)); or
(ii) has a dependent child; or
(iii) is, in the opinion of the Commission, permanently incapacitated
for work (see subsection (3)). Note: For 'Australian resident'
see section 5G.
"(2) For the purposes of paragraph (1)(b), the qualifying age is:
(a) 55 years for a woman; or
(b) 60 years for a man.
"(3) For the purposes of paragraph (1)(b), a person is permanently
incapacitated for work if:
(a) the degree of the permanent incapacity for work is 85% or more; or
(b) the person is permanently blinded in both eyes.
"(4) If the Commission has determined under section 45Q that the person's
claim is to be granted, the person is eligible for income support supplement
if the person:
(a) is a war widow or war widower; and
(b) is an Australian resident; and
(c) is in Australia. Income support supplement may not be payable in some
circumstances
"45B. Even though a person is eligible for income support supplement, income
support supplement may not be payable to the person because:
(a) the pension has not commenced to be payable (see section 45C); or
(b) the person is in gaol (see sections 55 and 55A); or
(c) the person is receiving an income support pension (see section 45D);
or
(d) the pension is cancelled or suspended (see sections 56E, 56EA, 56J and
56K); or
(e) the person has not provided a tax file number for the person or the
person's partner (see section 128A). Income support supplement
generally not payable before claim
"45C.(1) Income support supplement is not payable to a person before the day
on which the person claimed, or is taken to have claimed, income support
supplement. Initial incorrect claim followed by proper claim
"(2) If:
(a) a person has made a claim ('initial claim') for income support
supplement; and
(b) the claim is not a proper claim; and
(c) on the day on which the person made the initial claim, the person was
eligible for income support supplement; and
(d) the person subsequently makes a proper claim:
(i) within 3 months after being notified that the initial claim was
not a proper claim; or
(ii) if the person was not so notified - at any time; then:
(e) subsection (1) does not apply to the person; and
(f) income support supplement is not payable to the person before the day
on which the initial claim was lodged. Restrictions on dual pensions
"45D.(1) Income support supplement is not payable to a person if the person is
receiving:
(a) an age service pension; or
(b) an invalidity service pension; or
(c) a social security benefit.
"(2) Income support supplement is not payable to a person if:
(a) the person:
(i) elected under subsection 45E(2); or
(ii) is taken under subsection 45E(3) to have elected; to continue
to receive a social security pension; and
(b) that pension has not ceased to be payable to the person under the
Social Security Act.
"(3) Income support supplement is not payable to a person if:
(a) the person:
(i) elected under subsection 45F(2) or 45G(2); or
(ii) is taken under subsection 45F(3) or 45G(3) to have elected; to
receive a social security pension in the event that it was
granted to him or her; and
(b) that pension:
(i) was granted to the person; and
(ii) has not ceased to be payable to the person under the Social
Security Act. Election to continue to receive social security
pension
"45E.(1) This section applies to a war widower or war widow who immediately
before the day ('commencing day') on which this Part commences was receiving a
social security pension.
"(2) A person to whom this section applies may, on the commencing day, by
notice in writing given to the Secretary, elect to continue to receive, on and
after that day, the social security pension that he or she was receiving
immediately before that day. Note: As a result of that election, the person is
precluded from receiving income support supplement under this Part (see
section 45D) for as long as the social security pension continues to be
payable to the person.
"(3) If:
(a) a person to whom this section applies has failed to make an election
under subsection (2); and
(b) the Commission is satisfied that the person was unable to make the
election because of circumstances beyond his or her control (for
example, because of the person's incapacity or absence from
Australia); the Commission may determine that the person is to be
taken for the purposes of this Act to have elected to continue to
receive the social security pension. Claim for social security pension
by war widower or war widow pending at commencement of Part
"45F.(1) This section applies to a war widower or war widow if:
(a) before the day ('commencing day') on which this Part commences, he or
she had made a claim for a social security pension under the Social
Security Act; and
(b) on the commencement of this Part, the claim has not been determined.
"(2) A person to whom this section applies may, on the commencing day, elect
to receive the social security pension in the event that it is granted to him
or her. Note: If the social security pension is granted, the person is, as a
result of that election, precluded from receiving income support supplement
under this Part (see section 45D) for as long as the social security pension
continues to be payable to the person.
"(3) If:
(a) a person to whom this section applies has failed to make an election
under subsection (2); and
(b) the Commission is satisfied that the person was unable to make the
election because of circumstances beyond his or her control (for
example, because of a person's incapacity or absence from Australia);
the Commission may determine that the person is to be taken for the
purposes of this Act to have elected to receive the social security
pension in the event that it is granted to him or her. Review of
decision rejecting a claim by war widower or war widow for social
security pension pending at commencement of Part
"45G.(1) This section applies to a war widower or war widow if:
(a) before the day ('commencing day') on which this Part commences, he or
she had made a claim for a social security pension, and the claim had
been rejected, under the Social Security Act; and
(b) on the commencement of this Part:
(i) the decision to reject the claim (or a decision confirming the
decision) is still subject to review following an application
for review under Chapter 6 of the Social Security Act; or
(ii) an application for review of the decision to reject the claim
(or of a decision confirming the decision) may still be made
under Chapter 6 of that Act, as a result of which a favourable
determination may be made under that Act that will take effect
(if made) as provided under whichever backdating provision is
applicable to the determination.
"(2) A person to whom this section applies may, on the commencing day, elect
to receive the social security pension in the event that it is granted to him
or her at the end of the review process. Note: If the social security pension
is granted, the person is, as a result of that election, precluded from
receiving income support supplement under this Part (see section 45D) for as
long as the social security pension continues to be payable to the person.
"(3) If:
(a) a person to whom this section applies has failed to make an election
under subsection (2); and
(b) the Commission is satisfied that the person was unable to make the
election because of circumstances beyond his or her control (for
example, because of a person's incapacity or absence from Australia);
the Commission may determine that the person is to be taken for the
purposes of this Act to have elected to receive the social security
pension in the event that it is granted to him or her.
"(4) In this section:
'backdating provision', in relation to a determination under the Social
Security Act relating to a social security pension, means:
(a) in the case of an age pension - subsection 80(2) or (4) of the Social
Security Act; or
(b) in the case of a disability support pension - subsection 115(2) or (4)
of the Social Security Act; or
(c) in the case of a wife pension - subsection 184(2) or (4) of the Social
Security Act; or
(d) in the case of a carer pension - subsection 209(2) or (4) of the
Social Security Act; or
(e) in the case of disability wage supplement - subsection 431(2) or (4)
of the Social Security Act. Review of decision concerning rate of
social security pension paid to war widower or war widow pending at
commencement of Part
"45H.(1) This section applies if:
(a) immediately before the day ('commencing day') on which this Part
commences, a social security pension was payable to a war widower or
war widow; and
(b) on the commencing day:
(i) a decision ('adverse decision') under the Social Security Act
affecting the rate at which the pension should be paid to the
war widower or war widow (or a decision confirming the adverse
decision) is still subject to review following an application
for review under Chapter 6 of the Social Security Act; or
(ii) an application for review of an adverse decision (or of a
decision confirming the adverse decision) may still be made
under Chapter 6 of that Act, as a result of which a favourable
determination may be made under that Act that will take effect
(if made) as provided under whichever backdating provision is
applicable to the determination; and
(c) the war widower or war widow does not make an election under
subsection 45E(2).
"(2) Chapter 6 of the Social Security Act continues to apply until no further
application for review of the adverse decision can be made under that Chapter.
"(3) This Act has effect as if on the commencing day:
(a) the war widower or war widow had made a claim for income support
supplement under section 45I; and
(b) the Commission had determined under section 45Q that:
(i) the claim was to be granted; and
(ii) income support supplement was payable to the war widower or war
widow at a rate equal to the rate ('operative rate') at which
the social security pension was payable to him or her
immediately before the commencing day; and
(c) in the event that the operative rate of the social security pension is
varied as a result of the review - the war widower or war widow had
made, as provided in subsection (4), an application for review of the
decision of the Commission concerning the rate of which income support
supplement was to be paid to him or her.
"(4) For the purposes of paragraph (3)(c), an application for review by the
war widower or war widow is taken to have been made:
(a) if immediately before the commencing day the adverse decision under
the Social Security Act was being reviewed by the Administrative
Appeals Tribunal - to the Administrative Appeals Tribunal under
section 175 of this Act; and
(b) in any other case - to the Commission under section 57A of this Act.
"(5) In this section:
'backdating provision', in relation to a determination under the Social
Security Act relating to a social security pension, means:
(a) in the case of an age pension - subsection 80(2) or (4) of the Social
Security Act; or
(b) in the case of a disability support pension - subsection 115(2) or (4)
of the Social Security Act; or
(c) in the case of a wife pension - subsection 184(2) or (4) of the Social
Security Act; or
(d) in the case of a carer pension - subsection 209(2) or (4) of the
Social Security Act; or
(e) in the case of disability wage supplement - subsection 431(2) or (4)
of the Social Security Act.
"Division 2 - Claim for income support supplement Need for a claim
"45I. Subject to section 45N, a person who wants to be granted income support
supplement must make a proper claim for that supplement. Who can claim?
"45J.(1) Subject to subsection (2), the claim must be made by:
(a) the person ('claimant') who wants to be granted income support
supplement; or
(b) with the approval of the claimant - another person on the claimant's
behalf.
"(2) If the claimant is unable, because of physical or mental incapacity, to
approve another person to make the claim on his or her behalf, the Commission
may approve another person to make the claim. Form of claim
"45K. To be a proper claim, the claim must be:
(a) made in writing; and
(b) in accordance with a form approved by the Commission; and
(c) accompanied by any evidence that the person making the claim considers
may be relevant to the claim. Lodgment of claim
"45L.(1) To be a proper claim, the claim must be lodged:
(a) at an office of the Department in Australia; or
(b) at a place approved for this purpose by the Commission; or
(c) with a person approved for this purpose by the Commission.
"(2) A claim is taken to have been lodged on the day it is received:
(a) at an office of the Department in Australia; or
(b) at a place approved under subsection (1); or
(c) by a person approved under subsection (1); as the case may be.
Claimant must be Australian resident and in Australia
"45M.(1) Subject to subsection (2), a claim is not a proper claim unless the
person making the claim, or on whose behalf the claim is being made, is:
(a) an Australian resident; and
(b) in Australia; on the day on which the claim is lodged. Note: For
'Australian resident' see section 5G.
