Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694232547750.pdf (Australia)
Method statement Social Security Act 1991 405 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2AA Student start-up loans Part 2AA.3 Indebtedness Division 3 Working out accumulated SSL debts Section 1061ZVEB Step 1.

Take the person’s accumulated SSL debt for the immediately preceding financial year.

(This amount is taken to be zero if the person has no accumulated SSL debt for that financial year.)

Step 2.
Step 2.

Add the sum of all of the SSL debts (if any) that the person incurred during the last 6 months of the immediately preceding financial year.

Step 3.

Subtract the sum of the amounts by which the person’s debts referred to in steps 1 and 2 are reduced because of any voluntary SSL repayments that have been made during the period: (a) starting on 1 June in the immediately preceding financial year; and (b) ending immediately before the next 1 June.

Step 4.
Step 4.

Subtract the sum of all of the person’s compulsory SSL repayment amounts that: (a) were assessed during that period (excluding any assessed as a result of a return given before that period); or (b) were assessed after the end of that period as a result of a return given before the end of that period.

Step 5.
Step 5.

Subtract the sum of the amounts by which any compulsory SSL repayment amount of the person is increased (whether as a result of an increase in the person’s taxable income of an income year or otherwise) by an amendment of an assessment made during that period.

406 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student start-up loans Chapter 2AA Indebtedness Part 2AA.3 Working out accumulated SSL debts Division 3 Section 1061ZVEC Step 6.
Add the sum of the amounts by which any compulsory SSL repayment amount of the person is reduced (whether as a result of a reduction in the person’s taxable income of an income year or otherwise) by an amendment of an assessment made during that period.

(2) For the purposes of this section, an assessment, or an amendment of an assessment, is taken to have been made on the day specified in the notice of assessment, or notice of amended assessment, as the date of issue of that notice.
1061ZVEC Stage 2—working out an accumulated SSL debt (1) A person’s accumulated SSL debt, for a financial year, is worked out as follows: Former accumulated SSL debt  SSL debts incurred  SSL debt repayments where: former accumulated SSL debt is the person’s former accumulated SSL debt in relation to that accumulated SSL debt.
SSL debt repayments is the sum of all of the voluntary SSL repayments (if any) paid, on or after 1 July in the financial year and before 1 June in that year, in reduction of the SSL debts incurred in that year.

SSL debts incurred is the sum of the amounts of all of the SSL debts (if any) that the person incurred during the first 6 months of the financial year.

(2) The person incurs the accumulated SSL debt on 1 June in the financial year.
Social Security Act 1991 407 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2AA Student start-up loans Part 2AA.3 Indebtedness Division 3 Working out accumulated SSL debts Section 1061ZVED 1061ZVED Rounding of amounts (1) If, apart from this section, a person’s accumulated SSL debt would be an amount consisting of a number of whole dollars and a number of cents, disregard the number of cents.
(2) If, apart from this section, a person’s accumulated SSL debt would be an amount of less than $1.00, the person’s accumulated SSL debt is taken to be zero.
1061ZVEE Accumulated SSL debt discharges earlier debts (1) The accumulated SSL debt that a person incurs on 1 June in a financial year discharges, or discharges the unpaid part of: (a) any SSL debt that the person incurred during the calendar year immediately preceding that day; and (b) any accumulated SSL debt that the person incurred on the immediately preceding 1 June.

(2) Nothing in subsection (1) affects the application of Division 2 of this Part or sections 1061ZVEB and 1061ZVEC.
1061ZVEF Accumulated SSL debt discharged by death (1) Upon the death of a person who has an accumulated SSL debt, the accumulated SSL debt is taken to be discharged.

(2) To avoid doubt, this section does not affect any compulsory SSL repayment amounts required to be paid in respect of the accumulated SSL debt, whether or not those amounts were assessed before the person’s death.

Note: Accumulated SSL debts are not provable in bankruptcy: see subsection 82(3AB) of the Bankruptcy Act 1966.
408 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student start-up loans Chapter 2AA Discharge of indebtedness Part 2AA.4 Introduction Division 1 Section 1061ZVFA Part 2AA.4—Discharge of indebtedness Division 1—Introduction 1061ZVFA Simplified outline of this Part A person who owes a debt to the Commonwealth under this Chapter may make voluntary SSL repayments.
The person is required to make repayments once the person’s income exceeds the minimum repayment income under the Higher Education Support Act 2003 and the person has finished repaying any debt under that Act and certain other income-contingent loan schemes.

The amount of the repayments is based on the person’s income.

The Commissioner makes assessments of repayment amounts, which are collected in the same way as amounts of income tax.
1061ZVFB Debts under this Chapter (1) The debts under this Chapter are: (a) SSL debts; and (b) accumulated SSL debts.

(2) To avoid doubt, debts that arise under the following sections are not debts under this Chapter: (a) section 1223 (Debts arising from lack of qualification, overpayment etc.

); (b) section 1223ABF (Debts in respect of student start-up loans).
Social Security Act 1991 409 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2AA Student start-up loans Part 2AA.4 Discharge of indebtedness Division 2 Voluntary discharge of indebtedness Section 1061ZVGA Division 2—Voluntary discharge of indebtedness 1061ZVGA Voluntary SSL repayments in respect of debts (1) A person may at any time make a payment in respect of a debt that the person owes to the Commonwealth under this Chapter.
(2) The payment must be made to the Commissioner.

1061ZVGB Application of voluntary SSL repayments (1) Any money a person pays under this Division to meet the person’s debts to the Commonwealth under this Chapter is to be applied in payment of those debts as the person directs at the time of the payment.
(2) If the person has not given any directions, or the directions given do not adequately deal with the matter, any money available is to be applied as follows: (a) first, in discharge or reduction of any accumulated SSL debt of the person; (b) second, in discharge or reduction of: (i) any SSL debt of the person; or (ii) if there is more than one such debt, those debts in the order in which they were incurred.
1061ZVGC Refunding of payments If: (a) a person pays an amount to the Commonwealth under this Division; and (b) the amount exceeds the sum of: (i) the amount required to discharge the total debt that the person owed to the Commonwealth under this Chapter; and 410 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student start-up loans Chapter 2AA Discharge of indebtedness Part 2AA.4 Voluntary discharge of indebtedness Division 2 Section 1061ZVGC (ii) the total amount of the person’s primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953); the Commonwealth must refund to the person an amount equal to that excess.
Social Security Act 1991 411 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2AA Student start-up loans Part 2AA.4 Discharge of indebtedness Division 3 Compulsory discharge of indebtedness Section 1061ZVHA Division 3—Compulsory discharge of indebtedness Subdivision A—Liability to repay amounts 1061ZVHA Liability to repay amounts (1) If: (a) a person’s HELP repayment income for an income year exceeds the minimum HELP repayment income for the income year; and (b) on 1 June immediately preceding the making of an assessment in respect of the person’s income of that income year, the person had an accumulated SSL debt; the person is liable to pay to the Commonwealth, in accordance with this Division, so much of the person’s repayable SSL debt for the income year as does not exceed the amount worked out using the formula: Applicable percentage of repayment income  Relevant income-contingent loans liability where: applicable percentage of repayment income means the amount that is the percentage of the person’s HELP repayment income applicable under the table in section 154-20 of the Higher Education Support Act 2003. relevant income-contingent loans liability means the amount that is the sum of the following: (a) the sum of any amounts the person is liable to pay under section 154-1 or 154-16 of the Higher Education Support Act 2003 in respect of the income year; (aa) the sum of any amounts the person is liable to pay under section 23EA or 23EC of the VET Student Loans Act 2016 in respect of the income year; (b) the sum of any amounts the person is liable to pay under section 1061ZZEZ of this Act, or section 12ZK of the Student Assistance Act 1973, in respect of the income year.
412 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student start-up loans Chapter 2AA Discharge of indebtedness Part 2AA.4 Compulsory discharge of indebtedness Division 3 Section 1061ZVHB (2) A person is not liable under this section to pay an amount for an income year if the amount worked out under subsection (1) is zero or less.
(3) A person is not liable under this section to pay an amount for an income year if, under section 8 of the Medicare Levy Act 1986: (a) no Medicare levy is payable by the person on the person’s taxable income for the income year; or (b) the amount of the Medicare levy payable by the person on the person’s taxable income for the income year is reduced.
1061ZVHB Repayable SSL debt for an income year (1) A person’s repayable SSL debt for an income year is: (a) the person’s accumulated SSL debt referred to in paragraph 1061ZVHA(1)(b) in relation to that income year; or (b) if one or more amounts: (i) have been paid in reduction of that debt; or (ii) have been assessed under section 1061ZVHC to be payable in respect of that debt; the amount (if any) remaining after deducting from that debt any amounts referred to in subparagraph (i) or (ii).
(2) A reference in paragraph (1)(b) of this section to an amount assessed to be payable is, if the amount has been increased or reduced by an amendment of the relevant assessment, a reference to the increased amount or the reduced amount.
Subdivision B—Assessments 1061ZVHC Commissioner may make assessments The Commissioner may, from any information in the Commissioner’s possession, whether from a return or otherwise, make an assessment of: Social Security Act 1991 413 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2AA Student start-up loans Part 2AA.4 Discharge of indebtedness Division 3 Compulsory discharge of indebtedness Section 1061ZVHD (a) the person’s accumulated SSL debt on 1 June immediately before the making of the assessment; and (b) the amount required to be paid in respect of the person’s repayable SSL debt under section 1061ZVHA.
1061ZVHD Notification of notices of assessment of tax If: (a) the Commissioner is required to serve on a person a notice of assessment in respect of the person’s income of an income year under section 174 of the Income Tax Assessment Act 1936; and (b) the Commissioner has made, in respect of the person, an assessment under paragraph 1061ZVHC(b) of this Act of the amounts referred to in that paragraph; and (c) notice of the assessment under that paragraph has not been served on the person; notice of the assessment under that paragraph may be served by specifying the amounts concerned in the notice referred to in paragraph (a).
1061ZVHE Commissioner may defer making assessments (1) A person may apply in the approved form to the Commissioner for deferral of the making of an assessment in respect of the person under section 1061ZVHC.

(2) The application must specify: (a) the income year for which the deferral is being sought; and (b) the reasons for seeking the deferral.
(3) The income year specified in the application must be: (a) the income year in which the person makes the application; or (b) the immediately preceding income year; or (c) the immediately succeeding income year.
414 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student start-up loans Chapter 2AA Discharge of indebtedness Part 2AA.4 Compulsory discharge of indebtedness Division 3 Section 1061ZVHF (4) The Commissioner may, on application by a person under this section, defer making an assessment in respect of the person under section 1061ZVHC if the Commissioner is of the opinion that: (a) if the assessment were made, payment of the assessed amount would cause serious hardship to the person; or (b) there are other special reasons that make it fair and reasonable to defer making the assessment.
(5) The Commissioner may defer making the assessment for any period that he or she thinks appropriate.

(6) The Commissioner must, as soon as practicable after an application is made under this section: (a) consider the matter to which the application relates; and (b) notify the applicant of the Commissioner’s decision on the application.

Note: Deferrals of making assessments, or refusals of applications, are reviewable under Division 2A of Part 4 of the Administration Act.
1061ZVHF Commissioner may amend assessments (1) A person may apply in the approved form to the Commissioner for an amendment of an assessment made in respect of the person under section 1061ZVHC so that: (a) the amount payable under the assessment is reduced; or (b) no amount is payable under the assessment.
(2) The application: (a) must be made within 2 years after the day on which the Commissioner gives notice of the assessment to the person; or (b) must specify the reasons justifying a later application.
(3) The Commissioner may, on application by a person under this section, amend an assessment made in respect of the person under section 1061ZVHC so that: (a) the amount payable under the assessment is reduced; or (b) no amount is payable under the assessment; Social Security Act 1991 415 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2AA Student start-up loans Part 2AA.4 Discharge of indebtedness Division 3 Compulsory discharge of indebtedness Section 1061ZVHF if the Commissioner is of the opinion that: (c) payment of the assessed amount has caused or would cause serious hardship to the person; or (d) there are other special reasons that make it fair and reasonable to make the amendment.
(4) The Commissioner must, as soon as practicable after an application is made under this section: (a) consider the matter to which the application relates; and (b) notify the applicant of the Commissioner’s decision on the application.

Note: Amendments of assessments, or refusals of applications, are reviewable under Division 2A of Part 4 of the Administration Act.
416 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student start-up loans Chapter 2AA Tax administration matters Part 2AA.5 Section 1061ZVJA Part 2AA.5—Tax administration matters 1061ZVJA Simplified outline of this Part The Secretary and the Commissioner may share information about tax file numbers for the purposes of administering student start-up loans.
The Commissioner is also responsible for the recovery of debts under this Chapter and has functions and powers to fulfil that responsibility relating to returns, assessments, collection and other administrative matters.

1061ZVJB Verification of tax file numbers (1) The Secretary may provide to the Commissioner a tax file number that a person has notified to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c), for the purpose of verifying that the number is the person’s tax file number.
(2) If the Commissioner is satisfied that the number is the person’s tax file number, the Commissioner may give the Secretary a written notice informing the Secretary accordingly.
1061ZVJC When person with tax file number incorrectly notifies number (1) If the Commissioner is satisfied: (a) that the tax file number that a person has notified to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c): (i) has been cancelled or withdrawn since the notification was given; or (ii) is otherwise wrong; and (b) that the person has a tax file number; the Commissioner may give to the Secretary written notice of the incorrect notification and of the person’s tax file number.
Social Security Act 1991 417 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2AA Student start-up loans Part 2AA.5 Tax administration matters Section 1061ZVJD (2) That number is taken to be the number that the person notified to the Secretary.
1061ZVJD When person without tax file number incorrectly notifies number (1) If: (a) the Commissioner is satisfied that the tax file number that a person notified to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c): (i) has been cancelled since the notification was given; or (ii) is for any other reason not the person’s tax file number; and (b) the Commissioner is not satisfied that the person has a tax file number; the Commissioner may give to the Secretary a written notice informing the Secretary accordingly.
(2) The Commissioner must give a copy of any notice under subsection (1) to the person concerned, together with a written statement of the reasons for the decision to give the notice.

Note: Decisions to give notice under subsection (1) are reviewable under section 202F of the Income Tax Assessment Act 1936.
1061ZVJE When tax file numbers are altered (1) If the Commissioner issues, to a person who has notified a tax file number to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c), a new tax file number in place of a tax file number that has been withdrawn, the Commissioner may give to the Secretary a written notice informing the Secretary accordingly.

(2) That new number is taken to be the number that the person notified to the Secretary.
418 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student start-up loans Chapter 2AA Tax administration matters Part 2AA.5 Section 1061ZVJF 1061ZVJF When tax file numbers are cancelled (1) If the Commissioner cancels a tax file number issued to a person who has notified the tax file number to the Secretary for the purposes of paragraph 1061ZVBB(1)(c) or (2)(c), the Commissioner may give to the Secretary a written notice informing the Secretary accordingly.
(2) The Commissioner must give a copy of any notice under subsection (1) to the person concerned, together with a written statement of the reasons for the decision to give the notice.

Note: Decisions to give notice under subsection (1) are reviewable under section 202F of the Income Tax Assessment Act 1936.
1061ZVJG Returns, assessments, collection and recovery Subject to Part 2AA.4 and this Part: (a) Part IV of the Income Tax Assessment Act 1936; and (b) Division 5 of the Income Tax Assessment Act 1997; and (c) Part 4-15 in Schedule 1 to the Taxation Administration Act 1953; apply, so far as they are capable of application, in relation to a compulsory SSL repayment amount of a person as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936.
1061ZVJH Charges and civil penalties for failing to meet obligations (1) Part 4-25 in Schedule 1 to the Taxation Administration Act 1953 has effect as if: (a) any compulsory SSL repayment amount of a person were income tax payable by the person in respect of the income year in respect of which the assessment of that debt was made; and (b) paragraphs 1061ZVBB(1)(c) and (2)(c), and Parts 2AA.3 and 2AA.4 and this Part, were income tax laws.
Social Security Act 1991 419 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2AA Student start-up loans Part 2AA.5 Tax administration matters Section 1061ZVJJ (2) Subsection (1) does not have the effect of making a person liable to a penalty for any act or omission that happened before the commencement of this subsection.
1061ZVJJ Pay as you go (PAYG) withholding Part 2-5 (other than section 12-55 and Subdivisions 12-E, 12-F and 12-G) in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of amounts of a compulsory SSL repayment amount of a person as if the compulsory SSL repayment amount were income tax.
1061ZVJK Pay as you go (PAYG) instalments Division 45 in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of a compulsory SSL repayment amount of a person as if the compulsory SSL repayment amount were income tax.
1061ZVJL Administration of this Chapter The Commissioner has the general administration of: (a) paragraphs 1061ZVBB(1)(c) and (2)(c); and (b) Parts 2AA.3 and 2AA.4 and this Part; and (c) Division 2A of Part 4 of the Administration Act (Internal review of certain Commissioner decisions relating to student start-up loans).

Note: One effect of this is that these provisions are taxation laws for the purposes of the Taxation Administration Act 1953.
420 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Preliminary Division 1 Section 1061ZW Chapter 2B—Student Financial Supplement Scheme Note: Section 19AB contains many of the definitions that are relevant to the provisions of this Chapter.
Part 2B.1—Establishment of scheme Division 1—Preliminary 1061ZW Object of this Chapter The object of this Chapter is to establish a Student Financial Supplement Scheme enabling certain tertiary students to obtain a repayable financial supplement by entering into a contract for that purpose with a financial corporation that participates in the scheme.
1061ZX Outline of the scheme (1) The scheme provides for the reduction of the rate of youth allowance, austudy payment or pensioner education supplement payable to a person who obtains financial supplement.

(2) The scheme contains provisions under which the amount of supplement that the person is eligible to obtain depends on the total rate of youth allowance, austudy payment or pensioner education supplement that the person chooses to receive.
Those provisions allow the person to choose to repay some or all of the youth allowance, austudy payment or pensioner education supplement, or to receive a lower rate of payment of such an allowance, payment or supplement, in order to receive a higher amount of financial supplement.
(3) The scheme provides that the person is not liable to pay interest to the financial corporation in respect of financial supplement received by the person, but provides for payment by the Social Security Act 1991 421 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 1 Preliminary Section 1061ZX Commonwealth, without cost to the person, to the financial corporation of a subsidy that includes an amount in lieu of interest.
(4) The scheme provides for the amount of the financial supplement that has to be repaid under a contract to be indexed on 1 June in the year next following the year in which the contract is entered into, and on 1 June in each later year.

The amount by which the supplement is increased by indexation is owed by the person to the Commonwealth and not to the financial corporation.
(5) Under the scheme, the person is entitled, but not required, to make early repayments in respect of the supplement during the period of the contract.

The scheme provides for a discount for any repayments made before the end of that period.
(6) The scheme provides that, if financial supplement paid to a person is not repaid in full before the end of the period of the contract, the obligation to repay the outstanding amount of the supplement is transferred to the Commonwealth, and the indexed amount is repayable by the person to the Commonwealth through the taxation system when the person’s income reaches a specified level.
422 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Eligibility to obtain financial supplement Division 2 Section 1061ZY Division 2—Eligibility to obtain financial supplement 1061ZY Eligibility to obtain financial supplement (1) Subject to subsection (2), a person is eligible to obtain financial supplement for a period (an eligibility period) that is a year or a part of a year if: (a) the person is undertaking, or intending to undertake, a tertiary course at an educational institution throughout the period; and (b) the person does not undertake a course of primary or secondary education at any time during the period; and (c) the person is a category 1 student or a category 2 student in respect of the period; and (d) the amount of financial supplement that the person is eligible to obtain under Division 6 for the year is not less than the minimum amount of financial supplement.
(2) A person is not eligible to obtain financial supplement for an eligibility period that begins on or after the day on which the Student Assistance Legislation Amendment Act 2006 receives the Royal Assent.

1061ZZ Category 1 student (1) A person is a category 1 student in respect of a period if, throughout the period, one or more of the payments referred to in this section are payable to the person.
(2) The payment may be youth allowance if: (a) the person’s youth allowance general rate is more than zero; and (b) the youth allowance is payable because the person is undertaking full-time study.

(3) The payment may be austudy payment if the person’s austudy payment general rate is more than zero.
Social Security Act 1991 423 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 2 Eligibility to obtain financial supplement Section 1061ZZA (4) The payment may be pensioner education supplement.
1061ZZA Category 2 student (1) A person is a category 2 student in respect of a period if: (a) the person is not a category 1 student in respect of the period; and (b) throughout the period the person is undertaking full-time study; and (c) throughout the period youth allowance at the youth allowance general rate is not payable to the person only because of the operation of one or more of the following: (i) Module F (the parental income test) of the Youth Allowance Rate Calculator in section 1067G; (ii) Module G (the family actual means test) of that Calculator; (iii) Subdivision AB (the youth allowance assets test) of Division 2 of Part 2.11; and (d) if subparagraph (c)(i) applies—the person’s combined parental income for the appropriate tax year under Submodule 4 of Module F is throughout the period less than the person’s modified parental income free area; and (e) if subparagraph (c)(ii) applies—the actual means of the person’s family under Module G is throughout the period less than the person’s modified parental income free area; and (ea) if subparagraph (c)(iii) applies—the allowance would have been payable if the reference to 50% in subsection 547G(2) were instead a reference to 75%; and (f) neither section 1061ZZAA nor 1061ZZAB applies to the person.
(2) For the purposes of paragraphs (1)(d) and (e), the person’s modified parental income free area is the indexed amount that would be the person’s parental income free area under point 1067G-F22 if the amount of $23,400 that was specified in paragraph 1067G-F22(a) when that paragraph was enacted had been $54,949.
424 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Eligibility to obtain financial supplement Division 2 Section 1061ZZAA 1061ZZAA Failure by person to comply with request to provide person’s tax file number (1) This section applies to a person if: (a) the Secretary has requested the person under section 1061ZZBP to: (i) give the Secretary a written statement of the person’s tax file number; or (ii) apply to the Commissioner of Taxation for a tax file number and give the Secretary a written statement of the person’s tax file number after it has been issued; and (b) at the end of 28 days after the request is made, the person has neither: (i) given the Secretary a written statement of the person’s tax file number; nor (ii) given the Secretary an employment declaration and satisfied either subsection (2) or (3).
(2) The person satisfies this subsection if: (a) the employment declaration states that the person: (i) has a tax file number but does not know what it is; and (ii) has asked the Commissioner of Taxation to inform him or her of the number; and (b) the person has given the Secretary a document authorising the Commissioner to tell the Secretary: (i) whether the person has a tax file number; and (ii) if the person has a tax file number—the tax file number; and (c) the Commissioner has not told the Secretary that the person has no tax file number.
(3) The person satisfies this subsection if: (a) the employment declaration states that the person has applied for a tax file number; and (b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary: Social Security Act 1991 425 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 2 Eligibility to obtain financial supplement Section 1061ZZAB (i) if a tax file number is issued to the person—the tax file number; or (ii) if the application is refused—that the application has been refused; or (iii) if the application is withdrawn—that the application has been withdrawn; and (c) the Commissioner has not told the Secretary that the person has not applied for a tax file number; and (d) the Commissioner has not told the Secretary that an application by the person for a tax file number has been refused; and (e) the application for a tax file number has not been withdrawn.
1061ZZAB Failure by person to comply with request to provide the tax file number of a parent of the person (1) Subject to subsection (4), this section applies to a person if: (a) the person is requested under section 1061ZZBQ to give the Secretary a written statement of the tax file number of a parent of the person; and (b) at the end of 28 days after the request is made the person has neither: (i) given the Secretary a written statement of the parent’s tax file number; nor (ii) given the Secretary a declaration by the parent in a form approved by the Secretary and satisfied either subsection (2) or (3).
(2) The person satisfies this subsection if: (a) the parent’s declaration states that the parent: (i) has a tax file number but does not know what it is; and (ii) has asked the Commissioner of Taxation to inform him or her of his or her tax file number; and (b) the person has given the Secretary a document signed by the parent that authorises the Commissioner to tell the Secretary: (i) whether the parent has a tax file number; and 426 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Eligibility to obtain financial supplement Division 2 Section 1061ZZAB (ii) if the parent has a tax file number—the tax file number; and (c) the Commissioner has not told the Secretary that the parent has no tax file number.
(3) The person satisfies this subsection if: (a) the parent’s declaration states that he or she has applied for a tax file number; and (b) the person has given the Secretary a document signed by the parent that authorises the Commissioner of Taxation to tell the Secretary: (i) if a tax file number is issued to the parent—the tax file number; or (ii) if the application is refused—that the application has been refused; or (iii) if the application is withdrawn—that the application has been withdrawn; and (c) the Commissioner has not told the Secretary that an application by the parent for a tax file number has been refused; and (d) the application for a tax file number has not been withdrawn.
(4) The Secretary may waive the request for a statement of the parent’s tax file number if the Secretary is satisfied that: (a) the person does not know the parent’s tax file number; and (b) the person can obtain none of the following from the parent: (i) the parent’s tax file number; (ii) a statement of the parent’s tax file number; (iii) a declaration by the parent under subparagraph (1)(b)(ii).
Social Security Act 1991 427 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 3 Decision and notice about eligibility to obtain financial supplement Section 1061ZZAC Division 3—Decision and notice about eligibility to obtain financial supplement 1061ZZAC Secretary’s decision (1) If a person claims youth allowance, austudy payment or pensioner education supplement, the Secretary must decide whether the person is eligible to obtain financial supplement for a period that is the whole or a part of a year.
(2) Also, if: (a) the Secretary has made a decision in a year that a person is eligible to obtain financial supplement for a period that is the whole or a part of that year; and (b) the person is likely to: (i) continue to undertake the person’s tertiary course in the next year; or (ii) undertake a new tertiary course in the next year when enrolments in the course are next accepted; the Secretary must make a new decision, as early as practicable in the next year, about whether the person is eligible to obtain financial supplement for a period that is the whole or a part of that next year.
(3) If the Secretary decides that the person is eligible to obtain financial supplement for a period, the Secretary must give the person a notice (a supplement entitlement notice): (a) stating that the person is eligible to obtain financial supplement for that period; and (b) specifying the minimum and maximum amounts of financial supplement that the person can obtain.
(4) This section does not apply in relation to a period that is the whole or part of a year if the year begins on or after the day on which the Student Assistance Legislation Amendment Act 2006 receives the Royal Assent.
428 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Decision and notice about eligibility to obtain financial supplement Division 3 Section 1061ZZAD 1061ZZAD Revocation or variation of decision after review (1) This section applies if: (a) the Secretary has made a decision under section 1061ZZAC in relation to a person; and (b) the Secretary has given the person a supplement entitlement notice under subsection 1061ZZAC(3) as a result of the decision; and (c) after the notice was given the decision is reviewed under Chapter 6; and (d) as a result of the review, the decision is revoked or varied.
(2) The revocation or variation revokes the supplement entitlement notice and the notice ceases to be valid for the purpose of applying for financial supplement.

(3) The Secretary must give the person a statement telling the person: (a) that the decision has been revoked, or has been varied in a manner set out in the statement, as the case may be; and (b) that the supplement entitlement notice has been revoked and ceases to be valid for the purpose of applying for financial supplement.
(4) If the decision is varied and, after the variation, the person is or becomes eligible to obtain financial supplement for a period, the Secretary must give the person a notice (also a supplement entitlement notice): (a) stating that the person is eligible to obtain financial supplement for that period; and (b) specifying the minimum and maximum amounts of financial supplement that the person can obtain.
1061ZZAE Transitional (1) This section applies if, immediately before the commencement of this Chapter, a person held a notice given under Part 3 of the Social Security Student Financial Supplement Scheme 1998.
Social Security Act 1991 429 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 3 Decision and notice about eligibility to obtain financial supplement Section 1061ZZAE (2) If the person had not used the notice before that commencement in an application for financial supplement under that Scheme, the person is eligible to obtain financial supplement under this Chapter for the period to which the notice related.
(3) The notice is taken to be a supplement entitlement notice given under this Division.
430 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Agreements between Commonwealth and financial corporations Division 4 Section 1061ZZAF Division 4—Agreements between Commonwealth and financial corporations 1061ZZAF Applications for financial supplement A person may apply for financial supplement only to a participating corporation.
1061ZZAG Agreements (1) The Minister may enter into an agreement, on behalf of the Commonwealth, with a financial corporation for the payment by the corporation after the commencement of this Chapter, in the year in which this Chapter commences or a later year, of financial supplement.
(2) An agreement referred to in subsection (1) does not have any effect unless it: (a) is expressed to have effect subject to this Chapter; and (b) provides for the payment by the Commonwealth to the financial corporation, in respect of each amount of financial supplement paid by the corporation to a person that has not been repaid, or in respect of which the rights of the corporation have been transferred to the Commonwealth, of a subsidy of such amount or amounts, or at such rate or rates, and in respect of such period or periods, as are stated in the agreement.
(3) If such an agreement is entered into, the corporation is a participating corporation for the purposes of this Chapter in respect of the year, or each year, concerned.

(4) The parties to an agreement referred to in subsection (2) (including such an agreement as previously amended under this subsection) may enter into an agreement amending or terminating it.
(5) The amendment or termination of an agreement does not affect any financial supplement contract that was in force immediately before the amendment or termination took effect.
Social Security Act 1991 431 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 4 Agreements between Commonwealth and financial corporations Section 1061ZZAG (6) If an agreement was in force, immediately before the commencement of this Chapter, between the Commonwealth and a financial corporation under section 1.7 of the Social Security Student Financial Supplement Scheme 1998, the amendment or termination of the agreement, and the commencement of an agreement under this section, do not affect any financial supplement contract made under that Scheme.
(7) An agreement between the Commonwealth and a financial corporation is not subject to any stamp duty or other tax under a law of a State or Territory.

(8) An officer may disclose to a participating corporation any information about a person that is relevant to the exercise or performance by the corporation of any of its rights or obligations in respect of the person under this Chapter.
(9) A participating corporation may disclose to an officer any information about a person that is relevant to the exercise or performance of any rights, powers or obligations conferred or imposed on an officer or on the Commonwealth in respect of the person under this Chapter.
432 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Application for financial supplement Division 5 Section 1061ZZAH Division 5—Application for financial supplement 1061ZZAH When to apply A person who is eligible to obtain financial supplement for an eligibility period may apply to a participating corporation, during that period, for financial supplement.
1061ZZAI How to apply A person may only apply for financial supplement by: (a) completing an application form approved by the Secretary; and (b) lodging it, with the person’s supplement entitlement notice, at an office of a participating corporation.
1061ZZAJ Changing an application A person who has applied for financial supplement for the eligibility period may, at any time, lodge another application form approved by the Secretary at an office of the participating corporation, telling the corporation that the person requires for that period: (a) a specified lesser amount of financial supplement, which must be: (i) not less than the total amount of financial supplement already paid to the person for the period; and (ii) not less than the minimum amount of financial supplement in respect of the person for the year that constitutes, or includes, the eligibility period; or (b) a specified greater amount of financial supplement, which must be not more than the maximum amount of financial supplement in respect of the person for the period.
Social Security Act 1991 433 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 6 Amount of financial supplement Section 1061ZZAK Division 6—Amount of financial supplement Subdivision A—Category 1 students 1061ZZAK Maximum amount of financial supplement (1) If the relevant eligibility period of a person who is a category 1 student is a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of: (a) $7,000; and (b) the amount worked out using the following Method statement.
Method statement Step 1.

Work out the total amount of youth allowance general rate, austudy payment general rate or pensioner education supplement that would be payable to the person for the eligibility period if the person did not apply for financial supplement.

Step 2.

Work out the total amount of advance payment deductions (if any) to be made from the person’s rate of youth allowance or austudy payment, under Part 3.16A, in the eligibility period.
Subtract that total amount from the total amount worked out under Step 1.

Step 3.

Work out the total amount of overpayments (if any) for the eligibility period.

Subtract that total amount from the total amount worked out under Step 2.

434 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Amount of financial supplement Division 6 Section 1061ZZAK Step 4.
Work out the total amount of deductions (if any) that are to be paid to the Commissioner of Taxation, under section 1359, for the eligibility period.

Note: Section 1359 provides for the deduction and payment to the Commissioner of Taxation of amounts of tax that a person is required to pay.

Subtract that total amount from the total amount worked out under Step 3.

Step 5.
Step 5.

Work out the total amount (if any) of youth allowance general rate, austudy payment general rate or pensioner education supplement that has already been paid for the eligibility period.

Ignore any amount that has already been dealt with under Step 2.

Ignore any amount that is taken never to have been paid because of section 1061ZZAW.

Subtract the total amount from the amount worked out under Step 4.

Step 6.

Multiply the amount left by 2.

Step 7.


If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

(2) If the relevant eligibility period of a person who is a category 1 student is less than a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of: (a) the amount worked out using the Method statement in subsection (1); and (b) the amount worked out using the following Method statement.
Social Security Act 1991 435 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 6 Amount of financial supplement Section 1061ZZAL Method statement Step 1.

Multiply $7,000 by the number of days in the eligibility period.

Step 2.

Divide the result by the number of days in the year in which the eligibility period is included.
If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

(3) This section has effect subject to Subdivision C. Subdivision B—Category 2 students 1061ZZAL Change in eligibility period (1) The maximum amount of financial supplement in respect of a person who is a category 2 student depends on the person’s eligibility period.
(2) If the person is undertaking, or intends to undertake, a short course, it is necessary to work out whether the person’s eligibility period is to be changed under section 1061ZZAM.

(3) If the person is neither undertaking, nor intending to undertake, a short course, it is necessary to work out whether the person’s eligibility period is to be changed under section 1061ZZAN.
1061ZZAM Eligibility period (short course) (1) This section explains whether, and how, to change the eligibility period for a person who is undertaking, or intending to undertake, a short course.
(2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable) must be changed if the person applied 436 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Amount of financial supplement Division 6 Section 1061ZZAN for financial supplement more than 4 weeks after being given a supplement entitlement notice.
(3) The Secretary may decide that the eligibility period otherwise applicable is not to be changed if the Secretary is satisfied that: (a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and (b) circumstances beyond the person’s control prevented the person from applying within the 4 weeks; and (c) the person applied as soon as practicable after the circumstances stopped.
(4) If the eligibility period otherwise applicable is to be changed, the person’s new eligibility period is the period: (a) starting on the later of: (i) the day when the person applied; and (ii) the start of the eligibility period otherwise applicable; and (b) ending when the eligibility period otherwise applicable would have ended.
1061ZZAN Eligibility period (no short course) (1) This section explains whether, and how, to change the eligibility period for a person who is neither undertaking, nor intending to undertake, a short course.

(2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable) must be changed if the person applied for financial supplement after 31 May in the year in which the period is included.
(3) The Secretary may decide that the period is not to be changed if the Secretary is satisfied that: (a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and Social Security Act 1991 437 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 6 Amount of financial supplement Section 1061ZZAO (b) circumstances beyond the person’s control prevented the person from applying within the 4 weeks; and (c) the person applied as soon as practicable after the circumstances stopped.
(4) If the eligibility period otherwise applicable is to be changed and the person applied before 1 October in the year, the person’s new eligibility period is the period: (a) starting on the later of 1 July and the start of the eligibility period otherwise applicable; and (b) ending when the eligibility period otherwise applicable would have ended.
(5) If the eligibility period otherwise applicable is to be changed and the person applied on or after 1 October in the year, the person’s new eligibility period is the period: (a) starting on the later of: (i) the day when the person applied; and (ii) the start of the eligibility period otherwise applicable; and (b) ending when the eligibility period otherwise applicable would have ended.
1061ZZAO Maximum amount of financial supplement (1) If: (a) the person is undertaking, or intending to undertake, a short course; or (b) the person is neither undertaking, nor intending to undertake, a short course and the person’s eligibility period is less than a year; the maximum amount of financial supplement for the eligibility period in respect of the person is worked out using the following Method statement.
438 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Amount of financial supplement Division 6 Section 1061ZZAP Method statement Step 1.

Multiply $2,000 by the number of days in the eligibility period.

Step 2.

Divide the result by the number of days in the year that includes the eligibility period.
If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

(2) If the person is neither undertaking, nor intending to undertake, a short course, and the person’s eligibility period is a year, the maximum amount of financial supplement for the eligibility period in respect of the person is $2,000.
(3) This section has effect subject to Subdivision C. Subdivision C—Provisions applying to both category 1 students and category 2 students 1061ZZAP Minimum amount of financial supplement The minimum amount of financial supplement in respect of a person is $500.

1061ZZAQ Person doing more than one course (1) This section applies if a person undertakes, or intends to undertake, more than one tertiary course in the same period in a year.
(2) The maximum amount of financial supplement for the period in respect of the person is the maximum amount worked out under this Division for the period in respect of the person for one of the courses.
Social Security Act 1991 439 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 7 Trading in youth allowance, austudy payment or pensioner education supplement for financial supplement Section 1061ZZAR Division 7—Trading in youth allowance, austudy payment or pensioner education supplement for financial supplement 1061ZZAR Purpose of Division (1) Financial supplement will be paid to a person who is eligible to obtain financial supplement at a rate determined by the person’s financial supplement contract.
(2) If youth allowance, austudy payment or pensioner education supplement is payable to the person, the payment of financial supplement will reduce the rate at which the youth allowance, austudy payment or pensioner education supplement is payable.

(3) The reduction of the rate of payment is a trade in.

(4) The Division explains how trade in works.


1061ZZAS Reduction of youth allowance, austudy payment or pensioner education supplement for financial supplement (1) The period for which a payment of financial supplement will be made is an instalment period.
(2) Subject to subsection (3), the rate of youth allowance, austudy payment or pensioner education supplement that would have been payable to the person in an instalment period is reduced by an amount equal to one-half of the amount of financial supplement to be paid during the instalment period under the financial supplement contract.
(3) If, apart from this subsection, the amount by which the rate would be reduced is an amount including one-half of a cent, the amount is to be increased by one-half of a cent.

(4) This section has effect despite any other provision of this Act.
440 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Obtaining or increasing financial supplement by trading back youth allowance, austudy payment or pensioner education supplement Division 8 Division 8—Obtaining or increasing financial supplement by trading back youth allowance, austudy payment or pensioner education supplement Section 1061ZZAT Subdivision A—Purpose of Division 1061ZZAT Purpose of Division (1) If a person who is eligible to obtain financial supplement wishes to obtain financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.
(2) If a person who is obtaining financial supplement wishes to increase the amount of financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.

(3) The repayment of the youth allowance, austudy payment or pensioner education supplement is a trade back.

(4) This Division explains how trade back works.

(5) This Division also sets out the effect of trade back.

(6) This Division does not affect the operation of Chapter 5.
Subdivision B—When a person may repay youth allowance, austudy payment or pensioner education supplement to obtain or increase financial supplement 1061ZZAU Election to repay youth allowance, austudy payment or pensioner education supplement (1) A person to whom youth allowance, austudy payment or pensioner education supplement was payable during a payment period may elect to repay to the Commonwealth some or all of the youth allowance, austudy payment or pensioner education supplement.
Social Security Act 1991 441 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 8 Obtaining or increasing financial supplement by trading back youth allowance, austudy payment or pensioner education supplement Section 1061ZZAV (2) The person must make the election using the form approved under paragraph 1061ZZAI(a).
(3) A payment period is: (a) the part of a year starting on 1 January and ending on 31 May; or (b) the part of a year starting on 1 July and ending on 30 September.

1061ZZAV Timing of repayment (1) A person who is not obtaining financial supplement may, in order to obtain financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement: (a) while the person is eligible to obtain financial supplement; and (b) during the payment period.
(2) However, if the person does not repay youth allowance, austudy payment or pensioner education supplement during the payment period, the person may, in order to obtain financial supplement, repay youth allowance, austudy payment or pensioner education supplement after that period if the Secretary is satisfied that: (a) the person took reasonable steps to repay it during the payment period; and (b) circumstances beyond the person’s control prevented the person from repaying it during the period; and (c) the person repays it as soon as practicable after the end of the payment period and during the year that includes the payment period.
(3) A person who is obtaining financial supplement may, in order to increase the amount of financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement: (a) while the person is eligible to obtain financial supplement; and 442 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Obtaining or increasing financial supplement by trading back youth allowance, austudy payment or pensioner education supplement Division 8 (b) during the year in which the youth allowance, austudy payment or pensioner education supplement was paid.
Section 1061ZZAW Subdivision C—Repayment 1061ZZAW Effect of repayment If an amount is repaid by a person under this Division, the amount is taken never to have been paid to the person.
Social Security Act 1991 443 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 9 Financial supplement contracts Section 1061ZZAX Division 9—Financial supplement contracts Subdivision A—Making a contract for payment of financial supplement 1061ZZAX Making a contract between person and participating corporation (1) If a person applies to a participating corporation under Division 5 for the payment of financial supplement for an eligibility period, the corporation must, as soon as practicable, accept the application by written notice to the person.
(2) A contract is made when the corporation accepts the application by giving the notice referred to in subsection (1).

The contract is a financial supplement contract.

(3) A financial supplement contract is a contract for the making of a loan by the corporation to the person under this Division without any requirement on the person to pay interest.
(4) The contract must be for the amount of financial supplement for which the person from time to time asks, but the amount must not be less than the minimum amount, or more than the maximum amount, of financial supplement that the person is, from time to time, eligible to obtain under Division 6.

(5) The contract must also allow, but not compel, the person to make repayments during the contract period under Division 13 of the amount outstanding at any time under the contract.
(6) The contract must set out the termination date for the contract.

The date to be set out is the last day of the contract period.

(7) The contract period is the period beginning on the day when the contract is made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ends.
444 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Financial supplement contracts Division 9 Section 1061ZZAY 1061ZZAY Existing contracts (1) A contract is also a financial supplement contract if it is a contract referred to in section 8.2 of the Social Security Student Financial Supplement Scheme 1998.
(2) The termination date for the contract is the date set out in the contract.

(3) The contract period is the period beginning on the day when the contract was made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ended or ends.
1061ZZAZ Liability for money paid under a financial supplement contract (1) A participating corporation may rely on advice given by the Commonwealth to decide: (a) whether it must pay financial supplement to a person; and (b) the amount of financial supplement.

(2) An amount paid to a person by a corporation, relying on advice given by the Commonwealth, is taken to be financial supplement paid under the contract even though the person may not have been eligible to obtain the amount.
(3) Subsection (2) does not affect the operation of Part 2B.2.

1061ZZBA Validity of financial supplement contract (1) The validity of a financial supplement contract with a person is not affected merely because the person was not eligible to obtain financial supplement when the contract was made, or ceases at a later time to be eligible.

(2) The contract is not invalid, and is not voidable, under any other law (whether written or unwritten) in force in a State or Territory.
Social Security Act 1991 445 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 9 Financial supplement contracts Section 1061ZZBB (3) The contract is not invalid merely because the person is an undischarged bankrupt when the contract is made.

(4) Bankruptcy does not release a person from his or her obligations under the contract.
Subdivision B—When a financial supplement contract can be cancelled 1061ZZBB Person has right to cancel financial supplement contract (1) A person who makes a financial supplement contract has a right to cancel the contract.

(2) Subsection (1) does not affect the operation of section 1061ZZCU.

(3) If, under section 1061ZZBF, the person waives his or her right to cancel the contract, sections 1061ZZBC to 1061ZZBE do not apply to the contract.
1061ZZBC How to cancel financial supplement contract (1) To exercise the right to cancel the contract, the person must give to the participating corporation written notice that the person is withdrawing his or her application for financial supplement.

(2) The notice must be lodged at an office of the corporation.

1061ZZBD When to cancel financial supplement contract The person’s right may be exercised within 14 days (the cooling off period) after the day when the contract is made under section 1061ZZAX.
1061ZZBE Payments made during cooling off period (1) In the cooling off period, the participating corporation must not make a payment to the person under the contract.
446 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Financial supplement contracts Division 9 Section 1061ZZBF (2) If the corporation makes a payment to the person under the contract within the cooling off period, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.
(3) If the corporation makes a payment to the person under the contract after the cooling off period and the person has exercised the right to cancel the contract, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.

1061ZZBF Person may waive right to cancel contract The person may waive the right to cancel the contract.
1061ZZBG How to waive right to cancel contract To waive the right to cancel the contract, the person must give to the participating corporation written notice that he or she is waiving the right to cancel the contract.

1061ZZBH When to waive right to cancel contract To exercise the right of waiver, the person must give the participating corporation the notice referred to in section 1061ZZBG immediately after the contract is made under section 1061ZZAX.
Subdivision C—Financial supplement contract exempt from certain laws and taxes 1061ZZBI Financial supplement contract exempt from certain laws and taxes (1) A law of a State or Territory about giving credit or other financial assistance does not apply to a financial supplement contract.
Social Security Act 1991 447 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 9 Financial supplement contracts Section 1061ZZBI (2) An application for the payment of financial supplement, a financial supplement contract, or an act or thing done or transaction entered into under such a contract, is not taxable under any law of a State or Territory.
448 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Payment of financial supplement Division 10 Section 1061ZZBJ Division 10—Payment of financial supplement 1061ZZBJ Payment by instalments (1) Financial supplement is to be paid by instalments for periods determined by the Secretary.
(2) Instalments of financial supplement are to be paid at times determined by the Secretary.

1061ZZBK Rounding off If the amount of an instalment includes a fraction of a cent, the amount is to be rounded to the nearest whole cent (0.5 cent being rounded upwards).
1061ZZBL To whom instalments must be paid (1) If a person who is a category 1 student is trading in, or trading back, youth allowance, financial supplement must be paid to the person to whom instalments of youth allowance are or were being paid under section 559D or 559E.

(2) If a person who is a category 1 student is trading in, or trading back, austudy payment, financial supplement must be paid to the person to whom instalments of austudy payment are or were being paid under section 584D.
(3) If a person who is a category 1 student is trading in, or trading back, pensioner education supplement, financial supplement must be paid to the person to whom instalments of pensioner education supplement are or were being paid under section 1061PZK.

(4) If a person who is a category 2 student obtains financial supplement, it must be paid to the person to whom instalments of youth allowance would be paid under section 559D or 559E if youth allowance were payable to the student.
Social Security Act 1991 449 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 10 Payment of financial supplement Section 1061ZZBM (5) This section does not affect the liability of a person to make repayments under Part 2B.3.
1061ZZBM Payment into bank account (1) If an amount of financial supplement is paid to a person, it must be paid to the credit of a bank account nominated and maintained by the person.

(2) The bank account may be maintained by the person alone or jointly or in common with someone else.
450 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Protection of financial supplement Division 11 Section 1061ZZBN Division 11—Protection of financial supplement 1061ZZBN Financial supplement to be absolutely inalienable Financial supplement is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.
1061ZZBO Effect of garnishee or attachment order (1) This section applies if: (a) a person has an account with a financial institution (whether the account is maintained by the person alone, or jointly or in common with someone else); and (b) a court order in the nature of a garnishee order comes into force in respect of the account; and (c) an amount of financial supplement has been paid (whether on the person’s own behalf or not) to the credit of the account in the 4 weeks immediately before the court order came into force.
(2) The court order does not apply to the saved amount (if any) in the account.

(3) The saved amount is the amount worked out using the following Method statement.

Method statement Step 1.

Work out the amount of financial supplement paid to the credit of the account in the 4 weeks.

Step 2.

Subtract from that amount the total amount withdrawn from the account in the 4 weeks.

The amount left is the saved amount.
Social Security Act 1991 451 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 12 Obligations of category 2 students Section 1061ZZBP Division 12—Obligations of category 2 students Subdivision A—Statements about tax file numbers 1061ZZBP Secretary may request person obtaining financial supplement to give statement of person’s tax file number Request for tax file number (1) The Secretary may request, but not compel, a person who is a category 2 student and is obtaining financial supplement: (a) if the person has a tax file number—to give the Secretary a written statement of the person’s tax file number; or (b) if the person does not have a tax file number: (i) to apply to the Commissioner of Taxation for a tax file number; and (ii) to give the Secretary a written statement of the person’s tax file number after the Commissioner has issued it.
Failure to satisfy request (2) A person is not eligible to obtain financial supplement if, at the end of 28 days after a request is made: (a) the person has failed to satisfy the request; and (b) the Secretary has not exempted the person from having to satisfy the request.
1061ZZBQ Secretary may request person obtaining financial supplement to give statement of parent’s tax file number Request for parent’s tax file number (1) If: (a) a person (the recipient) who is a category 2 student is obtaining financial supplement; and 452 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Obligations of category 2 students Division 12 Section 1061ZZBR (b) the income of a parent of the recipient is required to be taken into account for the purpose of working out the recipient’s eligibility for financial supplement; and (c) the parent is in Australia; the Secretary may request, but not compel, the recipient to give the Secretary a written statement of the parent’s tax file number.
Failure to satisfy request (2) A recipient is not eligible to obtain financial supplement if, at the end of 28 days after the request is made: (a) the recipient has failed to satisfy the request; and (b) the Secretary has not exempted the recipient from having to satisfy the request.

(3) In this section: parent has the same meaning as in paragraph (b) of the definition of parent in subsection 5(1).
Note 1: In some cases the request can be satisfied in relation to a parent by giving the Secretary a declaration by the parent about the parent’s tax file number and an authority by the parent to the Commissioner of Taxation to give the Secretary certain information relevant to the parent’s tax file number (see subsections 1061ZZAB(2) and (3).

Note 2: The Secretary may waive the requirement in some cases (see subsection 1061ZZAB(4)).
Subdivision B—Notice of events or changes in circumstances 1061ZZBR Secretary may give notice requiring information (1) The Secretary may give a notice under this section to a person who is a category 2 student if: (a) financial supplement is paid to the person on the person’s own behalf; or (b) financial supplement is paid to someone else, on the person’s behalf, under section 1061ZZBL.
(2) The notice must require the person to tell the Department if: Social Security Act 1991 453 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 12 Obligations of category 2 students Section 1061ZZBS (a) a stated event or change of circumstances happens; or (b) the person becomes aware that a stated event or change of circumstances is likely to happen.
1061ZZBS Event or change relevant to payment An event or change of circumstances is not to be stated in a notice given under section 1061ZZBR unless the event or change of circumstances might affect the payment of financial supplement.
1061ZZBT Formalities related to notice Subject to section 1061ZZBU, a notice under section 1061ZZBR: (a) must be in writing; and (b) may be given personally or by post; and (c) must state how the person is to give the information to the Department; and (d) must state the period in which the person is to give the information to the Department; and (e) must state that the notice is a recipient notification notice given under this Act.
1061ZZBU Validity of notice A notice under section 1061ZZBR is not invalid merely because it does not comply with paragraph 1061ZZBT(c) or (e).

1061ZZBV Period within which information to be given (1) Subject to this section, the period stated under paragraph 1061ZZBT(d) must be the period of 14 days after: (a) the day on which the event or change of circumstances happens; or (b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.
454 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Obligations of category 2 students Division 12 Section 1061ZZBW (2) If the Secretary is satisfied that there are special circumstances related to the person to whom the notice under section 1061ZZBR is to be given, the period to be stated under paragraph 1061ZZBT(d) is such period as the Secretary directs in writing, being a period that ends not less than 15 days, and not more than 28 days, after: (a) the day on which the event or change of circumstances happens; or (b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.
(3) If the notice specifies an event consisting of the death of a person, the period to be stated under paragraph 1061ZZBT(d) is a period of 28 days after the day on which the event happens.

(4) If the notice requires the person to tell the Department of a proposal by the person to leave Australia, subsection (1) does not apply to that requirement.
(5) If the notice requires information about receipt of a compensation payment, the period stated under paragraph 1061ZZBT(d) in relation to the information must end at least 7 days after the day when the person becomes aware that he or she has received, or is to receive, a compensation payment.
1061ZZBW Refusal or failure to comply with notice (1) A person commits an offence if: (a) the person is required to comply with a notice; and (b) the notice is a notice under section 1061ZZBR; and (c) the person refuses or fails to comply with the notice; and (d) the person is reckless as to the requirement.

Penalty: Imprisonment for 6 months.

(2) Subsection (1) applies only to the extent to which the person is capable of complying with the notice.
Social Security Act 1991 455 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 12 Obligations of category 2 students Section 1061ZZBX (3) Subsection (1) does not apply if the person has a reasonable excuse.

(4) Strict liability applies to paragraph (1)(b).


1061ZZBX Application overseas This Subdivision extends to: (a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and (b) all people irrespective of their nationality or citizenship.
Subdivision C—Notice about a matter relevant to payment of financial supplement 1061ZZBY Secretary may give notice requiring statement on matter (1) The Secretary may give a notice under this section to a person who is a category 2 student if: (a) financial supplement is paid to the person on the person’s own behalf; or (b) financial supplement is paid to someone else, on the person’s behalf, under section 1061ZZBL.
(2) The notice must require the person to give the Department a statement about a matter that might affect the payment of financial supplement.
1061ZZBZ Formalities related to notice Subject to section 1061ZZCA, a notice under section 1061ZZBY: (a) must be in writing; and (b) may be given personally or by post; and (c) must state how the statement is to be given to the Department; and (d) must state the period within which the person is to give the statement to the Department; and 456 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Obligations of category 2 students Division 12 Section 1061ZZCA (e) must state that the notice is a recipient statement notice given under this Act.
1061ZZCA Validity of notice A notice under section 1061ZZBY is not invalid merely because it does not comply with paragraph 1061ZZBZ(c) or (e).

1061ZZCB Period within which statement to be given The period stated under paragraph 1061ZZBZ(d) must be at least 14 days after the day on which the notice is given.

1061ZZCC Statement must be in approved form A statement given in response to a notice under section 1061ZZBY must be in writing and in accordance with a form approved by the Secretary.
1061ZZCD Refusal or failure to comply with notice (1) A person commits an offence if: (a) the person is required to comply with a notice; and (b) the notice is a notice under section 1061ZZBY; and (c) the person refuses or fails to comply with the notice; and (d) the person is reckless as to the requirement.

Penalty: Imprisonment for 6 months.

(2) Subsection (1) applies only to the extent to which the person is capable of complying with the notice.
(3) Subsection (1) does not apply if the person has a reasonable excuse.

(4) Strict liability applies to paragraph (1)(b).
Social Security Act 1991 457 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 12 Obligations of category 2 students Section 1061ZZCE 1061ZZCE Application overseas This Subdivision extends to: (a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and (b) all people irrespective of their nationality or citizenship.
458 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Early repayments of financial supplement Division 13 Section 1061ZZCF Division 13—Early repayments of financial supplement Subdivision A—Calculation and notification of amount outstanding under financial supplement contract 1061ZZCF Application of Subdivision This Subdivision has effect subject to section 1061ZZEE.
1061ZZCG Calculation of amount outstanding under financial supplement contract before 1 June in the year after the year in which the contract was made (1) The amount outstanding under a financial supplement contract at a time (the test time) before 1 June in the year immediately after the year in which the contract was made is the amount worked out using the formula: Principal sum (Amounts repaid Discounts)   (2) For the purpose of applying the formula in subsection (1) at the test time: amounts repaid means the total of the amounts repaid under the contract before the test time.
discounts means the total of the discounts to which the person became entitled before the test time.

principal sum means the principal sum at the test time.
1061ZZCH Calculation of amount outstanding under financial supplement contract at a later time (1) Subject to subsections 1061ZZCN(6) and (7), the amount outstanding under a financial supplement contract at a time (the test time) during a period of 12 months (the test period) referred to in either of the following paragraphs: Social Security Act 1991 459 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 13 Early repayments of financial supplement Section 1061ZZCH (a) the period of 12 months beginning on 1 June in the year immediately after the year in which the contract was made; or (b) any of the following 3 periods of 12 months; is the amount worked out using the formula:      Previous amount outstanding  Indexation factor            Amounts repaid  Discounts      (2) For the purpose of applying the formula in subsection (1) at the test time: amounts repaid means the total of the amounts repaid under the contract during the test period but before the test time.
discounts means the total of the discounts to which the person became entitled during the test period but before the test time.

indexation factor means the number worked out using the method statement in subsection (3).

previous amount outstanding means the amount outstanding under the contract immediately before the beginning of the test period.

(3) The Method statement for the purposes of the definition of indexation factor in subsection (2) is as follows: Method statement Step 1.
Work out the total of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters.

Step 2.

Work out the total of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.
460 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Early repayments of financial supplement Division 13 Section 1061ZZCI Step 3.

Divide the total worked out under Step 1 by the total worked out under Step 2.

Step 4.

Round the result to 3 decimal places.


(4) In subsection (3): earlier reference period means the period of 12 months immediately before the later reference period.

later reference period means the period of 12 months immediately before the test period.

(5) If an indexation factor worked out under subsection (3) would end with a number greater than 4, were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.
(6) If, apart from this subsection, an amount worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.

1061ZZCI Notification of amount outstanding (1) The Secretary must give to a person who is a party to a financial supplement contract with a participating corporation a notice of an amount outstanding under the contract that exists on: (a) 1 June in the year following the year in which the contract was made; or (b) 1 June in any of the following 3 years.
(2) The notice must state the amount outstanding under the contract at that date.
Social Security Act 1991 461 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 13 Early repayments of financial supplement Section 1061ZZCJ Subdivision B—Person’s rights to make repayments during contract period 1061ZZCJ Person not required to, but may, make repayments during contract period (1) Subject to sections 1061ZZDE, 1061ZZDL, 1061ZZDV and 1061ZZEE, a person who is a party to a financial supplement contract with a participating corporation is not required during the contract period to make a repayment of the amount outstanding under the contract.
(2) Non-payment by the person during the contract period of the amount outstanding is not a default under the contract for the purposes of any law of the Commonwealth, of a State or of a Territory.

(3) However, the person may, at any time during the contract period, make a repayment (an amount repaid) to the corporation of the whole or a part of the amount outstanding at that time.

(4) Subsection (3) has effect subject to section 1061ZZCL.
1061ZZCK What happens if person makes an excess repayment If a person purports to make a repayment to a participating corporation under a financial supplement contract by paying an amount under subsection 1061ZZCJ(3) that exceeds the amount that, having regard to the discount to which the person is entitled, would be needed to pay in full the amount outstanding, the excess: (a) is taken not to be a repayment; and (b) must be repaid by the corporation to the person.
1061ZZCL Amount repaid not to include certain amounts If the person makes a repayment under subsection 1061ZZCJ(3), the amount repaid is to be disregarded for the purposes of this Division: 462 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Early repayments of financial supplement Division 13 Section 1061ZZCM (a) to the extent to which it relates to wrongly paid supplement; or (b) if it is repaid after the giving of a notice under section 1061ZZCZ, 1061ZZDG, 1061ZZDQ or 1061ZZEA.
1061ZZCM How to work out discount (1) If, during the contract period, a person makes a repayment of an amount that is less than the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula: Amount repaid     100 85     Amount repaid (2) If, during the contract period, a person makes a repayment of an amount that is equal to the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula: Amount repaid     115 100     Amount repaid (3) If, apart from this subsection, an amount worked out under subsection (1) or (2) would be an amount of dollars and cents, the amount is to be rounded to the nearest number of whole dollars (rounding 50 cents upwards).
1061ZZCN Effect of making a repayment during contract period Application (1) This section applies if a person, at a time (the repayment time) during the contract period of a financial supplement contract made by the person with a participating corporation, makes a repayment (the relevant repayment) in respect of the amount outstanding under the contract.
For the purposes of this section, it is first necessary to work out whether an indexation amount is taken to Social Security Act 1991 463 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 13 Early repayments of financial supplement Section 1061ZZCN have existed in respect of the contract immediately before the repayment time.
When an indexation amount is taken to have existed (2) For the purposes of this section, an indexation amount is taken to have existed in respect of the contract immediately before the repayment time if: (a) an amount outstanding under the contract existed immediately before the repayment time under section 1061ZZCH; and (b) that amount outstanding exceeds the amount worked out using the formula:   Principal sum Amounts repaid      Amounts previously notionally repaid      Meaning of expressions used in formula (3) For the purpose of applying the formula in subsection (2) immediately before the repayment time: amounts previously notionally repaid means the total of the amounts notionally repaid under the contract before the repayment time because of the application of this section in respect of previous repayments.
amounts repaid means the total of the amounts repaid under the contract before the repayment time.

principal sum means the principal sum immediately before the repayment time.

What constitutes indexation amount (4) The indexation amount referred to in subsection (2) is the amount of the excess referred to in paragraph (2)(b).
464 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Early repayments of financial supplement Division 13 Section 1061ZZCN If no indexation amount (5) If no indexation amount existed in respect of the contract immediately before the repayment time, the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid) equal to the discount to which the person is entitled in respect of the relevant repayment.
If discount does not exceed indexation amount (6) If: (a) an indexation amount existed in respect of the contract immediately before the repayment time; and (b) the discount to which the person is entitled in respect of the relevant repayment is equal to or less than the indexation amount; the amount outstanding under the contract is taken to be reduced by the discount.
If discount exceeds indexation amount (7) If: (a) an indexation amount existed in respect of the contract immediately before the repayment time; and (b) the discount to which the person is entitled in respect of the relevant repayment exceeds the indexation amount; the following paragraphs have effect: (c) the amount outstanding under the contract is taken to be reduced by the indexation amount; (d) the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid) equal to the excess.
Commonwealth to pay corporation amounts notionally repaid (8) The Commonwealth must pay to the corporation an amount equal to any amount notionally repaid.
Social Security Act 1991 465 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 13 Early repayments of financial supplement Section 1061ZZCO 1061ZZCO Rights and liabilities of participating corporation if repayment made (1) This section applies if, immediately after a repayment is made under a financial supplement contract made by a participating corporation, the total of the amounts repaid and the amounts notionally repaid is equal to or exceeds the principal sum.
(2) The corporation’s rights under the contract are, by this subsection, transferred to the Commonwealth immediately after the repayment is made.

(3) If the total of the amounts repaid and the amounts notionally repaid exceeds the principal sum, the corporation must pay the excess to the Commonwealth.
Subdivision C—What happens at the end of the contract period 1061ZZCP Corporation’s rights at end of contract period (1) This section applies if, at the end of the contract period of a financial supplement contract made by a participating corporation, the corporation’s rights under the contract have not previously been transferred to the Commonwealth.

(2) The corporation’s rights under the contract are, by this subsection, transferred to the Commonwealth at the end of the contract period.
(3) If the principal sum exceeds the total of the amounts repaid and the amounts notionally repaid, the Commonwealth must pay the excess to the corporation.
1061ZZCQ Termination notice (1) As soon as practicable after the termination date of a financial supplement contract made by a person with a participating corporation, the Secretary must arrange for written notice (the termination notice) to be given to the person if such a notice has not already been given under the Social Security Student Financial 466 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Establishment of scheme Part 2B.1 Early repayments of financial supplement Division 13 Section 1061ZZCR Supplement Scheme 1998 or the Student Assistance Act 1973 as in force at a time before 1 July 1998.
(2) The termination notice must: (a) state that, at the end of the contract period, the person no longer owes a debt to the corporation under the contract and will not receive a discount for repayments made after that time; and (b) state that, on a date referred to in the notice, being 1 June immediately following the termination date, the person incurred or will incur an FS debt or FS debts to the Commonwealth; and (c) specify the amount of that debt or the amounts of those debts; and (d) state that the person is entitled at any time to make repayments in respect of that debt or those debts and that so much of that debt or those debts as is not voluntarily repaid by the person will be recovered through the taxation system.
1061ZZCR Secretary may give notice correcting information in previous notice If, after a notice has been given to a person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998 (including a notice previously given under this section or under a provision of that Scheme or Act corresponding to this section), the Secretary is satisfied that significant information in the notice was not, or is no longer, correct, the Secretary must arrange for a further written notice to be given to the person setting out the correct information.
1061ZZCS Person may request notice to be corrected (1) If a person considers that a notice given to the person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July Social Security Act 1991 467 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.1 Establishment of scheme Division 13 Early repayments of financial supplement Section 1061ZZCT 1998, was not, or is no longer, correct in a significant respect, the person may, by writing, request the Secretary to correct the notice.
(2) The person must make the request within 14 days after the date when the notice was received by the person or within such further period as the Secretary allows.

(3) A request must set out the information that is considered to be incorrect and the grounds on which the person considers the information to be incorrect.
(4) If a request is received by the Secretary, the Secretary must arrange, as soon as practicable, for it to be considered and for written notice of the decision on the request to be given to the person.
1061ZZCT Effect of notices and requests (1) A notice to a person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, is intended only to give information to the person and an FS debt of the person is not affected by a failure to give a notice or by any incorrect statement or information in a notice given under this Division or that corresponding provision.
(2) The making by a person of a request for a notice to be corrected does not affect an FS debt of the person.
468 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop at request of recipient Division 1 Section 1061ZZCU Part 2B.2—Payments of financial supplement under scheme to stop in certain circumstances Division 1—Payments to stop at request of recipient 1061ZZCU Person may ask for payment to stop A person who is a party to a financial supplement contract with a participating corporation may, by written notice to the corporation lodged at an office of the corporation, tell the corporation that he or she does not want further payments under the contract to be made after a day stated in the notice.
1061ZZCV Effect of notice (1) If a person gives a notice referred to in section 1061ZZCU, the corporation is discharged from liability to make further payments to the person under the contract from the end of the day stated in the notice.
(2) However, if the corporation continues to make payments to the person after that day, any amounts paid after that day or the end of 4 weeks after the day on which the notice was given to the corporation, whichever is the later: (a) are taken not to be payments of financial supplement made under the contract; and (b) are repayable by the person to the corporation; and (c) may be recovered by the corporation as a debt due to it by the person.
Social Security Act 1991 469 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 2 Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Section 1061ZZCW Division 2—Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Subdivision A—Notice that payments are to stop 1061ZZCW Secretary must give notice to person and corporation (1) This section applies if: (a) a person is a party to a financial supplement contract with a participating corporation; and (b) the decision (the original decision) made in respect of the person under section 1061ZZAC, or under Part 3 of the Social Security Student Financial Supplement Scheme 1998, is reviewed under Chapter 6; and (c) the person remains eligible to obtain financial supplement for the year or part of the year to which the contract relates; and (d) because of the review, the original decision is varied so that the maximum amount (the original amount) of financial supplement that the person is eligible to obtain under the contract is reduced to another amount (the revised amount); and (e) the revised amount is equal to or less than the amount of financial supplement that the person has already been paid under the contract.
(2) The Secretary must give written notice to the person and to the corporation: (a) stating: (i) that this section applies to the contract; and (ii) that the corporation must stop paying financial supplement to the person; and (b) specifying: (i) the revised amount that the person is eligible to obtain; and 470 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Division 2 (ii) the amount (if any) of financial supplement paid in excess of the revised amount.
Section 1061ZZCX 1061ZZCX Effect of notice (1) If the Secretary gives a notice under section 1061ZZCW to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.

(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation: (a) are taken not to be payments of financial supplement made under the contract; and (b) are repayable by the person to the corporation; and (c) may be recovered by the corporation as a debt due to it by the person.
1061ZZCY This Subdivision is subject to sections 1061ZZFS and 1061ZZFT This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B—Original amount paid because person failed to notify change of circumstances 1061ZZCZ Secretary may give notice to person and corporation (1) If the Secretary is satisfied that: Social Security Act 1991 471 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 2 Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Section 1061ZZCZ (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and (b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and (c) the person was paid the original amount after the end of that period; and (d) the payment of the original amount after the end of that period resulted from the person’s failure to comply with the notice referred to in paragraph (b); the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that: (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and (b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and (c) the person was paid the original amount after the commencement of this Chapter; and (d) the payment of the original amount after the commencement of this Chapter resulted from the person’s failure to comply with the notice referred to in paragraph (b); 472 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Division 2 the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
Section 1061ZZDA 1061ZZDA Effect of notice If the Secretary gives a notice under section 1061ZZCZ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZDB Transfer of corporation’s rights to Commonwealth (1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZCZ(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the end of the period referred to in paragraph 1061ZZCZ(1)(b); and (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(3) If the notice was given under subsection 1061ZZCZ(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the commencement of this Chapter; and (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.
Social Security Act 1991 473 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 2 Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Section 1061ZZDC 1061ZZDC Apportionment of financial supplement Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZCZ(1) or (2) are taken to have been made: (a) first, in or towards the repayment of the wrongly paid supplement; and (b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
1061ZZDD Liability of Commonwealth to corporation The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDE Liability of person to Commonwealth (1) If the notice was given to the person under subsection 1061ZZCZ(1), the person is liable to pay to the Commonwealth an amount equal to the total of: (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and (b) the interest subsidy for the period referred to in subsection 1061ZZDB(2).
(2) If the notice was given to the person under subsection 1061ZZCZ(2), the person is liable to pay to the Commonwealth an amount equal to the total of: (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and (b) the interest subsidy for the period referred to in subsection 1061ZZDB(3).
474 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Division 2 Section 1061ZZDF 1061ZZDF This Subdivision not to affect Subdivision A This Subdivision does not affect the operation of Subdivision A. Subdivision C—Original amount paid because of false or misleading information 1061ZZDG Secretary may give notice to person and corporation (1) If the Secretary is satisfied that: (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and (b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and (c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information; the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that: (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and (b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and (c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information; the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
Social Security Act 1991 475 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 2 Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Section 1061ZZDH 1061ZZDH Effect of notice If the Secretary gives a notice under section 1061ZZDG to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZDI Transfer of corporation’s rights to Commonwealth (1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZDG(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the time when the person had been paid an amount equal to the revised amount; and (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(3) If the notice was given under subsection 1061ZZDG(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the commencement of this Chapter; and (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.
1061ZZDJ Apportionment of financial supplement Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDG(1) or (2) are taken to have been made: 476 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount Division 2 Section 1061ZZDK (a) first, in or towards the repayment of the wrongly paid supplement; and (b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
1061ZZDK Liability of Commonwealth to corporation The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDL Liability of person to Commonwealth (1) If the notice was given to the person under subsection 1061ZZDG(1), the person is liable to pay to the Commonwealth an amount equal to the total of: (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and (b) the interest subsidy for the period referred to in subsection 1061ZZDI(2).
(2) If the notice was given to the person under subsection 1061ZZDG(2), the person is liable to pay to the Commonwealth an amount equal to the total of: (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and (b) the interest subsidy for the period referred to in subsection 1061ZZDI(3).

1061ZZDM This Subdivision not to affect Subdivision A This Subdivision does not affect the operation of Subdivision A.
Social Security Act 1991 477 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 3 Payments to stop if person ceases to be eligible to obtain financial supplement Section 1061ZZDN Division 3—Payments to stop if person ceases to be eligible to obtain financial supplement Subdivision A—Notice that payments are to stop 1061ZZDN Secretary must give notice to person and corporation (1) This section applies if: (a) a person is a party to a financial supplement contract with a participating corporation; and (b) the decision (the original decision) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and (c) because of the review, the original decision is varied so that the person ceases to be eligible to obtain financial supplement.
(2) The Secretary must give written notice to the person and the corporation: (a) stating that the person ceased to be eligible; and (b) specifying the date when the person ceased to be eligible.

1061ZZDO Effect of notice (1) If the Secretary gives a notice under section 1061ZZDN to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.
(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
478 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if person ceases to be eligible to obtain financial supplement Division 3 Section 1061ZZDP (3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation: (a) are taken not to be payments of financial supplement made under the contract; and (b) are repayable by the person to the corporation; and (c) may be recovered by the corporation as a debt payable to it by the person.
1061ZZDP This Subdivision is subject to sections 1061ZZFS and 1061ZZFT This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B—Financial supplement paid because person failed to notify change of circumstances 1061ZZDQ Secretary may give notice to person and corporation (1) If the Secretary is satisfied that: (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZDN; and (b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change in circumstances, within the period prescribed for complying with the notice; and (c) the person ceased to be eligible to obtain financial supplement because of the event or change in circumstances; and (d) the person was paid financial supplement after the end of the period referred to in paragraph (b); and Social Security Act 1991 479 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 3 Payments to stop if person ceases to be eligible to obtain financial supplement Section 1061ZZDR (e) the payment of financial supplement after the end of that period resulted from the person’s failure to comply with the notice referred to in paragraph (b); the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that: (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.24 of the Social Security Student Financial Supplement Scheme 1998; and (b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and (c) the person was paid financial supplement after the commencement of this Chapter; and (d) the payment of financial supplement after the commencement of this Chapter resulted from the person’s failure to comply with the notice referred to in paragraph (b); the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
1061ZZDR Effect of notice If the Secretary gives a notice under section 1061ZZDQ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
480 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if person ceases to be eligible to obtain financial supplement Division 3 1061ZZDS Transfer of corporation’s rights to Commonwealth Section 1061ZZDS (1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZDQ(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the end of the period referred to in paragraph 1061ZZDQ(1)(b); and (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).
(3) If the notice was given under subsection 1061ZZDQ(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the commencement of this Chapter; and (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).

(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.
1061ZZDT Apportionment of financial supplement Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDQ(1) or (2) are taken to have been made: (a) first, in or towards the repayment of the wrongly paid supplement; and (b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
Social Security Act 1991 481 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 3 Payments to stop if person ceases to be eligible to obtain financial supplement Section 1061ZZDU 1061ZZDU Liability of Commonwealth to corporation The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDV Liability of person to Commonwealth (1) If the notice was given to the person under subsection 1061ZZDQ(1), the person is liable to pay to the Commonwealth an amount equal to the total of: (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and (b) the interest subsidy for the period referred to in subsection 1061ZZDS(2).
(2) If the notice was given to the person under subsection 1061ZZDQ(2), the person is liable to pay to the Commonwealth an amount equal to the total of: (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and (b) the interest subsidy for the period referred to in subsection 1061ZZDS(3).

1061ZZDW This Subdivision not to affect Subdivision A This Subdivision does not affect the operation of Subdivision A.
482 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if person is found never to have been eligible to obtain financial supplement Division 4 Section 1061ZZDX Division 4—Payments to stop if person is found never to have been eligible to obtain financial supplement Subdivision A—Notice that payments are to stop 1061ZZDX Secretary must give notice to person and corporation (1) This section applies if: (a) a person is a party to a financial supplement contract with a participating corporation; and (b) the decision (the original decision) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and (c) because of the review the original decision is varied so that the statement in the supplement entitlement notice given to the person that the person was eligible to obtain financial supplement during an eligibility period was incorrect.
(2) The Secretary must give written notice to the person and the corporation stating that the person had never been eligible to obtain financial supplement.

1061ZZDY Effect of notice (1) If the Secretary gives a notice under section 1061ZZDX to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.
(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation: Social Security Act 1991 483 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 4 Payments to stop if person is found never to have been eligible to obtain financial supplement Section 1061ZZDZ (a) are taken not to be payments of financial supplement made under the contract; and (b) are repayable by the person to the corporation; and (c) may be recovered by the corporation as a debt payable to it by the person.
1061ZZDZ This Subdivision is subject to sections 1061ZZFS and 1061ZZFT This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B—Financial supplement paid because of false or misleading information 1061ZZEA Secretary may give notice to person and corporation If the Secretary is satisfied that the incorrectness of a statement referred to in section 1061ZZDX that was given to a person who is a party to a financial supplement contract with a participating corporation resulted from false or misleading information given to the Commonwealth about the person, the Secretary may give notice to the person and the corporation stating that he or she is so satisfied and that this Subdivision applies in relation to them.
1061ZZEB Effect of notice If the Secretary gives a notice under section 1061ZZEA to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
484 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if person is found never to have been eligible to obtain financial supplement Division 4 1061ZZEC Transfer of corporation’s rights to Commonwealth Section 1061ZZEC (1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the statement was in a supplement entitlement notice given under subsection 1061ZZAC(3) or 1061ZZAD(4), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the start of the contract period; and (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).
(3) If the statement was in a supplement entitlement notice referred to in subsection 1061ZZAE(3), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the commencement of this Chapter; and (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.
1061ZZED Liability of Commonwealth to corporation The Commonwealth is liable to pay to the corporation an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula: Principal sum (Amounts repaid Amounts notionally repaid)   1061ZZEE Liability of person (1) No amount is taken to be outstanding under the contract after the notice is given.
Social Security Act 1991 485 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 4 Payments to stop if person is found never to have been eligible to obtain financial supplement Section 1061ZZEF (2) However, the person is liable to pay to the Commonwealth an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula: Principal sum Amounts repaid   Interest subsidy 1061ZZEF Definitions In sections 1061ZZED and 1061ZZEE: amounts notionally repaid means the total of the amounts notionally repaid before the notice was given.
amounts repaid means the total of the amounts repaid under the contract before the notice was given.

interest subsidy means the interest subsidy in relation to financial supplement paid under the contract.

principal sum means the principal sum at the time when the notice was given.

1061ZZEG This Subdivision not to affect Subdivision A This Subdivision does not affect the operation of Subdivision A.
486 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Payments of financial supplement under scheme to stop in certain circumstances Part 2B.2 Payments to stop if person dies Division 5 Section 1061ZZEH Division 5—Payments to stop if person dies 1061ZZEH Secretary may give notice to corporation if other party to contract dies If the Secretary becomes aware that a person who is a party to a financial supplement contract with a participating corporation has died, the Secretary may give written notice to the corporation stating that this Division applies in respect of the contract.
1061ZZEI Effect of notice If the Secretary gives a notice under section 1061ZZEH to the corporation, the following provisions have effect.

1061ZZEJ Discharge of corporation’s liability (1) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments under the contract.
(2) However, if the corporation continues to make payments under the contract after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation: (a) are taken not to be payments of financial supplement made under the contract; and (b) are repayable from the person’s estate to the corporation; and (c) may be recovered by the corporation as a debt payable to it from the person’s estate.
1061ZZEK Transfer of corporation’s rights to Commonwealth (1) The corporation’s rights referred to in subsection (2) are transferred to the Commonwealth, by this subsection, at the earlier of: (a) the time when the corporation stopped making payments under the contract; or Social Security Act 1991 487 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.2 Payments of financial supplement under scheme to stop in certain circumstances Division 5 Payments to stop if person dies Section 1061ZZEL (b) the end of 4 weeks after the time when the notice was given.
(2) The rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period: (a) beginning at the start of the contract period; and (b) ending at the end of the period of 4 weeks referred to in paragraph (1)(b).
1061ZZEL Liability of Commonwealth to corporation (1) The Commonwealth is liable to pay to the corporation an amount worked out, as at the earlier of: (a) the time when the corporation stopped making payments under the contract; or (b) the end of the period of 4 weeks referred to in paragraph 1061ZZEK(1)(b); using the formula: Principal sum (Amounts repaid Amounts notionally repaid)   (2) In this section: amounts notionally repaid means the total of the amounts notionally repaid before the notice was given.
amounts repaid means the total of the amounts repaid under the contract before the notice was given.

principal sum means the principal sum at the time when the notice was given.

1061ZZEM Discharge of person’s liability The person’s liability to the Commonwealth under the contract as a result of the transfer referred to in section 1061ZZEK is discharged by this section.
488 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 Purpose and application of Part Division 1 Part 2B.3—Repayment of financial supplement through taxation system after termination date Section 1061ZZEN Division 1—Purpose and application of Part 1061ZZEN Purpose and application of Part This Part provides for the recovery through the taxation system of a person’s debt in respect of financial supplement at the end of 4 years beginning on 1 June in the year immediately after the year in which the relevant financial supplement contract was made.
1061ZZENA Extent of Commissioner of Taxation’s general administration of this Part The Commissioner of Taxation has the general administration of this Part to the following extent: (a) Divisions 2 and 4; (b) Division 5; (c) Divisions 6 to 8; (d) section 1061ZZFO.

Note: One effect of this is that this Part is to that extent a taxation law for the purposes of the Taxation Administration Act 1953.
Social Security Act 1991 489 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 2 FS debt and accumulated FS debt Section 1061ZZEO Division 2—FS debt and accumulated FS debt 1061ZZEO FS debt owed by person (1) If, at the termination date of a financial supplement contract made by a person with a participating corporation, there was or is an amount outstanding under the contract, the person owes an FS debt to the Commonwealth.
(2) The FS debt is taken to have been incurred, or is incurred, as the case may be, on 1 June immediately after the termination date.

1061ZZEP How to work out FS debt (1) The FS debt is worked out using the formula: Amount outstanding Indexation factor  (2) In subsection (1): amount outstanding means the amount outstanding under the contract at the termination date.

indexation factor means the factor worked out under section 1061ZZET.
1061ZZEQ Accumulated FS debt incurred by person (1) If: (a) a person had or has an FS debt or FS debts on 1 June in a year (the later date); and (b) the debt was not or is not, or the debts did not or do not include, an FS debt that existed on the previous 1 June; the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.
(2) If: (a) a person had or has an FS debt or FS debts on 1 June in a year (the later date); and 490 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 FS debt and accumulated FS debt Division 2 Section 1061ZZER (b) the debt was or is, or the debts included or include, an FS debt that existed on the previous 1 June (the earlier date); the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.
1061ZZER How to work out accumulated FS debt (1) A person’s accumulated FS debt referred to in subsection 1061ZZEQ(1) is an amount equal to the FS debt or the total of the FS debts referred to in that subsection.
(2) A person’s accumulated FS debt referred to in subsection 1061ZZEQ(2) is an amount worked out using the formula:  Adjusted accumulated FS debt  Indexation factor   Later FS debts (3) In subsection (2): adjusted accumulated FS debt means the person’s adjusted accumulated FS debt on the earlier date.

indexation factor means the factor worked out under section 1061ZZET.

later FS debts means any FS debt, or the total of any FS debts, of the person that did not exist on the earlier date.
1061ZZES Adjusted accumulated FS debt (1) A person’s adjusted accumulated FS debt on the earlier date is the amount worked out using the formula: Accumulated FS debt        FSA debts (2) In this section:  Repayments  Increases in Reductions in  FSA debts FSA debts       Social Security Act 1991 491 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 2 FS debt and accumulated FS debt Section 1061ZZES accumulated FS debt means the person’s accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.
FSA debts means the total of: (a) any FS assessment debt or FS assessment debts of the person, assessed on or after the earlier date and before the later date, excluding any FS assessment debt assessed because of a return lodged before the earlier date; and (b) any FS assessment debt or FS assessment debts of the person, assessed on or after the later date because of a return lodged before the later date.
increases in FSA debts means any amount, or the total of any amounts, by which any FS assessment debt is increased by an amendment of the relevant assessment (whether because of an increase in the person’s taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.
reductions in FSA debts means any amount, or the total of any amounts, by which any FS assessment debt is reduced by an amendment of the relevant assessment (whether as a result of a reduction in the person’s taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.
repayments means any amount, or the total of any amounts, repaid, except in discharge of an FS assessment debt, on or after the earlier date and before the later date in reduction of the accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.
(3) For the purposes of subsection (2), an assessment or an amendment of an assessment is taken to have been made on the date stated in the notice of assessment or notice of amended assessment, as the case may be, to be the date of that notice.
492 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 FS debt and accumulated FS debt Division 2 Section 1061ZZET 1061ZZET Indexation factor (1) The indexation factor for the purpose of calculating a person’s FS debt or accumulated FS debt at 1 June in a year (the relevant year), is worked out using the following Method statement.
Method statement Step 1.

Work out the total of the index number for the March quarter in the relevant year and the index numbers for the 3 immediately preceding quarters.

Step 2.

Work out the total of the index number for the March quarter immediately before the relevant year and the index numbers for the 3 immediately preceding quarters.

Step 3.

Divide the total worked out using Step 1 by the total worked out using Step 2.

Step 4.

Round the result to 3 decimal places.


(2) If an indexation factor worked out using the Method statement would end with a number greater than 4 were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.