"(2) Subsection (1) does not apply to a person's claim if the person:
(a) is outside Australia; and
(b) is receiving a service pension or a social security pension; and
(c) would, if that pension were cancelled, be eligible for income support
supplement. Note: If the person ceases to be an Australian resident
after having made a proper claim and after having met all the
eligibility requirements (see section 36), the person's eligibility is
not affected. Not necessary to make a claim in certain circumstances
"45N.(1) This section applies to:
(a) a war widower or war widow:
(i) to whom section 45E applies; and
(ii) who has not made, or is not taken to have made, an election
under subsection 45E(2); and
(b) a war widower or war widow:
(i) to whom section 45F or 45G applies; and
(ii) who has not made, or is not taken to have made, an election
under subsection 45F(2) or 45G(2) (as the case may be); and
(iii) to whom a social security pension is granted; and
(c) a war widower or war widow who, immediately before being granted a
pension under Part II or Part IV at a rate determined under or by
reference to subsection 30(1), was receiving a partner service
pension.
"(2) A person to whom this section applies does not have to make a proper
claim under section 45I to be entitled to income support supplement unless the
Commission asks him or her to do so.
"(3) If the person is not required by the Commission to make a claim for
income support supplement, this Act applies to the person as if:
(a) the person had made a claim for income support supplement under
section 45I on the day on which this Part commenced; and
(b) the Commission had, on that day, determined under section 45Q that the
claim was to be granted. Withdrawal of claim
"45O.(1) A claimant for income support supplement may withdraw the claim at
any time before it is determined by the Commission.
"(2) To withdraw the claim, the claimant must give written notice of
withdrawal to the Secretary and the notice must be lodged at an office of the
Department in Australia.
"(3) A claimant who withdraws a claim may subsequently make another claim for
an income support supplement.
"Division 3 - Investigation of claim Secretary to investigate claim and submit
it to Commission
"45P.(1) If a person makes a proper claim for income support supplement, the
Secretary must cause an investigation to be made into the matters to which the
claim relates.
"(2) When the investigation is completed, the Secretary must cause the claim
to be submitted to the Commission for consideration and determination.
"(3) When the claim is submitted to the Commission it must be accompanied by:
(a) any evidence supplied by the claimant in support of the claim; and
(b) any documents or other evidence obtained by the Department in the
course of the investigation that are relevant to the claim; and
(c) any other documents or other evidence under the control of the
Department that are relevant to the claim.
"Division 4 - Consideration and determination of claim Duties of Commission in
relation to claim
"45Q.(1) When the claim is submitted to the Commission, the Commission must
consider all matters that are, in the Commission's opinion, relevant to the
claim and must then determine the claim.
"(2) In considering the claim, the Commission must:
(a) satisfy itself with respect to; or
(b) determine; (as the case requires) all matters relevant to the
determination of the claim.
"(3) Without limiting subsection (1), the Commission, in considering the
claim, must consider:
(a) the evidence submitted with the claim under section 45P; and
(b) any further evidence subsequently submitted to the Commission in
relation to the claim. Note: A claimant may apply to the Commission
for review of a determination made under this section (see Division
16). Date of determination
"45R. If the Commission determines that the claim is to be granted, the
determination takes effect on the day on which the determination is made or on
such later day or earlier day as is specified in the determination.
"Division 5 - Rate of income support supplement
"Subdivision A - General How to work out the rate of income support supplement
"45S. The rate at which a person's income support supplement is payable is
worked out in accordance with section 45X or 45Y, as the case requires.
Standard categories of family situations
"45T.(1) The Rate Calculators in this Division use the following standard
categories of family situations:
. not a member of a couple;
. member of a couple (or partnered);
. partnered (partner getting neither pension nor benefit);
. partnered (partner getting pension or benefit);
. partnered (partner getting pension);
. partnered (partner getting benefit). Note: See section 5E for definitions of
those terms.
"(2) If it is necessary to distinguish between the members of sub-categories
of these standard categories further words of description are added to the
standard category label. Rate Calculators
"45U.(1) For the purposes of this Act, a Rate Calculator is to be taken to be
part of the section immediately preceding the Rate Calculator.
"(2) Rate Calculators are divided into Modules (for example, Module A).
"(3) A Module of a Rate Calculator is divided into points.
"(4) The points in a Module are numbered as follows:
(a) the initial number (followed by a hyphen) identifies the section that
immediately precedes the Rate Calculator;
(b) the letter following the hyphen is the letter allocated to the Module
in which the point occurs;
(c) the final number identifies the order of the point within the Module.
Example: Point 45X-D8 is the eighth point in Module D of the Rate Calculator
at the end of section 45X. Note: Paragraph (4)(a) has been adopted so that if
a reader is looking for a particular section of the Act and opens a page that
happens to be in the middle of a Rate Calculator, the reader will know whether
the section the reader is looking for is before or after that page.
Application of income and assets test reductions for income tax purposes
"45V.(1) If:
(a) the rate of income support supplement applicable to a person is worked
out by using the Income Support Supplement Rate Calculator Where There
Are No Dependent Children at the end of section 45X; and
(b) the maximum basic rate applicable to the person is increased by an
amount worked out under the remote area allowance Module or the rent
assistance Module of the Rate Calculator; and
(c) the rate of income support supplement is to be reduced under the
adjusted income test Module or the assets test Module of the Rate
Calculator; the reduction is to be applied:
(d) first, to the rate of income support supplement apart from any
increase under the remote area allowance Module or the rent assistance
Module; and
(e) then, to the amount of any increase under the remote area allowance
Module; and
(f) finally, to the amount of any increase under the rent assistance
Module.
"(2) If:
(a) the rate of income support supplement applicable to a person is worked
out by using the Income Support Supplement Rate Calculator Where There
Are Dependent Children at the end of section 45Y; and
(b) the maximum basic rate applicable to the person is increased by an
amount worked out under the remote area allowance Module of the Rate
Calculator; and
(c) the rate of income support supplement is to be reduced under the
adjusted income test Module or the assets test Module of the Rate
Calculator; the reduction is to be applied:
(d) first, to the rate of income supplement apart from any increase under
the remote area allowance Module or any other Module; and
(e) then, to the amount of any increase under the remote area allowance
Module.
"(3) The following Table sets out details of the Modules relevant to
subsection (1):
RELEVANT MODULES TABLE column 1 Rate Calculator
column 2
remote area allowance Module
column 3
rent assistance Module
column 4
adjusted income test Module
column 5
assets test Module Income Support Supplement Rate Calculator Where There Are
No Dependent Children (section 45X)
Module C>
Module D
Module E
Module F Income Support Supplement Calculator Where There Are Dependent
Children (section 45Y)
Module C
Not applicable
Module D
Module E Rate Calculator determination in relation to children of a couple
"45W.(1) The Commission may make a determination under subsection (2) if:
(a) a person is a member of a couple; and
(b) the person and the person's partner are receiving income support
supplement; and
(c) a child is a dependent child:
(i) of the person; or
(ii) of both the person and the person's partner; and
(d) the Commission:
(i) is satisfied that it is in the best interests of the child to
make the determination; or
(ii) has been requested by the person and the person's partner to
make the determination.
"(2) The Commission may determine that, for the purposes of Module G of the
Income Support Supplement Rate Calculator Where There Are Dependent Children
at the end of section 45Y, the child is to be taken into account as a
dependent child of the person or the person's partner.
"Subdivision B - Income Support Supplement Rate Calculator
Where There Are No Dependent Children Rate of income support supplement (no
dependent children)
"45X.(1) If a person entitled to income support supplement does not have any
dependent child or dependent children, the rate of the person's income support
supplement is to be calculated in accordance with the Rate Calculator at the
end of this section. Note 1: Module A of the Rate Calculator establishes the
overall rate calculation process and the remaining Modules provide for the
calculation of the component amounts used in the overall rate calculation.
Note 2: The rate obtained by applying the Rate Calculator may be reduced
because of the receipt of payments under the New Enterprise Incentive Scheme
(see Division 9).
"(2) If:
(a) the person is a member of a couple; and
(b) the person's partner is not receiving a service pension, income
support supplement or a social security pension or benefit; the rate
of the person's income support supplement is not to exceed twice the
rate at which income support supplement would be payable to the person
if the person's partner were receiving a service pension, income
support supplement or a social security pension or benefit. Reduced
rate if social security pension was payable to person in the previous
week
"(3) If:
(a) income support supplement becomes payable to a person without a
dependent child or dependent children on a pension payday ('income
support supplement payday'); and
(b) a social security pension was payable to the person on the pension
payday (within the meaning of the Social Security Act) immediately
before the income support supplement payday; the rate at which income
support supplement is payable to the person on the income support
supplement payday is to be worked out by using the formula:
annual rate
2 where:
'annual rate' means the rate of the person's income support supplement worked
out by using the Rate Calculator at the end of this section.
"INCOME SUPPORT SUPPLEMENT RATE CALCULATOR WHERE THERE ARE
NO DEPENDENT CHILDREN
"MODULE A - OVERALL RATE CALCULATION PROCESS
Method of calculating rate
"45X - A1. The rate of income support supplement is an annual rate
(fortnightly amounts are provided for information only):
Method statement Step 1. Work out the person's maximum basic rate using MODULE
B below. Step 2. Work out the amount per year (if any) payable by way of
remote area allowance (see MODULE C below). Step 3. Work out the amount per
year (if any) for rent assistance using MODULE D below. Step 4. Add up the
amounts obtained in Steps 1, 2 and 3: the result is called the maximum payment
rate. Step 5. Apply the adjusted income test using MODULE E below to work out
the reduction for adjusted income. Step 6. Take the amount obtained in Step 5
away from the maximum payment rate: the result is called the adjusted income
reduced rate. Step 7. Apply the assets test using MODULE F below to work out
the reduction for assets. Step 8. Take the reduction for assets away from the
maximum payment rate: the result is called the assets reduced rate. Step 9.
Work out the person's ceiling rate using points 45X - A3 and 45X - A4. Step
10. Find out, using points 45X - A5 and 45X - A6, whether the pension payable
to the person under Part II or Part IV is compensation reduced. If the pension
is compensation reduced, go to Step 11. If the pension is not compensation
reduced, ignore Step 11 and go directly to Step 12. Step 11. This Step applies
only to a person whose pension under Part II or IV is compensation reduced.