(3) If, apart from this subsection, the amount of an FS debt or accumulated FS debt worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.
1061ZZEU Accumulated FS debt discharges earlier debts (1) An accumulated FS debt that a person is taken to have incurred or incurs on 1 June in a year (the relevant date) discharges, or discharges the unpaid part of: (a) an accumulated FS debt that the person incurred on the previous 1 June; and (b) an FS debt that the person incurred on the relevant date.
Social Security Act 1991 493 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 2 FS debt and accumulated FS debt Section 1061ZZEU (2) The accumulated FS debt also discharges the person’s liability to pay the amount outstanding immediately before the relevant date.
(3) However, in applying sections 1061ZZEP to 1061ZZET, subsection (1) of this section is disregarded.
494 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 Information to be given to Commissioner of Taxation Division 3 Section 1061ZZEV Division 3—Information to be given to Commissioner of Taxation 1061ZZEV Secretary to give notice to Commissioner of Taxation If a person who has made a financial supplement contract with a participating corporation has an FS debt immediately after the termination date of the contract, the Secretary must, if such a notice has not already been given under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, give to the Commissioner of Taxation, as soon as practicable after that date, a notice stating as many of the following matters as the Secretary knows: (a) the person’s name; (b) the person’s identifying number; (c) the person’s last-known address; (d) the person’s tax file number; (e) the amount of the FS debt or the amounts of the FS debts that the person incurred on 1 June immediately following the termination date; (f) any other information about the person that is reasonably required by the Commissioner to administer this Part.
1061ZZEW Secretary to give further notice to Commissioner of Taxation If the Secretary or an officer of the Department is convinced that significant information in a notice referred to in section 1061ZZEV was not, or is no longer, correct, the Secretary must give to the Commissioner of Taxation a further notice setting out the correct information.
Social Security Act 1991 495 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 3 Information to be given to Commissioner of Taxation Section 1061ZZEX 1061ZZEX Secretary to give certificate to Commissioner of Taxation The Secretary must, if asked by the Commissioner of Taxation to do so, give a written certificate to the Commissioner setting out a matter mentioned by the Commissioner that was, or was required to be, set out in a notice under section 1061ZZEV or 1061ZZEW.
496 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 Voluntary repayments of FS debts Division 4 Section 1061ZZEY Division 4—Voluntary repayments of FS debts 1061ZZEY Voluntary repayments of FS debts (1) If a person has a debt to the Commonwealth under this Part, he or she may at any time make a payment to reduce the debt.
(2) A payment under subsection (1) must be made to the Commissioner of Taxation.
1061ZZEYA Refunding of payments If: (a) a person pays an amount to the Commonwealth under this Division; and (b) the amount exceeds the sum of: (i) the amount required to discharge the total debt that the person owed to the Commonwealth under this Part; and (ii) the total amount of the person’s primary tax debts (within the meaning of Part IIB of the Taxation Administration Act 1953); the Commonwealth must refund to the person an amount equal to that excess.
Note: Interest is payable if the Commonwealth is late in paying requested refunds: see Part IIIA of the Taxation (Interest on Overpayments and Early Payments) Act 1983.
Social Security Act 1991 497 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 5 Compulsory repayments in respect of accumulated FS debt Section 1061ZZEZ Division 5—Compulsory repayments in respect of accumulated FS debt 1061ZZEZ Compulsory payments in respect of accumulated FS debt (1) If: (a) a person’s repayment income for the income year 2006-07 or a subsequent income year exceeds the minimum repayment income for that income year; and (b) on 1 June immediately preceding the making of an assessment in respect of the person’s income for that income year, the person had an accumulated FS debt; the person is liable to pay to the Commonwealth, in accordance with this Division, the amount worked out under section 1061ZZFD in reduction of the person’s repayable debt.
(2) A person is not liable under this section to pay an amount for an income year if, under section 8 of the Medicare Levy Act 1986: (a) no Medicare levy is payable by the person on the person’s taxable income for the income year; or (b) the amount of the Medicare levy payable by the person on the person’s taxable income for the income year is reduced.
1061ZZFA Repayment income (1) A person’s repayment income for an income year is an amount equal to the sum of: (a) the person’s taxable income for the income year, disregarding the person’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for the income year; and (b) the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for the income year; and (c) if the person: 498 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 Compulsory repayments in respect of accumulated FS debt Division 5 Section 1061ZZFB (i) is an employee (within the meaning of the Fringe Benefits Tax Assessment Act 1986); and (ii) has a reportable fringe benefits total (within the meaning of that Act) for the income year; the reportable fringe benefits total for the income year; and (d) the person’s exempt foreign income for the income year; and (e) the person’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for the income year.
(4) The person’s exempt foreign income is the total amount (if any) by which the person’s income that is exempt from tax under section 23AF or 23AG of the Income Tax Assessment Act 1936 exceeds the total amount of losses and outgoings that the person incurs in deriving that exempt income.

(5) For the purposes of subsection (4), disregard any capital losses and outgoings.
1061ZZFB Minimum repayment income The minimum repayment income for the 2006-07 income year or for a later income year is the amount worked out under paragraph 154-10(b) of the Higher Education Support Act 2003 in respect of that income year.
1061ZZFC Repayable debt for an income year (1) A person’s repayable debt for an income year is: (a) the person’s accumulated FS debt referred to in paragraph 1061ZZEZ(1)(b) in relation to that income year; or (b) if one or more amounts: (i) have been paid in reduction of that debt; or Social Security Act 1991 499 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 5 Compulsory repayments in respect of accumulated FS debt Section 1061ZZFD (ii) have been assessed under section 1061ZZFH to be payable in respect of that debt; the amount (if any) remaining after deducting from that debt the amount, or sum of the amounts, so paid or assessed to be payable.
(2) A reference in paragraph (1)(b) to an amount assessed to be payable is, if the amount has been increased or reduced by an amendment of the relevant assessment, a reference to the increased amount or the reduced amount.
1061ZZFD Amounts payable to the Commonwealth (1) The amount that a person is liable to pay under section 1061ZZEZ, in respect of: (a) the 2019-20 income year; or (b) a later income year; is the amount worked out using the formula: Applicable percentage of repayment income  Relevant income-contingent loans liability where: applicable percentage of repayment income means an amount equal to so much of the person’s repayable debt for the income year as does not exceed the percentage of the person’s repayment income worked out in respect of the income year using the table in section 154-20 of the Higher Education Support Act 2003. relevant income-contingent loans liability means the amount that is the sum of the following: (a) the sum of any amounts the person is liable to pay under section 154-1 or 154-16 of the Higher Education Support Act 2003 in respect of the income year; (b) the sum of any amounts the person is liable to pay under section 23EA or 23EC of the VET Student Loans Act 2016 in respect of the income year.
500 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 Compulsory repayments in respect of accumulated FS debt Division 5 Section 1061ZZFD (2) For the purposes of subsection (1), assume that the reference in the table in section 154-20 of the Higher Education Support Act 2003 to the person’s repayment income is a reference to the person’s repayment income within the meaning of section 1061ZZFA of this Act.
(3) A person is not liable under this section to pay an amount for an income year if the amount worked out under subsection (1) is zero or less.
Social Security Act 1991 501 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 6 Application of tax legislation Section 1061ZZFG Division 6—Application of tax legislation 1061ZZFG Application of tax legislation Part IV of the Income Tax Assessment Act 1936, Division 5 of the Income Tax Assessment Act 1997, and Part IVC of, and Part 4-15 in Schedule 1 to, the Taxation Administration Act 1953, apply, so far as they can be applied and subject to this Part, to a person’s FS assessment debt as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936.
Note: FS assessment debts are also collected through the Pay As You Go (PAYG) system of collecting income tax: see Parts 2-1, 2-5 and 2-10 in Schedule 1 to the Taxation Administration Act 1953.
1061ZZFGA Charges and administrative penalties for failing to meet obligations (1) Part 4-25 in Schedule 1 to the Taxation Administration Act 1953 has effect as if: (a) any compulsory repayment amount of a person were income tax payable by the person in respect of the income year in respect of which the assessment of that debt was made; and (b) this Part were an income tax law.
(2) Subsection (1) does not have the effect of making a person liable to a penalty for any act or omission that happened before the commencement of this subsection.
1061ZZFGB Pay as you go (PAYG) withholding Part 2-5 (other than section 12-55 and Subdivisions 12-E, 12-F and 12-G) in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of amounts of a compulsory repayment amount of a person as if the compulsory repayment amount were income tax.
502 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 Application of tax legislation Division 6 1061ZZFGD Pay as you go (PAYG) instalments Section 1061ZZFGD Division 45 in Schedule 1 to the Taxation Administration Act 1953 applies, so far as it is capable of application, in relation to the collection of a compulsory repayment amount of a person as if the compulsory repayment amount were income tax.
Social Security Act 1991 503 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 7 Assessments Section 1061ZZFH Division 7—Assessments 1061ZZFH Commissioner of Taxation may make assessment (1) The Commissioner of Taxation may make an assessment of: (a) the amount of a person’s accumulated FS debt at 1 June immediately before the assessment is made; and (b) the amount required to be paid to reduce that debt under Division 5.
(2) To make an assessment, the Commissioner may use any information in his or her possession, whether or not it came from a return.
1061ZZFI Notice of assessment may be served If: (a) the Commissioner of Taxation is required to serve on a person a notice of assessment in respect of the person’s income of a year of income under section 174 of the Income Tax Assessment Act 1936; and (b) an assessment (the relevant assessment) has been made in respect of the person of the amounts referred to in section 1061ZZFH but notice of the relevant assessment has not been served on the person; notice of the relevant assessment may be served by setting out the amounts concerned in the notice referred to in paragraph (a).
504 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 Commissioner of Taxation may delay assessment Division 8 Section 1061ZZFJ Division 8—Commissioner of Taxation may delay assessment 1061ZZFJ Commissioner of Taxation may delay assessment (1) The Commissioner of Taxation may, on application in the approved form by a person who has an accumulated FS debt, delay the making of an assessment under section 1061ZZFH.
(2) An assessment may be delayed if the Commissioner considers that: (a) were the assessment to be made, payment of the assessed amount would cause serious hardship to the person; or (b) there are other special reasons that make it fair and reasonable to delay the assessment.

(3) The Commissioner may delay the assessment for a period that he or she considers appropriate.

(4) In this section: approved form has the meaning given by section 388-50 in Schedule 1 to the Taxation Administration Act 1953.
1061ZZFK Commissioner of Taxation may amend assessment (1) The Commissioner of Taxation may, on application in the approved form by a person who has an accumulated FS debt, amend an assessment made under section 1061ZZFH so that no amount is payable under the assessment.
(2) The Commissioner may amend the assessment if he or she considers that: (a) payment of the assessed amount has caused or would cause serious hardship to the person; or (b) there are other special reasons that make it fair and reasonable to make the amendment.
(3) In this section: Social Security Act 1991 505 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 8 Commissioner of Taxation may delay assessment Section 1061ZZFL approved form has the meaning given by section 388-50 in Schedule 1 to the Taxation Administration Act 1953.
1061ZZFL When Commissioner of Taxation must make decision to delay or amend assessment (1) If an application referred to in section 1061ZZFJ or 1061ZZFK is made, the Commissioner of Taxation must, as soon as practicable: (a) consider it; and (b) give to the applicant written notice of his or her decision on the application.
(2) A notice of the decision must: (a) include a statement that, if the applicant is dissatisfied with the decision of the Commissioner on the application, an application may, subject to the Administrative Appeals Tribunal Act 1975, be made to the Administrative Appeals Tribunal for review of the decision; and (b) except if subsection 28(4) of that Act applies, also include a statement to the effect that the applicant may ask for a statement under section 28 of that Act.
(3) A failure to comply with subsection (2) does not affect the validity of the notice or of the decision to which the notice relates.
506 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Repayment of financial supplement through taxation system after termination date Part 2B.3 Review of Commissioner of Taxation’s decision Division 9 Section 1061ZZFM Division 9—Review of Commissioner of Taxation’s decision 1061ZZFM Application to Administrative Appeals Tribunal An applicant under section 1061ZZFJ or 1061ZZFK may apply to the Administrative Appeals Tribunal for review of: (a) a decision of the Commissioner of Taxation on the application referred to in section 1061ZZFJ; or (b) a decision by the Commissioner refusing to amend an assessment after receiving the application referred to in section 1061ZZFK.
Social Security Act 1991 507 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.3 Repayment of financial supplement through taxation system after termination date Division 10 Treatment of payments under financial supplement scheme Section 1061ZZFN Division 10—Treatment of payments under financial supplement scheme 1061ZZFN Payments not subject to taxation (1) An amount paid, or other benefit given, to a person under this Chapter is not subject to taxation under a law of the Commonwealth unless a provision of such a law expressly provides to the contrary.
(2) However, subsection (1) does not affect the liability to taxation of a participating corporation for a subsidy or other amount paid to the corporation under this Chapter.
1061ZZFO Application of payments An amount paid by a person to reduce the person’s debt to the Commonwealth under this Part must be applied in accordance with the person’s direction or, if there is no direction or the direction does not adequately deal with the matter: (a) first, to discharge or reduce the person’s FS assessment debts; and (b) then, to discharge or reduce the person’s accumulated FS debt.
1061ZZFP Debt discharged by death If a person dies owing a debt owing to the Commonwealth under this Part, other than an FS assessment debt, the debt is discharged by force of this section.
508 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Miscellaneous Part 2B.4 Application of the Bankruptcy Act 1966 Division 1 Section 1061ZZFQ Part 2B.4—Miscellaneous Division 1—Application of the Bankruptcy Act 1966 1061ZZFQ Application of Division This Division applies if, after a person makes a financial supplement contract with a participating corporation, whether before or after the termination date: (a) the person becomes bankrupt; or (b) the person enters into a personal insolvency agreement under Part X of the Bankruptcy Act 1966.
1061ZZFR Treatment of debt (1) A debt arising under or out of the contract is not a provable debt in the bankruptcy or for the purposes of the personal insolvency agreement.

(2) A right of the Commonwealth or of the corporation to bring an action or other proceeding against the person in respect of the debt is not affected by the bankruptcy or personal insolvency agreement.
(3) The trustee of the estate of the bankrupt person or the trustee of the personal insolvency agreement is not entitled to recover under the Bankruptcy Act 1966 a payment made by the person to the Commonwealth or to the corporation in respect of the debt.
(4) In this section: debt arising under or out of the contract: (a) includes, but is not limited to: (i) an amount outstanding under the contract; and (ii) an amount that the person is liable to pay under section 1061ZZDE, 1061ZZDL, 1061ZZDV or 1061ZZEE; and Social Security Act 1991 509 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.4 Miscellaneous Division 1 Application of the Bankruptcy Act 1966 Section 1061ZZFR (iii) an accumulated FS debt that discharges, or discharges the unpaid part of, an FS debt; but (b) does not include: (i) a debt constituted by an obligation to repay the amount of a payment that, because of paragraph 1061ZZCV(2)(a), 1061ZZCX(3)(a), 1061ZZDO(3)(a) or 1061ZZDY(3)(a), is not a payment of financial supplement; or (ii) an FS assessment debt that is required to be paid to reduce an accumulated FS debt.
510 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Student Financial Supplement Scheme Chapter 2B Miscellaneous Part 2B.4 Review of decisions Division 2 Section 1061ZZFS Division 2—Review of decisions 1061ZZFS What happens if a decision of the Secretary is set aside (1) Subject to subsection (2), if a decision of the Secretary under this Chapter is set aside after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision had not been made.
(2) If the decision is set aside after a review under Chapter 6 and another decision is substituted for the original decision, this Chapter has effect, and is taken to have always had effect, as if the substituted decision had been the original decision.
1061ZZFT What happens if a decision of the Secretary is varied If a decision of the Secretary under this Chapter is varied after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision as varied had been the original decision.
Social Security Act 1991 511 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2B Student Financial Supplement Scheme Part 2B.4 Miscellaneous Division 3 Transfer of rights under this Chapter Section 1061ZZFU Division 3—Transfer of rights under this Chapter 1061ZZFU Notices of transfer If any rights of a participating corporation to receive a payment from a person under this Chapter are transferred to the Commonwealth, the Secretary must, as soon as practicable, arrange for a written notice to be given to the person: (a) stating that the rights have been transferred; and (b) identifying any future payments that, because of the transfer, are required to be made to the Commonwealth.
1061ZZFV Transfers not subject to State or Territory taxes A transfer to the Commonwealth under this Chapter of any of the corporation’s rights under a financial supplement contract, or any other act or thing done or transaction entered into under this Chapter, is not subject to taxation under a law of a State or Territory.
512 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Assurances of support Chapter 2C Giving assurances Part 2C.1 Section 1061ZZGA Chapter 2C—Assurances of support Part 2C.1—Giving assurances 1061ZZGA What is an assurance of support?
In this Chapter: assurance of support means an undertaking by a person under this Chapter that the person will pay the Commonwealth an amount equal to the amount of social security payments that are: (a) received in respect of a period by another person who: (i) is identified in the undertaking; and (ii) becomes the holder under the Migration Act 1958 of a visa granted in connection with the undertaking (whether or not the person continues to hold the visa throughout the period); and (b) specified in a determination in force under section 1061ZZGH when the payments are received.
Note: An assurance of support may relate to social security payments received by 2 or more persons.

See paragraph 23(b) of the Acts Interpretation Act 1901.

1061ZZGB Who may give an assurance of support?

A person may give an assurance of support only if the requirements specified for the purposes of this section in a determination under section 1061ZZGH are met in relation to the person.
Note 1: If a person who does not meet the requirements gives an undertaking purporting to be an assurance of support, the undertaking is not an assurance of support (because it is not under this Chapter) and the Secretary is not required either to accept or to reject the purported assurance.
Note 2: This section lets 2 or more persons give an assurance of support if they all meet the requirements specified in a determination under Social Security Act 1991 513 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2C Assurances of support Part 2C.1 Giving assurances Section 1061ZZGC section 1061ZZGH.

See paragraph 23(b) of the Acts Interpretation Act 1901.
1061ZZGC How to give an assurance of support (1) A person gives an assurance of support by: (a) delivering the assurance in writing in accordance with a form approved by the Secretary: (i) to a person apparently performing duties at a place approved for the purpose by the Secretary; or (ii) to a person approved for the purpose by the Secretary; or (iii) in a manner, and to a place, approved for the purpose by the Secretary; or (b) giving the assurance in a manner approved by the Secretary for the purposes of this paragraph.
Note: If an undertaking purporting to be an assurance of support is given in some other way, the undertaking is not an assurance of support (because it is not under this Chapter) and the Secretary is not required either to accept or to reject the purported assurance.

(2) A form approved for the purposes of paragraph (1)(a) may include other undertakings as well as the assurance of support.

(3) A place or person approved for the purposes of paragraph (1)(a) may be in or out of Australia.
(4) The Secretary’s power to approve for the purposes of paragraph (1)(b) is not limited by any other provision of this section.

Material to accompany assurance of support (5) When a person is giving an assurance of support, the person must also give the following material in a way in which an assurance of support may be given under subsection (1): (a) information specified in a form approved by the Secretary; (b) documents specified by the Secretary.
514 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Assurances of support Chapter 2C Giving assurances Part 2C.1 Section 1061ZZGC (6) If the person giving the assurance of support contravenes subsection (5), the assurance is taken not to have been given.
Social Security Act 1991 515 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2C Assurances of support Part 2C.2 Acceptance of assurances Section 1061ZZGD Part 2C.2—Acceptance of assurances 1061ZZGD Accepting or rejecting an assurance of support (1) If an assurance of support is given under this Chapter, the Secretary must accept or reject the assurance.
Accepting the assurance (2) The Secretary may accept the assurance, but only if: (a) he or she is satisfied that the requirements that are specified for the purposes of this paragraph in a determination under section 1061ZZGH and relate to the person who gave the assurance are met; and (b) the requirements in subsection (3) are met, if the assurance is in respect of: (i) a visa of a kind that can be granted under the Migration Act 1958 only if an assurance of support is accepted; and (ii) another person who was at least 18 at the time of the application for the visa; (whether or not the assurance is also in respect of someone else who was under 18 at the time of the application for the visa).
Note 1: Note 2: The Secretary may accept an assurance given by 2 or more persons only if satisfied that the requirements specified in a determination under item 3 of the table in subsection 1061ZZGH(1) and relating to all of them are met.

See paragraph 23(b) of the Acts Interpretation Act 1901.
Subparagraph (2)(b)(i) does not apply to a visa of a kind in relation to which there is a discretion to request an assurance of support, because a visa of that kind can be granted without accepting an assurance if one is not requested (even if, in a case in which an assurance is requested, acceptance of the assurance is a condition for the grant of the visa).
(3) At least one person who gave the assurance must have given the Secretary a single security for the liability that may be incurred, 516 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Assurances of support Chapter 2C Acceptance of assurances Part 2C.2 Section 1061ZZGE under section 1061ZZGG in connection with the assurance and a social security payment received by anyone identified in the assurance, by everyone who gave the assurance.
The security must: (a) be in a form approved by the Secretary; and (b) be of a value specified for the purposes of this paragraph in a determination under section 1061ZZGH.

Rejecting the assurance (4) The Secretary may reject the assurance.

(5) The circumstances in which the Secretary may reject the assurance include failure of the person giving the assurance to attend an interview relating to the assurance as requested by the Secretary.

This subsection does not limit subsection (4).


1061ZZGE Notices relating to an assurance of support (1) If the Secretary accepts or rejects an assurance of support, he or she must give written notice of the acceptance or rejection to: (a) the person who gave the assurance; and (b) the Minister administering the Migration Act 1958.

The notice must name the person in respect of whom the assurance was given.
(2) If: (a) the Secretary has accepted an assurance of support given by a person (the assurer) in respect of another person and a visa; and (b) the Secretary is informed that the other person: (i) is a holder under the Migration Act 1958 of the visa; and (ii) has entered the migration zone (as defined in that Act) before, on or after becoming the holder of the visa; the Secretary must give the assurer written notice of the period for which the assurance is in force in respect of the other person.
Social Security Act 1991 517 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2C Assurances of support Part 2C.2 Acceptance of assurances Section 1061ZZGE Note: Section 1061ZZGF explains when an assurance of support is in force in respect of the other person.
(3) If the assurance of support ceases to be in force in respect of the other person at a time determined by the Secretary under subparagraph 1061ZZGF(1)(b)(ii) or (iii), the Secretary must give the assurer written notice of that fact.
518 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Assurances of support Chapter 2C Effect of accepted assurances Part 2C.3 Section 1061ZZGEA Part 2C.3—Effect of accepted assurances 1061ZZGEA Assurance cannot be withdrawn once visa issued A person who has given an assurance of support that has been accepted under this Chapter cannot withdraw that assurance once the person in respect of whom the assurance was given becomes the holder under the Migration Act 1958 of a visa granted in connection with the assurance.
1061ZZGF When an accepted assurance is in force (1) For the purposes of this Act, an assurance of support that has been given in respect of a person identified in the assurance and has been accepted under this Chapter: (a) comes into force in respect of the person at the later of the following times: (i) the time at which the person becomes under the Migration Act 1958 the holder of the visa that was granted under that Act in connection with the assurance; (ii) the time at which the person enters the migration zone (as defined in that Act) as the holder of the visa; and (b) remains in force in respect of the person until the earliest of the following times: (i) the end of the period specified for the purposes of this subparagraph in a determination under section 1061ZZGH; (ii) the time (if any) determined by the Secretary under subsection (2); (iii) if a circumstance specified for the purposes of this subparagraph in a determination under section 1061ZZGH applies in relation to the assurance—the time determined by the Secretary in relation to that circumstance.
Note: An assurance of support given in respect of 2 or more persons may be in force at different times in respect of each of those persons.
Social Security Act 1991 519 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2C Assurances of support Part 2C.3 Effect of accepted assurances Section 1061ZZGG (2) The Secretary may determine that the assurance of support ceases to be in force in respect of the person at the time (which may be before the determination is made) another assurance of support comes into force in respect of the person.
(3) For the purposes of this Act, an assurance of support (as defined in section 1061ZZGA) is in force in respect of a person only for the period for which it is in force in respect of the person under subsection (1) of this section.
(4) Except as provided by paragraph (1)(b), an assurance of support that has come into force in respect of a person remains in force in respect of that person in spite of any change in circumstances whatsoever (including any purported withdrawal, however described, of the assurance).
1061ZZGG Liability to pay for social security payments (1) This section has effect if: (a) a person (the assurer) has given an assurance of support that has been accepted under this Chapter; and (b) a social security payment is received, by another person who is identified in the assurance, in respect of all or part of the period for which the assurance is in force in respect of the other person; and (c) the social security payment is specified for the purposes of this section in a determination in force under section 1061ZZGH when the payment is received.
(2) The assurer is liable to pay the Commonwealth the amount of the social security payment.

(3) If the assurance was given by more than one person, all of the persons who gave it are jointly and severally liable to pay the Commonwealth the amount of the social security payment.
520 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Assurances of support Chapter 2C Determinations Part 2C.4 Section 1061ZZGH Part 2C.4—Determinations 1061ZZGH Determinations (1) The Minister must, by legislative instrument, make a determination specifying, for the purposes of the provisions mentioned in the table, the things in the table.
Determinations Provision(s) Things to be specified 1 Definition of assurance Social security payments of support in section 1061ZZGA and section 1061ZZGG 2 Section 1061ZZGB Paragraph 1061ZZGD(2 )(a) 3 4 5 6 Requirements to be met in relation to persons for them to be permitted by section 1061ZZGB to give assurances of support Requirements to be met in relation to persons giving assurances of support for the Secretary to be permitted by subsection 1061ZZGD(2) to accept such assurances Paragraph 1061ZZGD(3 )(b) Values of securities to be given for the Secretary to be permitted to accept assurances of support Subparagraph 1061ZZG F(1)(b)(i) Periods for which assurances of support accepted under this Chapter remain in force in respect of persons under section 1061ZZGF Subparagraph 1061ZZG F(1)(b)(iii) Circumstances in which assurances of support accepted under this Chapter cease to be in force Note 1: A determination may specify matters and things by reference to classes and may make different provision with respect to different matters or classes of matters.
See the Legislation Act 2003.

Note 2: The Minister may amend a determination by another legislative instrument.

See the Acts Interpretation Act 1901.
Social Security Act 1991 521 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2C Assurances of support Part 2C.4 Determinations Section 1061ZZGH (2) A determination may specify, as a requirement to be met in relation to a person (the assurer) giving an assurance of support for the Secretary to be permitted by subsection 1061ZZGD(2) to accept the assurance, a requirement that relates to: (a) the members of a couple consisting of the assurer and the assurer’s partner; or (b) the assurer’s partner.
This subsection does not limit the requirements that may be specified under item 3 of the table in subsection (1) of this section.

(3) Before making a determination specifying a thing described in item 4 or 5 of the table in subsection (1), the Minister must ask the Minister administering the Migration Act 1958 for comments on the things that should be specified and consider the comments (if any) received.
522 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Assurances of support Chapter 2C Assurances by unincorporated bodies Part 2C.5 Section 1061ZZGI Part 2C.5—Assurances by unincorporated bodies 1061ZZGI Application of social security law to unincorporated bodies (1) This Chapter, and the rest of the social security law so far as it relates to this Chapter, apply to an unincorporated body or association (the body) as if it were a person other than an individual, but they apply with the following changes.
Acts of certain persons treated as acts of the body (2) One change is that anything done or omitted by or in relation to: (a) if the body is a partnership—a partner; or (b) in any other case—a member of the committee of management of the body; on behalf of the body is taken to have been done or omitted by the body.
Imposition of obligations and liabilities (3) Another change is that obligations, or liabilities under section 1061ZZGG, that would be imposed on the body are imposed instead on: (a) if the body is a partnership—each partner; or (b) in any other case—each member of the committee of management of the body; but they may be discharged by any of the partners or any of those members.
The body cannot commit an offence (4) Another change is that if, apart from this subsection, the body would commit an offence, the body does not commit the offence.

Example: Subsection (1) applies section 217 of the Social Security (Administration) Act 1999 to the body as if it were a person.
That section provides that a person who contravenes certain provisions of Social Security Act 1991 523 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2C Assurances of support Part 2C.5 Assurances by unincorporated bodies Section 1061ZZGI that Act about false or misleading statements commits an offence.

The body does not commit an offence if it contravenes those provisions by making a false or misleading statement.
Limit on scope of changes (5) Subsections (2) and (3) do not affect: (a) whether, for the purposes of section 1061ZZGB (about giving an assurance of support), the requirements specified in a determination under section 1061ZZGH are met in relation to the body; or (b) whether, for the purposes of paragraph 1061ZZGD(2)(a) (about accepting an assurance of support), the requirements specified in a determination under section 1061ZZGH are met in relation to the body.
Note: Whether the body may give an assurance of support and whether such an assurance may be accepted depend on whether the requirements specified in relation to the body are met, rather than whether requirements relating to a person who is a partner or member of the body’s management committee are met in relation to that partner or member.
(6) A determination under section 1061ZZGH (applying in accordance with this section) may specify, for the purposes of section 1061ZZGB or paragraph 1061ZZGD(2)(a) (as so applying in relation to the body), a requirement that relates to: (a) one or more of the partners, if the body is a partnership; or (b) some or all of the members of the body or of its committee of management, if the body is not a partnership.

This subsection does not limit the requirements relating to the body that may be specified.
524 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Arrangements and grants relating to assisting persons to obtain and maintain paid work Chapter 2D Section 1062 Chapter 2D—Arrangements and grants relating to assisting persons to obtain and maintain paid work 1062 Simplified outline of this Chapter The Employment Secretary may, on behalf of the Commonwealth, make, vary or administer an arrangement for the making of payments by the Commonwealth, or make, vary or administer a grant of financial assistance, in relation to various activities aimed at assisting unemployed or other persons to obtain and maintain paid work.
1062A Arrangements and grants relating to assisting persons to obtain and maintain paid work (1) The Employment Secretary may, on behalf of the Commonwealth, make, vary or administer an arrangement for the making of payments by the Commonwealth, or make, vary or administer a grant of financial assistance, in relation to: (a) assisting unemployed persons to obtain and maintain paid work; or (b) assisting other persons to obtain and maintain paid work; or (c) assisting persons at risk of losing paid work to maintain that paid work or to obtain and maintain other paid work; or (d) assisting unemployed persons to become self-employed; or (e) assisting other persons to become self-employed; or (f) assisting recipients of participation payments (within the meaning of the Administration Act) to meet their mutual obligation requirements; or (g) the funding of measures designed to reduce discrimination in employment practices and to encourage workforce Social Security Act 1991 525 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2D Arrangements and grants relating to assisting persons to obtain and maintain paid work Section 1062A participation, including in relation to mature aged, young and Indigenous persons, persons with a disability and parents seeking to re-join the workforce; or (h) the provision of online employment services; or (i) the funding of projects to create pathways to paid work and to address labour shortages; or (j) the funding of the activities of employment services providers; or (k) the provision of wage subsidies or other incentives to employers to employ unemployed persons; or (l) an activity determined in an instrument under subsection (2); or (m) a matter that is incidental or ancillary to a matter mentioned in paragraph (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k) or (l).
(2) The Employment Minister may, by legislative instrument, determine an activity for the purposes of paragraph (1)(l).

Reimbursement of costs or expenses (3) An arrangement under subsection (1) may provide for the Commonwealth to reimburse, or partly reimburse, costs or expenses.

(4) A grant under subsection (1) may be made by way of the reimbursement, or partial reimbursement, of costs or expenses.

(5) Subsections (3) and (4) do not limit subsection (1).
Definitions (6) In this section: arrangement includes a contract, agreement, deed or understanding.

Indigenous person has the same meaning as in the Indigenous Education (Targeted Assistance) Act 2000.

526 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Arrangements and grants relating to assisting persons to obtain and maintain paid work Chapter 2D Section 1062B make, in relation to an arrangement, includes enter into.
1062B Constitutional limits An arrangement or grant referred to in section 1062A must be with respect to one or more of the following: (a) the provision of unemployment benefits, or other benefits, allowances, services or endowment, referred to in paragraph 51(xxiiiA) of the Constitution; (b) implementing any of Australia’s international obligations under the ILO Convention (No.
88) concerning the Organisation of the Employment Service done at San Francisco on 9 July 1948 ([1950] ATS 9), as amended and in force for Australia from time to time; (c) implementing any of Australia’s international obligations under the ILO Convention (No.

122) concerning Employment Policy done at Geneva on 9 July 1964 ([1970] ATS 17), as amended and in force for Australia from time to time; (d) implementing any of Australia’s international obligations under the ILO Convention (No.
142) concerning Vocational Guidance and Vocational Training in the Development of Human Resources done at Geneva on 23 June 1975 ([1986] ATS 2), as amended and in force for Australia from time to time; (e) implementing any of Australia’s international obligations under the International Covenant on Economic, Social and Cultural Rights done at New York on 16 December 1966 ([1976] ATS 5), as amended and in force for Australia from time to time; (f) implementing any of Australia’s international obligations under the Convention on the Elimination of All Forms of Discrimination Against Women done at New York on 18 December 1979 ([1983] ATS 9), as amended and in force for Australia from time to time; (g) implementing any of Australia’s international obligations under the Convention on the Rights of the Child done at New Social Security Act 1991 527 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2D Arrangements and grants relating to assisting persons to obtain and maintain paid work Section 1062C York on 20 November 1989 ([1991] ATS 4), as amended and in force for Australia from time to time; (h) implementing any of Australia’s international obligations under the Convention on the Rights of Persons with Disabilities done at New York on 13 December 2006 ([2008] ATS 12), as amended and in force for Australia from time to time; (i) the granting of financial assistance to a State or Territory; (j) a Territory; (k) people to whom paragraph 51(xxvi) of the Constitution applies;
 (l) postal, telegraphic, telephonic or other like services within the meaning of paragraph 51(v) of the Constitution; (m) aliens within the meaning of paragraph 51(xix) of the Constitution; (n) the implied power of the Parliament to make laws with respect to nationhood; (o) matters incidental to the execution of any of the legislative powers of the Parliament or the executive power of the Commonwealth.
Note: The text of a Convention or Covenant could in 2021 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

1062C Executive power of the Commonwealth This Chapter does not, by implication, limit the executive power of the Commonwealth.
1062D Inclusion of information in annual report The Employment Secretary, when preparing the Employment Department’s annual report under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period, must include the following information in that report: (a) the total of the amounts paid in that period under arrangements or grants referred to in section 1062A; 528 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 2D Arrangements and grants relating to assisting persons to obtain and maintain paid work Section 1062D (b) the total number of arrangements and grants referred to in section 1062A that were made in that period.
529 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rate Calculators (General) Part 3.1 Section 1062 Chapter 3—General provisions relating to payability and rates Part 3.1—Rate Calculators (General) 1062E1062 Steps in rate calculation (1) The following are the usual steps in the rate calculation process: (a) start with a maximum basic rate; (b) add any additional amounts that are subject to income or assets testing; (c) apply the income and assets tests; (d) add any additional amounts that are not subject to income or assets testing.
(2) The overall rate calculation process is usually described in an early Module of the relevant Rate Calculator.
1063 Standard categories of family situations (1) The Rate Calculators use the following standard categories of family situations: – not 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); – partnered (partner in gaol).

Note: See section 4 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.
Social Security Act 1991 530 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Section 1064 Part 3.2—Pension Rate Calculator A 1064 Rate of age and disability support pensions and carer payment (people who are not blind) (1) The rate of: (a) age pension; and (b) disability support pension of a person who has turned 21, or of a person who has not turned 21 and has one or more dependent children; and (d) carer payment; 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 compensation (see Part 3.14); or overseas portability (see Part 4.2—Division 3); or the receipt of payments under the New Enterprise Incentive Scheme (see Part 3.15).
Note 3: For dependent child see section 5.

(2) Subsection (1) does not apply to a person’s age or disability support pension if the person is permanently blind.

Note: The rate for an age pension or disability support pension payable to a person who is permanently blind is dealt with in section 1065.
(4) If: (a) a person has a relationship with another person, whether of the same sex or a different sex (other person); and (b) the relationship between them is a de facto relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, 531 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Section 1064 in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A)); (c) either or both of them are under the age of consent applicable in the State or Territory in which they are living; the person’s pension rate is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.
Note: This provision has the effect of taking into account the ordinary income, maintenance income and assets of the partner in applying the ordinary income test, maintenance income test and assets test respectively.
Rate limited for armed service widow (5) If: (a) an armed services widow is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and (b) one of the following is payable to the widow: (i) an age pension; (ii) a disability support pension; (iv) a carer payment; the widow’s pension rate is not to exceed: (c) if: (i) the widow has been receiving the payment referred to in paragraph (a) continuously since before 1 November 1986; and (ii) immediately before 1 November 1986, the widow was receiving a payment referred to in paragraph (b) at a rate exceeding $3,247.40; and (iii) the pension referred to in paragraph (b) is of the same type as the one which was payable to the person before 1 November 1986; the rate of pension received by the widow immediately before 1 November 1986; and Social Security Act 1991 532 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Section 1064 (d) in any other case—$3,247.40.
Note: For armed services widow see subsection 4(1).

Rate limited for armed services widower (6) If: (a) an armed services widower is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and (b) one of the following is payable to the widower: (i) an age pension; (ii) a disability support pension; (iii) a carer payment; the rate of pension payable to the widower is not to exceed $3,247.40.
Note: For armed services widower see subsection 4(1).
(7) If: (a) an armed services widow or an armed services widower is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; and (b) one of the following is payable to the widow or widower: (i) an age pension; (ii) a disability support pension; (iv) a carer payment; the rate of pension payable to the widow or widower is not to exceed $3,247.40.
Note: For armed services widow and armed services widower see subsection 4(1).

533 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Overall rate calculation process Module A Section 1064 Pension Rate Calculator A Module A—Overall rate calculation process Method of calculating rate 1064-A1 The rate of pension is a daily rate.
That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement Step 1.

Work out the person’s maximum basic rate using MODULE B below.

Step 1A.

Work out the amount of pension supplement using Module BA below.

Step 1B.

Work out the energy supplement (if any) using Module C below.

Step 3.

Work out the amount per year (if any) for rent assistance in accordance with paragraph 1070A(b).
Step 4.

Add up the amounts obtained in Steps 1, 1A, 1B and 3: the result is called the maximum payment rate.

Step 5.

Apply the ordinary income test using MODULE E below to work out the income reduction.

Note: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.

Step 8.
Step 8.

Take the income reduction away from the maximum payment rate: the result is called the income reduced rate.

Social Security Act 1991 534 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module A Overall rate calculation process Section 1064 Step 9.

Apply the assets test using MODULE G below to work out the reduction for assets.

Step 10.
Step 10.

Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.

Step 11.

Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate.

Step 12.
Step 12.

The rate of pension is the amount obtained by: (a) (b) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and (c) adding any amount payable by way of remote area allowance (see Module H).
Note 1: Note 2: Note 3: Note 4: Note 5: If a person’s assets reduced rate is less than the person’s income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).

Section 1210 deals with the application of income and assets test reductions.

The rate calculation for a member of a couple is affected by the operation of points 1064-A2 and 1064-A3.
In some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

A person’s rate may also be reduced because the person or the person’s partner receives compensation (see section 1173) or because the person or the person’s partner is receiving a foreign pension (see scheduled international social security agreements at section 1208).
535 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Maximum basic rate Module B Section 1064 Note 7: Clause 146 of Schedule 1A may affect the provisional annual payment rate in step 11.
Members of a couple 1064-A2 Where 2 people 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 1064-E2 and 1064-G2 below).

They will also be treated as sharing expenses (e.g.

for rent) on a 50/50 basis (see section 1070V).

Module B—Maximum basic rate Maximum basic rate 1064-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.

1.

2.

3.

4.

5.
1.

2.

3.

4.

5.

Note 1: Note 2: Table B—Maximum basic rates Column 1 Column 2 Item Person’s family situation Not member of couple Partnered Column 3 Column 4 Rate per year Rate per fortnight $8,114.60 $312.10 $6,767.80 $260.30 Member of illness separated couple $8,114.60 $312.10 Member of respite care couple $8,114.60 $312.10 Partnered (partner in gaol) $8,114.60 $312.10 For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
The maximum basic rates are adjusted 6 monthly: see sections 1191 to 1198A.

Social Security Act 1991 536 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module BA Pension supplement Section 1064 Module BA—Pension supplement Pension supplement 1064-BA1 A pension supplement amount is to be added to the person’s maximum basic rate.

Residents in Australia etc.


1064-BA2 If the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks; the person’s pension supplement amount is: (c) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1064-BA4; and (d) otherwise—the amount worked out under point 1064-BA3.
Residents in Australia etc.—no election in force 1064-BA3 The person’s pension supplement amount is the amount worked out by: (a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and (b) if: (i) the person is not partnered; and (ii) the amount resulting from paragraph (a) is not a multiple of $2.60; rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
Item Person’s family situation Use this % 1 2 3 Not member of couple Partnered 66.33% 50% Member of illness separated couple 66.33% 537 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Energy supplement Module C Section 1064 Item Person’s family situation Use this % 4 5 Note: Member of respite care couple Partnered (partner in gaol) 66.33% 66.33% For combined couple rate of pension supplement, see subsection 20A(1).
Residents in Australia etc.—election in force 1064-BA4 The person’s pension supplement amount is the amount worked out as follows: (a) work out the amount for the person under point 1064-BA3 as if the election were not in force; (b) from that amount, subtract the person’s minimum pension supplement amount.

Persons absent from Australia for more than 6 weeks 1064-BA5 If the person is not covered by point 1064-BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.
Module C—Energy supplement 1064-C1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

Note: Section 918 may affect the addition of the energy supplement.

1064-C2 However, this Module does not apply if quarterly energy supplement is payable to the person.
1064-C3 The person’s energy supplement is the amount worked out using the following table: Social Security Act 1991 538 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module E Ordinary income test Section 1064 Energy supplement Item Person’s family situation Amount of energy supplement Not a member of a couple Partnered Member of an illness separated couple Member of a respite care couple Partnered (partner in gaol) $366.60 $275.60 $366.60 $366.60 $366.60 Module E—Ordinary income test Effect of income on maximum payment rate 1064-E1 This is how to work out the effect of a person’s ordinary income on the person’s maximum payment rate: Method statement Step 1.
Work out the amount of the person’s ordinary income on a yearly basis.

Note 1: Note 2: For the treatment of the ordinary income of members of a couple see point 1064-E2.

Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.

Step 2.

Work out the person’s ordinary income free area (see point 1064-E4 below).
Note: A person’s ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person’s maximum payment rate.

Step 3.

Work out whether the person’s ordinary income exceeds the person’s ordinary income free area.
539 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Ordinary income test Module E Section 1064 Step 4.

Step 5.

If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.
If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Step 6.

Use the person’s ordinary income excess to work out the person’s reduction for ordinary income using points 1064-E10 to 1064-E12 below.

Note 1: Note 2: See point 1064-A1 (Steps 5 to 8) for the significance of the person’s reduction for ordinary income.
The application of the ordinary income test is affected by provisions concerning:  the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10); the work bonus (section 1073AA); business income (sections 1074 and 1075); income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10); income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10); disposal of income (sections 1106 to 1111).
     Ordinary incomes of members of couples 1064-E2 If a person is a member of a couple, add the couple’s ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s ordinary income for the purposes of this Module.

Note: For the purposes of working out a person’s disability support pension rate under this Rate Calculator, Module F applies to working out the ordinary incomes of both members of the couple.
Social Security Act 1991 540 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module E Ordinary income test Section 1064 Payment of arrears of periodic compensation payments 1064-E3 If: (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving age pension, disability support pension or carer pension; and (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation; the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.
Note: For periodic payments period see section 17.

How to calculate a person’s ordinary income free area 1064-E4 A person’s ordinary income free area is worked out using Table E-1.

Work out which family situation in Table E-1 applies to the person.

The ordinary income free area is the corresponding amount in column 3.

Table E-1—Ordinary free area limits Column 1 Column 2 Column 3 Column 4 Item Category of person Basic free area per year Basic free area per fortnight 1.

2.

3.

4.
2.

3.

4.

Not member of a couple Partnered (partner getting neither pension nor benefit) Partnered (partner getting benefit) Partnered (partner getting pension) $2,080 $1,820 $1,820 $1,820 $80 $70 $70 $70 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 4.
541 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Ordinary income for the purposes of disability support pension Module F Section 1064 Note 3: Note 4: Items 2, 3 and 4 of Table E-1 apply to members of illness separated and respite care couples.

The basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).
Pension reduction for ordinary income in excess of ordinary income free area 1064-E10 A person’s reduction for ordinary income is: Ordinary income excess  0.5 Ordinary income excess 1064-E11 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.
Module F—Ordinary income for the purposes of disability support pension Application of this Module 1064-F1 This Module applies only for the purposes of working out the rate of disability support pension payable to a person.

It so applies to that person and, if the person is a member of a couple, to the person’s partner.
Lump sum payments arising from termination of employment 1064-F2 Subject to points 1064-F4 to 1064-F14 (inclusive), if: (a) a person’s employment has been terminated; and (b) as a result the person is entitled to a lump sum payment from the person’s former employer; the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.
Social Security Act 1991 542 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module F Ordinary income for the purposes of disability support pension Section 1064 Certain leave payments taken to be ordinary income—employment continuing 1064-F4 If: (a) a person is employed; and (b) the person is on leave for a period; and (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period; the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.
Certain payments taken to be ordinary income—employment terminated 1064-F5 If: (a) a person’s employment has been terminated; and (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise); the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.
More than one termination payment on a day 1064-F6 If: (a) a person is covered by point 1064-F5; and (b) the person receives more than one termination payment on a day; the income maintenance period is worked out by adding the periods to which the payments relate.
543 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Ordinary income for the purposes of disability support pension Module F Section 1064 Start of income maintenance period—employment continuing 1064-F7 If a person is covered by point 1064-F4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.
Start of income maintenance period—employment terminated 1064-F8 If a person is covered by point 1064-F5, the income maintenance period starts, subject to point 1064-F9, on the day on which the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment 1064-F9 If: (a) a person who is covered by point 1064-F5 is subject to an income maintenance period (the first period); and (b) the person is paid another termination payment during that period (the second termination payment); the income maintenance period for the second termination payment starts on the day after the end of the first period.
Leave payments or termination payments in respect of periods longer than a fortnight 1064-F10 If: (a) a person receives a leave payment or termination payment; and (b) the payment is in respect of a period longer than a fortnight; the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by: (c) dividing the amount received by the number of days in the period to which the payment relates (the daily rate); and (d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.
Social Security Act 1991 544 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module F Ordinary income for the purposes of disability support pension Section 1064 1064-F11 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.
Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period: (a) (b) the pension claimed may not be payable to the person; or the amount of the pension payable to the person may be reduced.
When a person receives a leave payment or a termination payment 1064-F12 For the purposes of points 1064-F4 to 1064-F11 (inclusive), a person (the first person) is taken to receive a leave payment or termination payment if: (a) the payment is made to another person: (i) at the direction of the first person or a court; or (ii) on behalf of the first person; or (iii) for the benefit of the first person; or (b) the first person waives or assigns his or her right to receive the payment.
Single payment in respect of different kinds of termination payments 1064-F13 If a person who is covered by point 1064-F5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1064-F4 to 1064-F12 (inclusive): (a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and 545 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Ordinary income for the purposes of disability support pension Module F Section 1064 (b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
Definitions 1064-F14 In this Module: leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include: (a) an instalment of parental leave pay; or (b) dad and partner pay.

payment fortnight means a fortnight in respect of which a disability support pension is paid, or would be paid apart from the application of an income maintenance period, to a person.
period to which the payment relates means: (a) if the payment is a leave payment—the leave period to which the payment relates; or (b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or (c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if: (i) the person’s employment had continued; and (ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
Social Security Act 1991 546 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module G Assets test Section 1064 redundancy payment includes a payment in lieu of notice.
termination payment includes: (a) a redundancy payment; and (b) a leave payment relating to a person’s employment that has been terminated; and (c) any other payment that is connected with the termination of a person’s employment.

Module G—Assets test Effect of assets on maximum payment rate 1064-G1 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: Note 2: Note 3: For the treatment of the assets of members of a couple see point 1064-G2.

For the assets that are to be disregarded in valuing a person’s assets see section 1118.

For the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Step 2.

Work out the person’s assets value limit (see point 1064-G3 below).
Note: A person’s assets value limit is the maximum value of assets the person can have without affecting the person’s pension rate.

Step 3.

Work out whether the value of the person’s assets exceeds the person’s assets value limit.

547 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Assets test Module G Section 1064 Step 4.

Step 5.
Step 5.

If the value of the person’s assets does not exceed the person’s assets value limit, the person’s assets excess is nil.

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 1064-G4 to 1064-G7 below.
Note 1: Note 2: See point 1064-A1 (steps 9 and 10) for the significance of the person’s reduction for assets.

The application of the assets test is affected by provisions concerning disposal of assets (sections 1123 to 1128), retirement villages (sections 1145 to 1157) and financial hardship (sections 1129 and 1130).
Value of assets of members of couples 1064-G2 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 1064-G3 A person’s assets value limit is worked out using Table G-1.

Work out the person’s family situation and home ownership situation.

The assets value limit is the corresponding amount in column 3.
Social Security Act 1991 548 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module G Assets test Section 1064 Table G-1—Assets value limit Column 1 Column 2 Column 3 Item Person’s family situation 1.

2.

3.
2.

3.

Not member of a couple Partnered (partner getting neither pension nor benefit) Partnered (partner getting pension or benefit) Assets value limit Column 3A column 3B Either person or partner homeowner Neither person nor partner homeowner $250,000 $450,000 $187,500 $287,500 $187,500 $287,500 Note 1: For member of a couple, partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see section 4.

Note 2: For homeowner see section 11.


Note 3: Note 4: Items 2 and 3 apply to members of illness separated and respite care couples.

The assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).

Pension reduction for assets in excess of assets value limit 1064-G4 A person’s reduction for assets is worked out using Table G-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.

549 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Remote area allowance Module H Section 1064 Table G-2—Reduction for assets Column 1 Column 2 Column 3 Item 1.

2.

3.
2.

3.

Person’s family situation Reduction Not member of a couple Assets excess 250  19.5 Partnered (partner getting neither pension nor benefit) Assets excess 250  19.5 Partner (partner getting pension or benefit) Assets excess 250  19.5 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 4.

Note 4: For assets excess see point 1064-G5 below.


Assets excess 1064-G5 A person’s assets excess is the value of the person’s assets less the person’s assets value limit.

1064-G7 In calculating a person’s assets excess under point 1064-G5 disregard any part of the excess that is not a multiple of $250.
Module H—Remote area allowance Remote area allowance 1064-H1 An amount by way of remote area allowance is to be added to a person’s rate of pension if: (aa) either: Social Security Act 1991 550 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module H Remote area allowance Section 1064 (i) the person’s rate of pension apart from this point is greater than nil; or (ii) apart from this point, the person’s rate of pension would be nil merely because an election by the person under subsection 1061VA(1) is in force; and (a) the person’s usual place of residence is situated in the 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 14.

Rate of remote area allowance 1064-H2 The rate of remote area allowance payable to a person is worked out using Table H. 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 FTB child, and each regular care child, of the person.
Table H—Remote area allowance Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Item Person’s family situation 1.

2.

3.

4.
Not member of couple Partnered Member of illness separated couple Member of respite care couple Basic allowance per year Basic allowance per fortnight Additional allowance per year Additional allowance per fortnight $473.20 $18.20 $189.80 $7.30 $405.60 $473.20 $15.60 $18.20 $189.80 $189.80 $7.30 $7.30 $473.20 $18.20 $189.80 $7.30 551 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator A Part 3.2 Remote area allowance Module H Section 1064 Table H—Remote area allowance Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Item 5.
Person’s family situation Partnered (partner in gaol) Basic allowance per year Basic allowance per fortnight Additional allowance per year Additional allowance per fortnight $473.20 $18.20 $189.80 $7.30 Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Special rule where partner has an FTB or regular care child but is not receiving a pension 1064-H5 If: (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and (b) the person’s partner is not receiving a pension or benefit; and (c) the person’s partner has an FTB child or a regular care child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child 1064-H6 If: (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and (b) the person’s partner has an FTB child or a regular care child; and (c) the person’s partner is not receiving additional allowance for the child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Social Security Act 1991 552 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.2 Pension Rate Calculator A Module H Remote area allowance Section 1064 Special rule dealing with the death of an FTB or regular care child 1064-H7 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.
Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.
553 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator B Part 3.3 Section 1065 Part 3.3—Pension Rate Calculator B 1065 Rate of age and disability support pension (blind people) (1) The rate of: (a) age pension payable to a person who is permanently blind; and (b) disability support pension payable to a person who: (i) is permanently blind; and (ii) has turned 21; and (c) disability support pension payable to a person who: (i) is permanently blind; and (ii) has not turned 21; and (iii) has one or more dependent children; 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: For dependent child see section 5.
(3) Where: (a) a person who is permanently blind has a relationship with another person, whether of the same sex or a different sex (other person); and (b) the relationship between them is a de facto relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A)); (c) either or both of them are under the age of consent applicable in the State or Territory in which they are living; Social Security Act 1991 554 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.3 Pension Rate Calculator B Section 1065 the rate of pension payable to the person who is permanently blind is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.
Note: This provision has the effect of taking into account the ordinary income, maintenance income and assets of the partner in applying the ordinary income test, maintenance income test and assets test respectively.
Rate limited for certain armed services widows (4) If: (a) an armed services widow is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and (b) an age or disability support pension is payable to the widow; the rate of pension payable to the widow is not to exceed: (c) if: (i) the widow has been receiving the payment referred to in paragraph (a) continuously since before 1 November 1986; and (ii) immediately before 1 November 1986, the widow was receiving a payment referred to in paragraph (b) at a rate exceeding $3,247.40; and (iii) the pension referred to in paragraph (b) is of the same type as the one which was payable to the person before 1 November 1986; the rate of pension received by the widow immediately before 1 November 1986; and (d) in any other case—$3,247.40.
Note: For armed services widow see subsection 4(1).
Rate limited for certain armed services widowers (5) If: (a) an armed services widower is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate 555 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator B Part 3.3 Overall rate calculation process Module A Section 1065 determined under or by reference to subsection 30(1) of that Act; and (b) an age or disability support pension is payable to the widower; the rate of pension payable to the widower is not to exceed $3,247.40.
Note: For armed services widower see subsection 4(1).
Rate limited for certain armed services widows and widowers (6) If: (a) an armed services widow or an armed services widower is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; and (b) an age or disability support pension is payable to the widow or widower; the rate of pension payable to the widow or widower is not to exceed $3,247.40.
Note: For armed services widow and armed services widower see subsection 4(1).

Pension Rate Calculator B Module A—Overall rate calculation process Method of calculating rate 1065-A1 The rate of pension is a daily rate.

That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).
Social Security Act 1991 556 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.3 Pension Rate Calculator B Module A Overall rate calculation process Section 1065 Method statement Step 1.

Work out what would be the person’s rate of pension if Pension Rate Calculator A applied to the person: the result is called the notional income/assets tested rate.

Step 2.
Step 2.

Work out the person’s maximum basic rate using MODULE B below.

Step 2A.

Work out the amount of pension supplement using Module BA below.

Step 3.

Work out the energy supplement (if any) using Module C below.

Step 4.

Add up the amounts obtained in Steps 2, 2A and 3: the result is called the maximum payment rate.

Step 5.
Step 5.

Work out the non-income/assets tested rate by: (a) (b) subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and (c) adding any amount payable by way of remote area allowance (see Module E).

Step 6.
Step 6.

Compare the notional income/assets tested rate and the non-income/assets tested rate: whichever is the greater is the person’s rate of pension.

Note 1: Note 2: The person will also be qualified for a pharmaceutical allowance under Part 2.22.

An amount of remote area allowance is to be added under Step 5 only if the person’s rate of pension after Step 4 is greater than nil.
557 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator B Part 3.3 Maximum basic rate Module B Section 1065 Module B—Maximum basic rate Maximum basic rate 1065-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 of the Table.

Table B—Maximum basic rates Column 1 Column 2 Item Person’s family situation Column 3 Column 4 Rate per year Rate per fortnight 1.

2.

3.

4.

5.
2.

3.

4.

5.

Not member of couple $8,114.60 $312.10 Partnered Member of illness separated couple Member of respite care couple Partnered (partner in gaol) $6,767.80 $260.30 $8,114.60 $312.10 $8,114.60 $312.10 $8,114.60 $312.10 Note 1: Note 2: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

The maximum basic rates are adjusted 6 monthly: see sections 1191 to 1198A.
Module BA—Pension supplement Pension supplement 1065-BA1 A pension supplement amount is to be added to the person’s maximum basic rate.

Residents in Australia etc.
1065-BA2 If the person is residing in Australia and: Social Security Act 1991 558 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.3 Pension Rate Calculator B Module BA Pension supplement Section 1065 (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks; the person’s pension supplement amount is: (c) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1065-BA4; and (d) otherwise—the amount worked out under point 1065-BA3.
Residents in Australia etc.—no election in force 1065-BA3 The person’s pension supplement amount is the amount worked out by: (a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and (b) if: (i) the person is not partnered; and (ii) the amount resulting from paragraph (a) is not a multiple of $2.60; rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
Item Person’s family situation Use this % Not member of couple Partnered Member of illness separated couple Member of respite care couple Partnered (partner in gaol) 66.33% 50% 66.33% 66.33% 66.33% Note: For combined couple rate of pension supplement, see subsection 20A(1).
Residents in Australia etc.—election in force 1065-BA4 The person’s pension supplement amount is the amount worked out as follows: 559 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator B Part 3.3 Energy supplement Module C Section 1065 (a) work out the amount for the person under point 1065-BA3 as if the election were not in force; (b) from that amount, subtract the person’s minimum pension supplement amount.
Persons absent from Australia for more than 6 weeks 1065-BA5 If the person is not covered by point 1065-BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.

Module C—Energy supplement 1065-C1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
Note: Section 918 may affect the addition of the energy supplement.

1065-C2 However, this Module does not apply if quarterly energy supplement is payable to the person.
1065-C3 The person’s energy supplement is the amount worked out using the following table: Energy supplement Item Person’s family situation Amount of energy supplement Not a member of a couple Partnered Member of an illness separated couple Member of a respite care couple Partnered (partner in gaol) $366.60 $275.60 $366.60 $366.60 $366.60 Social Security Act 1991 560 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.3 Pension Rate Calculator B Module E Remote area allowance Section 1065 Module E—Remote area allowance Remote area allowance 1065-E1 An amount by way of remote area allowance is to be added to a person’s rate of pension if: (aa) either: (i) the person’s rate of pension apart from this point is greater than nil; or (ii) apart from this point, the person’s rate of pension would be nil merely because an election by the person under subsection 1061VA(1) is in force; and (a) the person’s usual place of residence is situated in the 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 14.

Rate of remote area allowance 1065-E2 The rate of remote area allowance payable to a person is worked out using Table E. 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 FTB child, and each regular care child, of the person.
Table E—Remote area allowance Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Item Person’s family situation Not member of couple Basic allowance per year Basic allowance per fortnight Additional allowance per year Additional allowance per fortnight $473.20 $18.20 $189.80 $7.30 Partnered $405.60 $15.60 $189.80 $7.30 Social Security Act 1991 Future compilation prepared on 8 June 2021 1.

2.
2.

561 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator B Part 3.3 Remote area allowance Module E Section 1065 Table E—Remote area allowance Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Item Person’s family situation 3.

4.

5.
4.

5.

Member of illness separated couple Member of respite care couple Partnered (partner in gaol) Basic allowance per year Basic allowance per fortnight Additional allowance per year Additional allowance per fortnight $473.20 $18.20 $189.80 $7.30 $473.20 $18.20 $189.80 $7.30 $473.20 $18.20 $189.80 $7.30 Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Special rule where partner has an FTB or regular care child but is not receiving a pension 1065-E4 If: (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and (b) the person’s partner is not receiving a pension or benefit; and (c) the person’s partner has an FTB child or a regular care child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child 1065-E5 If: (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and (b) the person’s partner has an FTB child or a regular care child; and Social Security Act 1991 562 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.3 Pension Rate Calculator B Module E Remote area allowance Section 1065 (c) the person’s partner is not receiving additional allowance for the child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule dealing with the death of an FTB or regular care child 1065-E6 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.
563 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Section 1066A Part 3.4A—Pension Rate Calculator D 1066A Rate of disability support pension (people under 21 who are not blind) (1) The rate of disability support pension of a person who has not turned 21 is, subject to subsection (2), to be calculated in accordance with the Rate Calculator at the end of this section.
Note: 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.

(2) Subsection (1) does not apply if: (a) the person is permanently blind; or (b) the person has one or more dependent children.

Note 1: The rate for a disability support pension payable to a person under 21 who is permanently blind is dealt with in section 1066B.
Note 2: For dependent child see section 5.

Note 3: The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1064 or 1065.

(3) A person’s disability support pension rate is not to exceed the rate at which a disability support pension would be payable to that person if the person’s rate were calculated using Pension Rate Calculator A at the end of section 1064.
(5) If: (a) a person has a relationship with another person, whether of the same sex or a different sex (other person); and (b) the relationship between them is a de facto relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A)); Social Security Act 1991 564 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module A Overall rate calculation process Section 1066A (c) either or both of them are under the age of consent applicable in the State or Territory in which they are living; the person’s disability support pension rate is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.
Note: This provision has the effect of taking into account the ordinary income, maintenance income and assets of the partner in applying the ordinary income test, maintenance income test and assets test respectively.

Pension Rate Calculator D Module A—Overall rate calculation process Method of calculating rate 1066A-A1 The rate of pension is a daily rate.
That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement Step 1.

Work out the person’s maximum basic rate using MODULE B below.

Step 1A.

Work out the energy supplement (if any) using Module BA below.

Step 2.

Work out the amount per year for youth disability, Supplement using MODULE C below.

Step 3.
Step 3.

Work out the amount per year (if any) of pharmaceutical allowance using MODULE D below.

Step 4.

Work out the amount per year (if any) for rent assistance in accordance with paragraph 1070A(b).

565 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Overall rate calculation process Module A Section 1066A Step 5.
Add up the amounts obtained in Steps 1, 1A, 2, 3 and 4: the result is called the maximum payment rate.

Note: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.

Step 6.

Apply the ordinary income test using MODULE F below to work out the income reduction.

Step 9.

Take the income reduction away from the maximum payment rate: the result is called the income reduced rate.

Step 10.
Step 10.

Apply the assets test using MODULE H below to work out the reduction for assets.

Step 11.

Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.

Step 12.

Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate.

Step 13.
The rate of pension is the amount obtained by: (a) (b) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and Social Security Act 1991 566 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module B Maximum basic rate Section 1066A (c) adding any amount payable by way of remote area allowance (see Module I).
Note 1: Note 2: Note 3: If a person’s assets reduced rate is less than the person’s income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).

Section 1210 deals with the application of income and assets test reductions.

The rate calculation for a member of a couple is affected by the operation of point 1066A-A2.
Members of a couple 1066A-A2 Where 2 people 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 1066A-F2, and 1066A-H2 below).

They will also be treated as sharing expenses (e.g.

for rent) on a 50/50 basis (see section 1070V).

Module B—Maximum basic rate Maximum basic rate 1066A-B1 A person’s maximum basic rate is to be worked out using Table B.

Work out the family situation.


The maximum basic rate is the corresponding amount in column 3.
Table B—Maximum basic rates Column 1 Item Column 2 Person’s family situation 1 Not a member of a couple and person: (a) is under 18 years of age; and (b) is not independent; and Column 3 Rate per year Column 4 Rate per fortnight $7,883.20 $303.20 567 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Maximum basic rate Module B Section 1066A Table B—Maximum basic rates Column 1 Item Column 2 Person’s family situation Column 3 Rate per year Column 4 Rate per fortnight 2 3 (c) is not living away from the person’s parental home because of a medical condition of the person Not a member of a couple and person: (a) is under 18 years of age; and (b) either: (i) is independent; or (ii) is living away from the person’s parental home because of a medical condition of the person Not a member of a couple and person: (a) has reached 18 years of age; and (b) is living at home of parent or parents; and (c) is not independent $13,325 $512.50 $9,219.60 $354.60 Social Security Act 1991 568 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module B Maximum basic rate Section 1066A Table B—Maximum basic rates Column 1 Item 4 5 6 Column 2 Person’s family situation Not a member of a couple and person: (a) has reached 18 years of age; and (b) either: (i)
 is not living at a home of parent or parents; or (ii) is living at a home of parent or parents, but is independent Partnered Member of illness separated couple, member of respite care couple or partnered (partner in gaol) Column 3 Rate per year Column 4 Rate per fortnight $13,325 $512.50 $13,325 $13,325 $512.50 $512.50 Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Note 2: For independent see section 5.

Note 3: Note 4: For living away from the person’s parental home see subsection 23(4D).

The rates in column 3 are adjusted annually in line with CPI changes (see section 1198B).
569 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Energy supplement Module BA Section 1066A Module BA—Energy supplement 1066A-BA1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
However, this Module does not apply if quarterly energy supplement is payable to the person.

Note: Section 918 may affect the addition of the energy supplement.
1066A-BA2 The person’s energy supplement is the amount worked out using the following table: Energy supplement Item Person’s family situation for maximum basic rate Amount of energy supplement 1 2 3 If the person’s maximum basic rate is worked out under item 1 of the table in point 1066A-B1 If the person’s maximum basic rate is worked out under item 2, 4, 5 or 6 of the table in point 1066A-B1 If the person’s maximum basic rate is worked out under item 3 of the table in point 1066A-B1 $153.40 $236.60 $171.60 Module C—Youth disability supplement Youth disability supplement 1066A-C1 An amount by way of youth disability supplement is to be added to a person’s rate.
The rate of youth disability supplement is $1,557.40 per year ($59.90 per fortnight).

Note: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).
Social Security Act 1991 570 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module D Pharmaceutical allowance Section 1066A Module D—Pharmaceutical allowance Qualification for pharmaceutical allowance 1066A-D1 Subject to points 1066A-D2, 1066A-D3,1066A-D4 and 1066A-D6, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.
No pharmaceutical allowance if person receiving certain supplements under other Acts 1066A-D2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving: (a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.
No pharmaceutical allowance if partner receiving certain supplements under other Acts 1066A-D3 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person is a member of a couple; and (b) the person’s partner is receiving: (i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and 571 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Pharmaceutical allowance Module D Section 1066A British Commonwealth Occupation Force (Treatment) Act 2006; or (iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and (c) the person’s partner is not receiving a service pension or a veteran payment.
No pharmaceutical allowance before advance payment period ends 1066A-D4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and (b) the person’s advance payment period has not ended.

Note: For advance payment period see point 1066A-D5.
Advance payment period 1066A-D5 A person’s advance payment period: (a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and (b) ends after the number of paydays worked out using the following formula have passed: amount of advance  26 pharmaceutical allowance rate where: amount of advance is the amount of the advance paid to the person.
pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.
Social Security Act 1991 572 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module D Pharmaceutical allowance Section 1066A No pharmaceutical allowance if annual limit reached 1066A-D6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person has received an advance pharmaceutical allowance during the current calendar year; and (b) the total amount paid to the person for that year by way of: (i) pharmaceutical allowance; and (ii) advance pharmaceutical allowance; equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.
Note 1: Note 2: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

The annual limit is affected by:  how long during the calendar year the person was on pension or benefit; the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.
 Amount of pharmaceutical allowance 1066A-D8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table: Pharmaceutical allowance amount table Column 1 Column 2 Column 3 Column 4 Item Person’s family situation Amount per year 1.

2.

3.

4.
2.

3.

4.

Not member of couple $135.20 $67.60 $135.20 Partnered Member of illness separated couple Member of respite care couple $135.20 $5.20 Amount per fortnight $5.20 $2.60 $5.20 573 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Ordinary income test Module F Section 1066A 5.

6.
6.

Note 1: Note 2: Partnered (partner getting service pension) Partnered (partner in gaol) $67.60 $2.60 $135.20 $5.20 For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).
Module F—Ordinary income test Effect of income on maximum payment rate 1066A-F1 This is how to work out the effect of a person’s ordinary income on the person’s maximum payment rate: Method statement Step 1.

Work out the amount of the person’s ordinary income on a yearly basis.

Note 1: Note 2: For the treatment of the ordinary income of members of a couple see point 1066A-F2.
Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.

Step 2.

Work out the person’s ordinary income free area (see point 1066A-F3 below).

Note: A person’s ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person’s maximum payment.

Step 3.
Step 3.

Work out whether the person’s ordinary income exceeds the person’s ordinary income free area.

Social Security Act 1991 574 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module F Ordinary income test Section 1066A Step 4.

Step 5.

If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.
If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Step 6.

Use the person’s ordinary income excess to work out the person’s reduction for ordinary income using points 1066A-F9 to 1066A-F11 below.

Note 1: Note 2: See point 1066A-A1 (Steps 6 to 9) for the significance of the person’s reduction for ordinary income.
The application of the ordinary income test is affected by provisions concerning:  the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10); business income (sections 1074 and 1075); income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10); income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10); disposal of income (sections 1106 to 1111).
    Ordinary incomes of members of couples 1066A-F2 If a person is a member of a couple, add the couple’s ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s ordinary income for the purposes of this Module.
575 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Ordinary income test Module F Section 1066A Payment of arrears of periodic compensation payments 1066A-F2A If: (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving disability support pension; and (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation; the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.
Note: For periodic payments period see section 17.

How to calculate a person’s ordinary income free area 1066A-F3 A person’s ordinary income free area is worked out using Table F-1.

Work out which family situation in Table F-1 applies to the person.

The ordinary income free area is the corresponding amount in column 3.

Table F-1—Ordinary income free area Column 1 Column 2 Column 3 Column 4 Item Category of person Basic free area per year Basic free area per fortnight 1.

2.

3.

4.
2.

3.

4.

Not member of a couple Partnered (partner getting neither pension nor benefit) Partnered—(partner getting benefit) Partnered—(partner getting pension) $2,184 $1,924 $1,924 $1,924 $80 $70 $70 $70 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 4.
Social Security Act 1991 576 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module G Payments taken to be ordinary income Section 1066A Note 3: Note 4: Items 2, 3 and 4 of Table F-1 apply to members of illness separated couples.

The basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).
Pension reduction for ordinary income in excess of ordinary income free area 1066A-F9 A person’s reduction for ordinary income is: Ordinary income excess  0.5 Ordinary income excess 1066A-F10 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Module G—Payments taken to be ordinary income Application of this Module 1066A-G1 This Module applies to a person and, if the person is a member of a couple, the person’s partner.
Lump sum payments arising from termination of employment 1066A-G2 Subject to points 1066A-G4 to 1066A-G14 (inclusive), if: (a) a person’s employment has been terminated; and (b) as a result the person is entitled to a lump sum payment from the person’s former employer; the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.
Certain leave payments taken to be ordinary income—employment continuing 1066A-G4 If: (a) a person is employed; and (b) the person is on leave for a period; and 577 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Payments taken to be ordinary income Module G Section 1066A (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period; the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.
Certain payments taken to be ordinary income—employment terminated 1066A-G5 If: (a) a person’s employment has been terminated; and (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise); the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.
More than one termination payment on a day 1066A-G6 If: (a) a person is covered by point 1066A-G5; and (b) the person receives more than one termination payment on a day; the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing 1066A-G7 If a person is covered by point 1066A-G4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.
Social Security Act 1991 578 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module G Payments taken to be ordinary income Section 1066A Start of income maintenance period—employment terminated 1066A-G8 If a person is covered by point 1066A-G5, the income maintenance period starts, subject to point 1066A-G9, on the day on which the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment 1066A-G9 If: (a) a person who is covered by point 1066A-G5 is subject to an income maintenance period (the first period); and (b) the person is paid another termination payment during that period (the second termination payment); the income maintenance period for the second termination payment starts on the day after the end of the first period.
Leave payments or termination payments in respect of periods longer than a fortnight 1066A-G10 If: (a) a person receives a leave payment or termination payment; and (b) the payment is in respect of a period longer than a fortnight; the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by: (c) dividing the amount received by the number of days in the period to which the payment relates (the daily rate); and (d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.
1066A-G11 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.
579 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Payments taken to be ordinary income Module G Section 1066A Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).
Note 3: If an income maintenance period applies to a person, then, during that period: (a) (b) the pension claimed may not be payable to the person; or the amount of the pension payable to the person may be reduced.
When a person receives a leave payment or a termination payment 1066A-G12 For the purposes of points 1066A-G4 to 1066A-G11 (inclusive), a person (the first person) is taken to receive a leave payment or termination payment if: (a) the payment is made to another person: (i) at the direction of the first person or a court; or (ii) on behalf of the first person; or (iii) for the benefit of the first person; or (b) the first person waives or assigns his or her right to receive the payment.
Single payment in respect of different kinds of termination payments 1066A-G13 If a person who is covered by point 1066A-G5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1066A-G4 to 1066A-G12 (inclusive): (a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and (b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
Social Security Act 1991 580 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module G Payments taken to be ordinary income Section 1066A Definitions 1066A-G14 In this Module: leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include: (a) an instalment of parental leave pay; or (b) dad and partner pay.
payment fortnight means a fortnight in respect of which a disability support pension is paid, or would be paid apart from the application of an income maintenance period, to a person.
period to which the payment relates means: (a) if the payment is a leave payment—the leave period to which the payment relates; or (b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or (c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if: (i) the person’s employment had continued; and (ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
redundancy payment includes a payment in lieu of notice.
termination payment includes: (a) a redundancy payment; and 581 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Assets test Module H Section 1066A (b) a leave payment relating to a person’s employment that has been terminated; and (c) any other payment that is connected with the termination of a person’s employment.
Module H—Assets test Effect of assets on maximum payment rate 1066A-H1 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: Note 2: Note 3: For the treatment of the assets of members of a couple see point 1066A-H2.

For the assets that are to be disregarded in valuing a person’s assets see section 1118.
For the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Step 2.

Work out the person’s assets value limit (see point 1066A-H3 below).

Note: A person’s assets value limit is the maximum value of assets the person can have without affecting the person’s pension rate.

Step 3.

Work out whether the value of the person’s assets exceeds the person’s assets value limit.

Step 4.
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.

Social Security Act 1991 582 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module H Assets test Section 1066A 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 1066A-H4 to 1066A-H7 below.

Note 1: Note 2: See point 1066A-A1 Steps 10 and 11 for the significance of the person’s reduction for assets.
The application of the assets test is affected by provisions concerning disposal of assets (sections 1123 to 1128), retirement villages (sections 1145 to 1157) and financial hardship (sections 1129 and 1130).
Value of assets of members of couples 1066A-H2 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 1066A-H3 A person’s assets value limit is worked out using Table H-1.

Work out the person’s family situation and home ownership situation.

The assets value limit is the corresponding amount in column 3.
583 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Assets test Module H Section 1066A Table H-1—Assets value limit Column 1 Column 2 Column 3 Item Person’s family situation 1.

2.

3.
2.

3.

Not member of a couple Partnered (partner getting neither pension nor benefit) Partnered (partner getting pension or benefit) Assets value limit Column 3A Column 3B Either person or partner homeowner Neither person nor partner homeowner $250,000 $450,000 $187,500 $287,500 $187,500 $287,500 Note 1: For member of a couple, partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see section 4.

Note 2: For homeowner see section 11.


Note 3: Items 2 and 3 apply to members of illness separated couples.

Note 4: The assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).

Pension reduction for assets in excess of assets value limit 1066A-H4 A person’s reduction for assets is worked out using Table H-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.

Social Security Act 1991 584 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module I Remote area allowance Section 1066A Table H-2—Reduction for assets Column 1 Column 2 Item Person’s family situation Column 3 Reduction 1.

2.

3.
2.

3.

Not member of couple Assets excess 250  19.5 Partnered (partner getting neither pension nor benefit) Assets excess 250  19.5 Partner (partner getting pension or benefit) Assets excess 250  19.5 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 4.

Note 3: For assets excess see point 1066A-H5 below.
Assets excess 1066A-H5 A person’s assets excess is the value of the person’s assets less the person’s assets value limit.

1066A-H7 In calculating a person’s assets excess under point 1066A-H5 disregard any part of the excess that is not a multiple of $250.
Module I—Remote area allowance Remote area allowance 1066A-I1 An amount by way of remote area allowance is to be added to a person’s rate of pension if: (aa) either: 585 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Remote area allowance Module I Section 1066A (i) the person’s rate of pension apart from this point is greater than nil; or (ii) apart from this point, the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; and (a) the person’s usual place of residence is situated in the 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 14.

Rate of remote area allowance 1066A-I2 The rate of remote area allowance payable to a person is worked out using Table I.

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 FTB child, and each regular care child, of the person.
Table I—Remote area allowance Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Item Person’s family situation 1.

2.

3.

4.
Not member of couple Partnered Member of illness separated couple Member of respite care couple Basic allowance per year Basic allowance per fortnight Additional allowance per year Additional allowance per fortnight $473.20 $18.20 $189.80 $7.30 $405.60 $473.20 $15.60 $18.20 $189.80 $189.80 $7.30 $7.30 $473.20 $18.20 $189.80 $7.30 Social Security Act 1991 586 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4A Pension Rate Calculator D Module I Remote area allowance Section 1066A Table I—Remote area allowance Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Item 5.
Person’s family situation Partnered (partner in gaol) Basic allowance per year Basic allowance per fortnight Additional allowance per year Additional allowance per fortnight $473.20 $18.20 $189.80 $7.30 Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Special rule where partner has an FTB or regular care child but is not receiving a pension 1066A-I4 If: (a) a person who is a member of a couple is qualified for an amount by way of additional allowance; and (b) the person’s partner is not receiving a pension or benefit; and (c) the person’s partner has an FTB child or a regular care child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child 1066A-I5 If: (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and (b) the person’s partner has an FTB child or a regular care child; and (c) the person’s partner is not receiving additional allowance for the child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
587 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator D Part 3.4A Remote area allowance Module I Section 1066A Special rule dealing with the death of an FTB or regular care child 1066A-I6 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.
Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.
Social Security Act 1991 588 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4B Pension Rate Calculator E Section 1066B Part 3.4B—Pension Rate Calculator E 1066B Rate of disability support pension (people under 21 who are blind) (1) The rate of disability support pension of a person who has not turned 21 and is permanently blind is to be calculated in accordance with the Rate Calculator at the end of this section.
Note: 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.

(1A) Subsection (1) does not apply if the person has one or more dependent children.

Note 1: The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1065.

Note 2: For dependent child see section 5.


(2) A person’s disability support pension rate is not to exceed the rate at which a disability support pension would be payable to that person if the person’s rate were calculated using Pension Rate Calculator B at the end of section 1065.
(4) Where: (a) a person who is permanently blind has a relationship with another person, whether of the same sex or a different sex (other person); and (b) the relationship between them is a de facto relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A)); 589 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator E Part 3.4B Overall rate calculation process Module A Section 1066B (c) that other person is under the age of consent applicable in the State or Territory in which the person is living; the rate of disability support pension payable to the person who is permanently blind is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.
Pension Rate Calculator E Module A—Overall rate calculation process Method of calculating rate 1066B-A1 The rate of pension is a daily rate.

That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement Step 1.

Work out what would be the person’s rate of pension if Pension Rate Calculator D applied to the person: the result is called the notional income/assets tested rate.

Step 2.
Step 2.

Work out the person’s maximum basic rate using MODULE B below.

Step 2A.

Work out the energy supplement (if any) using Module BA below.

Social Security Act 1991 590 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4B Pension Rate Calculator E Module B Maximum basic rate Section 1066B Step 3.

Work out the amount per year for youth disability supplement using MODULE C below.

Step 4.
Step 4.

Work out the amount per year (if any) of pharmaceutical allowance using MODULE D below.

Step 5.

Add up the amounts obtained in Steps 2, 2A, 3 and 4: the result is called the maximum payment rate.

Step 6.
Step 6.

Work out the non-income/assets tested rate by: (a) (b) subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and (c) adding any amount payable by way of remote area allowance (see Module F).

Step 7.
Step 7.

Compare the notional income/assets tested rate and the non-income/assets tested rate: whichever is the greater is the person’s rate of pension.

Note: An amount of remote area allowance is to be added under Step 6 only if the person’s rate of pension after Step 5 is greater than nil.

Module B—Maximum basic rate Maximum basic rate 1066B-B1 A person’s maximum basic rate is to be worked out using Table B.

Work out the family situation.


The maximum basic rate is the corresponding amount in column 3 of the Table.
591 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator E Part 3.4B Maximum basic rate Module B Section 1066B Column 3 Rate per year Column 4 Rate per fortnight $7,883.20 $303.20 $13,325 $512.50 Table B—Maximum basic rates Column 1 Item Column 2 Person’s family situation 1 2 Not a member of a couple and person: (a) is under 18 years of age; and (b) is not independent; and (c) is not living away from the person’s parental home because of a medical condition of the person Not a member of a couple and person: (a) is under 18 years of age; and (b) either: (i) is independent; or (ii) is living away from the person’s parental home because of a medical condition of the person Social Security Act 1991 592 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4B Pension Rate Calculator E Module B Maximum basic rate Section 1066B Table B—Maximum basic rates Column 1 Item Column 2 Person’s family situation 3 4 5 6 Not a member of a couple and person: (a) has reached 18 years of age; and (b) is living at home of parent or parents; and (c) is not independent Not a member of a couple and person: (a) has reached 18 years of age; and (b) either: (i) is not living at a home of parent or parents; or (ii) is living at a home of parent or parents, but is independent Partnered Member of illness
 separated couple, member of respite care couple or partnered (partner in gaol) Column 3 Rate per year Column 4 Rate per fortnight $9,219.60 $354.60 $13,325 $512.50 $13,325 $13,325 $512.50 $512.50 Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
593 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator E Part 3.4B Energy supplement Module BA Section 1066B Note 2: For independent see section 5.

Note 3: Note 4: For living away from the person’s parental home see subsection 23(4D).

The rates in column 3 are adjusted annually in line with CPI changes (see section 1198B).
Module BA—Energy supplement 1066B-BA1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the person.

Note: Section 918 may affect the addition of the energy supplement.
1066B-BA2 The person’s energy supplement is the amount worked out using the following table: Energy supplement Item Person’s family situation for maximum basic rate Amount of energy supplement 1 2 3 If the person’s maximum basic rate is worked out under item 1 of the table in point 1066B-B1 If the person’s maximum basic rate is worked out under item 2, 4, 5 or 6 of the table in point 1066B-B1 If the person’s maximum basic rate is worked out under item 3 of the table in point 1066B-B1 $153.40 $236.60 $171.60 Social Security Act 1991 594 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4B Pension Rate Calculator E Module C Youth disability supplement Section 1066B Module C—Youth disability supplement Youth disability supplement 1066B-C1 An amount by way of youth disability supplement is to be added to a person’s rate.
The rate of youth disability supplement is $1,557.40 per year ($59.90 per fortnight).

Note: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

Module D—Pharmaceutical allowance Qualification for pharmaceutical allowance 1066B-D1 Subject to points 1066B-D2, 1066B-D3, 1066B-D4 and 1066B-D6, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.
No pharmaceutical allowance if person receiving certain supplements under other Acts 1066B-D2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving: (a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.
595 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator E Part 3.4B Pharmaceutical allowance Module D Section 1066B No pharmaceutical allowance if partner receiving certain supplements under other Acts 1066B-D3 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person is a member of a couple; and (b) the person’s partner is receiving: (i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and (c) the person’s partner is not receiving a service pension or a veteran payment.
No pharmaceutical allowance before advance payment period ends 1066B-D4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and (b) the person’s advance payment period has not ended.