Compare the adjusted income reduced rate (see Step 6) and the assets reduced
rate (see Step 8); the rate of income support supplement is equal to:
(a) whichever is the lower of those rates; or
(b) if the 2 rates are the same - those rates. Step 12. This Step applies
only to a person whose pension under Part II or IV is not compensation
reduced. Compare the adjusted income reduced rate, the assets reduced
rate and the ceiling rate; the rate of income support supplement is
equal to:
(a) whichever is the least of those rates; or
(b) if 2 of those rates are the same and the third one is higher - the
lower rate; or
(c) if the 3 rates are the same - those rates. Note 1: For 'adjusted
income' see section 5H. Note 2: If a person's assets reduced rate is
less than the person's adjusted income reduced rate, the person may be
able to take advantage of provisions dealing with:
. financial hardship (sections 52Y and 52Z);
. pension loans scheme (sections 52ZA to 52ZM). Note 3: If a person's rate is
reduced under Step 10, the order in which the reduction is to be made against
the components of the maximum payment rate is laid down by section 45V
(maximum basic rate first, then remote area allowance and, finally, rent
assistance). Note 4: The rate calculation for a member of a couple is affected
by the operation of point 45X-A2. Note 5: The amount of a fortnightly
instalment of income support supplement will be rounded off to the nearest
multiple of 10 cents (see subsections 58A(2) and (3)). Note 6: For the minimum
amount of a fortnightly instalment of income support supplement see subsection
58A(4). Members of a couple
"45X-A2. Where 2 persons are members of a couple, they will be treated as
pooling their resources (income and assets) and sharing them on a 50/50 basis
(see points 45X-E2 and 45X-F2 below). They will also be treated as sharing
expenses (e.g. for rent) on a 50/50 basis (see points 45X-D9 and 45X-D10
below). Ceiling rate
"45X-A3. The ceiling rate for a war widow or war widower is $3,122.60 unless
point 45X-A4 applies to the war widow or war widower.
"45X-A4. If:
(a) a person became a war widow or war widower before 1 November 1986; and
(b) immediately before 1 November 1986 the person was receiving a social
security pension at a rate ('pre-November 1986 rate') equal to or more
than $3,122.60; and
(c) since that day the person has been continuously receiving the social
security pension or income support supplement; his or her ceiling rate
is equal to the pre-November 1986 rate. Compensation reduced pension
"45X-A5. A pension payable to a war widow or war widower under Part II is
compensation reduced if the pension has been reduced:
(a) by taking into account (under subsection 30(3)) the rate, or amount,
of any payment that the war widow or war widower is entitled to
receive under the law of a State or of a foreign country; or
(b) by taking into account (under Division 5A of that Part) the rate at
which any compensation is payable to the war widow or war widower.
"45X-A6. A pension payable to a war widow or war widower under Part IV is
compensation reduced if the pension has been reduced by taking into account
(under Division 4 of that Part) the rate at which any compensation is payable
to the war widow or war widower.
"MODULE B - MAXIMUM BASIC RATE
Maximum basic rate
"45X-B1. A person's maximum basic rate depends on the person's family
situation. Work out which family situation in Table B applies to the person.
The maximum basic rate is the corresponding amount in column 3.
TABLE B
MAXIMUM BASIC RATES column 1 item no.
column 2
person's family situation
column 3
rate per year
column 4
rate per fortnight 1.
Not member of couple
$8,270.60
$318.10 2.
Partnered (partner getting neither pension nor benefit)
$8,270.60
$318.10 3.
Partnered (partner getting pension or benefit)
$6,897.80
$265.30 4.
Member of illness separated or respite care couple
$8,270.60
$318.10 Note 1: For 'member of a couple', 'partnered (partner getting neither
pension nor benefit)', 'partnered (partner getting pension or benefit)' see
section 5E, and for 'illness separated couple' and 'respite care couple' see
subsections 5R(5) and (6). Note 2: The maximum basic rates are indexed 6
monthly in line with CPI increases (see sections 59B to 59E).
"MODULE C - REMOTE AREA ALLOWANCE
Remote area allowance
"45X-C1. An amount by way of remote area allowance is to be added to a
person's maximum basic rate if:
(a) the person's usual place of residence is situated in a remote area;
and
(b) the person is physically present in the remote area. Note: For 'remote
area' and 'physically present in the remote area' see section 5Q. Rate
of remote area allowance
"45X-C2. The rate of remote area allowance payable to a person is worked out
by using Table C. Work out which family situation in the Table applies to the
person. The rate of remote area allowance is the corresponding amount in
column 3.
TABLE C
REMOTE AREA ALLOWANCE column 1 item no.
column 2
person's family situation
column 3
allowance per year
column 4
allowance per fortnight 1.
Not member of couple
$455.00
$17.50 2.
Partnered (partner receiving remote area allowance)
$390.00
$15.00 3.
Partnered (partner not receiving remote area allowance)
$455.00
$17.50 Note: For 'member of a couple' and 'partnered' see section 5E. Illness
separated couples
"45X-C3. For the purposes of Table C in point 45X-C2, a member of an illness
separated couple or a respite care couple is to be treated as not being a
member of a couple.
"MODULE D - RENT ASSISTANCE
Rent assistance
"45X-D1. Rent assistance is an amount that may be added to the maximum basic
rate to help cover the cost of rent. A person who is eligible for rent
assistance under point 45X-D2 can have added to his or her maximum basic rate
the amount applying to that person under Table D-1. Eligibility for rent
assistance
"45X-D2. Rent assistance is to be added to a person's maximum basic rate if:
(a) the person is not an ineligible property owner; and
(b) the person pays, or is liable to pay, rent (other than Government
rent); and
(c) the rent is payable at a rate of more than the rent threshold rate;
and
(d) the person is in Australia. Note 1: For 'rent', 'Government rent' and
'ineligible property owner' see section 5N. Note 2: For 'rent
threshold amount' see point 45X-D3. Rent threshold rate
"45X-D3. A person's rent threshold rate depends on the person's family
situation. Work out which family situation in Table D applies to the person.
The rent threshold rate is the corresponding amount in column 3.
TABLE D
RENT THRESHOLD RATES column 1 item no.
column 2
person's family situation
column 3
rate per year
column 4
rate per fortnight 1.
Not member of couple
$1,591.20
$61.20 2.
Partnered (partner does not have rent increased pension)
$1,591.20
$61.20 3.
Partnered (partner has rent increased pension)
$2,652.00
$102.00 Note 1: For 'member of a couple', 'partnered' see section 5E. Note 2:
For 'partner with a rent increased pension' see point 45X-D6. Note 3: The
column 3 amounts are indexed 6 monthly in line with CPI increases (see
sections 59B to 59E). No rent assistance if partner getting incentive
allowance under the Social Security Act
"45X-D4. If a person is a member of a couple and the person's partner is
living with the person in their home, an additional amount is not to be added
to the person's maximum basic rate under point 45X-D2 if an amount by way of
incentive allowance is being added to the maximum basic rate of the person's
partner. Note: For 'incentive allowance' see subsection 5Q(1). Factors
affecting rate of rent assistance
"45X-D5. The rate of rent assistance depends on:
(a) the annual rent paid or payable by the person; and
(b) whether or not the person has a partner with a rent increased pension.
Partner with rent increased pension
"45X-D6. A person has a partner with a rent increased pension, for the
purposes of this Module, if:
(a) the partner is living with the person in their home; and
(b) the partner is receiving a service pension, a social security pension
or income support supplement; and
(c) the rate of the pension or income support supplement is increased to
take account of rent paid or payable by the person. Note 1: 'Social
security pension' includes a rehabilitation allowance. Note 2: For the
treatment of rent paid by a member of a couple see points 45X-C8 and
45X-C9. Rate of rent assistance
"45X-D7. The rate of rent assistance is whichever is the lesser of Rate A and
Rate B applicable to the person in accordance with Table D-1.
TABLE D-1
RATE OF RENT ASSISTANCE column 1 item no.
column 2
person's family situation
column 3
Rate A
column 4
Rate B 1.
Not member of couple
3 x (Annual rent - $1,591.20)
4
$1,778.40 2.
Partnered (partner does not have rent increased pension)
3 x (Annual rent - $1,591.20)
4
$1,778.40 3.
Partnered (partner has rent increased pension)
3 x (Annual rent - $2,652.00)
8
$837.20 Note 1: For 'member of a couple' and 'partnered' see section 5E. Note
2: For 'partner with a rent increased pension' see point 45X-D6. Note 3: The
Rate B amounts are indexed 6 monthly in line with CPI increases (see sections
59B to 59E). Note 4: The rent threshold amounts in column 3 are indexed 6
monthly in line with CPI increases (see sections 59B to 59E). Annual rent
"45X-D8. Annual rent is the annual rent paid or payable by the person whose
rate of income support supplement is being calculated. Rent paid by a member
of a couple
"45X-D9. Where a person is a member of a couple and the person's partner is
living with the person in their home, any rent that the person's partner pays
or is liable to pay in respect of the home is to be treated as paid or payable
by the person. Note: For 'member of a couple' see section 5E. Rent paid by a
member of an illness separated or respite care couple
"45X-D10. Where a person is a member of an illness separated or respite care
couple, any rent that the person's partner pays or is liable to pay in respect
of the premises occupied by the person is to be treated as paid or payable by
the person. Note: For 'member of an illness separated couple' and 'respite
care couple' see subsections 5R(5) and (6).
"MODULE E - ADJUSTED INCOME TEST Effect of income on maximum payment rate
"45X-E1. This is how to work out the effect of a person's adjusted income on
the person's maximum payment rate:
Method statement Step 1. Work out the amount of the person's adjusted income
on a yearly basis. Note: For the treatment of the adjusted income of members
of a couple see point 45X-E2. Step 2. Work out the person's adjusted income
free area (see points 45X-E3 to 45X-E5 below). Note: A person's adjusted
income free area is the maximum amount of adjusted income the person can have
without affecting the person's income support supplement rate. Step 3. Work
out whether the person's adjusted income exceeds the person's adjusted income
free area. Step 4. If the person's adjusted income does not exceed the
person's adjusted income free area, the person's adjusted income excess is
nil. Step 5. If the person's adjusted income exceeds the person's adjusted
income free area, the person's adjusted income excess is the person's adjusted
income less the person's adjusted income free area. Step 6. Use the person's
adjusted income excess to work out the person's reduction for adjusted income
using points 45X-E6 and 45X-E7. Note 1: See point 45X-A1 (Steps 5 to 12) for
the significance of the person's reduction for adjusted income. Note 2: The
application of the adjusted income test is affected by provisions concerning:
. investment income (sections 46-46U);
. disposal of income (sections 48-48E);
. earnings credit (section 49). Adjusted incomes of members of couples
"45X-E2. If a person is a member of a couple, add the couple's adjusted
incomes (on a yearly basis) and divide by 2 to work out the amount of the
person's adjusted income for the purposes of this Module. Partner's DSS
earnings credit to be taken into account
"45X-E3. If:
(a) a person is a member of a couple; and
(b) the person's partner is receiving a social security pension or
benefit; and
(c) an amount earned by the partner is disregarded under section 1113 or
1115A of the Social Security Act; that amount is also to be
disregarded in working out the adjusted income of the person for the
purposes of point 45X-E2. Adjusted income free area
"45X-E4. A person's adjusted income free area is the amount of adjusted income
the person can have without any deduction being made from the person's maximum
payment rate. How to calculate a person's adjusted income free area
"45X-E5. A person's adjusted income free area is worked out using Table E-1.