Note: For advance payment period see point 1066B-D5.
Advance payment period 1066B-D5 A person’s advance payment period: (a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and Social Security Act 1991 596 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4B Pension Rate Calculator E Module D Pharmaceutical allowance Section 1066B (b) ends after the number of paydays worked out using the following formula have passed: amount of advance  26 pharmaceutical allowance rate where: amount of advance is the amount of the advance paid to the person.
pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.
No pharmaceutical allowance if annual limit reached 1066B-D6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person has received an advance pharmaceutical allowance during the current calendar year; and (b) the total amount paid to the person for that year by way of: (i) pharmaceutical allowance; and (ii) advance pharmaceutical allowance; equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.
Note 1: Note 2: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

The annual limit is affected by:  how long during the calendar year the person was on pension or benefit; the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.
 597 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator E Part 3.4B Remote area allowance Module F Section 1066B Amount of pharmaceutical allowance 1066B-D8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table: Pharmaceutical allowance amount table Column 1 Column 2 Column 3 Column 4 Item Person’s family situation Amount per year $135.20 $67.60 $135.20 Amount per fortnight $5.20 $2.60 $5.20 $135.20 $5.20 $67.60 $2.60 Not member of couple Partnered Member of illness separated couple Member of respite care couple Partnered (partner getting service pension) 1.
2.

3.

4.

5.

6.

Partnered (partner in gaol) $135.20 $5.20 Note 1: Note 2: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).
Module F—Remote area allowance Remote area allowance 1066B-F1 An amount by way of remote area allowance is to be added to a person’s rate of pension if: (aa) either: (i) the person’s rate of pension apart from this point is greater than nil; or (ii) apart from this point, the person’s rate of pension would be nil merely because an advance pharmaceutical Social Security Act 1991 598 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.4B Pension Rate Calculator E Module F Remote area allowance Section 1066B allowance has been paid to the person under Part 2.23 of this Act; and (a) the person’s usual place of residence is situated in the 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 14.

Rate of remote area allowance 1066B-F2 The rate of remote area allowance payable to a person is worked out using Table F. 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 FTB child, and each regular care child, of the person.
Table F—Remote area allowance Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Item Person’s family situation 1.

2.

3.

4.

5.
Not member of couple Partnered Member of illness separated couple Member of respite care couple Partnered (partner in gaol) Basic allowance per year Basic allowance per fortnight Additional allowance per year Additional allowance per fortnight $473.20 $18.20 $189.80 $7.30 $405.60 $473.20 $15.60 $18.20 $189.80 $189.80 $7.30 $7.30 $473.20 $18.20 $189.80 $7.30 $473.20 $18.20 $189.80 $7.30 599 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Pension Rate Calculator E Part 3.4B Remote area allowance Module F Section 1066B Note: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Special rule where partner has an FTB or regular care child but is not receiving a pension 1066B-F4 If: (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and (b) the person’s partner is not receiving a pension or benefit; and (c) the person’s partner has an FTB child or a regular care child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child 1066B-F5 If: (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and (b) the person’s partner has an FTB child or a regular care child; and (c) the person’s partner is not receiving additional allowance for the child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule dealing with the death of an FTB or regular care child 1066B-F6 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.
Social Security Act 1991 600 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067 Part 3.5—Youth Allowance Rate Calculator 1067 Definitions General definitions (1) In this Part: accommodated independent person has the meaning given by section 1067B.

independent has the meaning given by section 1067A.
Note: This definition also applies in Parts 2.11, 2.11B, 3.4A, 3.4B and 3.7. in State care has the meaning given by subsection 1067A(8).
in supported State care, in relation to a person, means being a person in State care in respect of whom both of the following apply: (a) the person qualifies for payments under a law of, or a non-statutory scheme administered by, a State or Territory for the making of any payments by, or by the authority of, the State or Territory to or in respect of the person for his or her upkeep; (b) such payments are being made.
in unsupported State care, in relation to a person, means being a person in State care in respect of whom either of the following applies: (a) the person does not qualify for payments under a law of, or a non-statutory scheme administered by, a State or Territory for the making of any payments by, or by the authority of, the State or Territory to or in respect of the person for his or her upkeep; (b) the person qualifies, but such payments are not being made.
living at home has the meaning given by section 1067E.

601 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Section 1067A long term income support student has the meaning given by section 1067F.

member of a YA couple, in sections 1067A and 1067B, has the meaning given by section 1067C.
premises or lodgings means accommodation of any kind for which rent (within the meaning of subsection 13(2)) is payable.

required to live away from home has the meaning given by section 1067D.

1067A When a person is regarded as independent Application (1) This section applies to determine whether a person is to be regarded as independent for the purposes of this Part and Parts 2.11, 2.11B, 3.4A, 3.4B and 3.7.

A person is not to be regarded as independent except as provided by this section.
Member of a YA couple (2) A person is independent if the person is, or has been, a member of a YA couple (see section 1067C).
Person with a dependent child (3) A person is independent if: (a) the person has a natural child, adoptive child or relationship child who is wholly or substantially dependent on the person or his or her partner; or (b) the person previously had a natural child, adoptive child or relationship child who was wholly or substantially dependent on the person or on a person who, at the time, was the person’s partner.
Social Security Act 1991 602 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067A Person at least a certain age (4) For the purposes of Parts 2.11 and 2.11B, this Part and section 1070G, a person is independent at a time in a period specified in an item of the table if at the time the person is at least the age specified in the item: Age when person becomes independent Item Period 1 2 3 The period starting at the start of 1 April 2010 and ending at the end of 31 December 2010 The year 2011 A year after 2011 Age 24 years 23 years 22 years (4A) For the purposes of Parts 3.4A, 3.4B and 3.7, except section 1070G, a person is independent if the person is at least 25 years old.
Orphan (5) A person is independent if both of the person’s parents are dead, whether or not the person is dependent, or was last dependent, on someone other than his or her parents.
If parents cannot exercise responsibilities (6) A person is independent if both of the person’s parents are (or, if the person has only one parent, that parent is): (a) serving a prison sentence; or (b) mentally incapacitated and likely to remain so incapacitated for an indefinite period; or (c) living in a nursing home and likely to remain there for an indefinite period; or (d) missing; whether or not the person is dependent, or was last dependent, on someone other than a parent of the person.
603 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Section 1067A Refugee (7) A person is independent if the person: (a) is the holder, within the meaning of the Migration (1993) Regulations, of a Group 1.3 entry permit (permanent resident) (refugee and humanitarian); or (b) while the holder of such a permit, was granted Australian citizenship.
However, a person is not independent under this subsection if the person has a parent living in Australia, or is wholly or substantially dependent on someone else on a long-term basis.
Person in State care (8) A person is independent if the person is not living with a parent, and: (a) the person is in the guardianship, care or custody of a court, a Minister, or a Department, of the Commonwealth, a State or a Territory; or (b) there is a current direction from such a court, Minister or Department placing the person in the guardianship, care or custody of someone who is not the person’s parent; or (c) the person stopped being in a situation described in paragraph (a) or (b) only because of his or her age.
A person to whom this subsection applies is taken, for the purposes of this Part to be in State care.
Unreasonable to live at home (9) A person is independent if: (a) the person cannot live at the home of either or both of his or her parents: (i) because of extreme family breakdown or other similar exceptional circumstances; or (ii) because it would be unreasonable to expect the person to do so as there would be a serious risk to his or her Social Security Act 1991 604 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067A physical or mental well-being due to violence, sexual abuse or other similar unreasonable circumstances; or (iii) because the parent or parents are unable to provide the person with a suitable home owing to a lack of stable accommodation; and (b) the person is not receiving continuous support, whether directly or indirectly and whether financial or otherwise, from a parent of the person or from another person who is acting as the person’s guardian on a long-term basis; and (c) the person is not receiving, on a continuous basis, any payments in the nature of income support (other than a social security benefit) from the Commonwealth, a State or a Territory.
People who are self-supporting (10) A person is independent if the person has supported himself or herself through paid work consisting of: (a) full-time employment of on average 30 hours per week for at least 18 months during any period of 2 years; or (b) part-time employment of at least 15 hours per week for at least 2 years since the person last left secondary school; or (c) for the purposes of Parts 3.4A, 3.4B and 3.7, except section 1070G—a period or periods of employment over an 18 month period since the person last left secondary school, earning the person at least the equivalent of 75% of: (i) the maximum rate of pay under Wage Level A of a transitional Australian Pay and Classification Scale or modern award generally applicable to trainees; or (ii) that maximum rate as varied or replaced from time to time by the Fair Work Commission; that applied at the start of the period of employment; or (d) for the purposes of Parts 2.11 and 2.11B, this Part and section 1070G—a period or periods of employment over a 14 month period since the person last left secondary school, earning the person at least the equivalent of 75% of: 605 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Section 1067A (i) the maximum rate of pay under Wage Level A of a transitional Australian Pay and Classification Scale or modern award generally applicable to trainees; or (ii) that maximum rate as varied or replaced from time to time by the Fair Work Commission; that applied at the start of the period of employment.
(10A) For the purposes of determining whether a person is to be regarded as independent for the purposes of Part 2.11 or 2.11B, this Part or section 1070G: (a) paragraph (10)(b) does not apply unless subsection (10E) applies to the person because of paragraph (10E)(d); and (b) paragraph (10)(d) does not apply unless subsection (10E) applies to the person because of paragraph (10E)(e).
(10E) This subsection applies to a person if: (a) the person’s family home is: (i) in a location categorised under the Remoteness Structure as Inner Regional Australia, Outer Regional Australia, Remote Australia or Very Remote Australia; or (ii) on Norfolk Island; and (b) the person is required to live away from home (see section 1067D); and (c) the person is undertaking full-time study (see section 541B); and (d) in relation to paragraph (10)(b)—the person’s combined parental income (as defined in point 1067G-F10) for: (i) the last tax year that ended before the start of the 2 years referred to in that paragraph; or (ii) the appropriate tax year worked out under Submodule 3 of Module F of the Youth Allowance Rate Calculator in section 1067G; is less than the threshold amount (see subsection (10K)) for the person for that tax year; and Social Security Act 1991 606 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067A (e) in relation to paragraph (10)(d)—the person’s combined parental income (as defined in point 1067G-F10) for: (i) the last tax year that ended before the start of the 14-month period referred to in that paragraph; or (ii) the appropriate tax year worked out under Submodule 3 of Module F of the Youth Allowance Rate Calculator in section 1067G; is less than the threshold amount (see subsection (10K)) for the person for that tax year.
(10F) For the purposes of paragraph (10E)(a), Remoteness Structure means the Remoteness Structure described in: (a) the document titled “Australian Statistical Geography Standard (ASGS): Volume 5 - Remoteness Structure, July 2011”, published by the Australian Statistician and as amended from time to time; or (b) any replacement document that is published by the Australian Statistician and that is in effect in accordance with subsection (10G); or (c) any document that is determined by the Secretary in an instrument under subsection (10H) and that is in effect in accordance with subsection (10J).
(10G) If a replacement document mentioned in paragraph (10F)(b) is published by the Australian Statistician: (a) the replacement document takes effect on the first 1 January or 1 July to occur after the day of that publication and then has effect as amended from time to time; and (b) the document in effect immediately before that publication is taken to continue to have effect until the end of the day before that 1 January or 1 July.
(10H) The Secretary may, by notifiable instrument, determine a document for the purposes of paragraph (10F)(c).

The Secretary may do so only if the Australian Statistician has notified the Secretary that the Australian Statistician will no longer be publishing replacement documents mentioned in paragraph (10F)(b).
607 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Section 1067A (10J) A document determined in an instrument under subsection (10H) takes effect on the day specified in the determination and then has effect as amended from time to time.
(10K) For the purposes of paragraphs (10E)(d) and (e) and (14)(d), the threshold amount for the person (the primary person) for a tax year is the sum of the following: (a) $160,000; (b) $10,000 for each person who is a related person (see subsection (10L)) of the primary person on: (i) subject to subparagraph (ii)—30 June of that tax year; or (ii) if that tax year is the tax year following the base tax year because of point 1067G-F7 or 1067G-F8—the day the request was made.
(10L) For the purposes of paragraph (10K)(b), a person (the first person) is a related person of the primary person on a day if on that day: (a) the first person is aged under 22; and (b) a parent of the first person is also a parent of the primary person; and (c) none of the following applies to the first person: (i) the first person is living away from the home of each parent covered by paragraph (b) and the first person is a member of a YA couple under subsection 1067C(1); (ii) the first person is living away from the home of each parent covered by paragraph (b) and the first person has a natural child, adoptive child or relationship child who is wholly or substantially dependent on the first person or the first person’s partner (if any); (iii) the first person is receiving youth allowance or disability support pension and the first person is independent under subsection (9); (iv) the first person is in State care.
Note: For parent, see paragraph (b) of the definition of parent in subsection 5(1).
Social Security Act 1991 608 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067A (10M) For the purposes of the application of paragraph (10)(a), (b) or (d) in relation to a person: (a) if, for a week that falls wholly in the 2-year period referred to in paragraph (10)(a) and wholly in the COVID-19 concession period, the person was not in paid work consisting of full-time employment of at least 30 hours—the person is taken, for that week, to have been in paid work consisting of full-time employment of 30 hours; and (b) if, for a week that falls wholly in the 2-year period referred to in paragraph (10)(b) and wholly in the COVID-19 concession period, the person was not in paid work consisting of part-time employment of at least 15 hours—the person is taken, for that week, to have been in paid work consisting of part-time employment of 15 hours; and (c) if, for a week that falls wholly in the 14-month period referred to in paragraph (10)(d) and wholly in the COVID-19 concession period, the person was not in paid work consisting of employment that earnt the person at least the equivalent of 75% of the maximum rate applicable under that paragraph on 25 March 2020—the person is taken, for that week, to have been in paid work consisting of employment that earnt the person 75% of that maximum rate.
(10N) For the purposes of subsection (10M), the COVID-19 concession period is the period: (a) beginning on 25 March 2020; and (b) ending at the end of 24 September 2020.
People who are disadvantaged (11) A person is independent if the person: (a) is at least 18 years old; and (b) has had full-time employment of at least 30 hours per week for a period of at least 12 months, or for periods that total at least 12 months; and (c) does not live at the home of either or both of his or her parents; and 609 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Section 1067A (d) in the Secretary’s opinion, is specially disadvantaged with respect to education or employment; and (e) is not receiving financial support, whether directly or indirectly, from a parent of the person or from another person who is acting as the person’s guardian on a long-term basis.
Note: For parent see section 5 (paragraph (a) of that definition).

People with a partial capacity to work (12) A person is independent if the person: (a) has turned 16; and (b) has a partial capacity to work; and (c) is not undertaking full-time study and is not a new apprentice.

Note 1: For partial capacity to work see section 16B.

Note 2: For undertaking full-time study see section 541B.

Note 3: For new apprentice see subsection 23(1).


Parents of relationship children (13) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of subsections (5), (6), (7), (8), (9) and (11).
Agricultural work (14) A person is independent if: (a) paragraph 541(1)(a)subparagraph 540(1)(a)(i) (about full time study) applies in relation to the person; and (b) the person undertook qualifying agricultural work between 30 November 2020 and 31 December 2021; and (c) the gross earnings of the person for that work are at least $15,000; and Social Security Act 1991 610 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067B (d) the person’s combined parental income (as defined in point 1067G-F10) for the 2019-2020 tax year or 2018-2019 tax year is less than the threshold amount (see subsection (10K)) for the person for that tax year.
(15) For the purposes of this section, qualifying agricultural work is work of a kind determined in an instrument under subsection (16).

(16) The Secretary of the Department administered by the Minister administering the Social Security (International Agreements) Act 1999 may, by legislative instrument, determine kinds of work for the purposes of subsection (15).
1067B Accommodated independent person (1) A person is taken to be an accommodated independent person for the purposes of Part 2.11B and this Part if, and only if, the person: (a) is independent; and (b) lives at the home of either or both of his or her parents; and (c) is not, and has never been, a member of a YA couple (see section 1067C); and (d) does not have a natural child, adoptive child or relationship child who is wholly or substantially dependent on the person or his or her partner; and (e) has never had a natural child, adoptive child or relationship child who was wholly or substantially dependent on the person or on a person who, at the time, was the person’s partner; and (f) is not a person who: (i) qualified for the independent living allowance under the AUSTUDY scheme, as in force immediately before the commencement of Schedule 11 to the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998, only under AUSTUDY Regulation 68, as in force at that time; and 611 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Section 1067C (ii) had not, at that time, turned 25.
Note: For parent see section 5 (paragraph (a) of that definition).

(2) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of paragraph (1)(b).
1067C Member of a YA couple Current member of a YA couple (1) Subject to this section, a person is a member of a YA couple for the purposes of sections 1067A and 1067B if: (a) the person is legally married to another person and is not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis; or (aa) both of the following conditions are met: (i) a relationship between the person and another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; (ii) the person is not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis; or (b) all of the following conditions are met: (i) the person has a relationship with another person, whether of the same sex or a different sex (partner); (ii) the person is not legally married to the partner; (iii) the relationship has existed for a continuous period of at least 12 months; Social Security Act 1991 612 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067C (iv) in the Secretary’s opinion (formed as mentioned in subsections (3) and (4)), the
 relationship is, and has for a continuous period of at least 12 months been, a de facto relationship; (v) if, at the time the relationship became a de facto relationship, the person and the partner were living in Australia—both the person and the partner were over the age of consent applicable in the State or Territory in which they lived at that time; (vi) if, at the time the relationship became a de facto relationship, the person and the partner were living outside Australia—both the person and the partner were over the age of consent applicable in the State or Territory in which they first lived after that time; (vii) the person and the partner are not within a prohibited relationship.
Former member of a YA couple (2) Subject to this section, a person has been a member of a YA couple for the purposes of sections 1067A and 1067B if: (a) the person has been legally married to another person (whether or not they are still legally married) and was not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person, on a permanent or indefinite basis, at all times while so married; or (aa) both of the following conditions are met: (i) a relationship between the person and another person (whether of the same sex or a different sex) was registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section (whether or not the relationship is still registered); 613 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Section 1067C (ii) the person was not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis at all times while the relationship was registered; or (b) all of the following conditions are met: (i) the person had a relationship with another person, whether of the same sex or a different sex (partner); (ii) the person was not legally married to the partner; (iii)
 the relationship existed for a continuous period of at least 12 months; (iv) in the Secretary’s opinion (formed as mentioned in subsections (3) and (4)), the relationship between the person and the partner was, and had for a continuous period of at least 12 months or, in special circumstances determined by the Secretary, at least 6 months been, a de facto relationship; (v) if, at the time the relationship became a de facto relationship, the person and the partner were living in Australia—both the person and the partner were over the age of consent applicable in the State or Territory in which they lived at that time; (vi) if, at the time the relationship became a de facto relationship, the person and the partner were living outside Australia—both the person and the partner were over the age of consent applicable in the State or Territory in which they first lived after that time; (vii) the person and the partner were not within a prohibited relationship.
Criteria for forming opinion about relationship (3) In forming an opinion about the relationship between 2 people for the purposes of paragraph (1)(a), subparagraph (1)(aa)(ii), subparagraph (1)(b)(iv), paragraph (2)(a), subparagraph (2)(aa)(ii) or subparagraph (2)(b)(iv), the Secretary is to have regard to all the Social Security Act 1991 614 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067D circumstances of the relationship including, in particular, the matters referred to in subsection 4(3).
People living separately and apart (4) The Secretary must not form the opinion that the relationship between a person and his or her partner is, or was, a de facto relationship if the person is, or was at the time in question, living separately and apart from the partner on a permanent or indefinite basis.
Moving to a State or Territory with a higher age of consent (5) For the purposes of calculating the period of 2 years referred to in subparagraphs (1)(b)(iii) and (iv) and (2)(b)(iii) and (iv), any period during which the couple in question lived in a State or Territory in which one or both of them was under the age of consent is to be disregarded.
1067D Person required to live away from home When a person is taken to be required to live away from home (1) A person is taken to be required to live away from home for the purposes of Part 2.11B and this Part if, and only if: (a) the person is not independent; and (b) the person does not live at the home of either or both his or her parents; and (c) the Secretary determines that: (i) the person needs to live away from home for the purpose of education, training, searching for employment or doing anything else in preparation for getting employment; or (ii) the likelihood of the person’s getting employment will be significantly increased if the person lives away from home; or (iii) the person needs to live away from home because the person is a new apprentice.
615 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Section 1067E Note: For parent see section 5 (paragraph (a) of that definition).
Matters to which Secretary is to have regard (3) In making a determination under subparagraph (1)(c)(ii), the Secretary is to have regard to: (a) the overall employment prospects for young people in the areas where the home is situated and in the area where the person is living; and (b) matters relating to the person that would affect the likelihood of the person’s getting employment in those areas.
Parents of relationship children (4) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of paragraph (1)(b).
1067E Person living at home If a person: (a) is not independent; and (b) is not taken by section 1067D to be required to live away from home; the person is taken for the purposes of this Part to be living at home.
1067F Long term income support student (1) A person is a long term income support student if the person: (a) is at least 22 years old; and (ba) does not have a dependent child; and (c) is either: Social Security Act 1991 616 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Section 1067G (i) undertaking full-time study in respect of a course of education that the person had commenced after turning 22; or (ii) a new apprentice and became a new apprentice after turning 22; and (d) has, for at least 26 weeks out of the period of 39 weeks that ended when the person commenced to undertake the full-time study or became a new apprentice, been receiving one or more of the following: (i) jobseeker payment; (iii) youth allowance (disregarding youth allowance received while the person was undertaking full-time study); (iv) special benefit; (v) disability support pension; (vii) carer payment; (x) pension PP (single); (xi) sole parent pension; (xii) benefit parenting allowance; (xiii) benefit PP (partnered).
(2) A person is also a long term income support student if the person: (a) is at least 22 years old; and (c) does not have English as a first language; and (d) is undertaking a course in English, being a course that the Secretary has approved.

1067G Rate of youth allowance Youth allowance rate calculator (1) The rate of youth allowance of a person referred to in section 556 is to be calculated in accordance with the Rate Calculator in this section.
Limit on rate of allowance (2) If: 617 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Overall rate calculation process Module A Section 1067G (a) a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person (whether the persons are the same sex or different sexes); and (c) either or both of them are under the age of consent that applies in the State or Territory in which they are living; the rate of the person’s youth allowance is not to be more than the rate at which the allowance would be payable to the person if the other person were the person’s partner.
Youth Allowance Rate Calculator Module A—Overall rate calculation process Method of calculating rate 1067G-A1 The rate of allowance is a daily rate.

That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

Method statement Step 1.

Work out the person’s maximum basic rate using Module B below.

Step 1A.

Work out the energy supplement (if any) using Module BA below.

Step 2.
Step 2.

Work out the amount a fortnight (if any) of pharmaceutical allowance using Module C below.

Step 2A.

Work out the amount per fortnight (if any) for youth disability supplement using Module D below.

Step 3.

Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).
Social Security Act 1991 618 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module A Overall rate calculation process Section 1067G Step 4.

Add up the amounts obtained in Steps 1 to 3: the result is the maximum payment rate.

Step 8.

If the person is not independent, work out the person’s reduction for parental income using Module E. Step 12.
Apply the income test using Module H below to work out the person’s income reduction.

Step 13.

Take away from the maximum payment rate the greatest of the following that apply: (a) the person’s reduction for parental income; (c) the person’s income reduction.

(If a reduction described in paragraph (a) applies, and is not less than any other reduction that applies, take away from the maximum payment rate the first-mentioned reduction.)

The result is the provisional fortnightly payment rate.
If that rate is nil because of the taking away of a reduction described in paragraph (a) then youth allowance is not payable to the person.

Note: If a person’s maximum payment rate is reduced under this step, section 1210 sets the order in which the components of that rate are to be reduced.

Step 14.
The rate of allowance is the amount obtained by: (a) (b) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and 619 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Maximum basic rate Module B Section 1067G (c) except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of allowance is being worked out, adding any amount payable by way of remote area allowance (see Module K).
Module B—Maximum basic rate Maximum basic rate 1067G-B1 The maximum basic rate of a person other than a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is to be worked out as follows: (a) if the person is not independent (see section 1067A) and is not a long term income support student (see section 1067F)—use Table BA; (b) if the person is independent and is not a long term income support student—use Table BB or point 1067G-B3A; (c) if the person is a long term income support student—use Table BC.
The maximum basic rate of a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is nil (see section 552C).

Person who is not independent 1067G-B2 If the person is not independent (see section 1067A) and is not a long term income support student (see section 1067F), work out whether the person: (a) lives at home (see section 1067E); or (b) is required to live away from home (see section 1067D).
The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Social Security Act 1991 620 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module B Maximum basic rate Section 1067G Table BA—Maximum basic rates (people who are not independent) Column 1 Column 2 Item Person’s situation 1 2 3 Lives at home and not yet 18 years old Lives at home and at least 18 years old Required to live away from home Column 3 Rate $303.20 $354.60 $512.50 Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191–1194).
Person who is independent 1067G-B3 If the person is independent (see section 1067A) and is not a long term income support student (see section 1067F), work out: (a) whether the person is an accommodated independent person (see section 1067B); and (b) if the person is not an accommodated independent person, whether the person: (i) is in supported State care (see section 1067); or (ii) is in unsupported State care (see section 1067); or (iii) is a member of a couple (see section 4); or (iv) has a dependent child (see subsections 5(2) to (9)).
The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Table BB—Maximum basic rates (people who are independent) Column 1 Column 2 Item Person’s situation 1 2 Accommodated independent person and not yet 18 years old Accommodated independent person and at least 18 years old $354.60 Column 3 Rate $303.20 621 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Maximum basic rate Module B Section 1067G Table BB—Maximum basic rates (people who are independent) Column 1 Column 2 Item Person’s situation In supported State care and not yet 18 years old In supported State care and at least 18 years old In unsupported State care Not a member of a couple and has a dependent child Member of a couple and has a dependent child Not an accommodated independent person, not in supported State care, not in unsupported State care and does not have a dependent child Column 3 Rate $303.20 $354.60 $512.50 $656 $557.90 $512.50 Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191–1194).
Certain children treated as dependent children if in recipient’s care for at least minimum period 1067G-B3AA For the purposes of point 1067G-B3, the maximum basic rate for a person receiving youth allowance is worked out as if the person had a dependent child if: (a) the person is not undertaking full-time study and is not a new apprentice; and (b) either: (i) the person is legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of a child under 16; or (ii) under a family law order, registered parenting plan or parenting plan that is in force, a child under 16 is supposed to live or spend time with the person; and (c) the child is in the person’s care for at least 14% of: Social Security Act 1991 622 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module B Maximum basic rate Section 1067G (i) the instalment period in relation to which the maximum basic rate is being worked out; or (ii) if the Secretary, under point 1067G-B3AB, determines another period for the person for the purposes of this subparagraph—that other period; and (d) none of subsections 5(3), (6) and (7) prevents the child from being a dependent child of the person.
Note 1: For undertaking full-time study see section 541B.

Note 2: For new apprentice, family law order, registered parenting plan and parenting plan see subsection 23(1).

1067G-B3AB The Secretary may, in writing, determine a period of either 14 days or 28 days for the purposes of subparagraph 1067G-B3AA(c)(ii).

In making the determination, the Secretary must have regard to the guidelines (if any) determined under point 1067G-B3AD.
1067G-B3AC A determination made under point 1067G-B3AB is not a legislative instrument.

1067G-B3AD The Secretary may, by legislative instrument, determine guidelines to be complied with when making a determination under point 1067G-B3AB.
1067G-B3A Despite point 1067G-B3, if a person: (a) is independent (see section 1067A) and is not a long term income support student (see section 1067F); and (b) is not a member of a couple; and (c) has an exemption under section 542FA because of a determination in relation to the person under subsection 542FA(3) or (3A); (c) either: (i) has an exemption under section 542FA because of a determination in relation to the person under subsection 542FA(3) or (3A); or (ii) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect 623 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Maximum basic rate Module B Section 1067G under subsection 40P(2) of the Administration Act because of paragraph 40P(2)(a) or (b) of that Act; the person’s maximum basic rate is the amount worked out as follows: Pension PP (Single) maximum basic amount 26 where: pension PP (Single) maximum basic amount is the sum of: (a) the amount that would have been the person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment; and (b) the amount that would have been the person’s pension supplement under Module BA of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment.
Note: A person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator is indexed 6 monthly in line with increases in Male Total Average Weekly Earnings (see section 1195).
Long term income support student 1067G-B4 If the person is a long term income support student (see section 1067F), work out: (a) whether the person is independent (see section 1067A); and (b) if the person is not independent, whether the person: (i) lives at home (see section 1067E); or (ii) is required to live away from home (see section 1067D); and (c) if the person is independent, whether the person is an accommodated independent person (see section 1067B); and (d) whether the person is a member of a couple (see section 4).
The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Social Security Act 1991 624 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module BA Energy supplement Section 1067G Table BC—Maximum basic rates (long term income support students) Column 1 Column 2 Item Person’s situation Not independent, lives at home and not a member of a couple Not independent, required to live away from home and not a member of a couple Accommodated independent person and not a member of a couple Independent, not an accommodated independent person and not a member of a couple Member of a couple Column 3 Rate $423.70 $611.90 $423.70 $611.90 $557.90 Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191 to 1194).
Module BA—Energy supplement 1067G-BA1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.
General case—recipient not covered by point 1067G-B3A and youth disability supplement not added 1067G-BA2 The recipient’s energy supplement is the amount worked out using the following table if: (a) the recipient is not covered by point 1067G-B3A; and 625 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Energy supplement Module BA Section 1067G (b) an amount of youth disability supplement is not added under Module D to the recipient’s rate.
Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1067G-B2 If the recipient’s maximum basic rate is worked out under item 2 of the table in point 1067G-B2 If the recipient’s maximum basic rate is worked out under item 3 of the table in point 1067G-B2 If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G-B3 If the recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G-B3 If the recipient’s maximum basic rate is worked out under item 5 of the table in point 1067G-B3 If the recipient’s maximum basic rate is worked out under item 6 of the table in point 1067G-B3 If the recipient’s maximum basic rate is worked out under item 7 of the table in point 1067G-B3 If the recipient’s maximum basic rate is worked out under item 8 of the table in point 1067G-B3 10 If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G-B4 $3.90 $4.60 $7.00 $3.90 $4.60 $7.00 $9.20 $7.70 $7.00 $5.70 Social Security Act 1991 626 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module BA Energy supplement Section 1067G Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement 11 12 If the
 recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G-B4 If the recipient’s maximum basic rate is worked out under item 5 of the table in point 1067G-B4 $8.60 $7.70 Recipient covered by point 1067G-B3A 1067G-BA3 If the recipient is covered by point 1067G-B3A, the recipient’s energy supplement is $12.00.
Youth disability supplement added to the recipient’s rate 1067G-BA4 If an amount of youth disability supplement is added under Module D to the recipient’s rate, the recipient’s energy supplement is the amount worked out using the following table: Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement 1 2 3 4 If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1067G-B2 If the recipient’s maximum basic rate is worked out under item 2 of the table in point 1067G-B2 If the recipient’s maximum basic rate is worked out under item 3 of the table in point 1067G-B2 If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G-B3 $5.90 $6.60 $8.50 $5.90 627 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Pharmaceutical allowance Module C Section 1067G Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement 5 6 6A 7 8 If the recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G-B3 If the recipient is a member of a couple and the recipient’s maximum basic rate is worked out under item 5 or 8 of the table in point 1067G-B3 If the recipient is not a member of a couple and the recipient’s maximum basic rate is worked out under item 5 or 8 of the table in point
 1067G-B3 If the recipient’s maximum basic rate is worked out under item 6 of the table in point 1067G-B3 If the recipient’s maximum basic rate is worked out under item 7 of the table in point 1067G-B3 $6.60 $7.70 $8.50 $9.20 $7.70 Module C—Pharmaceutical allowance Qualification for pharmaceutical allowance 1067G-C1 Subject to points 1067G-C2 and 1067G-C2A, an amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person: (a) has a partial capacity to work; or (b) is the principal carer of at least one child and is not a member of a couple; or (c) has a temporary incapacity exemption under section 542A.
(c) either: (i) has a temporary incapacity exemption under section 542A; or Social Security Act 1991 628 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module C Pharmaceutical allowance Section 1067G (ii) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act.
Note 1: For partial capacity to work see section 16B.

Note 2: For principal carer see subsections 5(15) to (24).
No pharmaceutical allowance if partner receiving certain supplements under other Acts 1067G-C2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person is a member of a couple; and (b) the person’s partner is receiving: (i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and (c) the person’s partner is not receiving a service pension or a veteran payment.
No pharmaceutical allowance for full-time students and new apprentices without temporary incapacity exemptions 1067G-C2A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person: (a) does not have a temporary incapacity exemption under section 542A; and (b) is undertaking full-time study or is a new apprentice.
629 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Youth disability supplement Module D Section 1067G Note 1: For undertaking full-time study see section 541B.

Note 2: For new apprentice see subsection 23(1).
Amount of pharmaceutical allowance 1067G-C3 The amount of pharmaceutical allowance is the amount a fortnight worked out using the following table: Table C—Pharmaceutical allowance amounts Column 1 Column 2 Item Person’s family situation Not a member of a couple Partnered Member of an illness separated couple Member of a respite care couple Partnered (partner getting service pension) Partnered (partner in gaol) Column 3 Amount a fortnight $5.40 $2.70 $5.40 $5.40 $2.70 $5.40 Note 1: Note 2: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
The amounts in column 3 are indexed or adjusted annually in line with CPI increases on 1 January (see sections 1191 to 1194 and 1206A).

Module D—Youth disability supplement Youth disability supplement 1067G-D1 If a person: (a) has a partial capacity to work; and (b) has not turned 22; an amount by way of youth disability supplement is to be added to a person’s rate.

The rate of youth disability supplement is $92.40 per fortnight.

Note 1: For partial capacity to work see section 16B.
Social Security Act 1991 630 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module E Person’s reduction for parental income Section 1067G Note 2: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).
1067G-D2 If: (a) an amount by way of youth disability supplement is to be added to a person’s rate of youth allowance under point 1067G-D1; and (b) the sum of: (i) the person’s maximum basic rate of youth allowance; and (ii) the amount of youth disability supplement; would exceed the maximum basic rate of jobseeker payment for a person with a partial capacity to work; the rate of youth disability supplement is to be reduced (but not below zero) by the amount of the excess.
Note: For partial capacity to work, see section 16B.

Module E—Person’s reduction for parental income Person’s reduction for parental income 1067G-E1 This is how to work out the person’s reduction for parental income for the purposes of the method statement in point 1067G-A1.

Method statement Step 1.


Work out the MIT reducible amount by subtracting the base FTB child rate in point 1067G-E2 from the maximum FTB child rate in point 1067G-E3 and then multiplying the result by: 14 365 631 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Person’s reduction for parental income Module E Section 1067G Step 2.
Apply the parental income test in Module F to work out the parental income test result for the person.

Step 3.

Step 4.

If the parental income test result is equal to or more than the MIT reducible amount, the person’s reduction for parental income is the parental income test result.

If the parental income test result is less than the person’s MIT reducible amount, apply the maintenance income test in Module GA to work out the maintenance income test result for the person.

Step 5.
Step 5.

Add the parental income test result to the maintenance income test result to get the person’s notional reduction.

Step 6.

Step 7.

If the notional reduction is less than or equal to the MIT reducible amount, the person’s reduction for parental income is the notional reduction.

If the notional reduction is more than the MIT reducible amount, the person’s reduction for parental income is the MIT reducible amount.
Base FTB child rate 1067G-E2 The base FTB child rate is the amount that would be the base FTB child rate within the meaning of the Family Assistance Act, if the person were an FTB child of a parent of the person.

Maximum FTB child rate 1067G-E3 The maximum FTB child rate is the amount specified for item 2 in column 2 of the table in clause 7 of Schedule 1 to the Family Assistance Act.

Note: The amount is indexed under Schedule 4 of the Family Assistance Act.
Social Security Act 1991 632 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module F Parental income test Section 1067G Module F—Parental income test Submodule 1—Parental income test result Parental income test result 1067G-F1 This is how to work out the parental income test result for a person for the purposes of the method statement in point 1067G-E1.
Method statement Step 1.

Work out whether the person is exempt from the parental income test using Submodule 2.

If the person is exempt, go to step 5.

Step 2.

If the person is not exempt, identify the appropriate tax year using Submodule 3.

Step 3.

Work out the person’s combined parental income for the appropriate tax year using Submodule 4.

Step 4.

Work out the person’s parental income free area using Submodule 5.

Step 5.
Step 5.

If: (a) the person’s combined parental income does not exceed the person’s parental income free area; or (b) the person is exempt from the parental income test; then the parental income test result for the person is nil.

Step 6.

If the person’s combined parental income exceeds the person’s parental income free area, then the parental income test result for the person is the amount worked out using Submodule 6.
633 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Parental income test Module F Section 1067G Submodule 2—Exemption from parental income test Parent receiving Commonwealth benefit 1067G-F3 A person is exempt from the parental income test while a parent of the person: (a) is receiving a payment of pension, benefit, allowance or compensation referred to in Module L; or (c) is receiving a payment under the ABSTUDY Scheme.
Submodule 3—Appropriate tax year Appropriate tax year 1067G-F4 Subject to this Submodule, the appropriate tax year for a youth allowance payment period is the base tax year for that period.

Base tax year 1067G-F5 The base tax year for a youth allowance payment period is the tax year that ended on 30 June in the calendar year that came immediately before the calendar year in which the period ends.
Example: A youth allowance payment period ends on 25 January 1999—this day occurs in the calendar year 1 January 1999 to 31 December 1999—the calendar year that came immediately before this one is the calendar year 1 January 1998 to 31 December 1998—the base tax year is the tax year that ended on 30 June 1998 (i.e.

the year of income that began on 1 July 1997).
Change to appropriate tax year because of increase in combined parental income 1067G-F6 If a person’s combined parental income under Submodule 4 for the tax year following the base tax year exceeds: (a) 125% of the person’s combined parental income under that Submodule for the base tax year; and (b) 125% of the person’s parental income free area under Submodule 5; Social Security Act 1991 634 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module F Parental income test Section 1067G the appropriate tax year, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends after 30 September in a year, is the tax year following the base tax year.
Change to appropriate tax year at person’s request 1067G-F7 If: (aa) a person’s combined parental income for the tax year following the base tax year is substantially less than it was in the base tax year and is likely to continue to be so for 2 years after the later of: (i) 1 January in the tax year following the base tax year; or (ii) the day on which the combined parental income is reduced; and (a) the person requests the Secretary to make a determination under point 1067G-F8; and (b) as a result, the Secretary determines under that point that, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends on or after: (i) the day on which the request is made; or (ii) 1 January in a year; whichever day is later, the appropriate tax year is the tax year following the base tax year; the appropriate tax year, for that purpose, is the tax year following the base tax year.
Person may ask Secretary to change appropriate tax year 1067G-F8 If: (a) youth allowance: (i) is not payable to a person because the rate of youth allowance because of this Module is nil; or (ii) is payable at a reduced rate because of this Module; and (b) the person gives the Secretary an estimate of the person’s combined parental income under Submodule 4 for the tax year following the base tax year; and 635 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Parental income test Module F Section 1067G (c) the person requests the Secretary to make a determination under this point; and (d) the person agrees that the person’s rate of youth allowance is to be recalculated if the person’s actual combined parental income for that tax year exceeds the amount that the person estimated; the Secretary must determine that, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends on or after: (e) the day on which the request is made; or (f) 1 January in a year; whichever day is later, the appropriate tax year is the tax year following the base tax year.
Form of request 1067G-F9 A request under point 1067G-F8 must be made in writing in accordance with a form approved by the Secretary.
Submodule 4—Combined parental income Combined parental income 1067G-F10 For the purposes of this Module, a person’s combined parental income for a particular tax year is the sum of the following amounts (income components) in respect of each of the person’s parents: (a) the parent’s taxable income for that year, disregarding each parent’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for that year; (b) the parent’s adjusted fringe benefits total for that year; (c) the parent’s target foreign income for that year; (d) the parent’s total net investment loss for that year; (da) the parent’s tax free pensions or benefits for that year (worked out in accordance with clause 7 of Schedule 3 to the Family Assistance Act); Social Security Act 1991 636 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module F Parental income test Section 1067G (e) the parent’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year.
Note 2: For taxable income see subsection 23(1).

Note 3: For adjusted fringe benefits total see subpoint 1067G-F11(2).

Note 4: For target foreign income see subpoint 1067G-F11(3).

Note 5: For total net investment loss, see subsection 10B(2).
Income components for tax year 1067G-F11(1) A parent’s taxable income for a tax year is: (a) the parent’s assessed taxable income for that year; or (b) if the parent does not have an assessed taxable income for that year—the accepted estimate, in respect of the parent, of taxable income for that year.
1067G-F11(2) A parent’s adjusted fringe benefits total for a tax year is the amount worked out using the formula: Section 57A employer fringe benefits total  Other employer fringe benefits total where: other employer fringe benefits total is the amount that is the sum of the following: (a) each of the parent’s reportable fringe benefits amounts for the tax year under section 135P of the Fringe Benefits Tax Assessment Act 1986; (b) each of the parent’s reportable fringe benefits amounts for the tax year under section 135Q of the Fringe Benefits Tax Assessment Act 1986, to the extent that section relates to the parent’s employment by an employer described in section 58 of that Act.
section 57A employer fringe benefits total is the amount that is the sum of each of the parent’s individual quasi-fringe benefits amounts for the tax year under section 135Q of the Fringe Benefits Tax Assessment Act 1986, to the extent that section relates to the 637 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Parental income test Module F Section 1067G parent’s employment by an employer described in section 57A of that Act.
1067G-F11(3) A parent’s target foreign income for a tax year is the accepted estimate of the amount of the parent’s foreign income (as defined in section 10A) for the tax year that is not: (a) taxable income; or (b) received in the form of a fringe benefit (as defined in the Fringe Benefits Tax Assessment Act 1986, as it applies of its own force or because of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986) in relation to the parent as employee (as defined in the Fringe Benefits Tax Assessment Act 1986) and a year of tax.
Assessed taxable income 1067G-F12 A parent’s assessed taxable income for a tax year at a particular time is the most recent of: (a) if, at that time, the Commissioner of Taxation has made an assessment or an amended assessment of that taxable income—that taxable income according to the assessment or amended assessment; or (b) if, at that time, a tribunal has amended an assessment or an amended assessment made by the Commissioner—that taxable income according to the amendment made by the tribunal; or (c) if, at that time, a court has amended an assessment or an amended assessment made by the Commissioner or an amended assessment made by a tribunal—that taxable income according to the amendment made by the court.
Accepted estimate 1067G-F13 An accepted estimate of an income component or an amount described in subpoint 1067G-F11(3), in respect of a parent, for a tax year is that income component or amount according to the most recent notice given under point 1067G-F14 and accepted by the Secretary for the purposes of this Module.
Social Security Act 1991 638 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module F Parental income test Section 1067G Notice estimating income component 1067G-F14 A notice setting out an estimate of an income component or an amount described in subpoint 1067G-F11(3), for a tax year, of a parent of a person claiming or receiving youth allowance may be given to the Secretary by: (a) the parent; or (b) the person claiming or receiving youth allowance.
However, if the parent gives a notice, any notice given, in respect of the same income component or amount and the same tax year, by the person claiming or receiving youth allowance is taken not to be, or not to have been, given.