Work out which family situation in Table E-1 applies to the person. The
adjusted income free area is the corresponding amount in column 3.
TABLE E-1
ADJUSTED INCOME FREE AREA column 1 item no.
column 2
category of person
column 3
free area per year
column 4
free area per fortnight 1.
Not member of couple
$2,340.00
$90.00 2.
Partnered (partner getting neither pension nor benefit)
$2,028.00
$78.00 3.
Partner (partner getting benefit)
$2,028.00
$78.00 4.
Partner (partner getting pension)
$2,028.00
$78.00 Note 1: For 'member of a couple', 'partnered (partner getting neither
pension nor benefit)', 'partnered (partner getting benefit)' and 'partnered
(partner getting pension)' see section 5E. Note 2: Items 2, 3 and 4 of Table
E-1 apply to a member of illness separated and respite care couples. Note 3:
The free area is indexed annually in line with CPI increases (see sections 59B
to 59E). Reduction for adjusted income in excess of adjusted income free area
"45X-E6. A person's reduction for adjusted income is worked out using Table
E-2. Work out which family situation applies to the person. The reduction for
adjusted income is the amount per year worked out using the corresponding
calculations in column 3.
TABLE E-2
REDUCTION FOR ADJUSTED INCOME column 1 item no.
column 2
person's family situation
column 3
reduction 1.
Not member of couple
adjusted income excess
2 2.
Partnered (partner getting neither pension nor benefit)
adjusted income excess
2 3.
Partnered (partner getting benefit)
adjusted income excess
2 4.
Partnered (partner getting pension)
adjusted income excess
2 Note 1: For 'member of a couple', 'partnered (partner getting neither
pension nor benefit)', 'partnered (partner getting benefit)' and 'partnered
(partner getting pension)' see section 5E. Note 2: 'Social security pension'
includes a rehabilitation allowance. Note 3: For 'adjusted income excess' see
point 45X-E7 below. Adjusted income excess
"45X-E7. A person's adjusted income excess is the person's adjusted income
less the person's adjusted income free area.
"MODULE F - ASSETS TEST
Effect of assets on maximum payment rate
"45X-F1. This is how to work out the effect of a person's assets on the
person's maximum payment rate:
Method statement Step 1. Work out the value of the person's assets. Note 1:
For the treatment of the assets of a couple see point 45X-F2. Note 2: For the
assets that are to be disregarded in valuing a person's assets see section 52.
Note 3: For the valuation of an asset that is subject to a charge or
encumbrance see section 52C. Step 2. Work out the person's assets value limit
(see point 45X-F3 below). Note: A person's assets value limit is the maximum
value of assets a person can have without affecting the rate of the person's
income support supplement. Step 3. Work out whether the value of the person's
assets exceeds the person's assets value limit. Step 4. If the value of the
person's assets does not exceed the person's assets value limit, the person's
assets excess is nil. Step 5. If the value of the person's assets exceeds the
person's assets value limit, the person's assets excess is the value of the
person's assets less the person's assets value limit. Step 6. Use the person's
assets excess to work out the person's reduction for assets using points
45X-F4 to 45X-F6 below. Note 1: See point 45X-A1 (Steps 7 to 12) for the
significance of the person's reduction for assets. Note 2: The application of
the assets test is affected by provisions concerning:
. disposal of assets (sections 52E-52J);
. retirement villages (sections 52K-52X);
. financial hardship (sections 55Y and 55Z);
. the pension loans scheme (sections 52ZA-52ZM). Value of assets of members of
couples
"45X-F2. For the purposes of this Module:
(a) the value of the assets of a member of a couple is to be taken to be
50% of the sum of:
(i) the value of the person's assets; and
(ii) the value of the person's partner's assets; and
(b) the value of the assets of a particular kind of a member of a couple
is to be taken to be 50% of the sum of:
(i) the value of the person's assets of that kind; and
(ii) the value of the person's partner's assets of that kind. Assets
value limit
"45X-F3. A person's assets value limit is worked out using Table F-1. Work out
the person's family situation and property ownership situation. The assets
value limit is the corresponding amount in column 3.
TABLE F-1
ASSETS VALUE LIMIT
column 1 column 2 column 3
assets value limit
item no. person's family situation
column 3A column 3B
either person or neither person
partner property nor partner
owner property owner
1. Not member of couple
$115,000 $197,000
2. Partnered (partner getting neither pension nor benefit)
$81,750 $122,750
3. Partnered (partner getting pension or benefit)
$81,750 $122,750
Note 1: For 'member of a couple', 'partnered (partner getting neither pension
nor benefit)' and 'partnered (partner getting benefit or pension)' see section
5E. Note 2: For 'property owner' see section 5L. Note 3: Items 2 and 3 apply
to members of illness separated and respite care couples. Note 4: The assets
value limit in column 3B of item 1 is adjusted annually in line with CPI
increases (see section 59H). The other assets value limits are indexed
annually in line with CPI increases (see sections 59B to 59E). Reduction for
assets in excess of assets value limit
"45X-F4. A person's reduction for assets is worked out using Table F-2. Work
out which family situation applies to the person. The reduction for assets is
the amount per year worked out using the corresponding calculations in column
3.
TABLE F-2
REDUCTION FOR ASSETS column 1 item no.
column 2
person's family situation
column 3
reduction
1. Not member of couple
(assets excess) x 19.50
250
2. Partnered (partner getting neither pension nor benefit)
(assets excess) x 19.50
250
3. Partnered (partner getting benefit)
(assets excess) x 19.50
250
4. Partnered (partner getting pension)
(assets excess) x 19.50
250 Note 1: For 'member of a couple', 'partnered (partner getting neither
pension nor benefit)', 'partnered (partner getting benefit)' and 'partnered
(partner getting pension)' see section 5E. Note 2: 'Social security pension'
includes a rehabilitation allowance. Note 3: For 'assets excess' see point
45X-F5 below. Assets excess
"45X-F5. A person's assets excess is the value of the person's assets less the
person's asset value limit.
"45X-F6. In calculating a person's assets excess under point 45X-F5 disregard
any part of the excess that is not a multiple of $250.
"Subdivision C - Income Support Supplement Rate Calculator
Where There Are Dependent Children Rate of income support supplement
(dependent child or children)
"45Y.(1) If a person entitled to income support supplement has a dependent
child or dependent children, the rate of the person's income support
supplement is, subject to subsection (2), to be calculated in accordance with
the Rate Calculator at the end of this section. Note 1: Module A of the Rate
Calculator establishes the overall rate calculation process and the remaining
Modules provide for the calculation of the component amounts used in the
overall rate calculation. Note 2: The rate obtained by applying the Rate
Calculator may be reduced because of the receipt of payments under the New
Enterprise Incentive Scheme (see Division 9).
"(2) If:
(a) the person is a member of a couple; and
(b) the person's partner is not receiving a service pension, income
support supplement or a social security pension or benefit; the rate
of the person's income support supplement is not to exceed twice the
rate at which income support supplement would be payable to the person
if the person's partner were receiving a service pension, income
support supplement or a social security pension or benefit. Reduced
rate if social security pension was payable to person in the previous
week
"(3) If:
(a) income support supplement is payable to a person with a dependent
child or dependent children on a pension payday ('income support
supplement payday'); and
(b) a social security pension was payable to the person on the pension
payday (within the meaning of the Social Security Act) immediately
before the income support supplement payday; the rate at which income
support supplement is payable to the person on the income support
supplement payday is to be worked out by using the Rate Calculator at
the end of this section modified by omitting Step 17 and substituting
the following Step: 'Step 17. Divide the person's provisional rate
(see Step 10 or 11) by 2 and add to the result the amount obtained in
Step 16: the result is the rate of income support supplement.'.
"INCOME SUPPORT SUPPLEMENT RATE CALCULATOR WHERE THERE ARE
DEPENDENT CHILDREN
"MODULE A - OVERALL RATE CALCULATION PROCESS Method of calculating rate
"45Y-A1. The rate of income support supplement is an annual rate (fortnightly
amounts are provided for information only):
Method statement Step 1. Work out the person's maximum basic rate using MODULE
B below. Step 2. Work out the amount per year (if any) payable by way of
remote area allowance using MODULE C below. Step 3. Add up the amounts
obtained in Steps 1 and 2. Step 4. Apply the adjusted income test using MODULE
D below to work out the reduction for adjusted income. Step 5. Take the amount
obtained in Step 4 away from the amount obtained in Step 3: the result is
called the adjusted income reduced rate. Step 6. Apply the assets test using
MODULE E below to work out the reduction for assets. Step 7. Take the amount
obtained in Step 6 from the amount obtained in Step 3: the result is called
the assets reduced rate. Step 8. Work out the person's ceiling rate using
points 45Y-A3 and 45Y-A4. Step 9. Find out, using points 45Y-A5 and 45Y-A6,
whether the pension payable to the person under Part II or Part IV is
compensation reduced. If the pension is compensation reduced, go to Step 10.
If the pension is not compensation reduced, ignore Step 10 and go directly to
Step 11. Step 10. This Step applies only to a person whose pension under Part
II or IV is compensation reduced. Work out the person's provisional rate as
follows: compare the adjusted income reduced rate (see Step 5) and the assets
reduced rate (see Step 7); the person's provisional rate is equal to:
(a) whichever is the lower of those rates; or
(b) if the 2 rates are the same - those rates. Go now to Step 12. Step 11.
This Step applies only to a person whose pension under Part II or IV
is not compensation reduced. Work out the person's provisional rate as
follows: compare the adjusted income reduced rate, the assets reduced
rate and the ceiling rate; the person's provisional rate is equal to:
(a) whichever is the least of those rates; or
(b) if 2 of those rates are the same and the third one is higher - the
lower rate; or
(c) if the 3 rates are the same - those rates. Step 12. Work out the
amount per year (if any) for rent assistance using MODULE F below.