Acceptance of notice 1067G-F15 The Secretary is to accept a notice referred to in point 1067G-F14 for the purposes of this Module only if the Secretary is satisfied that the estimate is reasonable.
Income reduced by maintenance paid by a parent 1067G-F20 A parent’s combined parental income for a tax year is reduced by an amount equal to any maintenance paid during the tax year by the parent: (a) for the upkeep of a child of the parent if the parent does not have care of the child; or (b) to a former partner of the parent.
Submodule 5—Parental income free area Parental income free area 1067G-F22 For the purposes of this Module, a person’s parental income free area for a time in a calendar year is an amount equal to the income free area under clause 38N of Schedule 1 to the A New Tax System (Family Assistance) Act 1999, as affected by indexation under Schedule 4 to that Act, on 1 January in the calendar year.
639 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Parental income test Module F Section 1067G Note: The parental income free area is not indexed under this Act because it is affected by indexation under the A New Tax System (Family Assistance) Act 1999.
Submodule 6—If person’s combined parental income exceeds parental income free area Having parental income in common 1067G-F26 For the purposes of this Submodule, 2 or more persons have parental income in common if: (a) the parental income test applies to each of them; and (b) a parent of one of the persons is also a parent of each of the other persons.

Note: See also points 1067G-F30 and 1067G-F31, which extend the situations in which a person will have parental income in common with other persons.
Person who does not have parental income in common with anyone else 1067G-F27 Work out a person’s parental income test result using the following formula and point 1067G-F29 if: (a) the person does not have parental income in common with anyone else; and (b) the person’s combined parental income (see Submodule 4) for the appropriate tax year exceeds the person’s parental income free area (see Submodule 5): The excess 130 Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a year) and dividing again by 5 (so that the parental income test result is only 20 cents for each dollar of the excess).
Person who has parental income in common with someone else 1067G-F28 Work out a person’s parental income test result using the following formula and point 1067G-F29 if: Social Security Act 1991 640 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module F Parental income test Section 1067G (a) the person has parental income in common with one or more other persons; and (b) the person’s combined parental income (see Submodule 4) for the appropriate tax year exceeds the person’s parental income free area (see Submodule 5): The excess 130  Person’s maximum payment rate under Module A Total of maximum payment rate of each person who has parental income in common Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a year) and dividing again by 5.
Rounding the parental income test result 1067G-F29 If the result of the formula in whichever of points 1067G-F27 and 1067G-F28 applies is not a multiple of 10 cents, round the result to the nearest 10 cents (rounding a multiple of 5 cents upwards).
Extension to recipients under ABSTUDY or Assistance for Isolated Children Scheme 1067G-F30 This Submodule applies in relation to a person in respect of whom a payment is made under the ABSTUDY Scheme or the Assistance for Isolated Children Scheme and to whom a parental income test under that scheme applies as if: (a) the parental income test under this Module applied to the person; and (b) the total of the amounts described in the following table as relevant to the person were the maximum payment rate for the person for the purposes of this Submodule.
Amounts included in total treated as maximum payment rate Item If this allowance is being paid in respect of the person 1 Living allowance under the ABSTUDY Scheme This amount is relevant to the person The person’s maximum payment rate of the living allowance 641 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Parental income test Module F Section 1067G Amounts included in total treated as maximum payment rate Item If this allowance is being paid in respect of the person 2 3 Group 2 school fees allowance under the ABSTUDY Scheme Additional boarding allowance under the Assistance for Isolated Children Scheme This amount is relevant to the person 1/26 of the school fees allowance amount subject to income testing 1/26 of the maximum rate of the additional boarding allowance Note: This Submodule does not (of its own force) affect the amount payable to the person under the ABSTUDY Scheme or the Assistance for Isolated Children Scheme.
Extension to FTB children and regular care children 1067G-F31 In working out a person’s (the recipient’s) parental income test result for the purposes of this Module: (a) an FTB child, or a regular care child, of someone who is a parent of the recipient is taken to be a person (a relevant sibling) who has parental income in common with the recipient; and (b) in using the formula in point 1067G-F28 for the recipient, the maximum payment rate for relevant siblings is 14/365 of the amount worked out under point 1067G-F32.
Note: For FTB child and regular care child, see section 23.
1067G-F32 For the purposes of paragraph 1067G-F31(b), the amount worked out under this point is the amount that would, at the time the recipient’s rate of youth allowance is worked out, be the parent’s maximum rate: (a) under step 1 of the method statement in clause 3 of Schedule 1 to the Family Assistance Act (having regard only to clauses 7 and 11 for the purposes of paragraph (a) of that step); or (b) if the only relevant sibling is a regular care child—under step 1 of the method statement in clause 28A of Schedule 1 to the Family Assistance Act.
Social Security Act 1991 642 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module GA Maintenance income test Section 1067G 1067G-F33 In working out the parent’s maximum rate for the purposes of point 1067G-F32: (a) assume that the parent has made a claim for payment of family tax benefit by instalment in accordance with the Family Assistance Administration Act; and (b) assume that the parent has not made an election under subsection 58A(1) of the Family Assistance Act; and (c) make any other assumption that the Minister, by legislative instrument, specifies.
1067G-F34 Work out the amount under point 1067G-F32 for one parent only.

1067G-F35 Count the amount worked out under point 1067G-F32 once only in using the formula in point 1067G-F28 for a recipient, regardless of how many relevant siblings the recipient has.

Module GA—Maintenance income test Submodule 1—Maintenance income test result Maintenance income test result 1067G-GA1 This is how to work out the maintenance income test result for a person for the purposes of the method statement in point 1067G-E1.
Method statement Step 1.

Work out whether the person is exempt from the maintenance income test using Submodule 2.

If the person is exempt, go to step 5.

Step 2.

If the person is not exempt, work out the annualised amount of maintenance income for a parent of the person (the parent’s maintenance income) using Submodule 3.
643 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Maintenance income test Module GA Section 1067G Step 3.

Work out the parent’s maintenance income free area using Submodule 4.

Step 4.

Work out whether the parent’s maintenance income exceeds the parent’s maintenance income free area.

Step 5.
Step 5.

If: (a) (b) the parent’s maintenance income does not exceed the parent’s maintenance income free area; or the person is exempt from the maintenance income test; then the maintenance income test result for the person is nil.

Step 6.

If the parent’s maintenance income exceeds the parent’s maintenance income free area, multiply the excess by 0.5.

The result, divided by 26, is the maintenance income test result for the person.
Submodule 2—Exemption from maintenance income test Parent exempt from FTB maintenance income test 1067G-GA2 A person is exempt from the maintenance income test if paragraphs 19B(a) and (b) of Schedule 1 to the Family Assistance Act apply to the person’s parent or to the parent’s partner.
Submodule 3—Annualised amount of maintenance income for parent of a person Annualised amount of maintenance income 1067G-GA3 Work out the annualised amount of maintenance income for a parent of the person as if step 1 of the method statement in Social Security Act 1991 644 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module GA Maintenance income test Section 1067G clause 20 of Schedule 1 to the Family Assistance Act applied.
In doing so: (a) assume that the person is an FTB child of the parent; and (b) assume that paragraphs (a), (b), (c) and (d) are not in the step; and (c) only take into account maintenance income received in relation to the person; and (d) in working out whether maintenance income is received in relation to the person, have regard to the considerations that would apply under the Family Assistance Act; and (e) have regard to maintenance income for the income year in respect of which the person’s rate of youth allowance is being worked out.
Submodule 4—Maintenance income free area Main rule 1067G-GA4 The maintenance income free area for a parent of a person is: (a) the column 2 amount (see point 1067G-GA7); or (b) if another point in this Submodule applies—the amount worked out in the point.
If there are other siblings including an FTB child 1067G-GA5 This point applies if the parent of the person is also the parent of: (a) an FTB child in relation to whom the parent receives maintenance income; or (b) both: (i) an FTB child in relation to whom the parent receives maintenance income; and (ii) another person who is receiving youth allowance and in relation to whom the parent receives maintenance income.
The maintenance income free area for the parent is the column 3 amount (see point 1067G-GA7).
645 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Maintenance income test Module GA Section 1067G If there are other siblings but no FTB child 1067G-GA6 This point applies if the parent of the person: (a) is also the parent of another person (an other recipient) who is receiving youth allowance and in relation to whom the parent receives maintenance income; and (b) is not the parent of an FTB child in relation to whom the parent receives maintenance income.
The maintenance income free area for the parent is worked out using this formula: Column 2 amount 1   Column 3 amount for each other recipient Number of other recipients Definitions of column 2 amount and column 3 amount 1067G-GA7 In this Submodule: column 2 amount means the amount specified for item 1 in column 2 of the table in clause 22 of Schedule 1 to the Family Assistance Act.
column 3 amount means the amount specified for item 1 in column 3 of the table in clause 22 of Schedule 1 to the Family Assistance Act.

Note: The amounts are indexed under Schedule 4 of the Family Assistance Act.

Receiving maintenance income in relation to a person 1067G-GA8 In working out whether a parent of a person receives maintenance income in relation to an FTB child or other person, have regard to the considerations that would apply under the Family Assistance Act.
Social Security Act 1991 646 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module H Income test Section 1067G Module H—Income test Effect of ordinary income on maximum payment rate 1067G-H1 This is how to work out the effect of a person’s ordinary income, and the ordinary income of a partner of the person, on the person’s maximum payment rate: Method statement Step 1.
Work out the amount of the person’s ordinary income on a fortnightly basis (where appropriate, taking into account the matters provided for in points 1067G-H2 to 1067G-H25).

Step 2.

If the person is a member of a couple, work out the partner income free area using point 1067G-H26.

Note: The partner income free area is the maximum amount of ordinary income the person’s partner can have without affecting the person’s benefit.

Step 3.

Use point 1067G-H27 to work out the person’s partner income excess.
(If there is no partner income excess under that point, the person’s partner income excess is taken to be nil.)

Step 4.

Use the person’s partner income excess to work out the person’s partner income reduction using point 1067G-H28.

Step 5.

Use point 1067G-H30 to work out the person’s ordinary income excess.

(If there is no ordinary income excess under that point, the person’s ordinary income excess is taken to be nil.)

Step 6.
Step 6.

Use the person’s ordinary income excess to work out the person’s ordinary income reduction using points 1067G-H31, 1067G-H32 and 1067G-H33.

647 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Income test Module H Section 1067G Step 7.
Add the person’s partner income reduction and ordinary income reduction: the result is the person’s income reduction referred to in Step 12 of the Method statement in point 1067G-A1.

Note 1: For ordinary income see subsection 8(1).
Note 2: The application of the income test is affected by provisions concerning: (a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10); (b) business income (sections 1074 and 1075); (c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10); income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10); (e) disposal of income (sections 1106 to 1111).
(d) Ordinary income of members of certain couples 1067G-H2 If a person is a member of a couple and the person’s partner is receiving a social security pension, a service pension, income support supplement or a veteran payment, the person’s ordinary income is taken to be one half of the sum of: (a) the amount that would be the person’s ordinary income if he or she were not a member of a couple; and (b) the amount that would be the ordinary income of the person’s partner if the partner were not a member of a couple.
Friendly society amounts 1067G-H3 The ordinary income of a person: (a) who has a temporary incapacity exemption under section 542A; or (b) who is a partner of a person who has a temporary incapacity exemption under that section; is not to include any amount received from an approved friendly society in respect of the incapacity to which the temporary incapacity exemption relates.
Social Security Act 1991 648 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module H Income test Section 1067G 1067G-H3A The ordinary income of a person: (a) who is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act; or (b) who is a partner of a person who is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act; is not to include any amount received from an approved friendly society in respect of the incapacity that resulted in the determination.
Lump sum payments arising from termination of employment 1067G-H4 Subject to points 1067G-H11 to 1067G-H20 (inclusive), if: (a) a person’s employment has been terminated; and (b) as a result the person is entitled to a lump sum payment from the person’s former employer; the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.
Ordinary income to include certain sick leave entitlements 1067G H5 If a person is qualified for youth allowance and has a temporary incapacity exemption under section 542A, the person’s ordinary income is taken to include an amount equal to the amount in respect of sick leave worked out under points 1067G H6, 1067G H7 and 1067G H8.
Ordinary income to include certain sick leave entitlements 1067G-H5 If a person is qualified for youth allowance and the person: (a) has a temporary incapacity exemption under section 542A; or (b) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect 649 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Income test Module H Section 1067G under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act; the person’s ordinary income is taken to include an amount equal to the amount in respect of sick leave worked out under points 1067G-H6, 1067G-H7 and 1067G-H8.
Sick leave entitlements 1067G-H6 If: (a) a person has sick leave entitlements on a day that the person is incapacitated for work; and (b) the person has the right to claim payment from the person’s employer by way of sick leave payment in respect of that day; and (c) the person’s employer is able to pay the person the person’s sick leave payment in respect of that day; and (d) the person is not receiving a leave payment (other than a sick leave payment) in respect of that day; the person is, for the purposes of this point, taken to have received a sick leave payment equal to the person’s sick leave entitlements in respect of that day, assuming that the person does not exercise any rights the person may have in relation to the amount to be paid in respect of that day.
Subsequent consecutive applications of point 1067G-H6 1067G-H7 If point 1067G-H6 has applied to a person in respect of a day, then, for the purposes of any subsequent consecutive applications of the point, the person’s sick leave entitlements are to be taken to be reduced by a day.
Sick leave payments already included in ordinary income 1067G-H8 A person’s ordinary income is not to include a payment received by the person in respect of sick leave to the extent that an amount equal to the payment has been included in the person’s ordinary income under point 1067G-H5.
Social Security Act 1991 650 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module H Income test Section 1067G Granting of allowance after a cancellation 1067G H9 If: (a) point 1067G H5 has applied to a person while the person was qualified for youth allowance and had a temporary incapacity exemption under section 542A; and (b) that allowance has ceased to be payable under Subdivision B of Division 9 of Part 2.11, or has been cancelled under Subdivision E of that Division; and (c) at least 6 weeks after the day on which the youth allowance ceased to be payable or was cancelled, the person is granted youth allowance, and has a temporary incapacity exemption under section 542A, again; point 1067G H5 applies to the person in respect of the person’s sick leave entitlements.
Certain leave payments taken to be ordinary income—employment continuing 1067G-H11 If: (a) a person is employed; and (b) the person is on leave for a period; and (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period; the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.
Certain termination payments taken to be ordinary income 1067G-H12 If: (a) a person’s employment has been terminated; and (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise); 651 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Income test Module H Section 1067G the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.
Exception to points 1067G-H11 and 1067G-H12 1067G-H12A Point 1067G-H11 or 1067G-H12 does not apply in relation to a person’s entitlement referred to in paragraph 1067G-H11(c) or in relation to a person’s termination payment referred to in paragraph 1067G-H12(b) if: (a) the person makes a claim for youth allowance on or after the commencement of this point; and (b) the person makes the claim after the death of the person’s partner on or after the commencement of this point; and (c) if the person is a man or a woman who was not pregnant when her partner died—the person makes the claim in the period of 14 weeks starting on the day of the death of the partner; and (d) if the person is a woman who was pregnant when her partner died—the person makes the claim: (i) in the period of 14 weeks starting on the day of the death of the partner; or (ii) in the period starting on the day of the death of the partner and ending when the child is born or the woman otherwise stops being pregnant; whichever ends later; and (e) the entitlement referred to in paragraph 1067G-H11(c) arose, or the termination payment referred to in paragraph 1067G-H12(b) was paid, in the period applicable under paragraph (c) or (d) of this point.
More than one termination payment on a day 1067G-H13 If: (a) the person is covered by point 1067G-H12; and (b) the person receives more than one termination payment on a day; Social Security Act 1991 652 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module H Income test Section 1067G the income maintenance period is worked out by adding the periods to which the payments relate.
Start of income maintenance period—employment continuing 1067G-H14 If the person is covered by point 1067G-H11, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated 1067G-H14A Subject to point 1067G-H14C, if the person is covered by point 1067G-H12, the income maintenance period starts, subject to point 1067G-H14B, on the day the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment 1067G-H14B If a person who is covered by point 1067G-H12 is subject to an income maintenance period (the first period) and the person is paid another termination payment during that period (the second leave payment), the income maintenance period for the second termination payment commences the day after the end of the first period.
Start of income maintenance period where liquid assets test waiting period applies 1067G-H14C If a person to whom point 1067G-H14A applies is subject to a liquid assets test waiting period, the income maintenance period is taken to have started on the day on which the liquid assets test waiting period started.
Leave payments or termination payments in respect of periods longer than a fortnight 1067G-H15 Subject to points 1067G-H5 to 1067G H91067G-H8 (inclusive), if: (a) a person receives a leave payment or termination payment; and 653 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Income test Module H Section 1067G (b) the payment is in respect of a period greater than a fortnight; the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by: (c) dividing the amount received by the number of days in the period to which the payment relates (daily rate); and (d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.
1067G-H16 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).
Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period: (a) (b) the allowance claimed may not be payable to the person; or the amount of the allowance payable to the person may be reduced.
When a person receives a leave payment or a termination payment 1067G-H17 For the purposes of points 1067G-H6 to 1067G-H16 (inclusive), a person (first person) is taken to receive a leave payment or termination payment if the payment is made to another person: (a) at the direction of the first person or a court; or (b) on behalf of the first person; or (c) for the benefit of the first person; or (d) the first person waives or assigns the first person’s right to receive the payment.
Social Security Act 1991 654 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module H Income test Section 1067G Single payment in respect of different kinds of termination payments 1067G-H18 If a person who is covered by point 1067G-H12 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1067G-H11 to 1067G-H17 (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
Definitions 1067G-H19 In points 1067G-H11 to 1067G-H18 (inclusive): payment fortnight means a fortnight in respect of which a youth allowance is paid, or would be paid apart from the application of an income maintenance period, to a person.
period to which the payment relates means: (a) if the payment is a leave payment—the leave period to which the payment relates; or (b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or (c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if: (i) the person’s employment had continued; and (ii) the person received ordinary income from the employment at the rate per week at which the person 655 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Income test Module H Section 1067G usually received ordinary income from the employment prior to the termination.
redundancy payment includes a payment in lieu of notice.

termination payment includes: (a) a redundancy payment; and (b) a leave payment relating to a person’s employment that has been terminated; and (c) any other payment that is connected with the termination of a person’s employment.
Meaning of leave payment 1067G-H20 In points 1067G-H5 to 1067G-H19 (inclusive): leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include: (a) an instalment of parental leave pay; or (b) dad and partner pay.

Board and lodging 1067G-H22 A person’s ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.
Ordinary income generally taken into account when first earned, derived or received 1067G-H23 Subject to points 1067G-H23A, 1067-H23B, 1067G-H24 and 1067G-H25 and sections 1072A and 1073, ordinary income (except employment income) is to be taken into account in the fortnight in which it is first earned, derived or received.

Note: See Division 1AA of Part 3.10 for the treatment of employment income.
Social Security Act 1991 656 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module H Income test Section 1067G Claimant or recipient receives lump sum amount for remunerative work 1067G-H23A If a person whose claim for youth allowance has been granted receives, after the claim was made, a lump sum amount that: (a) is paid to him or her in relation to remunerative work; and (b) is not a payment to which point 1067G-H24 applies; and (c) is not an exempt lump sum; and (d) is not employment income; the person is, for the purposes of this Module, taken to receive one fifty-second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.
Partner of claimant or recipient receives lump sum amount for remunerative work 1067G-H23B If: (a) a person whose claim for youth allowance has been granted is a member of a couple; and (b) after the person had made the claim, the person’s partner receives a lump sum amount that: (i) is paid to him or her in relation to remunerative work; and (ii) is not a payment to which point 1067G-H24 applies; and (iii) is not an exempt lump sum; and (iv) is not employment income; the partner is, for the purposes of this Module, taken to receive one fifty-second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.
Operation of points 1067G-H23A and 1067G-H23B 1067G-H23C Points 1067G-H23A and 1067G-H23B have effect even if the person who has made the claim: 657 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Income test Module H Section 1067G (a) is subject to a liquid assets test waiting period or an income maintenance period in respect of the allowance claimed; or (b) is subject to a seasonal work preclusion period; during the period of 12 months referred to in those points.
Ordinary income received at intervals longer than one fortnight 1067G-H24 Subject to points 1067G-H11 to 1067G-H20 (inclusive), if: (a) a person receives a number of payments of ordinary income (except employment income); and (b) each payment is in respect of a period (work period) that is greater than a fortnight; and (c) there is reasonable predictability or regularity as to the timing of the payments; and (d) there is reasonable predictability as to the quantum of the payments; the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by: (e) dividing the amount received by the number of days in the work period (daily rate); and (f) multiplying the daily rate by the number of days in the fortnight that are also within the work period.
Payment of arrears of periodic compensation payments 1067G-H25 If: (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving youth allowance; and (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation; the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by: (c) dividing the amount received by the number of days in the periodic payments period (daily rate); and Social Security Act 1991 658 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module H Income test Section 1067G (d) multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.
Note: For periodic payments period see section 17.
Partner income free area 1067G-H26 The partner income free area for a person is: (a) if the person’s partner is not receiving a social security benefit and has not turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full-time study (see section 541B); or (b) if the person’s partner is not receiving a social security benefit and has turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which jobseeker payment would not be payable to the partner if the partner were qualified for a jobseeker payment; or (c) if the person’s partner is receiving a social security benefit— the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.
1067G-H26A For the purposes of paragraph 1067G-H26(a), disregard steps 2, 2A and 3 of the method statement in point 1067G-A1.

1067G-H26B For the purposes of paragraph 1067G-H26(b), disregard steps 2 and 3 of the method statement in point 1068-A1.
Partner income excess 1067G-H27 If: (a) a person is a member of a couple; and (b) the person’s partner is not receiving a social security pension, a service pension, income support supplement or a veteran payment; and 659 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Income test Module H Section 1067G (c) the partner’s ordinary income exceeds the partner income free area for the partner; then: (d) the person has a partner income excess; and (e) the person’s partner income excess is the amount by which the partner’s ordinary income exceeds the partner income free area.
Partner income reduction 1067G-H28 If a person has a partner income excess, the person’s partner income reduction is an amount equal to 60% of the person’s partner income excess.

Example: Facts: Result: Alice’s partner Martin has an ordinary income of $800.

Assume that the partner income free area under point 1067G-H26 is $640.

Martin’s ordinary income exceeds the partner income free area.
Alice therefore has a partner income excess under point 1067G-H27 of: $800 – $640  $160 Alice’s partner income reduction under point 1067G-H28 is therefore: 60%  $160  $96 Ordinary income free area 1067G-H29 A person’s ordinary income free area is: (a) if the person is undertaking full-time study at any time in the fortnight in respect of which a youth allowance may be payable, other than in compliance with a requirement contained in an employment pathway plan that is in force in relation to the person—$400; or (aa) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable— $400; or (b) otherwise—$150.
Social Security Act 1991 660 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module H Income test Section 1067G Ordinary income excess 1067G-H30 If a person’s ordinary income exceeds the person’s ordinary income free area: (a) the person has an ordinary income excess; and (b) the person’s ordinary income excess is the amount by which the person’s ordinary income exceeds the person’s ordinary income free area.
Ordinary income reduction 1067G-H31 If a person has an ordinary income excess, the person’s ordinary income reduction is the sum of: (a) the person’s lower range reduction (if any)(see point 1067G-H32); and (b) the person’s upper range reduction (if any) (see point 1067G-H33).
Lower range reduction 1067G-H32 The person’s lower range reduction is an amount equal to 50% of the part of the person’s ordinary income excess that does not exceed: (a) if the person is undertaking full-time study at any time in the fortnight in respect of which a youth allowance may be payable, other than in compliance with a requirement contained in an employment pathway plan that is in force in relation to the person—$80; or (b) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable—$80; or (c) otherwise—$100.
Upper range reduction 1067G-H33 The person’s upper range reduction is an amount equal to 60% of the part (if any) of the person’s ordinary income excess that exceeds: 661 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Student income bank Module J Section 1067G (a) if the person is undertaking full-time study at any time in the fortnight in respect of which a youth allowance may be payable, other than in compliance with a requirement contained in an employment pathway plan that is in force in relation to the person—$80; or (b) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable—$80; or (c) otherwise—$100.
Module J—Student income bank Student income bank 1067G-J1 A person’s ordinary income under Module H may be reduced under this Module.

This diagram sets out how to work out: (a) whether the person’s ordinary income for a particular fortnight, in respect of which youth allowance may be payable to the person, is to be reduced; and (b) if it is to be reduced, the amount of the reduction.
Social Security Act 1991 662 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Student income bank Module J Section 1067G Income bank credit 1067G-J3 A person’s income bank credit for a particular income bank fortnight of the person is to be worked out as follows: Method statement Step 1.
Assume that the person’s income bank credit, at the time this Module starts applying to the person, is an opening balance of zero.

Step 2.

If, for the person’s first income bank fortnight, the person has an income credit under point 1067G-J4, add it to the opening balance.

Step 3.
For each subsequent income bank fortnight of the person, up to but not including the fortnight in question, either: (a) if the person has an income credit for that fortnight under point 1067G-J4 and the person is not a new apprentice—add it to the balance of the person’s income bank credit in respect of all the previous fortnights, but not so as to increase the balance beyond $10,000; or (aa) if the person has an income credit for that fortnight under point 1067G-J4 and the person is a new apprentice—add it to the balance of the person’s income bank credit in respect of all the previous Social Security Act 1991 664 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module J Student income bank Section 1067G fortnights, but not so as to increase the balance beyond $1,000; or (b) if the person has, in respect of that fortnight, drawn from the person’s income bank credit under point 1067G-J5—deduct from that balance the amount drawn, but not so as to reduce the balance below zero.
The result is the person’s income bank credit for the fortnight in question.
Income credit 1067G-J4 For the purposes of point 1067G-J3, if the amount that would, apart from this Module, be the person’s ordinary income for an income bank fortnight of the person is less than the ordinary income free area (see paragraph 1067G-H29(a) or (aa)): (a) the person has an income credit for that fortnight; and (b) the income credit is an amount equal to the difference between the ordinary income free area (see paragraph 1067G-H29(a) or (aa)) and the first-mentioned amount.
Drawing from income bank credit 1067G-J5 For the purposes of point 1067G-J3, if the amount that would, apart from this Module, be the person’s ordinary income for an income bank fortnight of the person is greater than the ordinary income free area (see paragraph 1067G-H29(a) or (aa)): (a) the person is taken to have drawn from the person’s income bank credit in respect of that fortnight; and (b) the amount drawn is taken to be an amount equal to the difference between the first-mentioned amount and the ordinary income free area (see paragraph 1067G-H29(a) or (aa)).
665 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Student income bank Module J Section 1067G Income bank fortnight 1067G-J6 For the purposes of this Module, an income bank fortnight of a person is any fortnight, in respect of which youth allowance may be payable to the person, during the whole or a part of which this Module applies to the person.
Opening balance following cancellation of another social security pension or benefit 1067G-J7 If: (a) a person ceases to be a working credit participant because of a determination to cancel, or an automatic cancellation of, the person’s social security pension or social security benefit; and (b) the person had a working credit balance greater than nil immediately before the date of effect of the determination or cancellation; and (c) the person makes a claim, or is taken to have made a claim, for a youth allowance; and (d) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (b); and (e) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day; the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the module application day.
Opening balance following suspension of youth allowance 1067G-J8 If: (a) a person ceases to be a working credit participant because of a determination to suspend the person’s youth allowance; and Social Security Act 1991 666 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module J Student income bank Section 1067G (b) the person had a working credit balance greater than nil immediately before the date of effect of the determination; and (c) within 12 months after the date of effect of the determination: (i) the person commences to undertake full-time study or becomes a new apprentice; and (ii) the payment of the person’s youth allowance is resumed; and (d) the person becomes a person to whom this module applies on the day with effect from which the person’s youth allowance is resumed; the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the day mentioned in paragraph (d).
Opening balance following suspension and subsequent cancellation of another social security pension or benefit 1067G-J9 If: (a) a person ceases to be a working credit participant because of a determination to suspend the person’s social security pension or social security benefit; and (b) while the person’s pension or benefit is suspended, there is a determination to cancel the person’s pension or benefit; and (c) the person had a working credit balance greater than nil immediately before the date of effect of the suspension determination; and (d) the person makes a claim, or is taken to have made a claim, for a youth allowance; and (e) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (c); and (f) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day; 667 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Student income bank Module J Section 1067G the working credit balance mentioned in paragraph (c) becomes the opening balance of the income bank credit applicable to the person on the module application day.
Opening balance following commencement of full-time study by youth allowance recipient 1067G-J10 If: (a) a person is receiving youth allowance and is not undertaking full-time study; and (b) the person commences to undertake full-time study; and (c) either because of a determination made as a result of the commencement or, if no determination is necessary, because of the commencement itself, the person, on a day (the module application day): (i) ceases to be a working credit participant; and (ii) becomes a person to whom this Module applies; and (d) the person had a working credit balance greater than nil immediately before the module application day; the working credit balance mentioned in paragraph (d) becomes the opening balance of the income bank credit applicable to the person on the module application day.
Opening balance following commencement as a new apprentice by youth allowance recipient 1067G-J11 If: (a) a person is receiving youth allowance and is not a new apprentice; and (b) the person becomes a new apprentice; and (c) either because of a determination made as a result of the commencement or, if no determination is necessary, because of the commencement itself, the person, on a day (the module application day): (i) ceases to be a working credit participant; and (ii) becomes a person to whom this Module applies; and Social Security Act 1991 668 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module K Remote area allowance Section 1067G (d) the person had a working credit balance greater than nil immediately before the module application day; the working credit balance mentioned in paragraph (d) becomes the opening balance of the income bank credit applicable to the person on the module application day.
Module K—Remote area allowance Remote area allowance—person physically in remote area 1067G-K1 An amount by way of remote area allowance is to be added to a person’s rate of youth allowance if: (a) the person’s rate of youth allowance apart from this point is greater than nil; and (b) the person’s usual place of residence is situated in the remote area; and (c) the person is physically present in the remote area.

Note 1: For remote area see subsection 14(1).


Note 2: A person may be considered to be physically present in a remote area during temporary absences (see subsection 14(2)).

Rate of remote area allowance 1067G-K2 A person’s rate of remote area allowance is worked out using Table K. 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 4 for each FTB child, and each regular care child, of the person.
669 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Remote area allowance Module K Table K—Remote area allowance Column 1 Column 2 Item Person’s family situation Column 3 Basic allowance 1 2 3 4 Not a member of a couple Partnered Member of an illness separated couple Partnered (partner in gaol) $18.20 $15.60 $18.20 $18.20 Section 1067G Column 4 Additional allowance for each FTB child and regular care child $7.30 $7.30 $7.30 $7.30 Note: For member of a couple, partnered, illness separated couple and partnered (partner in gaol) see section 4.
Meaning of remote area allowance 1067G-K3 In Table K, remote area allowance means an amount added to a person’s youth allowance by way of remote area allowance.

In remote area 1067G-K4 For the purposes of Table K, a person is in the remote area if: (a) the person’s usual place of residence is in the remote area; and (b) the person is physically present in the remote area.
Social Security Act 1991 670 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module K Remote area allowance Section 1067G Special rule if partner has an FTB or regular care child but is not receiving a pension 1067G-K6 If: (a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and (b) the person’s partner is not receiving a social security pension or social security benefit; and (c) the person’s partner has an FTB child or a regular care child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule if partner has an FTB or regular care child but is not receiving additional allowance for the child 1067G-K7 If: (a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and (b) the person’s partner has an FTB child or a regular care child; and (c) the person’s partner is not receiving additional allowance for the child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule dealing with the death of an FTB or regular care child 1067G-K9 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.
671 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Youth Allowance Rate Calculator Part 3.5 Table of pensions, benefits, allowances and compensation Module L Section 1067G Module L—Table of pensions, benefits, allowances and compensation Table of pensions, benefits, allowances and compensation Item Type of pension, benefit, allowance and compensation 1 2 3 4 4A 7 7A 7B Age pension Service pension (age) (Part 2.2) (Section 36 of the Veterans’ Entitlements Act) Defence widow’s pension—if the widow has no dependent children (Section 70 of the Veterans’ Entitlements Act) War widow’s pension—if the widow has no dependent children (Section 13 of the Veterans’ Entitlements Act) Compensation for an armed services widow who has no dependent children (Paragraph 234(1)(b) or subsection 236(5) of the Military Rehabilitation and Compensation Act) Service pension (partner)—if partner is receiving service pension (age) (Section 38 of the Veterans’ Entitlements Act) Income support supplement Veteran payment Carer payment Service pension (carer) (section 45A of the Veterans’ Entitlements Act) (section 45SB of the Veterans’ Entitlements Act) (Part 2.5) (Section 39 of the Veterans’ Entitlements Act) Defence widow’s pension—if the widow has a dependent child (Section 70 of the Veterans’ Entitlements Act) Disability support pension Service pension (invalidity) (Part 2.3) (Section 37 of the
 Veterans’ Entitlements Act) Pension PP (single) (Part 2.10) War widow’s pension—if the widow has a dependent child (Section 13 of the Veterans’ Entitlements Act) Social Security Act 1991 672 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5 Youth Allowance Rate Calculator Module L Table of pensions, benefits, allowances and compensation Section 1067G Table of pensions, benefits, allowances and compensation
 Item 20A 22 23 25 26 27 Type of pension, benefit, allowance and compensation Compensation for an armed services widow who has a dependent child (Paragraph 234(1)(b) or subsection 236(5) of the Military Rehabilitation and Compensation Act) Wife’s service pension—if husband is receiving an invalidity service pension (Section 40 of the Veterans’ Entitlements Act) Jobseeker payment Special benefit Benefit PP (partnered) Austudy payment (Part 2.12) (Part 2.15) (Part 2.10) (Part 2.11A) 673 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Part 3.5A—Austudy Payment Rate Calculator Section 1067H 1067H Definitions In this Part: living at home has the meaning given by section 1067J.
long term income support student has the meaning given by section 1067K.

1067J Person living at home (1) A person lives at home if the person lives at the home of either or both of his or her parents.

Note: For parent see section 5 (paragraph (a) of the definition of parent).
(2) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of subsection (1).
1067K Long term income support student (1) A person is a long term income support student if the person: (b) does not have a dependent child; and (c) is either: (i) undertaking study (whether as a full-time student or as a concessional study-load student) in respect of a course of education that the person has commenced after turning 21; or (ii) a new apprentice and became a new apprentice after turning 21; and (d) has, for at least 26 weeks in the period of 39 weeks that ended when the person commenced to undertake the study or Social Security Act 1991 674 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Section 1067L became a new apprentice, been receiving one or more of the following: (i) jobseeker payment; (iii) special benefit; (iv) disability support pension; (vi) carer payment; (ix) pension PP (single); (x) sole parent pension; (xi) benefit parenting allowance; (xii) benefit PP (partnered).
Note 1: For dependent child see subsections 5(2) to (9).

Note 2: For full-time student and concessional study-load student see sections 569C and 569D.

(2) A person is also a long term income support student if the person: (b) does not have a dependent child; and (c) does not have English as a first language; and (d) is undertaking a course in English, being a course that the Secretary has approved.

Note: For dependent child see subsections 5(2) to (9).
1067L Rate of austudy payment Austudy Payment Rate Calculator (1) The rate of austudy payment of a person referred to in section 581 is to be calculated in accordance with the Rate Calculator in this section.
Limit on rate of payment (2) If: (a) a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person (whether the persons are the same sex or different sexes); and 675 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Overall rate calculation process Module A Section 1067L (b) the other person is under the age of consent that applies in the State or Territory in which they are living; the rate of the person’s austudy payment is not to be more than the rate at which the austudy payment would be payable to the person if the other person were the person’s partner.
Austudy Payment Rate Calculator Module A—Overall rate calculation process Method of calculating rate 1067L-A1 The rate of payment is a daily rate.

That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

Method statement Step 1.

Work out the person’s maximum basic rate using Module B below.

Step 1A.

Work out the pension supplement amount (if any) using Module BA below.

Step 1B.

Work out the energy supplement (if any) using Module BB below.

Step 2.
Step 2.

Work out the amount a fortnight (if any) of pharmaceutical allowance using Module C below.

Step 2A.

Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).

Step 3.

Add up the amounts obtained in Steps 1, 1A, 1B, 2 and 2A: the result is the maximum payment rate.
Social Security Act 1991 676 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module B Maximum basic rate Section 1067L Step 4.

Apply the income test using Module D below to work out the person’s income reduction.

Step 5.

Take away the person’s income reduction from the maximum payment rate: the result is the provisional fortnightly payment rate.
Note: If a person’s rate is reduced under this step, the order in which the reduction is to be made is laid down by section 1210.

Step 6.

The rate of payment is the amount obtained by: (a) (b) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and (c) adding any amount payable by way of remote area allowance (see Module F).
Module B—Maximum basic rate Maximum basic rate 1067L-B1 A person’s maximum basic rate is to be worked out as follows: (a) if the person is not a long term income support student (see section 1067K)—use Table BA; (b) if the person is a long term income support student—use point 1067L-B3.
Person who is not a long term income support student 1067L-B2(1) If the person is not a long term income support student (see section 1067K), work out: 677 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Maximum basic rate Module B Section 1067L (a) whether the person is a member of a couple (see section 4); and (b) whether the person has a dependent child (see subsections 5(2) to (9)); and (c) if the person is not a member of a couple, whether the person has a YA child (see subpoint (2)).
The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Table BA—Maximum basic rates (persons who are not long term income support students) Column 1 Column 2 Item Person’s situation 1 2 3 Does not have a dependent child or a YA child Is a member of a couple and has a dependent child Is not a member of a couple and has a dependent child or YA child Column 3 Rate $512.50 $557.90 $656 Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191–1194).
(2) In this point: YA child, in relation to a person who is not a member of a couple, means a child who is receiving youth allowance, is under 18 years of age and would be a dependent child of the person if he or she were not receiving the allowance.

Person who is a long term income support student 1067L-B3 If the person is a long term income support student (see section 1067K), work out whether the person is a member of a couple (see section 4).
Social Security Act 1991 678 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module BA Pension supplement Section 1067L The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Table BB—Maximum basic rates (persons who are long term income support students) Column 1 Column 2 Item Person’s situation 1 2 Is a member of a couple Is not a member of a couple Column 3 Rate $557.90 $611.90 Module BA—Pension supplement Pension supplement 1067L-BA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia, has reached pension age and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
1067L-BA2 The person’s pension supplement amount is: (a) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1067L-BA4; and (b) otherwise—the amount worked out under point 1067L-BA3.
Amount if no election in force 1067L-BA3 The person’s pension supplement amount is the amount worked out by: (a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and (b) dividing the result by 26; and (c) if: (i) the person is not partnered; and 679 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Energy supplement Module BB Section 1067L (ii) the amount resulting from paragraph (b) is not a multiple of 10 cents; rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of 10 cents but is a multiple of 5 cents).
Item Person’s family situation Use this % Not member of couple Partnered Member of illness separated couple Member of respite care couple Partnered (partner in gaol) 66.33% 50% 66.33% 66.33% 66.33% Note: For combined couple rate of pension supplement, see subsection 20A(1).
Amount if election in force 1067L-BA4 The person’s pension supplement amount is the amount worked out as follows: (a) work out the amount for the person under point 1067L-BA3 as if the election were not in force; (b) from that amount, subtract 1/26 of the person’s minimum pension supplement amount.
Module BB—Energy supplement 1067L-BB1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.
Social Security Act 1991 680 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module BB Energy supplement Section 1067L Recipient has reached pension age 1067L-BB2 If the recipient has reached pension age, the recipient’s energy supplement is the amount worked out using the following table: Energy supplement Item Recipient’s family situation Amount of energy supplement Not a member of a couple Partnered Member of an illness separated couple Member of a respite care couple Partnered (partner in gaol) $14.10 $10.60 $14.10 $14.10 $14.10 Recipient has not reached pension age 1067L-BB3 If the recipient has not reached pension age, the recipient’s energy supplement is worked out using the following table: Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement 1 2 3 4 If the recipient’s maximum basic rate is worked out under item 1 of the table in subpoint 1067L-B2(1) If the recipient’s maximum basic rate is worked out under item 2 of the table in subpoint 1067L-B2(1) If the recipient’s maximum basic rate is worked out under item 3 of the table in subpoint 1067L-B2(1) If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1067L-B3 $7.00 $7.70 $9.20 $7.70 681 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to
 payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Pharmaceutical allowance Module C Section 1067L Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement 5 If the recipient’s maximum basic rate is worked out under item 2 of the table in point 1067L-B3 $8.60 Module C—Pharmaceutical allowance Qualification for pharmaceutical allowance 1067L-C1 Subject to points 1067L-C1A and 1067L-C2, an amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if: (b) the person has turned 60; and (c) the person has been receiving income support payments in respect of a continuous period of at least 9 months (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this paragraph).
Note 1: For income support payment see subsection 23(1).

Note 2: For the determination of the continuous period in respect of which a person received income support payments see section 38B.