Step 13. Work out the amount per year (if any) for dependent children
using MODULE G below. Step 14. Add up the amounts obtained in Steps 12
and 13. Step 15. Apply the maintenance income test to the maintenance
income of the person using MODULE H below to work out the reduction
for maintenance income. Step 16. Take the reduction for maintenance
income away from the result obtained in Step 14. Step 17. Add the
amount obtained in Step 16 to the person's provisional rate (see Step
10 or 11): the result is the rate of income support supplement. Note
1: If a person's assets reduced rate is less than the person's
adjusted income reduced rate, the person may be able to take advantage
of provisions dealing with:
. financial hardship (sections 52Y and 52Z);
. pension loans scheme (section 52ZA). Note 2: If a person's rate is reduced
under Step 14 the order in which the reduction is to be made against the
components of the maximum payment rate is laid down by section 45V (maximum
basic rate first, then remote area allowance). Note 3: The rate calculation
for a member of a couple is affected by the operation of point 45Y-A2. Note 4:
The amount of a fortnightly instalment of income support supplement will be
rounded off to the nearest multiple of 10 cents (see subsections 58A(2) and
(3)). Note 5: For the minimum amount of a fortnightly instalment of income
support supplement see subsection 58A(4). Members of a couple
"45Y-A2. Where 2 persons are members of a couple, they will be treated as
pooling their resources and, in the case of adjusted income and assets (but
not maintenance income), sharing them on a 50/50 basis (see points 45Y-D2,
45Y-E2, and 45Y-H3 below). They will also be treated as sharing expenses (e.g.
for rent) on a 50/50 basis (see points 45Y-F8, 45Y-F9 and 45Y-F10 below).
Ceiling rate
"45Y-A3. The ceiling rate for a war widow or war widower is $3,122.60 unless
point 45Y-A4 applies to the war widow or war widower.
"45Y-A4. If:
(a) a person became a war widow or war widower before 1 November 1986; and
(b) immediately before 1 November 1986 the person was receiving a social
security pension at a rate ('pre-November 1986 rate') equal to or more
than $3,122.60;
(c) since that day the person has been continuously receiving the social
security pension or income support supplement; his or her ceiling rate
is equal to the pre-November 1986 rate. Compensation reduced pension
"45Y-A5. A pension payable to a war widow or war widower under Part II is
compensation reduced if the pension has been reduced:
(a) by taking into account (under subsection 30(3)) the rate, or amount,
of any payment that the war widow or war widower is entitled to
receive under the law of a State or of a foreign country; or
(b) by taking into account (under Division 5A of that Part) the rate at
which any compensation is payable to the war widow or war widower.
"45Y-A6. A pension payable to a war widow or war widower under Part IV is
compensation reduced if the pension has been reduced by taking into account
(under Division 4 of that Part) the rate at which any compensation is payable
to the war widow or war widower.
"MODULE B - MAXIMUM BASIC RATE
Maximum basic rate
"45Y-B1. A person's maximum basic rate depends on the person's family
situation. Work out which family situation in Table B applies to the person.
The maximum basic rate is the corresponding amount in column 3.
TABLE B
MAXIMUM BASIC RATES column 1 item no.
column 2
person's family situation
column 3
rate per year
column 4
rate per fortnight
1. Not member of couple
$8,270.60 $318.10
2. Partnered (partner getting neither pension nor benefit)
$8,270.60 $318.10
3. Partnered (partner getting pension or benefit)
$6,897.80 $265.30
4. Member of illness separated or respite care couple
$8,270.60 $318.10
Note 1: For 'member of a couple', 'partnered (partner getting neither pension
nor benefit)' and 'partnered (partner getting pension or benefit)' see section
5E, and for 'illness separated couple' and 'respite care couple' see
subsections 5R(5) and (6). Note 2: The maximum basic rates are indexed 6
monthly in line with CPI increases (see sections 59B to 59E).
"MODULE C - REMOTE AREA ALLOWANCE
Remote area allowance
"45Y-C1. An amount by way of remote area allowance is to be added to a
person's maximum basic rate if:
(a) the person's usual place of residence is situated in a remote area;
and
(b) the person is physically present in the remote area. Note: For 'remote
area' and 'physically present in the remote area' see section 5Q. Rate
of remote area allowance
"45Y-C2. The rate of remote area allowance payable to a person is worked out
using Table C. Work out which family situation in the Table applies to the
person. The rate of remote area allowance is the corresponding amount in
column 3 plus an additional corresponding amount in column 5 for each income
support supplement add-on child of the person.
TABLE C
REMOTE AREA ALLOWANCE column 1 item no.
column 2
person's family situation
column 3
basic allowance per year
column 4
basic allowance per fortnight
column 5
additional allowance per year
column 6
additional allowance per
fortnight
1. Not member of couple
$455.00 $17.50 $182.00 $7.00
2. Partnered - partner receiving remote area allowance
$390.00 $15.00 $182.00 $7.00
3. Partnered - partner not receiving remote area allowance
$455.00 $17.50 $182.00 $7.00
Note 1: For 'member of a couple' and 'partnered' see section 5E. Note 2: For
'income support supplement add-on child' see point 45Y-C4. Illness separated
and respite care couples
"45Y-C3. For the purposes of Table C in point 45Y-C2, a member of an illness
separated couple or a respite care couple is to be treated as not being a
member of a couple. Income support supplement add-on child
"45Y-C4. A person has an income support supplement add-on child if:
(a) the person is receiving income support supplement; and
(b) the person has a child; and
(c) the person's income support supplement rate includes a dependent child
add-on for the child. Dependent children must be physically present in
Australia
"45Y-C5. Additional allowance is not payable for a child unless the child is
physically present in Australia.
"45Y-C6. If 2 persons have an income support supplement add-on for the same
child, additional allowance is not payable to either person for that child
except as directed by the Commission. The Commission may direct that
additional allowance is payable either to one of the persons or to both.
"MODULE D - ADJUSTED INCOME TEST Effect of income on maximum payment rate
"45Y-D1. This is how to work out the effect of a person's adjusted income on
the person's maximum payment rate:
Method statement Step 1. Work out the amount of the person's adjusted income
on a yearly basis. Note: For the treatment of the adjusted income of members
of a couple see point 45Y-D2. Step 2. Work out the person's adjusted income
free area (see points 45Y-D4 to 45Y-D10 below). Note: A person's adjusted
income free area is the maximum amount of adjusted income the person can have
without affecting the person's income support supplement rate. Step 3. Work
out whether the person's adjusted income exceeds the person's adjusted income
free area. Step 4. If the person's adjusted income does not exceed the
person's adjusted income free area, the person's adjusted income excess is
nil. Step 5. If the person's adjusted income exceeds the person's adjusted
income free area, the person's adjusted income excess is the person's adjusted
income less the person's adjusted income free area. Step 6. Use the person's
adjusted income excess to work out the person's reduction for ordinary income
using points 45Y-D11 to 45Y-D13 below. Note 1: See point 45Y-A1 (Steps 4 to 9)
for the significance of the person's reduction for adjusted income. Note 2:
The application of the adjusted income test is affected by provisions
concerning:
. investment income (sections 46-46U);
. disposal of income (sections 48-48E);
. earnings credit (section 49).
Adjusted incomes of members of couples "45Y-D2. If a person is a member of a
couple, add the couple's adjusted incomes (on a yearly basis) and divide by 2
to work out the amount of the person's adjusted income for the purposes of
this Module. Partner's DSS earnings credit to be taken into account
"45Y-D3. If:
(a) a person is a member of a couple; and
(b) the person's partner is receiving a social security pension or
benefit; and
(c) an amount earned by the partner is disregarded under section 1113 or
1115A of the Social Security Act; that amount is also to be
disregarded in working out the adjusted income of the person for the
purposes of point 45Y-D2. Adjusted income free area
"45Y-D4. A person's adjusted income free area is the amount of adjusted income
the person can have without any deduction being made from the person's maximum
payment rate. How to calculate a person's adjusted income free area
"45Y-D5. A person's adjusted income free area is worked out using Table D-1.
Work out which family situation in Table D-1 applies to the person. The
adjusted income free area is the corresponding amount in column 3 plus an
additional corresponding amount in column 5 for each dependent child of the
person.
TABLE D-1
ADJUSTED INCOME FREE AREA column 1 item
column 2
category of person
column 3
basic free area per year
column 4
basic free area per fortnight
column 5
additional free area per year
column 6
additional free area
per fortnight
1. Not member of couple
$2,340 $90 $624 $24
2. Partnered (partner getting neither pension nor benefit)
$2,028 $78 $624 $24
3. Partnered (partner getting benefit)
$2,028 $78 $624 $24
4. Partnered (partner getting pension)
$2,028 $78 $312 $12
Note 1: For 'member of a couple', 'partnered (partner getting neither pension
nor benefit', 'partnered (partner getting benefit)', 'partnered (partner
getting pension)' and 'dependent child' see sections 5E and 5F. Note 2: Items
2, 3 and 4 of Table D-1 apply to members of illness separated and respite care
couples. Note 3: The basic free area is indexed annually in line with CPI
increases (see sections 59B to 59E). Maintenance obligation
"45Y-D6. For the purposes of point 45Y-D5, a child is a dependent child of a
person if the person is liable to maintain the child under a law of the
Commonwealth, a State or a Territory. Additional free area for children in
some cases
"45Y-D7. If:
(a) a person is a member of a couple; and
(b) the person's partner is receiving an age service pension or invalidity
service pension; and
(c) the partner's service pension rate includes a child add-on for a child
or child add-ons for children; the person's adjusted income free area
is to be increased by $312 for the child or for each of the children.
No additional free area for certain prescribed student children
"45Y-D8. No additional free area is to be added for a dependent child who:
(a) has turned 18; and
(b) is a prescribed student child; unless the person whose rate is being
calculated, or the person's partner, receives child disability
allowance under the Social Security Act for the child. Reduction of
additional free area for dependent children
"45Y-D9. The additional free area for a dependent child of a person to whom
item 1, 2 or 3 of Table D-l applies is reduced by the annual amount of any
payment received by the person or the person's partner for or in respect of
that particular child. The payments referred to in point 45Y-D11 do not result
in a reduction.
"45Y-D10. The additional free area for a dependent child of a person to whom
item 4 of Table D-1 applies is reduced by 50% of the annual amount of any
payment received by the person or the person's partner for or in respect of
that particular child. The payments referred to in point 45Y-D11 do not result
in a reduction.
"45Y-D11. No reduction is to be made under point 45Y-D9 or 45Y-D10 for a
payment:
(a) under this Act; or
(b) of maintenance income; or
(c) under the Social Security Act; or
(d) under the AUSTUDY scheme; or
(e) under an Aboriginal study assistance scheme; or
(f) under the Assistance for Isolated Children Scheme; or
(g) that is similar in nature to family payment under the Social Security
Act. Note: For 'Aboriginal study assistance scheme' see section 5F.
Reduction for adjusted income in excess of adjusted income free area
"45Y-D12. A person's reduction for adjusted income is worked out using Table
D-2. Work out which family situation applies to the person. The reduction for
adjusted income is the amount per year worked out using the corresponding
calculation in column 3.
TABLE D-2
REDUCTION FOR ADJUSTED INCOME column 1 item no.
column 2
person's family situation
column 3
reduction
1. Not member of couple
adjusted income excess
2
2. Partnered (partner getting neither pension nor benefit)
adjusted income excess
2
3. Partnered (partner getting pension or benefit)
adjusted income excess
2 Note 1: For 'member of a couple', 'partnered (partner getting neither
pension nor benefit)' and 'partnered (partner getting pension or benefit)' see
section 5E. Note 2: 'Social security pension' includes a rehabilitation
allowance. Note 3: For 'adjusted income excess' see point 45Y-D13 below.
Adjusted income excess
"45Y-D13. A person's adjusted income excess is the person's adjusted income
less the person's adjusted income free area.
"MODULE E - ASSETS TEST
Effect of assets on provisional rate
"45Y-E1. This is how to work out the effect of a person's assets on the
person's provisional rate:
Method statement Step 1. Work out the value of the person's assets. Note 1:
For the treatment of the assets of members of a couple see point 45Y-E2. Note
2: For the assets that are to be disregarded in valuing a person's assets see
section 52. Note 3: For the valuation of an asset that is subject to a charge
or encumbrance see section 52C. Step 2. Work out the person's assets value
limit (see point 45Y-E3 below). Note: A person's assets value limit is the
maximum value of assets the person can have without affecting the rate of the
person's income support supplement. Step 3. Work out whether the value of the
person's assets exceeds the person's assets value limit. Step 4. If the value
of the person's assets does not exceed the person's assets value limit, the
person's assets excess is nil. Step 5. If the value of the person's assets
exceeds the person's assets value limit, the person's assets excess is the
value of the person's assets less the person's assets value limit. Step 6. Use
the person's assets excess to work out the person's reduction for assets using
points 45Y-E4 to 45Y-E6 below. Note 1: See point 45Y-A1 (Steps 6 to 10) for
the significance of the person's reduction for assets. Note 2: The application
of the assets test is affected by provisions concerning:
. disposal of assets (sections 52E-52J);
. retirement villages (sections 52K-52X);
. financial hardship (sections 55Y and 55Z);
. the pension loans scheme (sections 52ZA-52ZM). Value of assets of members of
couples "45Y-E2. For the purposes of this Module:
(a) the value of the assets of a member of a couple is to be taken to be
50% of the sum of:
(i) the value of the person's assets; and
(ii) the value of the person's partner's assets; and
(b) the value of the assets of a particular kind of a member of a couple
is to be taken to be 50% of the sum of:
(i) the value of the person's assets of that kind; and
(ii) the value of the person's partner's assets of that kind. Assets
value limit
"45Y-E3. A person's assets value limit is worked out using Table E-l. Work out
the person's family situation and property ownership situation. The assets
value limit is the corresponding amount in column 3.
TABLE E-1
ASSETS VALUE LIMIT column 1 item no.
column 2
person's family situation
column 3
assets value limit
column 3A column 3B
either person neither person
or partner nor partner
property owner property owner
1. Not member of couple
$115,000 $197,000
2. Partnered (partner getting neither pension nor benefit)
$81,750 $122,750
3. Partnered (partner getting pension or benefit)
$81,750 $122,750
Note 1: For 'member of a couple', 'partnered (partner getting neither pension
nor benefit)' and 'partnered (partner getting pension or benefit)' see section
5E. Note 2: For 'property owner' see section 5L. Note 3: Items 2 and 3 apply
to members of illness separated and respite care couples. Note 4: The assets
value limit in column 3B of item 1 is adjusted annually in line with CPI
increases (see section 59H). The other assets value limits are indexed
annually in line with CPI increases (see sections 59B to 59E). Reduction for
assets in excess of assets value limit
"45Y-E4. A person's reduction for assets is worked out using Table E-2. Work
out which family situation applies to the person. The reduction for assets is
the amount per year worked out using the corresponding calculation in column
3.
TABLE E-2
REDUCTION FOR ASSETS column 1 item no.
column 2
person's family situation
column 3
reduction
1. Not member of couple
(assets excess) x 19.50
250
2. Partnered (partner getting neither pension nor benefit)
(assets excess) x 19.50
250
3. Partnered (partner getting benefit)
(assets excess) x 19.50
250 Note 1: For 'member of a couple', 'partnered (partner getting neither
pension nor benefit)', 'partnered (partner getting benefit)' and 'partnered
(partner getting pension)' see section 5E. Note 2: For 'additional amounts for
dependent children' see subsection 5Q(1). Note 3: 'Social security pension'
includes a rehabilitation allowance. Note 4: For 'assets excess' see point
45Y-E5 below. Assets excess
"45Y-E5. A person's assets excess is the value of the person's assets less the
person's assets value limit.
"45Y-E6. In calculating a person's assets excess under point 45Y-E5, disregard
any part of the excess that is not a multiple of $250.
"MODULE F - RENT ASSISTANCE
Rent assistance
"45Y-F1. Rent assistance is an amount that may be taken into account when
working out the rate of a person's income support supplement. If the person is
eligible for rent assistance under point 45Y-F2, the amount to be so taken
into account is the amount applying to that person under Table F-1.
Eligibility for rent assistance
"45Y-F2. A person is eligible for rent assistance if:
(a) the person is not an ineligible property owner; and
(b) the person pays, or is liable to pay, rent (other than Government
rent); and
(c) the rent is payable at a rate of more than the rent threshold rate;
and
(d) the person is in Australia. Note 1: For 'rent', 'Government rent' and
'ineligible property owner' see section 5N. Note 2: For 'rent
threshold rate' see point 45Y-F3. Rent threshold rate
"45Y-F3. A person's rent threshold rate depends on the person's family
situation. Work out which family situation in Table F applies to the person.
The rent threshold rate is the corresponding amount in column 3.
TABLE F
RENT THRESHOLD RATES column 1 item no.
column 2
person's family situation
column 3
rate per year
column 4
rate per fortnight
1. Not member of couple
$2,116.40 $81.40
2. Partnered (partner does not have rent increased pension)
$2,116.40 $81.40
3. Partnered (partner has rent increased pension)
$3,182.40 $122.40
Note 1: For 'member of a couple' and 'partnered' see section 5E. Note 2: For
'partner with a rent increased pension' see point 45Y-F6. Note 3: The column 3
amounts are indexed 6 monthly in line with CPI increases (see sections 59B to
59E). No rent assistance if partner getting incentive allowance under the
Social Security Act
"45Y-F4. If a person is a member of a couple and the person's partner is
living with the person in their home, an additional amount is not to be added
to the person's provisional rate under point 45Y-F2 if an amount by way of
incentive allowance is being added to the maximum basic rate of the person's
partner. Note: For 'incentive allowance' see subsection 5Q(1). Factors
affecting rate of rent assistance
"45Y-F5. The rate of rent assistance depends on:
(a) the annual rent paid or payable by the person; and
(b) the number of pension increase children (if any) that the person has;
and
(c) whether or not the person has a partner with a rent increased pension.
Note: For 'pension increase child' see subsection 5F(6). Partner with
rent increased pension
"45Y-F6. A person has a partner with a rent increased pension, for the
purposes of this Module, if:
(a) the partner is living with the person in their home; and
(b) the partner is receiving income support supplement, a service pension
or a social security pension; and
(c) the rate of income support supplement or of the pension is increased
to take account of rent paid or payable by the person. Note 1: 'Social
security pension' includes a rehabilitation allowance. Note 2: For the
treatment of rent paid by a member of a couple see point 45Y-F9. Rate
of rent assistance
"45Y-F7. The rate of rent assistance is whichever is the lesser of Rate A and
Rate B applicable to the person in accordance with Table F-1.
TABLE F-1
RATE OF RENT ASSISTANCE column 1
column 2
column 3
column 4
rate B item no.
family situation
rate A
column 4A column 4B
1 or 2 pension 3 or more pension
increase children increase children 1. Not member of couple
3 x (Annual rent - $2,116.40)
4
$1,955.20 $2,230.80
2. Partnered (partner does not have rent increased pension)
3 x (Annual rent - $2,116.40)
4
$1,955.20 $2,230.80
3. Partnered (partner has rent increased pension)
3 x (Annual rent - $3,182.40)
8
$977.60 $1,115.40
4. Member of illness separated or respite care couple
3 x (Annual rent - $3,182.40)
4
$977.60 $1,115.40
Note 1: For 'member of a couple' and 'partnered' see section 5E. Note 2: For
'partner with a rent increased pension' see point 45Y-F6. Note 3: The Rate B
amounts are indexed 6 monthly in line with CPI increases (see sections 59B to
59E). Note 4: The rent threshold amounts in column 3 are indexed 6 monthly in
line with CPI increases (see sections 59B to 59E). Annual rent
"45Y-F8. Annual rent is the annual rent paid or payable by the person whose
rate of income support supplement is being calculated. Rent paid by a member
of a couple
"45Y-F9. Where a person is a member of a couple and the person's partner is
living with the person in their home, any rent that the person's partner pays
or is liable to pay in respect of the home is to be treated as paid or payable
by the person. Note: For 'member of a couple' see section 5E. Rent paid by a
member of an illness separated or respite care couple
"45Y-F10. Where a person is a member of an illness separated or respite care
couple, any rent that the person's partner pays or is liable to pay in respect
of the premises occupied by the person is to be treated as paid or payable by
the person. Note: For 'member of an illness separated couple' and 'respite
care couple' see subsections 5R (5) and (6).
"MODULE G - ADDITIONAL AMOUNTS FOR DEPENDENT CHILDREN Additional amounts for
dependent children
"45Y-G1. This is how to work out the amount per year for dependent children
that is to be taken into account in working out the income support supplement
rate.
Method statement Step 1. Work out the amount of the child add-on (if any) for
each dependent child of the person using points 45Y-G3 to 45Y-G5. Step 2. Work
out the amount per year of the person's guardian allowance (if any) using
points 45Y-G6 to 45Y-G8. Step 3. Add up all of the amounts obtained in Steps 1
and 2: the result is called the DC total and is the amount per year for
children that is to be taken into account in working out the income support
supplement rate. Note: Guardian allowance is a single amount per year for a
person who is not a member of a couple or who is a member of an illness
separated couple. Children of a couple
"45Y-G2. If a member (whether the man or the woman), or both members, of a
couple have dependent children, use Table G-1 to work out how the dependent
children are to be taken into account for the purposes of this Module.