No pharmaceutical allowance if person receiving pension supplement 1067L-C1A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if a pension supplement amount has been added to that rate.
No pharmaceutical allowance if partner receiving certain supplements under other Acts 1067L-C2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person is a member of a couple; and Social Security Act 1991 682 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module C Pharmaceutical allowance Section 1067L (b) the person’s partner is receiving: (i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and (c) the person’s partner is not receiving a service pension or a veteran payment.
Amount of pharmaceutical allowance 1067L-C3 The amount of pharmaceutical allowance is the amount per fortnight worked out using the following table: Table C—Pharmaceutical allowance amounts Column 1 Column 2 Item Person’s family situation Not a member of a couple Partnered Member of an illness separated couple Member of a respite care couple Partnered (partner getting service pension) Partnered (partner in gaol) Column 3 Amount per fortnight $5.40 $2.70 $5.40 $5.40 $2.70 $5.40 Note 1: Note 2: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
The amounts in column 3 are indexed or adjusted annually in line with CPI increases on 1 January (see sections 1191 to 1194 and 1206A).
683 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Income test Module D Section 1067L Module D—Income test Effect of ordinary income on maximum payment rate 1067L-D1 This is how to work out the effect of: (a) a person’s ordinary income; and (b) the ordinary income of a partner of the person; on the person’s maximum payment rate: Method statement Step 1.
Work out the amount of the person’s ordinary income on a fortnightly basis (where appropriate, taking into account the matters provided for in points 1067L-D2 to 1067L-D24).

Step 2.

If the person is a member of a couple, work out the partner income free area using point 1067L-D25.

Note: The partner income free area is the maximum amount of ordinary income the person’s partner can have without affecting the person’s benefit.

Step 3.

Use point 1067L-D26 to work out the person’s partner income excess.
(If there is no partner income excess under that point, the person’s partner income excess is taken to be nil.)

Step 4.

Use the person’s partner income excess to work out the person’s partner income reduction using point 1067L-D27.

Social Security Act 1991 684 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module D Income test Section 1067L Step 5.
Use point 1067L-D29 to work out the person’s ordinary income excess.

(If there is no ordinary income excess under that point, the person’s ordinary income excess is taken to be nil.)

Step 6.

Use the person’s ordinary income excess to work out the person’s ordinary income reduction using points 1067L-D30, 1067L-D31 and 1067L-D32.

Step 7.
Step 7.

Add the person’s partner income reduction and ordinary income reduction: the result is the person’s income reduction referred to in Step 4 of the Method statement in point 1067L-A1.

Note 1: For ordinary income see subsection 8(1).
Note 2: The application of the income test is affected by provisions concerning the following: (a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10); (b) business income (sections 1074 and 1075); (c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10); income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10); (e) disposal of income (sections 1106 to 1111).
(d) Ordinary income of members of certain couples 1067L-D2 If a person is a member of a couple and the person’s partner is receiving a social security pension, a service pension, income support supplement or a veteran payment, the person’s ordinary income is taken to be one half of the sum of: (a) the amount that would be the person’s ordinary income if he or she were not a member of a couple; and (b) the amount that would be the ordinary income of the person’s partner if the partner were not a member of a couple.
685 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Income test Module D Section 1067L Lump sum payments arising from termination of employment 1067L-D3 Subject to points 1067L-D5 to 1067L-D16 (inclusive), if: (a) a person’s employment has been terminated; and (b) as a result the person is entitled to a lump sum payment from the person’s former employer; the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.
Certain leave payments taken to be ordinary income—employment continuing 1067L-D5 If: (a) a person is employed; and (b) the person is on leave for a period; and (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period; the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.
Certain termination payments taken to be ordinary income 1067L-D6 If: (a) a person’s employment has been terminated; and (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise); the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.
More than one termination payment on a day 1067L-D7 If: (a) the person is covered by point 1067L-D6; and Social Security Act 1991 686 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module D Income test Section 1067L (b) the person receives more than one termination payment on a day; the income maintenance period is worked out by adding the periods to which the payments relate.
Start of income maintenance period—employment continuing 1067L-D8 If the person is covered by point 1067L-D5, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated 1067L-D9 Subject to point 1067L-D10A, if the person is covered by point 1067L-D6, the income maintenance period starts, subject to point 1067L-D10, on the day on which the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment 1067L-D10 If: (a) a person who is covered by point 1067L-D6 is subject to an income maintenance period (the first period); and (b) the person is paid another termination payment during that period (the second leave payment); the income maintenance period for the second termination payment starts on the day after the end of the first period.
Start of income maintenance period where liquid assets test waiting period applies 1067L-D10A If a person to whom point 1067L-D10 applies is subject to a liquid assets test waiting period, the income maintenance period is taken to have started on the day on which the liquid assets test waiting period started.
687 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Income test Module D Section 1067L Leave payments or termination payments in respect of periods longer than a fortnight 1067L-D11 If: (a) a person receives a leave payment or termination payment; and (b) the payment is in respect of a period longer than a fortnight; the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by: (c) dividing the amount received by the number of days in the period to which the payment relates (daily rate); and (d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.
1067L-D12 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).
Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period: (a) (b) the allowance claimed may not be payable to the person; or the amount of the allowance payable to the person may be reduced.
When a person receives a leave payment or a termination payment 1067L-D13 For the purposes of points 1067L-D5 to 1067L-D12 (inclusive), a person (first person) is taken to receive a leave payment or termination payment if: (a) the payment is made to another person: (i) at the direction of the first person or a court; or (ii) on behalf of the first person; or (iii) for the benefit of the first person; or Social Security Act 1991 688 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module D Income test Section 1067L (b) the first person waives or assigns his or her right to receive the payment.
Single payment in respect of different kinds of termination payments 1067L-D14 If a person who is covered by point 1067L-D6 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1067L-D5 to 1067L-D13 (inclusive): (a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and (b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
Definitions 1067L-D15 In points 1067L-D5 to 1067L-D14 (inclusive): payment fortnight means a fortnight in respect of which an austudy payment is paid, or would be paid apart from the application of an income maintenance period, to a person.
period to which the payment relates means: (a) if the payment is a leave payment—the leave period to which the payment relates; or (b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or (c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that 689 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Income test Module D Section 1067L was terminated, of an amount equal to the amount of the termination payment if: (i) the person’s employment had continued; and (ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
redundancy payment includes a payment in lieu of notice.

termination payment includes: (a) a redundancy payment; and (b) a leave payment relating to a person’s employment that has been terminated; and (c) any other payment that is connected with the termination of a person’s employment.
Meaning of leave payment 1067L-D16 In points 1067L-D5 to 1067L-D15 (inclusive): leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include: (a) an instalment of parental leave pay; or (b) dad and partner pay.

Board and lodging 1067L-D18 A person’s ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.
Ordinary income generally taken into account when first earned, derived or received 1067L-D19 Subject to points 1067L-D20, 1067L-D21, 1067L-D23 and 1067L-D24 and sections 1072A and 1073, ordinary income (except employment income) is to be taken into account in the fortnight in which it is first earned, derived or received.
Social Security Act 1991 690 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module D Income test Section 1067L Note: See Division 1AA of Part 3.10 for the treatment of employment income.
Claimant or recipient receives lump sum amount for remunerative work 1067L-D20 If a person whose claim for austudy payment has been granted receives, after the claim was made, a lump sum amount that: (a) is paid to him or her in relation to remunerative work; and (b) is not a payment to which point 1067L-D21 applies; and (c) is not an exempt lump sum; and (d) is not employment income; the person is, for the purposes of this Module, taken to receive one fifty-second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.
Partner of claimant or recipient receives lump sum amount for remunerative work 1067L-D21 If: (a) a person whose claim for austudy payment has been granted is a member of a couple; and (b) after the person has made the claim, the person’s partner receives a lump sum amount that: (i) is paid to him or her in relation to remunerative work; and (ii) is not a payment to which point 1067L-D23 applies; and (iii) is not an exempt lump sum; and (iv) is not employment income; the partner is, for the purposes of this Module, taken to receive one fifty-second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.
691 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Income test Module D Section 1067L Operation of points 1067L-D20 and 1067L-D21 1067L-D22 Points 1067L-D20 and 1067L-D21 have effect even if the person who has made the claim: (a) is subject to a liquid assets test waiting period or an income maintenance period in respect of the allowance claimed; or (b) is subject to a seasonal work preclusion period; during the period of 12 months referred to in those points.
Ordinary income received at intervals longer than one fortnight 1067L-D23 Subject to points 1067L-D5 to 1067L-D16 (inclusive), if: (a) a person receives a number of payments of ordinary income (except employment income); and (b) each payment is in respect of a period (work period) that is greater than a fortnight; and (c) there is reasonable predictability or regularity as to the timing of the payments; and (d) there is reasonable predictability as to the quantum of the payments; the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by: (e) dividing the amount received by the number of days in the work period (daily rate); and (f) multiplying the daily rate by the number of days in the fortnight that are also within the work period.
Payment of arrears of periodic compensation payments 1067L-D24 If: (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving an austudy payment; and Social Security Act 1991 692 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module D Income test Section 1067L (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation; the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by: (c) dividing the amount received by the number of days in the periodic payments period (daily rate); and (d) multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.
Note: For periodic payments period see section 17.
Partner income free area 1067L-D25 The partner income free area for a person is: (a) if the person’s partner is not receiving a social security benefit and has not turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full-time study (see section 541B); or (b) if the person’s partner is not receiving a social security benefit and has turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which jobseeker payment would not be payable to the partner if the partner were qualified for a jobseeker payment; or (c) if the person’s partner is receiving a social security benefit— the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.
1067L-D25A For the purposes of paragraph 1067L-D25(a), disregard steps 2, 2A and 3 of the method statement in point 1067G-A1.

1067L-D25B For the purposes of paragraph 1067L-D25(b), disregard steps 2 and 3 of the method statement in point 1068-A1.
693 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Income test Module D Section 1067L Partner income excess 1067L-D26 If: (a) a person is a member of a couple; and (b) the person’s partner is not receiving a social security pension, a service pension, income support supplement or a veteran payment; and (c) the partner’s ordinary income exceeds the partner income free area for the partner; then: (d) the person has a partner income excess; and (e) the person’s partner income excess is the amount by which the partner’s ordinary income exceeds the partner income free area.
Partner income reduction 1067L-D27 If a person has a partner income excess, the person’s partner income reduction is an amount equal to 60% of the person’s partner income excess.

Example: Facts: Result: Alice’s partner Martin has an ordinary income of $800.

Assume that the partner income free area under point 1067L-D25 is $640.

Martin’s ordinary income exceeds the partner income free area.
Alice therefore has a partner income excess under point 1067L-D26 of: $800 – $640  $160 Alice’s partner income reduction under point 1067L-D27 is therefore: 60%  $160  $96 Ordinary income free area 1067L-D28 A person’s ordinary income free area is $400.
Social Security Act 1991 694 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module E Student income bank Section 1067L Ordinary income excess 1067L-D29 If a person’s ordinary income exceeds the person’s ordinary income free area: (a) the person has an ordinary income excess; and (b) the person’s ordinary income excess is the amount by which the person’s ordinary income exceeds the person’s ordinary income free area.
Ordinary income reduction 1067L-D30 If a person has an ordinary income excess, the person’s ordinary income reduction is the sum of: (a) the person’s lower range reduction (if any) (see point 1067L-D31); and (b) the person’s upper range reduction (if any) (see point 1067L-D32).

Lower range reduction 1067L-D31 The person’s lower range reduction is an amount equal to 50% of the part of the person’s ordinary income excess that does not exceed $80.
Upper range reduction 1067L-D32 The person’s upper range reduction is an amount equal to 60% of the part (if any) of the person’s ordinary income excess that exceeds $80.

Module E—Student income bank Student income bank 1067L-E1 A person’s ordinary income under Module D may be reduced under this Module.
This diagram sets out how to work out: (a) whether the person’s ordinary income for a particular fortnight in respect of which austudy payment may be payable to the person, is to be reduced; and 695 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module E Student income bank Section 1067L Step 2.
If, for the person’s first income bank fortnight, the person has an income credit under point 1067L-E3, add it to the opening balance.

Step 3.
For each subsequent income bank fortnight of the person, up to but not including the fortnight in question, either: (a) (aa) (b) if the person has an income credit for that fortnight under point 1067L-E3 and the person is not a new apprentice—add it to the balance of the person’s income bank credit in respect of all the previous fortnights, but not so as to increase the balance beyond $10,000; or if the person has an income credit for that fortnight under point 1067L-E3 and the person is a new apprentice—add it to the balance of the person’s income bank credit in respect of all the previous fortnights, but not so as to increase the balance beyond $1,000; or if the person has, in respect of that fortnight, drawn from the person’s income bank credit under point 1067L-E4—deduct from that balance the amount drawn, but not so as to reduce the balance below zero.
The result is the person’s income bank credit for the fortnight in question.
697 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Student income bank Module E Section 1067L Income credit 1067L-E3 For the purposes of point 1067L-E2, if the amount that would, apart from this Module, be the person’s ordinary income for an income bank fortnight of the person is less than the ordinary income free area (see point 1067L-D28): (a) the person has an income credit for that fortnight; and (b) the income credit is an amount equal to the difference between the ordinary income free area (see point 1067L-D28) and the first-mentioned amount.
Drawing from income bank credit 1067L-E4 For the purposes of point 1067L-E2, if the amount that would, apart from this Module, be the person’s ordinary income for an income bank fortnight of the person is greater than the ordinary income free area (see point 1067L-D28): (a) the person is taken to have drawn from the person’s income bank credit in respect of that fortnight; and (b) the amount drawn is taken to be an amount equal to the difference between the first-mentioned amount and the ordinary income free area (see point 1067L-D28).
Income bank fortnight 1067L-E5 For the purposes of this Module, an income bank fortnight of a person is any fortnight in respect of which an austudy payment may be payable to the person.
Opening balance following cancellation of another social security pension or benefit 1067L-E6 If: (a) a person ceases to be a working credit participant because of a determination to cancel, or an automatic cancellation of, the person’s social security pension or social security benefit; and Social Security Act 1991 698 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module E Student income bank Section 1067L (b) the person had a working credit balance greater than nil immediately before the date of effect of the determination or cancellation; and (c) the person makes a claim, or is taken to have made a claim, for an austudy payment; and (d) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (b); and (e) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day; and (f) the person has not reached pension age before the module application day; the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the module application day.
Opening balance following suspension and subsequent cancellation of another social security pension or benefit 1067L-E7 If: (a) a person ceases to be a working credit participant because of a determination to suspend the person’s social security pension or social security benefit; and (b) while the person’s pension or benefit is suspended, there is a determination to cancel the person’s pension or benefit; and (c) the person had a working credit balance greater than nil immediately before the date of effect of the suspension determination; and (d) the person makes a claim, or is taken to have made a claim, for an austudy payment; and (e) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (c); and (f) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with 699 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Austudy Payment Rate Calculator Part 3.5A Remote area allowance Module F Section 1067L effect from which the claim is granted or a day following that day; and (g) the person has not reached pension age before the module application day; the working credit balance mentioned in paragraph (c) becomes the opening balance of the income bank credit applicable to the person on the module application day.
Module F—Remote area allowance Remote area allowance—person physically in remote area 1067L-F1 An amount by way of remote area allowance is to be added to a person’s rate of austudy payment if: (a) the person’s rate of austudy payment apart from this point is greater than nil; and (b) the person’s usual place of residence is situated in the remote area; and (c) the person is physically present in the remote area.

Note 1: For remote area see subsection 14(1).


Note 2: A person may be considered to be physically present in a remote area during temporary absences (see subsection 14(2)).

Rate of remote area allowance 1067L-F2 A person’s rate of remote area allowance is worked out using Table F. 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 the additional corresponding amount in column 4 for each FTB child, and each regular care child, of the person.
Social Security Act 1991 700 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module F Remote area allowance Section 1067L Table F—Remote area allowance Column 1 Column 2 Item Person’s family situation Column 3 Basic allowance 1 2 3 4 Not a member of a couple Partnered Member of an illness separated couple Partnered (partner in gaol) $18.20 $15.60 $18.20 $18.20 Column 4 Additional allowance for each FTB child and regular care child $7.30 $7.30 $7.30 $7.30 Note: For member of a couple, partnered, illness separated couple and partnered (partner in gaol) see section 4.
Meaning of remote area allowance 1067L-F3 In Table F, remote area allowance means an amount added to a person’s austudy payment by way of remote area allowance.

In remote area 1067L-F4 For the purposes of Table F, a person is in the remote area if: (a) the person’s usual place of residence is in the remote area; and (b) the person is physically present in the remote area.
Special rule if partner has an FTB or regular care child but is not receiving a pension 1067L-F6 If: (a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and 701 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.5A Austudy Payment Rate Calculator Module F Remote area allowance Section 1067L (b) the person’s partner is not receiving a social security pension or social security benefit; and (c) the person’s partner has an FTB child or a regular care child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule if partner has an FTB or regular care child but is not receiving additional allowance for the child 1067L-F7 If: (a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and (b) the person’s partner has an FTB child or a regular care child; and (c) the person’s partner is not receiving additional allowance for the child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule dealing with the death of an FTB or regular care child 1067L-F9 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.
702 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Social Security Act 1991 No.

46, 1991 This future law compilation was prepared on 8 June 2021 taking into account amendments made by the Social Security Legislation Amendment (Streamlined Participation Requirements and Other Measures) Bill 2021.

The date of commencement for the incorporated amendments was unknown at the time of preparation.
Volume 1: Volume 2: Volume 3: Volume 4: Volume 5: sections 1–660M sections 665A–1067L sections 1068–1263 Schedule 1A Endnotes 1–4 Endnote 5 Each volume has its own contents Prepared by the Office of Parliamentary Counsel, Canberra OFFICIAL: Sensitive // Legal Privilege About this compilation This compilation This is a future compilation of the Social Security Act 1991 that shows the expected text of the law as amended by the Social Security Legislation Amendment (Streamlined Participation Requirements and Other Measures) Bill 2021.
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the future compilation.

Future amendments The details of expected future amendments incorporated into the text, that have not yet commenced are underlined in the endnotes.

Any future amendments that are included in the endnotes are underlined.
Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes For more information about any editorial changes made in this compilation, see the endnotes.
Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law.

Accordingly, this compilation does not show the text of the compiled law as modified.

For more information on any modifications, see the series page on the Legislation Register for the compiled law.
Self-repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
OFFICIAL: Sensitive // Legal Privilege Contents Chapter 3—General provisions relating to payability and rates 1 Part 3.6—Benefit Rate Calculator B 1068 1 Rate of widow allowance, jobseeker payment (18 or over), partner allowance, and mature age allowance under Part 2.12B ...................................1 Benefit Rate Calculator B Module A—Overall rate calculation process Module B—Maximum basic rate Module BA—Pension supplement Module C—Energy supplement Module D—Pharmaceutical allowance Module G—Income test Module J—Remote area allowance 2 2 4 10 11 13 17 31 Part 3.6A—Parenting Payment Rate Calculator 35 Rate of parenting payment—pension PP (single)35 1068A Pension PP (Single) Rate Calculator Module A—Overall rate calculation process Module B—Maximum basic rate Module BA—Pension supplement Module BB—Energy supplement Module C—Pharmaceutical allowance Module E—Ordinary income test 35 35 37 37 38 39 41 Module F—Remote area allowance 49 Rate of parenting payment—PP (partnered)........50 1068B Social Security Act 1991 i Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Benefit PP (Partnered) Rate Calculator Module A—Overall rate calculation process Module C—Maximum basic rate Module D—Income test Module DA—Pension supplement Module DB—Energy supplement Module E—Pharmaceutical allowance Module G—Remote area allowance Part 3.7—Rent assistance 50 50 53 54 63 65 66 70 73 Division 1—Operation of this Part Division 2—Qualification for rent assistance 1070 1070A 1070B 1070C 1070D 1070E
 1070F 1070G 1070H 1070J 73 When this Part applies .........................................73 Effect of this Part .................................................73 75 Qualification—general rule .................................75 Common requirements (about aged care residence, home ownership and rent)....................................75 Specific requirement (carer payments and certain age and disability support pensions)....................75 Specific requirement (certain parenting payments)
 .............................................................................76 Specific requirement (certain disability support pensions) ..............................................................77 Specific requirement (youth allowance) ..............80 Specific requirement (austudy payment, mature age allowance under Part 2.12B, jobseeker payment, partner allowance or widow allowance) .............................................................................81 Specific requirement (certain parenting payments) .............................................................................82 Division 3—Rate of rent assistance 84 1070K 1070L 1070M 1070N Rate depends on social security payment and family situation ....................................................84 Rate for carer payments and certain age and disability support pensions...................................84 Rate for certain parenting payments ....................87 Rate for disability support pension (person aged under 18) ..............................................................88 ii Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1070P 1070Q 1070R Rate for disability support pension (person aged between 18 and 21) ..............................................92 Rate for youth allowance, austudy payment, mature age allowance under Part 2.12B, jobseeker payment, partner allowance and widow allowance .............................................................................95 Rate for certain parenting payments ....................97 Division 4—Certain concepts used in this Part 1070S 1070T 1070U 1070V 1070W 1070X 99 Division has effect for purposes of Part...............99 Rent threshold amount .........................................99 Fortnightly rent ....................................................99 Rent paid by a member of certain couples.........100 Partner with a rent increased pension ................100 Partner
 with a rent increased benefit..................100 Part 3.9—Seniors Health Card Income Test Calculator 103 Seniors Health Card Income Test Calculator ....103 1071 Seniors Health Card Income Test Calculator 103 Part 3.9A—Health Care Card Income Test Calculator 111 Health care card income test..............................111 1071A Health Care Card Income Test Calculator 111 Part 3.10—General provisions relating to the ordinary income 116 test Division 1—Ordinary income concept and treatment of certain income amounts 1072 1072A 1073 116 General meaning of ordinary income ................116 Treatment of certain lump sum payments..........116 Certain amounts taken to be received over 12 months................................................................117 Division 1AAA—Work bonus 1073AA 1073AAA 1073AB 119 Work bonus........................................................119 Meaning of gainful work....................................124 Unused concession balance ...............................126 Division 1AA—Employment income attribution rules 127 Attribution of employment income paid in respect of a particular period or periods.........................127 1073A Social Security Act 1991 iii Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1073B 1073BA 1073BB 1073BC 1073BD 1073C Attribution of employment income paid monthly ...........................................................................129 Attribution of employment income
 paid not in respect of a particular period .............................130 Anti-avoidance...................................................132 Exclusion of certain payments...........................134 Daily attribution of employment income for amounts not elsewhere covered in this Division ...........................................................................135 Fortnightly or yearly expression of attributed employment income...........................................135 Division 1AB—Working
 credit accrual and depletion rules and their consequences 1073D 1073E 1073F 1073G 1073H 1073I 1073J 136 To whom do working credit accrual and depletion rules apply?
........................................................136 Opening balance ................................................136 Working out accruals and depletions of working credit for social security beneficiaries ...............140 Working out the effect of a working credit depletion on the fortnightly rate of ordinary income for a social security beneficiary ............142 Working out accruals and depletions of working credit for social security pensioners...................142 Working out the effect of a working credit depletion on the yearly rate of ordinary income for a social security pensioner .................................144 Working credit balance prevents loss of qualification in certain cases..............................145 Division 1A—Business income 146 1074 1075 Ordinary income from a business—treatment of trading stock.......................................................146 Permissible reductions of business income .......146 Division 1B—Income from financial assets (including income streams (short term) and certain income streams (long term)) 148 1076 1077 1078 Deemed income from financial assets—persons other than members of couples ..........................148 Deemed income from financial assets—members of pensioner couples ..........................................149 Deemed income from financial assets—members of non-pensioner couples ...................................150 iv Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1081 1082 1083 1084 1084A Deeming threshold.............................................151 Below threshold rate, above threshold rate........152 Actual return on financial assets not treated as ordinary income .................................................152 Certain money and financial investments not taken into account........................................................152 Valuation and revaluation of certain financial investments ........................................................153
Division 1C—Income from income streams not covered by Division 1B 154 Subdivision B—Income streams that are not family law affected income streams 154 Scope of Subdivision .........................................154 Income from asset-test exempt income stream..154 Income—income stream not a defined benefit income stream ....................................................155 Income—income stream is a defined benefit income stream ....................................................156 Income from market-linked asset-test exempt income stream ....................................................156 Income from asset-tested income stream (long term)...................................................................158 Income—asset-tested income stream (long term) that is not a defined benefit income stream .......159 Income—asset-tested income stream (long term) that is a defined benefit income stream .............160 Income from certain low-payment asset-tested income streams ..................................................160 Income—asset-tested income stream (lifetime) 162 1097A 1098 1099 1099A 1099AA 1099B 1099C 1099D 1099DAA 1099DAB Subdivision C—Family law affected income streams 1099DA 1099DB 1099DC 1099DCA 1099DD 162 Scope of Subdivision .........................................162 Income from asset-test exempt income streams 163 Income from asset-tested income stream (long term)...................................................................164 Income from asset-tested income stream (lifetime)
 ...........................................................................164 Decision-making principles ...............................164 Division 1D—Aged care accommodation bonds: certain transactions before 6 November 1997 165 Scope of Division...............................................165 1099E Social Security Act 1991 v Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1099F 1099G 1099H Exempt bond amount does not count as income166 Person’s ordinary income reduced
 using financial asset rules...........................................................166 Meaning of exempt bond amount.......................166 Division 1E—Refunds to charge exempt residents 168 Scope of Division...............................................168 Refunded amount does not count as income .....168 Person’s ordinary income reduced using financial asset rules...........................................................168 Application of Division .....................................169 Division 2—Conversion of foreign currency amounts 170 1100 1100A How value of a payment received in a foreign currency is to be determined..............................170 Determining value of a payment originally denominated in a foreign currency but made in Australian currency............................................171 Division 3—Disposal of ordinary income Part 3.12—General provisions relating to the assets test 178 Division 1—Value of person’s assets 173 Disposal of ordinary income..............................173 Amount of disposition .......................................174 Disposal of ordinary income—individuals ........174 Disposal of ordinary income—members of couples ...........................................................................175 Dispositions more than 5 years old to be disregarded.........................................................176 178 Certain assets to be disregarded in calculating the value of a person’s assets...................................178 Value of superannuation investments determined by Minister to be disregarded ............................186 Value of assets reduced by amounts received from Mark Fitzpatrick Trust .......................................187 Value of person’s assets reduced: certain transactions to do with aged care accommodation bonds..................................................................188 Value of person’s assets reduced: refunds to charge exempt
 residents.....................................188 vi Social Security Act 1991 Future compilation prepared on 8 June 2021 1099J 1099K 1099L 1099M 1106 1107 1108 1109 1111 1118 1118A 1118AA 1118AB 1118AC OFFICIAL: Sensitive // Legal Privilege 1119 1120 1120AA 1120AB 1120A 1120B 1120C 1121 1121A 1121B 1122 Value of asset-tested income streams that are not defined benefit income streams, asset-tested income streams (lifetime) or family law affected income streams ..................................................188 Value of asset-tested income streams that are defined benefit income streams .........................190 Value of asset-tested income streams (lifetime) that are managed investments ............................191 Value of asset-tested income streams (lifetime) that are not managed investments......................193 Value of asset-tested FLA income streams........199 Value of partially asset-test exempt income streams ...............................................................200 Value of superannuation reserves for superannuation funds of 4 members or less.......200 Effect of charge or encumbrance on value of assets ...........................................................................201 Effect of certain liabilities on value of assets used in primary production ........................................203 Value of life policy ............................................204
 Loans..................................................................205 Division 2—Disposal of assets 1123 1124 1124A 1125 1125A 1126 1126AA 1126AB 1126AC 1126AD 1126A 206 Disposal of assets...............................................206 Amount of disposal or disposition .....................207 Disposal of assets in pre-pension years— individuals..........................................................208 Disposal of assets in pension years—individuals ...........................................................................209 Disposal of assets in pre-pension
 years—members of couples...........................................................210 Disposal of assets in pension years—members of couples ...............................................................212 Disposal of assets in income year—individuals 214 Disposals of assets in 5 year period—individuals ...........................................................................215 Disposal of assets in income year—members of couples ...............................................................217 Disposal of assets in 5 year period—members of couples ...............................................................218 Disposal of assets in pre-pension year—family members.............................................................220 Social Security Act 1991 vii Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1126B 1126C 1126D 1126E 1127 1127A Disposal of assets in pension year—family members.............................................................221 Disposal of assets in income year—family members.............................................................222 Disposals of assets in 5 year period—family members.............................................................224 Modification of this Division in respect of certain assets ..................................................................225 Disposition more than 5 years old to be disregarded.........................................................227 Division does not apply for purposes of care receiver assets test..............................................227 Division 3—Financial hardship Division 4—Pension loans scheme 1129 1130 1130A 1130B 1130C 1131 1132 1133AA 1133 1134 1135 1135A 1136 1137 1137A 228 Access to financial hardship rules—pensions ...228 Application of financial hardship rules—pensions ...........................................................................229 Division does not apply for purposes of care receiver assets
 test..............................................232 Access to financial hardship rules—pension PP (single) ...............................................................232 Application of financial hardship rules—pension PP (single)..........................................................234 Access to financial hardship rules—benefits.....236 Application of financial hardship rules—benefits ...........................................................................237 240 Pension loans scheme definitions ......................240 Qualification for participation in pension loans scheme ...............................................................240 Effect of participation in pension loans scheme— pension rate ........................................................243 Effect of participation in pension loans scheme— creation of debt ..................................................244 Effect of participation in pension loans scheme— maximum loan available....................................245 Need for a request to participate ........................246 Need for a request to later nominate or change nominated amount or rate of pension ................247 Non-receipt of social security pension or social security payment ................................................248 viii Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1138 1139 1140 1141 1141A 1142 1142A 1143 1144 1144A Existence of debt results in charge over real assets ...........................................................................249 Debt not to be recovered until after death..........250 Enforcement of charge.......................................251 Person ceases to participate in pension loans scheme if debt exceeds maximum loan available ...........................................................................252 Secretary may cease person’s participation in pension loans scheme.........................................252
Person withdraws from pension loans scheme ..253 Repayment or recovery of debt after pension loans scheme ceases to operate ...................................253 Registration of charge........................................254 Manner of enforcement of charge......................255 Division does not apply for purposes of care receiver assets test..............................................255 Division 5—Provisions relating to special residences and special 256 residents Subdivision A—General 1145A 1146 1147 1148 1149 256 Application of Division to granny flat residents256 Basis for different treatment ..............................256 Entry contribution ..............................................256 Extra allowable amount .....................................258 Renegotiation of retirement village agreement..260 Subdivision B—Residents who are not members of a couple 261 Residents who are not members of a couple......261 1150 Subdivision C—Residents who are members of couple and share principal home 262 Members of couples...........................................262 1151 Subdivision D—Residents who are members of illness separated couple 263 1152 1153 1154 Members of illness separated couples (both in special residences) .............................................263 Members of illness separated couples (partner not in special residence and partner homeowner)....265 Members of illness separated couples (partner not in special residence and partner not homeowner) ...........................................................................267 Social Security Act 1991 ix Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Subdivision E—Residents who are members of ordinary couple with different principal homes 269 1155 1156 1157 Members of ordinary couple with different principal homes (both in special residences) .....269 Members of ordinary couple with different principal homes (partner not in special residence and partner homeowner) ....................................270
 Members of ordinary couple with different principal homes (partner not in special residence and partner not homeowner) ..............................271 Part 3.12A—Provisions for carer allowance and seniors health 274 card income test Division 1—Purpose of this Part Division 2—Benefits that may be assessable fringe benefits 1157A 1157B 1157C 1157D 1157E 1157F 1157G 1157H 1157I 1157J 1157JA 1157JB 1157JC 1157K 1157L 1157M 274 Purpose of Part...................................................274 275 Benefits received in or outside Australia...........275 Car benefits ........................................................275 Exempt car benefits ...........................................277 School fees benefits ...........................................278 Health insurance benefits...................................279 Loan benefits......................................................280 Exempt loan benefit ...........................................282 Housing benefits ................................................283 Exempt housing benefits—live-in residential care workers...............................................................285 Expense benefits ................................................286 Exempt expense benefit .....................................287 Financial investment benefit..............................287 288 Method of valuing car fringe benefits................288 Value of car fringe benefits ...............................288 Minister may
 determine alternative method of valuing car fringe benefits .................................290 Division 3—Value of car fringe benefits Division 4—Value of school fees fringe benefits 291 Value of school fees fringe benefits ..................291 1157N Division 5—Value of health insurance fringe benefits 292 Value of health insurance fringe benefits ..........292 1157O x Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Division 6—Value of loan fringe
 benefits 1157P 1157Q 1157R 293 Method of valuing loan fringe benefits..............293 Value of loan fringe benefits .............................293 Minister may determine alternative method of valuing loan fringe benefits ...............................296 Division 7—Value of housing fringe benefits Subdivision A—Grants of housing rights 297 297 1157S 1157T 1157TA Methods of valuing housing fringe benefits— grants of housing rights......................................297 Value of grants of housing rights—general.......297 Value of grants of housing rights—employees of the Defence Force ..............................................300 Subdivision B—Payments associated with loans 302 1157TB 1157TC Method of valuing housing fringe benefits— payments associated with loans .........................302 Value of payments associated with loans ..........302 Subdivision C—Payments associated with enjoying housing rights 302 1157TD 1157TE 1157TF Methods of valuing housing fringe benefits— payments associated with enjoying housing rights ...........................................................................302 Value of payments associated with enjoying housing rights—general.....................................303 Value of payments associated with enjoying housing rights—employees of the Defence Force ...........................................................................305 Subdivision D—Alternative methods of valuing housing fringe benefits 308 1157U Minister
 may determine alternative method of valuing housing fringe benefits..........................308 Division 8—Value of expense fringe benefit 309 Value of expense fringe benefits .......................309 1157UA Division 9—Value of financial investment fringe benefit 310 Value of financial investment fringe benefit .....310 1157UB Division 10—Foreign currency rates 311 Foreign currency rates .......................................311 1157V Social Security Act 1991 xi Future compilation prepared on 8 June
 2021 OFFICIAL: Sensitive // Legal Privilege Part 3.13—Imprisonment 1158 1159 1159A 312 Some social security payments not payable during period in gaol or in psychiatric confinement following criminal charge..................................312 Payment may be redirected to dependent partner or child ...................................................................312 Person not qualified for some concession cards when in gaol or in psychiatric confinement following criminal charge..................................313 Part 3.14—Compensation recovery 314 Division 1—General 1160 1161 1161A 1162 1163 1164 1165 314 General effect of Part.........................................314 Application of Part.............................................314 Application of Part to supplementary compensation affected payments .......................316 Part to bind Crown.............................................319 Interpretation......................................................319 Certain lump sums to be treated as though they were received as periodic compensation payments ...........................................................................319 Effect of certain State and Territory laws..........320 Division 2—Enforcement of compensation rights 321 1166 1167 Secretary may require person to take action to obtain compensation ..........................................321 Failure to comply with a requirement to take action to obtain compensation ...........................322 Division 3—Receipt of compensation 1168 1169 1170 1171 1172 1173 1174 323 Application.........................................................323 Compensation affected payment not payable during lump sum preclusion period ...................323 Lump sum preclusion period .............................323 Deemed lump sum payment arising from separate payments ............................................................324 Lump sum compensation not counted as ordinary
 income................................................................325 Effect of periodic compensation payments on rate of person’s compensation affected payment......325 Effect of periodic compensation payments on rate of partner’s compensation affected payment .....326 xii Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1175 1176 Rate reduction under both income/assets test and this Part ..............................................................327 Periodic compensation not counted as ordinary income................................................................327 Division 4—Recoverable amounts Subdivision A—Preliminary 1177 329 Interpretation......................................................329 329 Subdivision B—Recovery from recipient of compensation affected 329 payment 1178 1179 1180 1181 Repayment of amount where both lump sum and payments of compensation affected payment have been received .....................................................329 The section 1178 recoverable amount ...............330 Repayment where both periodic compensation payments and payments of compensation affected payment have been received ..............................330 The section 1180 recoverable amount ...............331 1183 1184 1182 Subdivision C—Recovery from compensation payers and insurers 332 Secretary may send preliminary notice to potential compensation payer or insurer...........................332 Potential compensation payer or insurer must notify Secretary of liability ................................333 Secretary may send recovery notice to compensation payer or insurer...........................334 The section 1184 recoverable amount ...............335 Preliminary notice or recovery notice suspends liability to pay compensation.............................338 Compensation payer’s or insurer’s payment to Commonwealth discharges liability to compensation claimant
 ......................................338 Offence to make compensation payment after receiving preliminary notice or recovery notice 339 Liability of compensation payer or insurer to pay the Commonwealth if there is a contravention of section 1184D ....................................................340 1184A 1184B 1184D 1184C 1184E Division 5—Recoverable debts 1184F 1184G 341 Debts resulting from notices under section 1178 or 1180 ...................................................................341 Debts resulting from notices under section 1184 ...........................................................................341 Social Security Act 1991 xiii Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1184H 1184I Debts resulting from contravention of section 1184D ....................................................341 Compensation arrears debts ...............................341 Division 6—Miscellaneous 1184J 342 Secretary may give recovery notice either to compensation payer or to insurer but not to both ...........................................................................342 Secretary may disregard some payments...........342 Application to review compensation decision— disability support pension ..................................343 Special provision for certain recipients of dependency-based payments..............................343 345 General effect of Part.........................................345 Reduction in rate
Reduction in rate of payments under this Act if recipient or partner also receiving payments under New Enterprise Incentive Scheme (NEIS) ........345 Rate reduction under this Part............................346 1184K 1184L 1185 1186 1187 1188 Part 3.15—New Enterprise Incentive Scheme Part 3.15A—Community Development Employment Projects Scheme Division 1—Preliminary 1188A 1188B 1188BA 1188BB 347 347 General effect of Part.........................................347 CDEP Scheme participants................................347
 Approval of Northern Territory CDEP transitional activities .............................................................347 Effect of undertaking Northern Territory CDEP transitional activities ..........................................348 Division 2—Reduction in rate of pension or allowance 349 1188C Reductions in rate of payments under this Act if recipient or partner also receiving payments under CDEP Scheme....................................................349 Division 3—CDEP Scheme Participant Supplement 361 1188D 1188E Entitlement to Supplement: people receiving pension-type payments on or after 20 March 1999 ...........................................................................361 Entitlement to Supplement between 20 March 1999 and 19 March 2000: people not covered by section 1188D ....................................................362 xiv Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1188F 1188G 1188H 1188J 1188K 1188KA Division 4—Transitional 1188L 1188M Entitlement to Supplement on or after 20 March 2000: people not covered by section 1188D......365 Notification of periods in respect of which a CDEP Scheme payment is not payable..............370 Person receiving CDEP Scheme Participant Supplement to be taken to be in receipt of social security benefit or pension.................................370 CDEP Scheme participant may accumulate supplement
 .........................................................370 Need for a claim.................................................371 CDEP Scheme Participant Supplement not payable in certain circumstances.....................................371 373 Existing CDEP Scheme participants to be treated as long-term social security recipients...............373 Certain people receiving CDEP Scheme Participant Supplement to be taken to have been receiving social security benefit for 9 months ...373 Part 3.16—Indexation and adjustment of amounts 374 Division
 1—Preliminary 1189 1190 374 Analysis of Part..................................................374 Indexed and adjusted amounts...........................374 Division 2—CPI indexation 1191 1192 1193 1194 1195 1196 1197 1198 397 CPI Indexation Table .........................................397 Indexation of amounts .......................................413 Indexation factor ................................................416 Rounding off indexed amounts..........................416 Certain indexed amounts to be increased in line with increases in Male Total Average Weekly Earnings .............................................................417 421 Social security pension indexation using Pensioner and Beneficiary Living Cost Index....................421 Living cost indexation factor .............................422 Rounding off amounts .......................................423 Division 3—Social security pension indexation using Pensioner and Beneficiary Living Cost Index Division 4—Adjustment of other rates 424 1198A Adjustment of single pension rate MBR amounts ...........................................................................424 Social Security Act 1991 xv Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1198B 1198C 1203 1204 1205 1206A 1206B Adjustment of disability support pension (under 21) MBRs...........................................................424 Adjustment of youth disability supplement .......425 Adjustment of pension “single non-homeowner” AVL ...................................................................426 Adjustment of benefit AVLs..............................426 Adjustment of special illness separated special resident AVL......................................................427 Adjustment of certain pharmaceutical allowance rates....................................................................428 Adjustment of certain telephone allowance rates
 ...........................................................................430 Part 3.16A—Advance payment deductions Part 3.16B—Special employment advance deductions 1206H 1206J 1206K 1206L 1206M 1206N 1206P 1206Q 1206R 1206S 1206T 1206U 1206V 1206W 433 Advance payment deduction..............................433 Amount of advance payment deduction—basic calculation..........................................................433 Person may request larger advance payment deduction............................................................434 Reduction of advance payment deduction in cases of severe financial hardship ...............................434 The final advance payment deduction ...............435 Provisional payment rate insufficient to cover advance payment deduction...............................435 Rounding of amounts.........................................437 438 Special employment advance deduction............438 Amount of special employment advance deduction—basic calculation.............................438 Person may request larger special employment advance deduction..............................................439 Reduction of special employment advance deduction in cases of severe financial hardship.439 The final special employment advance deduction ...........................................................................440 Provisional payment rate insufficient to cover special employment advance deduction ............440 Rounding of
 amounts.........................................441 xvi Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Part 3.18—Means test treatment of private companies and private trusts Division 1—Introduction 1207 1207A 1207B 1207C 1207D 1207E 1207F 1207G 1207H 1207J 1207K 1207L 1207M 442 442 Simplified outline ..............................................442 Definitions .........................................................443
Relatives.............................................................447 Associates ..........................................................448 When a company is sufficiently influenced by an entity ..................................................................449 Majority voting interest in a company...............450 Entitled to acquire..............................................450 Transfer of property or services.........................450 Constructive transfers of property or services to an entity ..................................................................451 Active involvement with a primary production enterprise............................................................452 Power to veto decisions of a trustee...................452 Extra-territorial operation ..................................452 Application to things happening before commencement ..................................................453 Division 2—Designated private companies 454 Designated private companies ...........................454 Division 3—Designated private trusts 456 Designated private trusts....................................456 Division 4—Controlled private companies 1207N 1207P 1207Q 1207R 1207S 1207T 1207U 1207V 1207W 458 Controlled private companies ............................458 Direct voting interest in a company...................459 Voting power .....................................................460 Direct control interest in a company..................461 Interest in a share ...............................................462 464 Controlled private trusts.....................................464 Interest in a trust ................................................467 Division 5—Controlled private trusts Division 6—Attributable stakeholders and attribution percentages 1207X Attributable stakeholder, asset attribution percentage and income attribution percentage...469 469 Social Security Act 1991 xvii Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Division 7—Attribution
 of income of controlled private companies and controlled private trusts 1207Y 1207Z 1208 1208A 1208B 1208C 1208D 471 Attribution of income.........................................471 No double counting of attributed income ..........472 Ordinary income of a company or trust .............473 Ordinary income from a business—treatment of trading stock.......................................................474 Permissible reductions of business and investment income................................................................474 Derivation periods..............................................475 Attribution periods.............................................476 and controlled private trusts Division 8—Attribution of assets of controlled private companies 478 Attribution of assets ...........................................478 When attributed asset is unrealisable.................479 Effect of charge or encumbrance on value of assets ...........................................................................479 Effect of unsecured loan on value of assets.......481 Value of company’s or trust’s assets etc............482 1208E 1208F 1208G 1208H 1208J Division 9—Modification of asset deprivation rules 483 1208K 1208L 1208M 1208N 1208P Individual disposes of asset to company or trust ...........................................................................483 Disposal of asset by company or trust ...............483 Individual ceases to be an attributable stakeholder of a
 company or trust .........................................487 Individual disposes of asset to company or trust before 1 January 2002—individual is attributable stakeholder .........................................................487 Individual disposes of asset to company or trust before 1 January 2002—individual’s spouse is attributable stakeholder......................................489 Division 10—Modification of income deprivation rules 491 1208Q 1208R 1208S Individual disposes of ordinary income to
 company or trust ................................................491 Disposal of income by company or trust ...........491 Individual disposes of income to company or trust before 1 January 2002—individual is attributable stakeholder .........................................................494 xviii Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1208T Individual disposes of income to company or trust before 1 January 2002—individual’s spouse is attributable stakeholder......................................495 Division 11—Concessional primary production trusts 497 Concessional primary production trusts ............497 Individual ceases to be an attributable stakeholder of trust—receipt of remuneration or other benefits from trust during asset deprivation period.........501 Net value of asset...............................................503 Value of entity’s assets ......................................504 When asset is controlled by an individual .........504 Adjusted net value of asset ................................505 Adjusted net primary production income ..........505 Net income of a primary production enterprise .506 Net income from a primary production enterprise—treatment of trading stock ..............507 Permissible reductions of income from carrying on a primary production enterprise.........................508 Division 12—Anti-avoidance 1209D 509 Anti-avoidance...................................................509 Division 13—Decision-making principles 511 Decision-making principles ...............................511 Division 14—Information management 512 Transitional period.............................................512 Information-gathering powers ...........................512 Secretary may obtain tax information................513 Disclosure of tax information ............................514 Disclosure of tax file number information.........515 Part 3.18A—Private financial provision for
 certain people with 517 disabilities Division 1—Special disability trusts 517 What is a special disability trust?
......................517 Beneficiary requirements...................................517 Trust purpose requirements ...............................519 Trust deed requirements.....................................521 Trustee requirements..........................................521 Trust property requirements...............................522 Trust expenditure requirements .........................523 Social Security Act 1991 xix Future compilation prepared on 8 June 2021 1208U 1208V 1208W 1208X 1208Y 1208Z 1209 1209A 1209B 1209C 1209E 1209F 1209G 1209H 1209J 1209K 1209L 1209M 1209N 1209P 1209Q 1209R 1209RA OFFICIAL: Sensitive // Legal Privilege 1209S 1209T 1209U Reporting requirements......................................523 Audit requirements ............................................524 Waiver of contravention of this Division ..........526 Division 2—Income of special disability trusts 527 Attribution of income.........................................527 Income amounts from special disability trusts ..527 Division 3—Assets of special disability trusts 528 Attribution of assets ...........................................528 1209V 1209X 1209Y Division 4—Transfers to special disability trusts 529 1209Z 1209ZA 1209ZB 1209ZC 1209ZD 1209ZE Effect of certain transfers to special disability trusts...................................................................529 The effect of exceeding the $500,000 limit .......530 Transfers by the immediate family members prior to reaching pension age
 etc................................531 Transfers by principal beneficiaries or partners 532 Cessation of special disability trusts..................532 Effect of this Division........................................534 Part 3.19—Miscellaneous 535 1210 1210A Application of income and assets test reductions and of compensation reductions for income tax purposes .............................................................535 Effect of nil rate of pension etc..........................538 Chapter 4—International agreements and
 portability Part 4.2—Overseas portability Division 1—Preliminary 1211 Social Security (International Agreements) Act overrides Part .....................................................540 Meaning of terms used in this Part ....................540 Meaning of acute family crisis...........................541 Meaning of humanitarian purpose ....................541 Meaning of temporary absence .........................542 Part does not affect need for qualification .........542 540 540 540 543 Division 2—Portability of social security payments Subdivision A—Basic portability provisions 543 Persons to whom Division applies.....................543 xx Social Security Act 1991 Future compilation prepared on 8 June 2021 1212 1212A 1212B 1212C 1212D 1213 OFFICIAL: Sensitive // Legal Privilege 1214 1215 1216 1217 Some payments generally portable with no time limit....................................................................543 Some payments generally portable with time limit ...........................................................................543 Amounts added to rate .......................................544 Meaning of maximum portability period, allowable absence and portability period..........545 Subdivision B—Exceptions to Subdivision A rules 1218AAA 1218AA 1218AB 1218 1218A 1218B 1218BA 1218C 1218D 1220 1220A 1220B 1221 550 Unlimited portability period for disability support pension—severely impaired disability support
 pensioner............................................................550 Unlimited portability period for disability support pension—terminally ill overseas disability support pensioner............................................................552 Extended portability period for disability support pension ...............................................................553 Exception—full-time students outside Australia for purposes of Australian course ......................553 Exception—Reserve service ..............................554
 Exception—waiting period in Australia before parenting payment is portable............................554 Exception—new apprentices .............................555 Extension of person’s portability period—general ...........................................................................555 Extension of person’s portability period— life-saving medical treatment overseas..............556 No portability where claim based on short residence ............................................................557 559 Proportionality—age pension rate .....................559 Proportionality—disability support pension rate for a severely disabled person............................560 Pension Portability Rate Calculator...................561 Division 3—Rate of portable pensions Pension Portability Rate Calculator Module A—Overall rate calculation process Module B—Australian working life residence Module C—Residence factor 562 562 564 565 Division 4—Other portability rules 566 Other portability rules........................................566 1221A Social Security Act 1991 xxi Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5—Overpayments and debt recovery 567 Part 5.1—Effect of Chapter 1222 567 General effect of Chapter...................................567 Part 5.2—Amounts recoverable under this Act 1222A 1223 1223A 1223AA 1223AB 1223ABAA 1223ABA 1223ABAAA 1223ABAAB 1223ABB 1223ABC 1223ABD 1223ABE 1223ABF 1223ABG 1223ABH 1223ABI 1223ABJ
 1223ABK 1223ABL 572 Debts due to the Commonwealth.......................572 Debts arising from lack of qualification, overpayment etc.................................................572 Debt resulting from commutation of asset-test exempt income stream contrary to subsection 9A(2), 9B(2) or 9BA(2) ...................578 Debts arising from prepayments and certain other payments ............................................................582 Debts arising from AAT stay orders..................584 Debts arising in
 respect of one-off payments to older Australians ................................................584 Debts arising in respect of one-off payments to carers..................................................................586 Debts arising in respect of economic security strategy payments ..............................................593 Debts arising in respect of training and learning bonuses etc.........................................................595 Debts in respect of child disability assistance ...598 Debts in respect of carer supplement for 2009 ..599 Debts in respect of carer supplement for 2010 and later years...........................................................600 Debts in respect of relocation scholarship payments ............................................................601 Debts in respect of student start-up loans ..........603 Debts in respect of one-off energy assistance payments ............................................................603 Debts in respect of 2019 one-off energy assistance payments ............................................................604 Debts in respect of first 2020 economic support payments ............................................................605 Debts in respect of second 2020 economic support payments ............................................................606 Debts in respect of additional economic support payment 2020.....................................................608 Debts in respect
Debts in respect of additional economic support payment 2021.....................................................609 xxii Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1224 1224A 1224AA 1224AB 1224B 1224C 1224D 1224E 1224EA 1227 1227B 1228 1228A 1228B 1229 1229A 1229B 1229C 1229D 1229E 1229F 1229G 1230 1230A 1230B 1230C Debts relating to clean energy advances............610 Debts relating to essential medical equipment payments
 ............................................................611 Person other than payee obtaining payment of a cheque ................................................................612 Joint and several liability for persons involved in contravention of Act ..........................................612 Education entry payment debt ...........................613 Data-matching Program (Assistance and Tax) Acts debts ...................................................................613 Mobility allowance advance debts.....................613 Debts arising from advance payments of social security entitlements ..........................................614 Debts arising from special employment advances of special employment advance qualifying entitlements........................................................615 Assurance of support debt..................................615 Debts arising under Part 8 of the Student Assistance Act 1973 as in force before 1 July 1998 ...........................................................................616 Overpayments arising under other Acts and schemes..............................................................616 Comparable foreign payment debt recovery......618 Additional 10% penalty for understatement etc.
of income................................................................619 Notices in respect of debt...................................620 Interest charge—no repayment arrangement in effect ..................................................................621 Interest charge—failure to comply with or termination of repayment arrangement..............622 Other rules for interest charge ...........................624 What is the interest charge rate?.......................624 Exemption from interest charge—general.........625 Exemption from interest charge—Secretary’s determination .....................................................626 Guidelines on interest charge provisions ...........627 Debt from failure to comply with garnishee notice ...........................................................................627 Debt from failure before 1 July 1991 to comply with garnishee notice under the 1947 Act .........628 Overseas application of provisions ....................630 Methods of recovery of debt..............................630 Social Security Act 1991 xxiii Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Part 5.3—Methods of recovery 632 1231AA 1231 1232 1233 1234 1234AA 1234A 1234B Application of sections dealing with deductions ...........................................................................632 Deductions from debtor’s pension, benefit or allowance ...........................................................632 Legal proceedings ..............................................634 Garnishee notice ................................................634 Arrangement for payment of debt......................636 Recovery of amounts from financial institutions ...........................................................................637 Deductions by consent from social security payment of person who is not a debtor ..............639 No time limit on debt recovery action ...............640 Part 5.4—Non-recovery of debts 1235 1236 1236A 1237 641 Meaning of debt
 .................................................641 Secretary may write off debt..............................641 Application.........................................................642 Power to waive Commonwealth’s right to recover debt.....................................................................643 Waiver of debt arising from error ......................643 Waiver of debt relating to an offence ................644 Waiver of small debt..........................................645 Waiver in relation to settlements .......................645 Waiver where debtor or debtor’s partner would have been entitled to an allowance ....................647 Waiver in special circumstances........................650 Extra rules for waiver of assurance of support debts ...................................................................651 Secretary may waive debts of a particular class 652 1237A 1237AA 1237AAA 1237AAB 1237AAC 1237AAD 1237AAE 1237AB Part 5.5—Departure prohibition orders 653 Division 1—Secretary may make departure prohibition orders 653 1240 Secretary may make departure prohibition orders ...........................................................................653 Division 2—Departure from Australia of debtors prohibited 655 Departure from Australia of debtors prohibited 655 1241 xxiv Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Division 3—Other rules for departure prohibition orders 1242
 1243 1244 1245 656 Notification requirements for departure prohibition orders .................................................................656 Operation of departure prohibition order...........657 Revocation and variation of departure prohibition orders .................................................................657 Notification requirements for revocations and variations............................................................658 Division 4—Departure authorisation certificates 659 1246 1247
 1248 1249 1250 1251 Application for departure authorisation certificate ...........................................................................659 When Secretary must issue departure authorisation certificate ...........................................................659 Security for person’s return to Australia............660 What departure authorisation certificate must authorise.............................................................660 Notification requirements for departure authorisation certificates ....................................661 Notification requirements for substituted days..661 Division 5—Appeals and review in relation to departure prohibition orders and departure authorisation certificates 663 1252 1253 1254 1255 Division 6—Enforcement 1256 1257 1258 Appeals to courts against making of departure prohibition orders...............................................663 Jurisdiction of courts..........................................663 Orders of court on appeal...................................663 Review of decisions ...........................................663 664 Powers of officers of Customs and members of the Australian Federal Police...................................664 Privilege against self-incrimination ...................665 Production of authority to depart .......................665 Division 7—Interpretation 1259 Interpretation—departure from Australia for foreign country...................................................667 Meaning of Australia .........................................667 667 Chapter 6—Modification of social security law 668 Simplified outline of this Chapter......................668 1260 1261 Social Security Act 1991 xxv Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 1262 1263 Minister may determine modifications of social security law ........................................................668 Period that determination is in force and variation and
 revocation....................................................670 Schedule 1A—Savings and transitional provisions Part 1—General 672 672 1 2 2A Correspondence of pensions, benefits and allowances..........................................................672 Correspondence of provisions ...........................673 References in other Acts and instruments to provisions of the 1947 Act.................................674 Part 2—Savings and Transitional Provisions Applicable on the 675 Transition from the 1947 Act to this Act Division 4—Continuation of earlier savings provisions 675 28 Rent assistance—retirement village residents (changes introduced on 13 June 1989) ..............675 Part 3—Saving and Transitional Provisions Applicable after the Commencement of this Act 678 36 63 74 86 88 96A 103 105 105A 115 Incentive allowance (changes introduced on 12 November 1991) ...........................................678 Rent assistance (changes introduced on 20 March 1993) ..................................................................679 Partner allowance for persons born on or before 1 July 1955 (changes made on 1 July 1995)......683 Transitional and saving provisions applicable to the amendments relating to the pension loans scheme ...............................................................684 Saving: Determinations under repealed sections 1099E and 1099L.................................685 Application of revised Schedule 1B ..................685 Application
 provision: income maintenance periods................................................................686 Application and saving provisions: debts due to the Commonwealth and their recovery..............687 Parenting payment (changes introduced 20 March 1998) ..................................................................688 Persons under 21 receiving newstart allowance or sickness allowance on 17 June 1997..................694 xxvi Social Security Act 1991 Future compilation prepared on 8 June 2021
 OFFICIAL: Sensitive // Legal Privilege 126 128 128A 130 131 132 133 134 135 136 137 138 139 139A 139B 139C 139D 140 141 142 143 144 145 146 147 Application and transitional provisions relating to fares allowance ..................................................695 Saving provision—portability rules relating to rates of pension ..................................................696 Saving of certain pensions payable under 1986 Agreement between Australia and Italy.............697 Saving provision—other portability rules..........699 Certain payments not recoverable......................699 Saving—ABSTUDY recipients.........................700 Meaning of Australian resident .........................701 Transitional and saving provisions—substitution of Part 3.14.........................................................701 Unlimited maximum portability period for disability support pension ..................................706 Transitional definition of deductible amount (commencing 1 July 2007) ................................706 Application—general.........................................708 Application—subsections 198AA(1) and (3) ....709 Application—subsection 955(2) ........................709 Application—general.........................................709 Application—sections 198AAA and 198AB.....709 Application—subsections 731J(2) and (6) ........710 Saving—principal beneficiary of a special disability trust
 ....................................................710 Person whose carer payment was cancelled on or after 1 July 2008 and before 1 July 2010...........710 Saving—profoundly disabled child and disabled child ...................................................................711 Person whose special benefit was cancelled on or after 1 July 2008 and before 1 July 2010...........713 Saving—profoundly disabled child and disabled child ...................................................................714 Saving and transitional provisions for section 93H
 ...........................................................................715 Saving provision for income test taper rate for disability support pensioners under 21 without dependent children.............................................715 Transitional provision for rates of certain social security pensions on and after 20 September 2009 ...........................................................................716 Amounts for subparagraph 146(4)(a)(i).............721 Social Security Act 1991 xxvii Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege 148 149 150 Rate of social security payments to partners of persons affected by clause 146 ..........................726 Payment and income tax consequences of receiving social security pension at rate affected by clause 146 .....................................................726 Persons exempt from requirement to be Australian residents to qualify for disability support pension ...........................................................................728 xxviii Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Section 1068 Chapter 3—General provisions relating to payability and rates Part 3.6—Benefit Rate Calculator B 1068 Rate of widow allowance, jobseeker payment (18 or over), partner allowance, and mature age allowance under Part 2.12B (1) The rate of: (a) jobseeker payment; or (c) partner allowance; or (ca) mature age allowance under Part 2.12B; or (d) widow allowance; is to be calculated in accordance with the Rate Calculator at the end of this section.
Note: 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.
(2) If: (a) a person has a relationship with another person, whether of the same sex or a different sex (other person); and (b) the relationship between them is a de facto relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A)); (c) the other person is under the age of consent applicable in the State or Territory in which the person is living; the person’s benefit rate is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.
Social Security Act 1991 1 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module A Overall rate calculation process Section 1068 Note: This provision has the effect of taking into account the ordinary income and assets of the partner in applying the ordinary income test and assets test respectively.
Rate of benefit limited for certain armed services widows (3) If: (a) an armed services widow is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and (b) the widow has been receiving a payment referred to in paragraph (a) continuously since before 1 November 1986; and (c) before 1 November 1986 the widow was also receiving a social security benefit; the rate of benefit payable to the widow is not to be increased: (d) if, immediately before 1 November 1986, the widow was receiving a social security benefit at a rate less than $124.90 per fortnight—to a rate greater than $124.90 per fortnight; or (e) if, immediately before 1 November 1986, the widow was receiving a social security benefit at a rate equal to or greater than $124.90 per fortnight—to a rate greater than the rate at which it was payable immediately before 1 November 1986.
Note 1: A benefit is not payable to a widow who starts to get a payment referred to in subsection (3) after 1 November 1986—see sections 408CF, 614, 660YCF and 771HI.