Work out the column that applies to the man's payment entitlement (if any)
using the horizontal axis and then work out the item that applies to the
woman's payment entitlement (if any) using the vertical axis; find the box for
that item in that column.
If the box contains the word 'man', a dependent child of the woman is to be
taken into account as a dependent child of the man; if the box contains the
word 'woman', a dependent child of the man is to be taken into account as a
dependent child of the woman.
TABLE G-1
ALLOCATION OF DEPENDENT CHILDREN column 1
column 2
column 3
column 4
column 5
column 6
column 7
column 8
column 9
column 10 item no.
man/woman
service age
service invalidity
ISS
service partner
service illness separated
service carer
social security
nothing
1. service age
man man woman woman woman woman man woman
2. service invalidity
man man woman woman woman woman man woman
3. ISS
man man woman N/P woman woman woman woman
4. service partner
man man N/P woman man man N/P
5. service illness separated
man man man man man man woman
6. service carer
man man man woman woman woman man woman
7. social security
man man man woman woman woman
8. nothing
man man man N/P man man
KEY
service age = age service pension
service invalidity = invalidity service pension
ISS = income support supplement
service care = carer service pension
service partner = partner service pension
social security = social security pension
service illness
separated (man) = the person is receiving an age service or
invalidity service pension and the couple
is an illness separated couple because of
the person's illness or infirmity
nothing = the person is not receiving a service
pension, income support supplement or a
social security pension
N/P = the pensioner combination is not possible.
Dependent child add-ons
"45Y-G3. If a person has a dependent child, there is, subject to points 45Y-G4
and 45Y-G5, a dependent child add-on for the child. The amount of the add-on
depends on the child's age and is worked out using Table G-2.
TABLE G-2
ADD-ON FOR DEPENDENT CHILD column 1 item no.
column 2
child's age
column 3
rate per year
column 4
rate per fortnight
1. under 13 $1,669.20 $64.20
2. 13 or over but under 16 $2,355.60 $90.60
3. 16 or over $884.00 $34.00
No add-on for prescribed student children
"45Y-G4. Once a dependent child of a person turns 16, there is no dependent
child add-on for the child if the child is a prescribed student child. Note 1:
For 'prescribed student child' and 'dependent child' see section 5F. Note 2:
Even though no child add-on applies to a particular dependent child, the
child:
(a) may attract guardian allowance under points 45Y-G6 to 45Y-G8; and
(b) will attract additional free area under point 45Y-D5 for the purposes
of the adjusted income test. No add-on for child if another person
already has an add-on etc. for him or her
"45Y-G5. If a person has a dependent child and:
(a) a dependent child add-on for that child has been taken into account in
working out the rate of income support supplement payable to another
person; or
(b) that child is the only child in respect of whom an amount by way of
guardian allowance is taken into account in working out the rate of
income support supplement payable to another person; that child is not
to be taken into account for the purposes of point 45Y-G3. Guardian
allowance
"45Y-G6. Subject to points 45Y-G7 and 45Y-G8, a person who has a dependent
child or dependent children is to have a single amount per year by way of
guardian allowance if:
(a) the person is not a member of a couple; or
(b) the person is a member of an illness separated or respite care couple.
No guardian allowance in respect of certain dependent children who
have turned 18
"45Y-G7. Once a dependent child of a person turns 18, the child is not to be
taken into account for the purposes of point 45Y-G6 unless:
(a) the child is a student child but not a prescribed student child; or
(b) the person receives child disability allowance under the Social
Security Act in respect of the child. Guardian allowance not payable
twice in respect of same child
"45Y-G8. If:
(a) a person has only one dependent child; and
(b) that child is the only child in respect of whom an amount by way of
guardian allowance is taken into account in working out the rate of
income support supplement of another person; that child is not to be
taken into account for the purposes of point 45Y-G6. Rate of guardian
allowance
"45Y-G9. The rate of guardian allowance is $769.60 a year ($29.60 a
fortnight). Note: The rate is adjusted annually (see section 59G).
"MODULE H - MAINTENANCE INCOME TEST Effect of maintenance income on maximum
payment rate
"45Y-H1. This is how to work out the effect of a person's maintenance income
on the person's child related payment:
Method statement Step 1. Work out the amount of the person's maintenance
income on a yearly basis. Note 1: For the treatment of the maintenance income
of members of a couple see points 45Y-H2 and 45Y-H3. Note 2: 'Special
maintenance income' (see subsection 5K(1)) can in some circumstances be
disregarded under points 45Y-H4 to 45Y-H7. Step 2. Work out the person's
maintenance income free area (see point 45Y-H8 below). Note: A person's
maintenance income free area is the maximum amount of maintenance income the
person can have without affecting the rate of the person's income support
supplement. Step 3. Work out whether the person's maintenance income exceeds
the person's maintenance income free area. Step 4. If the person's maintenance
income does not exceed the person's maintenance income free area, the person's
maintenance income excess is nil. Step 5. If the person's maintenance income
exceeds the person's maintenance income free area, the person's maintenance
income excess is the person's maintenance income less the person's maintenance
income free area. Step 6. Use the person's maintenance income excess to work
out the person's reduction for maintenance income using point 45Y-H9 below.
Note 1: See point 45Y-A1 (Steps 5 to 7) for the significance of the person's
reduction for maintenance income. Note 2: The application of the maintenance
income test is affected by provisions concerning:
. apportionment of capitalised maintenance income (section 51).
. in-kind housing maintenance - value of substitute for family home (section
51A). Only maintenance income for dependent child to be taken into account
"45Y-H2. In working out a person's maintenance income for the purposes of this
Module, disregard any maintenance income for a child who is not a dependent
child of the person. Maintenance incomes of members of couples
"45Y-H3. If the person is a member of a couple, add the couple's maintenance
incomes (on a yearly basis) to work out the amount of the person's maintenance
income for the purposes of this Module.
"45Y-H4. Subject to points 45Y-H6 and 45Y-H7, if a person has special
maintenance income in excess of the ceiling applicable to the person, the
excess is disregarded for the purposes of this Module. Note: See subsection
5K(1) for 'special maintenance income'. Amount of ceiling
"45Y-H5. The ceiling applicable to a person is worked out using the formula:,
MIFA + Table Amount + DC Add-ons
2 where:
'MIFA' is the person's maintenance income free area;
'Table Amount' is whichever of the amounts in the following Table is
applicable to the person:
TABLE
Not member of couple Partnered
$8,270.60 2 x $6,897.80
Note: The amounts specified in the Table are indexed in line with CPI
increases (see sections 59A to 59E).
'DC add-ons' is the sum of the amounts of dependent child add-on, guardian
allowance and rent assistance that would be payable to the person before the
application of the maintenance income test.
"45Y-H6. No amount is to be disregarded under point 45Y-H4 if:
(a) child support is payable under the Child Support (Assessment) Act 1989
to the person for a child; and
(b) the person is entitled to make an application for assessment child
support under Part V of that Act for the child payable by another
person; and
(c) the person has:
(i) neither:
(A) properly made such an application; nor
(B) properly made an application under Part VI of that Act
for acceptance of an agreement in relation to the child;
or
(ii) the person has properly made an application of either kind,
but:
(A) the person has subsequently withdrawn the application; or
(B) after child support has become payable by the other
person under that Act for the child, the person has ended
the entitlement to child support.
"45Y-H7. No amount is to be disregarded under point 45Y-H4 if:
(a) child support is not payable under the Child Support (Assessment) Act
1989 to the person for a child; and
(b) the person is entitled to make an application under section 128 of
that Act; and
(c) an application by the person under that section is not in force. How
to calculate a person's maintenance income free area
"45Y-H8. A person's maintenance income free area is worked out using Table
H-1. Work out which family situation in Table H-1 applies to the person. The
maintenance income free area is the corresponding amount in column 3 plus an
additional corresponding amount in column 5 for each maintained child after
the first.
TABLE H-1
MAINTENANCE INCOME FREE AREA column 1 item no.
column 2
person's family situation
column 3
basic free area per year
column 4
basic free area per fortnight
column 5
additional free area per year
column 6
additional free area per
fortnight
1. Not member of couple
$865.80 $33.30 $288.60 $11.10
2. Partnered (both the person and the partner have maintenance
income)
$1,731.60 $66.60 $288.60 $11.10
3. Partnered (only one member of a couple has maintenance income)
$865.80 $33.30 $288.60 $11.10
Reduction for maintenance income
"45Y-H9. A person's reduction for maintenance income is:
maintenance income excess
2
"Division 6 - Bereavement payments
"Subdivision A - Bereavement payments (death of pensioner partner) Eligibility
for payments under this Subdivision
"45Z.(1) If:
(a) a person is receiving income support supplement; and
(b) the person is a member of a couple; and
(c) the person's partner dies; and
(d) immediately before the partner died, the partner was receiving:
(i) income support supplement; or
(ii) a service pension; or
(iii) any of the following under the Social Security Act:
(A) an age pension; or
(B) a disability support pension; or
(C) a carer pension; or
(D) a sole parent pension under subparagraph 249 (1)(a)(iv)
of the Social Security Act (illness separated couple); or
(E) a rehabilitation allowance instead of a pension referred
to in sub-subparagraph (A) or (B); or
(F) a special needs age, disability support or sole parent
pension; and
(e) on the pension payday immediately before the first available
bereavement adjustment payday, the amount that would be payable to the
person if the person were not eligible for payments under this
Subdivision is less than the sum of:
(i) the amount that would otherwise be payable to the person under
section 45ZA (continued payment of partner's pension); and
(ii) the amount that would otherwise be payable to the person under
section 45ZC (person's continued rate); the person is eligible
for payments under this Subdivision to cover the bereavement
period. Note 1: Section 45ZA provides for the payment to the
person, up to the first available bereavement adjustment
payday, of amounts equal to the instalments that would have
been paid to the person's partner during that period if the
partner had not died. Note 2: Section 45ZB provides for a lump
sum that represents the instalments that would have been paid
to the person's partner, between the first available
bereavement adjustment payday and the end of the bereavement
period, if the partner had not died. Note 3: If one member of a
couple is receiving a social security payment and the other
member is receiving income support supplement and one of them
dies, the bereavement payments will be paid under the Act that
governs the survivor's payment (that is, if the person who dies
was receiving a social security payment and the survivor was
receiving income support supplement, the bereavement payments
will be made under this Act, but if the person who dies was
receiving income support supplement and the survivor was
receiving a social security payment, the bereavement payments
will be made under the Social Security Act).
"(2) A person who is eligible for payments under this Subdivision may choose
not to receive payments under this Subdivision. Note: If a person makes an
election, the date of effect of any determination to increase the rate of the
person's income support supplement may, in some circumstances, be the day
after the day on which the person's partner died (see subsection 56G(2A)).
"(3) An election under subsection (2):
(a) must be made by written notice to the Commission; and
(b) may be made after the person has been paid an amount or amounts under
this Subdivision; and
(c) cannot be withdrawn after the Department has taken all the action
required to give effect to that election.
"(4) If a person is eligible for payments under this Subdivision in relation
to the death of the person's partner, then, unless the person has made an
election under subsection (2), the rate at which income support supplement is
payable to the person during the bereavement period is governed by section
45ZC.
"(5) If the person and the person's partner were an illness separated or a
respite care couple immediately before the partner died, this Subdivision
applies to the calculation of rates during the bereavement period as if they
were not members of an illness separated or a respite care couple. Continued
payment of partner's pension
"45ZA. If a person is eligible for payments under this Subdivision in relation
to the death of the person's partner, there is payable to the person, on each
of the pension paydays in the bereavement rate continuation period, an amount
equal to the amount that would have been payable to the person's partner on
that payday if the partner had not died. Lump sum payable in some
circumstances
"45ZB. If:
(a) a person is eligible for payments under this Subdivision in relation
to the death of the person's partner; and
(b) the first available bereavement adjustment payday occurs before the
end of the bereavement period; there is payable to the person as a
lump sum an amount worked out by using the lump sum calculator at the
end of this section.
"LUMP SUM CALCULATOR This is how to work out the amount of the lump sum:
Method statement Step 1. Work out (taking section 45ZE into account) the
amount that, if the person's partner had not died, would have been payable to
the person on the pension payday immediately before the first available
bereavement adjustment payday. Step 2. Work out the amount that, if the
partner had not died, would have been payable to the partner on the pension
payday immediately before the first available bereavement adjustment payday.
Step 3. Add up the amounts obtained in Steps 1 and 2: the result is called the
combined pensioner couple rate. Step 4. Work out (taking section 45ZE into
account) the amount that, but for section 45ZC, would have been payable to the
person on the pension payday immediately before the first available
bereavement adjustment payday: the result is called the person's individual
rate. Step 5. Take the person's individual rate away from the combined
pensioner couple rate: the result is called the partner's instalment
component. Step 6. Work out the number of pension paydays in the bereavement
lump sum period. Step 7. Multiply the partner's instalment component by the
number of pension paydays in the bereavement lump sum period: the result is
the amount of the lump sum payable to the person under this section.
Adjustment of person's income support supplement rate
"45ZC. If:
(a) a person is eligible for payments under this Subdivision; and
(b) the person does not elect under subsection 36P(2) not to receive
payments under this Subdivision; the rate of the person's income
support supplement during the bereavement period is worked out as
follows:
(c) during the bereavement rate continuation period, the rate of income
support supplement payable to the person is the rate at which income
support supplement would have been payable to the person if the
person's partner had not died; Note: See section 45ZE for the method
of calculating this rate.
(d) during the bereavement lump sum period (if any), the rate at which
income support supplement is payable to the person is the rate at
which income support supplement would be payable to the person apart
from this Subdivision. Effect of death of person entitled to payments
under this Subdivision
"45ZD. If:
(a) a person is eligible for payments under this Subdivision in relation
to the death of the person's partner; and
(b) the person dies within the bereavement period; and
(c) the Commission does not become aware of the death of the person's
partner before the person dies; there is payable, to such person as
the Commission thinks appropriate, as a lump sum, an amount worked out
using the lump sum calculator at the end of this section.
"LUMP SUM CALCULATOR This is how to work out the amount of the lump sum:
Method statement Step 1. Work out (taking section 45ZE into account) the
amount that, if neither the person nor the person's partner had died, would
have been payable to the person on the pension payday immediately after the
day on which the person died. Step 2. Work out the amount that, if neither the
person nor the person's partner had died, would have been payable to the
person's partner on that pension payday. Step 3. Add up the amounts obtained
in Steps 1 and 2: the result is called the combined pensioner couple rate.
Step 4. Work out (taking section 45ZE into account) the amount that, but for
section 45ZC, would have been payable to the person on the pension payday
immediately after the day on which the person died if the person had not died:
the result is called the person's individual rate. Step 5. Take the person's
individual rate away from the combined pensioner couple rate: the result is
called the partner's instalment component. Step 6. Work out the number of
pension paydays in the period that commences on the day after the person dies
and ends on the day on which the bereavement period ends. Step 7. Multiply the
partner's instalment component by the number obtained in Step 6: the result is
the amount of the lump sum payable under this section. Method of calculating
rate at which income support supplement would have been payable in certain
circumstances
"45ZE. If it is necessary for the purposes of:
(a) Step 1 or 4 of the Method statement in the Lump Sum Calculator at the
end of section 45ZB; or
(b) paragraph 45ZC(c); or
(c) Step 1 or 4 of the Method statement in the Lump Sum Calculator at the
end of section 45ZD; to work out the rate at which income support
supplement would have been payable to a person on a particular day, or
during a particular period, if certain specified circumstances
applied, that rate is to be worked out:
(d) if the Income Support Supplement Rate Calculator Where There Are No
Dependent Children at the end of section 45X is to be used - as if
Step 10 of the Method statement in point 45X-A1 were omitted and the
following Step were substituted: 'Step 10. Compare the adjusted income
reduced rate and the assets reduced rate: the rate of income support
supplement is equal to:
(a) whichever is the lower of those rates; or
(b) if the 2 rates are the same - those rates.'; or
(e) if the Income Support Supplement Rate Calculator Where There Are
Dependent Children at the end of section 45Y is to be used - as if
Step 9 of the Method statement in point 45Y-A1 were omitted and the
following Step were substituted: 'Step 9. Work out the person's
provisional rate as follows: Compare the adjusted income reduced rate
and the assets reduced rate; the person's provisional rate is equal
to:
(a) whichever is the lower of those rates; or
(b) if the 2 rates are the same - those rates.'. Matters affecting payment
of benefits under this Subdivision
"45ZF.(1) If:
(a) a person is eligible for payments under this Subdivision in relation
to the death of the person's partner; and
(b) after the person's partner died, an amount to which the partner would
have been entitled if the partner had not died has been paid under
this Part or Part III or under the Social Security Act; and
(c) the Commission is not satisfied that the person has not had the
benefit of that amount; the following provisions have effect:
(d) the amount referred to in paragraph (b) is not recoverable from the
person or from the personal representative of the person's partner,
except to the extent (if any) that the amount exceeds the amount
payable to the person under this Subdivision;
(e) the amount payable to the person under this Subdivision is to be
reduced by the amount referred to in paragraph (b).
"(2) If:
(a) a person is eligible for payments under this Subdivision in relation
to the death of the person's partner; and
(b) an amount to which the person's partner would have been entitled if
the person's partner had not died has been paid under this Part or
Part III or under the Social Security Act, within the bereavement
period, into an account with a bank, credit union or building society
('financial institution'); and
(c) the financial institution pays to the person, out of the account, an
amount not exceeding the total of the amounts paid as mentioned in
paragraph (b); the financial institution is, in spite of anything in
any other law, not liable to any action, claim or demand by the
Commonwealth, the personal representative of the person's partner or
anyone else in respect of the payment of that money to the person.
"Subdivision B - Bereavement payments (death of dependent child) Bereavement
payments on death of dependent child
"45ZG. If:
(a) a person is receiving income support supplement; and
(b) a child dies; and
(c) immediately before the child died, the rate of the person's income
support supplement included:
(i) a dependent child add-on in respect of the child; or
(ii) guardian allowance in respect of the child; the person is
eligible for payments under this Subdivision to cover the
bereavement period. Note 1: Section 45ZH provides for income
support supplement to be paid to the person, up to the first
available bereavement adjustment payday, at the rate at which
it would have been paid if the child had not died but were
disregarded for the purposes of working out the person's income
test free areas. Note 2: Section 45HI provides for a lump sum
to be paid to the person if the first available bereavement
adjustment payday occurs before the end of the bereavement
period. The lump sum represents the difference, over the
bereavement lump sum period, between the new rate for the
person's income support supplement and the rate at which income
support supplement would have been paid if the child had not
died but were disregarded for the purposes of working out the
person's income test free areas. Note 3: The additional
payments preserved by this Subdivision are:
. dependent child add-on;
. guardian allowance;
. additional rent assistance;
. additional remote area allowance. Continued payment of child-related amounts
"45ZH. If a person is eligible for payments under this Subdivision in relation
to the death of a child, the rate of the person's income support supplement
during the bereavement rate continuation period is to be calculated as if:
(a) the child had not died; and
(b) the child were disregarded in calculating the person's adjusted income
free area and maintenance income free area.
Lump sum payable in some circumstances
"45ZI. If:
(a) a person is eligible for payments under this Subdivision in relation
to the death of a child; and
(b) the first available bereavement adjustment payday occurs before the
end of the bereavement period; a lump sum (worked out using the lump
sum calculator at the end of this section) is payable to the person.
"LUMP SUM CALCULATOR This is how to work out the amount of the lump sum:
Method statement Step 1. Work out the instalment of income support supplement
payable to the person on the pension payday immediately before the first
available bereavement adjustment payday: the result is called the continued
rate. Note: Section 45ZH applies in working out the amount of this instalment
because the payday on which it is payable is within the bereavement rate
continuation period. Step 2. Work out the instalment of income support
supplement that would have been payable to the person on the payday
immediately before the first available bereavement adjustment payday if the
rate of the person's income support supplement were not calculated under
section 45ZH: the result is called the new rate. Step 3. Take the new rate
away from the continued rate: the result is called the deceased child
component. Step 4. Work out the number of pension paydays in the bereavement
lump sum period. Step 5. Multiply the deceased child component by the number
of pension paydays in the bereavement lump sum period: the result is the
amount of the lump sum payable to the person under this section.
"Subdivision C - Bereavement payments (death of recipient) Death of recipient
"45ZJ.(1) If:
(a) a person is receiving income support supplement; and
(b) either:
(i) the person is not a member of a couple; or
(ii) the person is a member of a couple and the person's partner:
(A) is not receiving income support supplement; and
(B) is not receiving a service pension; and
(C) is not receiving a social security pension; and
(D) is not receiving a social security benefit; and
(c) the person dies; there is payable, to such person as the Commission
thinks appropriate, an amount equal to the amount that would have been
payable to the person under this Part on the pension payday after the
person's death if the person had not died.
"(2) If an amount is paid under subsection (1) in respect of a person, the
Commonwealth is not liable to any action, claim or demand for any further
payment under that subsection in respect of the person. Note: For death of a
person eligible for bereavement payments under Subdivision A see section
45ZD.".
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