Note 2: For armed services widow see subsection 4(1).

Benefit Rate Calculator B Module A—Overall rate calculation process Method of calculating rate 1068-A1 The rate of benefit is a daily rate.

That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.
2 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Overall rate calculation process Module A Section 1068 Method statement Step 1.

Work out the person’s maximum basic rate using MODULE B below.

Step 1A.

Work out the pension supplement amount (if any) using Module BA below.

Step 1B.

Work out the energy supplement (if any) using Module C below.
Step 2.

Work out the amount per fortnight (if any) of pharmaceutical allowance using MODULE D below.

Step 3.

Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).

Step 4.

Add up the amounts obtained in Steps 1 to 4: the result is called the maximum payment rate.

Step 5.

Apply the income test using MODULE G below to work out the income reduction.

Step 6.
Step 6.

Take the income reduction away from the maximum payment rate: the result is called the provisional fortnightly payment rate.

Step 7.
The rate of benefit is the amount obtained by: (a) (b) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and Social Security Act 1991 3 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module B Maximum basic rate Section 1068 (c) except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of benefit is being worked out, adding any amount payable by way of remote area allowance (see Module J).
Note 1: Note 2: Note 3: If a person’s rate is reduced under step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210.

In some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

An amount of remote area allowance is to be added under paragraph (c) of step 7 only if the conditions in point 1068-J1 are satisfied.
Module B—Maximum basic rate Maximum basic rate 1068-B1 The maximum basic rate of a person other than a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is worked out using Table B.

Work out the person’s family situation and whether the person has a dependent child or not.

The maximum basic rate is the corresponding amount in the rate column.
The maximum basic rate of a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is nil (see sections 408CG, 614A, 660YCH and 771HK).
4 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Maximum basic rate Module B Section 1068 Column 3 Rate Column 3A Column 3B Person with dependent child Person without dependent child $667.50 $620.80 $667.50 $620.80 Table B—Maximum basic rates Column 1 Column 2 Item Person’s family situation 4A 4B Not member of couple and person: (a) receives jobseeker payment or widow allowance; and (b) has not turned 60 Not member of couple and person: (a) receives jobseeker payment or widow allowance; and (b) has turned 60; and (c) has not been receiving one, or a combination, of social security pension or social security benefit or service pension, income support supplement or veteran payment for a continuous period of at least 9 months Social Security Act 1991 5 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module B Maximum basic rate Section 1068 Table B—Maximum basic rates Column 1 Column 2 Item Person’s family situation 5 7 9 11 Not member of couple and person: (a) has turned 60; and (b) has been receiving one, or a combination, of social security pension or social security benefit or service pension or income support supplement for a continuous period of at least 9 months Partnered Member of illness separated couple Partnered (partner
 in gaol) Column 3 Rate Column 3A Column 3B Person with dependent child Person without dependent child $667.50 $667.50 $565.40 $667.50 $565.40 $667.50 $667.50 $667.50 Note 1: For member of couple, partnered, illness separated couple and partnered (partner in gaol) see section 4.
Note 2: For dependent child see section 5.

Note 5: Note 7: The rates in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Some dependent children will not be taken into account in working out a person’s maximum basic rate (see point 1068-B2).
6 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Maximum basic rate Module B Section 1068 Note 8: Some recipients of jobseeker payment have a maximum basic rate based on the maximum basic rate under the Pension PP (Single) Rate Calculator (see point 1068-B5).
Certain children who are not young persons are to be treated as dependent children 1068-B1A If: (a) a person is not a member of a couple; and (b) the person has at least one natural child, adopted child or relationship child who has turned 16 but has not turned 18; and (c) either: (i) a social security benefit is payable to the child; or (ii) if the person is receiving jobseeker payment—a disability support pension is payable to the child; and (d) the child is substantially dependent on the person; the person’s maximum basic rate is worked out as if the person had a dependent child.
Certain children treated as dependent children if in recipient’s care for at least minimum period 1068-B1B The maximum basic rate for a person receiving jobseeker payment is worked out as if the person had a dependent child if: (a) either: (i) the person is legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of a child under 16; or (ii) under a family law order, registered parenting plan or parenting plan that is in force, a child under 16 is supposed to live or spend time with the person; and (b) the child is in the person’s care for at least 14% of: (i) the instalment period in relation to which the maximum basic rate is being worked out; or Social Security Act 1991 7 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module B Maximum basic rate Section 1068 (ii) if the Secretary, under point 1068-B1C, determines another period for the person for the purposes of this subparagraph—that other period; and (c) none of subsections 5(3), (6) and (7) prevents the child from being a dependent child of the person; and (d) the person is not a member of a couple.
Note: For family law order, registered parenting plan and parenting plan see subsection 23(1).

1068-B1C The Secretary may, in writing, determine a period of either 14 days or 28 days for the purposes of subparagraph 1068-B1B(b)(ii).

In making the determination, the Secretary must have regard to the guidelines (if any) determined under point 1068-B1E.

1068-B1D A determination made under point 1068-B1C is not a legislative instrument.
1068-B1E The Secretary may, by legislative instrument, determine guidelines to be complied with when making a determination under point 1068-B1C.

Certain dependent children to be disregarded 1068-B2 For the purposes of items 4A and 4B of Table B in point 1068-B1, if: (a) a person has a dependent child; and (b) the child has turned 18; and (c) the child is a prescribed student child; the child is to be disregarded in working out the person’s maximum basic rate under that point.
Note: For prescribed student child see section 5.

1068-B3 On 20 March 1994 the amounts specified in items 3, 4, 4A and 4B in column 3B of Table B in point 1068-B1 are increased by $6.00.

The increase is to be made after the indexation of the amounts on that day has occurred.
8 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Maximum basic rate Module B Section 1068 1068-B4 The amounts in items 3, 4, 4A and 4B in columns 3A and 3B of Table B in point 1068-B1 are to be indexed on 20 September 1993 and 20 March 1994 under section 1192 as if Part 2 of the Social Security Amendment Act (No.
2) 1993 had commenced on 1 September 1993.
Maximum basic rate for certain jobseeker payment recipients 1068-B5 Despite point 1068-B1, if a person: (a) is not a member of a couple; and (b) receives jobseeker payment; and (c) is not required to satisfy the activity test because of a determination in relation to the person under subsection 602C(3) or (3A)satisfy the employment pathway plan requirements because of a determination that is in effect under subsection 40P(2) of the Administration Act because of paragraph 40P(2)(a) or (b) of that Act; the person’s maximum basic rate is the amount worked out as follows: Pension PP (Single) maximum basic amount 26 where: pension PP (Single) maximum basic amount is the sum of: (a) the amount that would have been the person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment; and (b) the amount that would have been the person’s pension supplement under Module BA of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment.
Note: A person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator is indexed 6 monthly in line with increases in Male Total Average Weekly Earnings (see section 1195).
Social Security Act 1991 9 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module BA Pension supplement Section 1068 Module BA—Pension supplement Pension supplement 1068-BA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia, has reached pension age and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
1068-BA2 The person’s pension supplement amount is: (a) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1068-BA4; and (b) otherwise—the amount worked out under point 1068-BA3.
Amount if no election in force 1068-BA3 The person’s pension supplement amount is the amount worked out by: (a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and (b) dividing the result by 26; and (c) if: (i) the person is not partnered; and (ii) the amount resulting from paragraph (b) is not a multiple of 10 cents; rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of 10 cents but is a multiple of 5 cents).
Item Person’s family situation Use this % 1 2 3 4 Not member of couple Partnered Member of illness separated couple Member of respite care couple 66.33% 50% 66.33% 66.33% 10 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Energy supplement Module C Section 1068 Item Person’s family situation 5 Partnered (partner in gaol) Use this % 66.33% Note: For combined couple rate of pension supplement, see subsection 20A(1).
Amount if election in force 1068-BA4 The person’s pension supplement amount is the amount worked out as follows: (a) work out the amount for the person under point 1068-BA3 as if the election were not in force; (b) from that amount, subtract 1/26 of the person’s minimum pension supplement amount.
Module C—Energy supplement 1068-C1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.
Recipient has reached pension age 1068-C2 If the recipient has reached pension age and is not covered by point 1068-B5, the recipient’s energy supplement is the amount worked out using the following table: Energy supplement Item Recipient’s family situation Amount of energy supplement 1 Not a member of a couple $14.10 Social Security Act 1991 11 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module C Energy supplement Section 1068 Energy supplement Item Recipient’s family situation Amount of energy supplement 2 3 4 5 Partnered Member of an illness separated couple Member of a respite care couple Partnered (partner in gaol) $10.60 $14.10 $14.10 $14.10 Recipient has not reached pension age 1068-C3 If the recipient has not reached pension age and is not covered by point 1068-B5, the recipient’s energy supplement is the amount worked out using the following table: Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement 1 2 3 4 If the recipient’s maximum basic rate is worked out under column 3A of item 4A, 4B, 5, 9 or 11 of the table in point 1068-B1 If the recipient’s maximum basic rate is worked out under column 3A of item 7 of the table in point 1068-B1 If the recipient’s maximum basic rate is worked out under column 3B of item 4A or 4B of the table in point 1068-B1 If the recipient’s maximum basic rate is worked out under column 3B of
 item 5, 9 or 11 of the table in point 1068-B1 $9.50 $7.90 $8.80 $9.50 12 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Pharmaceutical allowance Module D Section 1068 Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement 5 If the recipient’s maximum basic rate is worked out under column 3B of item 7 of the table in point 1068-B1 $7.90 Recipient covered by point 1068-B5 1068-C4 If the recipient is covered by point 1068-B5, the recipient’s energy supplement is $12.00.
Module D—Pharmaceutical allowance Qualification for pharmaceutical allowance 1068-D1 Subject to points 1068-D3A, 1068-D4, 1068-D5, 1068-D6 and 1068-D8, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if: (c) one of the following subparagraphs applies: (ia) the person is receiving mature age allowance under Part 2.12B; (ii) the person is receiving widow allowance, jobseeker payment or partner allowance and point 1068-D2, 1068-D2A, 1068-D2B or 1068-D3 applies to the person.
Incapacity for work—jobseeker payment 1068-D2 This point applies to a person if the person is receiving jobseeker payment and the person is, under Subdivision BA of Division 1 of Part 2.12, exempt from the activity testis not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act.
Social Security Act 1991 13 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module D Pharmaceutical allowance Section 1068 Incapacity for work—widow allowance and partner allowance recipients 1068-D2A This point applies to a person who is receiving widow allowance or partner allowance if the person is incapacitated for work.
Jobseeker payment recipients who have a partial capacity to work or are principal carers 1068-D2B This point applies to a person who is receiving jobseeker payment if the person: (a) has a partial capacity to work; or (b) is the principal carer of at least one child and is not a member of a couple.

Note 1: For partial capacity to work see section 16B.

Note 2: For principal carer see subsections 5(15) to (24).
Long term recipients over 60 1068-D3 This point applies to a person if the person: (a) has turned 60; and (b) has been receiving income support payments in respect of a continuous period of at least 9 months (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this paragraph).

Note 1: For income support payment see subsection 23(1).
Note 2: For the determination of the continuous period in respect of which a person received income support payments see section 38B.

No pharmaceutical allowance if person receiving pension supplement 1068-D3A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if a pension supplement amount has been added to that rate.
14 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Pharmaceutical allowance Module D Section 1068 No pharmaceutical allowance if person receiving certain supplements under other Acts 1068-D4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving: (a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.
No pharmaceutical allowance if partner receiving certain supplements under other Acts 1068-D5 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person is a member of a couple; and (b) the person’s partner is receiving: (i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and (c) the person’s partner is not receiving a service pension or a veteran payment.
Social Security Act 1991 15 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module D Pharmaceutical allowance Section 1068 No pharmaceutical allowance before advance payment period ends 1068-D6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and (b) the person’s advance payment period has not ended.
Note: For advance payment period see point 1068-D7.
Advance payment period 1068-D7 A person’s advance payment period: (a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and (b) ends after the number of paydays worked out using the following formula have passed: amount of advance  26 pharmaceutical allowance rate where: amount of advance is the amount of the advance paid to the person; pharmaceutical allowance rate is the fortnightly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the social security benefit instalment for the day on which the advance is paid if a social security benefit were payable to the person and pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.
Note: The person may have come on social security benefit after having been a pension recipient and have received an advance while a pension recipient.
16 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Pharmaceutical allowance Module D Section 1068 No pharmaceutical allowance if annual limit reached 1068-D8 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person has received an advance pharmaceutical allowance during the current calendar year; and (b) the total amount paid to the person for that year by way of: (i) pharmaceutical allowance; and (ii) advance pharmaceutical allowance; equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.
Note 1: Note 2: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

The annual limit is affected by: • how long during the calendar year the person was on pension or benefit; the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.
• Amount of pharmaceutical allowance 1068-D10 The amount of pharmaceutical allowance is the amount per fortnight worked out using the following Table: Pharmaceutical allowance amount table Column 1 Column 2 Item Person’s family situation Column 3 Amount per fortnight 1.

2.

4.

5.

6.

7.
Not member of couple Partnered Member of illness separated couple Member of respite care couple Partnered (partner getting service pension) Partnered (partner in gaol) $5.20 $2.60 $5.20 $5.20 $2.60 $5.20 Social Security Act 1991 17 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module G Income test Section 1068 Note 1: Note 2: For member of couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
The amounts in column 3 are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1206A).

Module G—Income test Effect of ordinary income on maximum payment rate 1068-G1 This is how to work out the effect of a person’s ordinary income, and the ordinary income of a partner of the person, on the person’s maximum payment rate: Method statement Step 1.

Work out the amount of the person’s ordinary income on a fortnightly basis.
Note: For the treatment of amounts received from friendly societies, see point 1068-G4.

Step 2.

If the person is a member of a couple, work out the partner income free area using point 1068-G9.

Note: The partner income free area is the maximum amount of ordinary income the person’s partner may have without affecting the person’s benefit.

Step 3.

Use paragraphs 1068-G10(a), (b) and (c) to work out whether the person has a partner income excess.

Step 4.

Step 5.
Step 4.

Step 5.

If the requirements of paragraphs 1068-G10(a), (b) and (c) are not satisfied then the person’s partner income excess is nil.

If the requirements of paragraphs 1068-G10(a), (b) and (c) are satisfied, the person’s partner income excess is the partner’s ordinary income less the partner income free area.
18 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Income test Module G Section 1068 Step 6.

Use the person’s partner income excess to work out the person’s partner income reduction using point 1068-G11.

Step 7.

Work out whether the person’s ordinary income exceeds the person’s ordinary income free area under point 1068-G12.
Note: A person’s ordinary income free area is the maximum amount of ordinary income the person may have without affecting the person’s benefit rate.

Step 8.

Step 9.

If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Step 10.
Step 10.

Use the person’s ordinary income excess to work out the person’s ordinary income reduction using points 1068-G14, 1068-G15, 1068-G16 and 1068-G17.

Step 11.

Add the person’s partner income reduction and ordinary income reduction: the result is the person’s income reduction referred to in Step 5 of point 1068-A1.

Note 1: For ordinary income see section 8.

Note 2: Note 3: See point 1068-A1 (Steps 6 to 9) for the significance of the person’s income reduction.
The application of the ordinary income test is affected by provisions concerning: • the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10); business income (sections 1074 and 1075); income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10); • • Social Security Act 1991 19 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module G Income test Section 1068 • • income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10); disposal of income (sections 1106 to 1111).
Ordinary income of members of certain couples 1068-G2 Subject to point 1068-G3, if a person is a member of a couple and the person’s partner is receiving a social security pension, a service pension, income support supplement or a veteran payment, the person’s ordinary income is taken to be one half of the sum of: (a) the amount that would be the person’s ordinary income if he or she were not a member of a couple; and (b) the amount that would be the ordinary income of the person’s partner if the partner were not a member of a couple.
Friendly society amounts 1068-G4 The ordinary income of a person to whom, or to whose partner, jobseeker payment is payable and who, or whose partner, under Subdivision BA of Division 1 of Part 2.12, is not required to satisfy the activity testis not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act, is not to include any amount received by the person or partner from an approved friendly society in respect of the incapacity because of which the person or partner is not required to satisfy the activity testthose employment pathway plan requirements.
Board and lodging 1068-G6 A person’s ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.
Lump sum payments arising from termination of employment 1068-G7 Subject to points 1068-G7AF to 1068-G7AR (inclusive), if: 20 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Income test Module G Section 1068 (a) a person’s employment has been terminated; and (b) as a result the person is entitled to a lump sum payment from the person’s former employer; the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.
Directed termination payments excluded 1068-G7AF If: (a) a person’s employment has been terminated; and (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 82-10F of the Income Tax (Transitional Provisions) Act 1997; the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of Module G of section 1068.
Certain leave payments taken to be ordinary income—employment continuing 1068-G7AG If: (a) a person is employed; and (b) the person is on leave for a period; and (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period; the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.
Certain termination payments taken to be ordinary income 1068-G7AH If: (a) a person’s employment has been terminated; and Social Security Act 1991 21 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module G Income test Section 1068 (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise); the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.
Exception to points 1068-G7AG and 1068-G7AH 1068-G7AI Point 1068-G7AG or 1068-G7AH does not apply in relation to a person’s entitlement referred to in paragraph 1068-G7AG(c) or in relation to a person’s termination payment referred to in paragraph 1068-G7AH(b) if: (a) the person makes a claim for jobseeker payment on or after the commencement of this point; and (b) the person makes the claim after the death of the person’s partner on or after the commencement of this point; and (c) if the person is a man or a woman who was not pregnant when her partner died—the person makes the claim in the period of 14 weeks starting on the day of the death of the partner; and (d) if the person is a woman who was pregnant when her partner died—the person makes the claim: (i) in the period of 14 weeks starting on the day of the death of the partner; or (ii) in the period starting on the day of the death of the partner and ending when the child is born or the woman otherwise stops being pregnant; whichever ends later; and (e) the entitlement referred to in paragraph 1068-G7AG(c) arose, or the termination payment referred to in paragraph 1068-G7AH(b) was paid, in the period applicable under paragraph (c) or (d) of this point.
More than one termination payment on a day 1068-G7AJ If: 22 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Income test Module G Section 1068 (a) the person is covered by point 1068-G7AH; and (b) the person receives more than one termination payment on a day; the income maintenance period is worked out by adding the periods to which the payments relate.
Start of income maintenance period—employment continuing 1068-G7AK If the person is covered by point 1068-G7AG, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated 1068-G7AKA Subject to point 1068-G7AKC, if the person is covered by point 1068-G7AH, the income maintenance period starts, subject to point 1068-G7AKB, on the day the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment 1068-G7AKB If a person who is covered by point 1068-G7AH is subject to an income maintenance period (the first period) and the person is paid another termination payment during that period (the second leave payment), the income maintenance period for the second termination payment commences the day after the end of the first period.
Start of income maintenance period where liquid assets test waiting period applies 1068-G7AKC If a person to whom point 1068-G7AKA applies is subject to a liquid assets test waiting period, the income maintenance period is taken to have started on the day on which the liquid assets test waiting period started.
Social Security Act 1991 23 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module G Income test Section 1068 Leave payments or termination payments in respect of periods longer than a fortnight 1068-G7AL If: (a) a person receives a leave payment or termination payment; and (b) the payment is in respect of a period greater than a fortnight; the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by: (c) dividing the amount received by the number of days in the period to which the payment relates (the daily rate); and (d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.
1068-G7AM If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and 19C(3) (person who is a member of a couple).
Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period: (a) (b) the payment or allowance claimed may not be payable to the person; or the amount of the payment or allowance payable to the person may be reduced.
When a person receives a leave payment or a termination payment 1068-G7AN For the purposes of points 1068-G7AF to 1068-G7AM (inclusive), a person (the first person) is taken to receive a leave payment or termination payment if the payment is made to another person: (a) at the direction of the first person or a court; or (b) on behalf of the first person; or 24 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Income test Module G Section 1068 (c) for the benefit of the first person; or (d) the first person waives or assigns the first person’s right to receive the payment.
Single payment in respect of different kinds of termination payments 1068-G7AP If a person who is covered by point 1068-G7AH receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1068-G7AG to 1068-G7AN (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
Definitions 1068-G7AQ In points 1068-G7AG to 1068-G7AP (inclusive): payment fortnight means a fortnight in respect of which a jobseeker payment is paid, or would be paid, apart from the application of an income maintenance period, to a person.
period to which the payment relates means: (a) if the payment is a leave payment—the leave period to which the payment relates; or (b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or (c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if: Social Security Act 1991 25 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module G Income test Section 1068 (i) the person’s employment had continued; and (ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
redundancy payment includes a payment in lieu of notice, but does not include a directed termination payment within the meaning of section 82-10F of the Income Tax (Transitional Provisions) Act 1997. termination payment includes: (a) a redundancy payment; and (b) a leave payment relating to a person’s employment that has been terminated; and (c) any other payment that is connected with the termination of a person’s employment.
1068-G7AR In points 1068-G7AG to 1068-G7AQ (inclusive): leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include: (a) an instalment of parental leave pay; or (b) dad and partner pay.
Ordinary income generally taken into account when first earned, derived or received 1068-G7A Subject to points 1068-G7B, 1068-G7C, 1068-G8 and 1068-G8A and sections 1072A and 1073, ordinary income (except employment income) is to be taken into account in the fortnight in which it is first earned, derived or received.

Note: See Division 1AA of Part 3.10 for the treatment of employment income.
26 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Income test Module G Section 1068 Claimant or recipient receives lump sum amount for remunerative work 1068-G7B If a person whose claim for a payment or an allowance has been granted receives a lump sum amount after the claim was made that: (a) is paid to him or her in relation to remunerative work; and (b) is not a payment to which point 1068-G8 applies; and (c) is not an exempt lump sum; and (d) is not employment income; the person is, for the purposes of this Module, taken to receive one fifty-second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.
Partner of claimant or recipient receives lump sum amount for remunerative work 1068-G7C If: (a) a person whose claim for a payment or an allowance has been granted is a member of a couple; and (b) after the person has made the claim, the person’s partner receives a lump sum amount that: (i) is paid to him or her in relation to remunerative work; and (ii) is not a payment to which point 1068-G8 applies; and (iii) is not an exempt lump sum; and (iv) is not employment income; the partner is, for the purposes of this Module, taken to receive one fifty-second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.
Reference to payment or allowance 1068-G7D A reference in point 1068-G7B or 1068-G7C to a payment or an allowance is a reference to a payment or an allowance the rate of which is calculated under this Rate Calculator.
Social Security Act 1991 27 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module G Income test Section 1068 Operation of points 1068-G7B and 1068-G7C 1068-G7E Points 1068-G7B and 1068-G7C have effect even if the person who has made the claim: (a) has to serve an ordinary waiting period or a liquid assets test waiting period in respect of the payment or allowance claimed; or (b) is subject to an income maintenance period in respect of the payment or allowance claimed; or (c) is subject to a seasonal work preclusion period; during the period of 12 months referred to in those points.
Ordinary income received at intervals longer than one fortnight 1068-G8 Subject to points 1068-G7AF to 1068-G7AR (inclusive), if: (a) a person receives a number of payments of ordinary income (except employment income); and (b) each payment is in respect of a period (in this point called the work period) that is greater than a fortnight; and (c) there is reasonable predictability or regularity as to the timing of the payments; and (d) there is reasonable predictability as to the quantum of the payments; the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by: (e) dividing the amount received by the number of days in the work period (the result is called the daily rate); and (f) multiplying the daily rate by the number of days in the fortnight that are also within the work period.
Payment of arrears of periodic compensation payments 1068-G8A If: (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving jobseeker payment; and 28 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Income test Module G Section 1068 (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation; the person is taken to receive in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by: (c) dividing the amount received by the number of days in the periodic payments period (the result is called the daily rate); and (d) multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.
Note: For periodic payments period see section 17.
Partner income free area 1068-G9 The partner income free area for a person is: (a) if the person’s partner is not receiving a social security benefit and has not turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full-time study (see section 541B); or (b) if the person’s partner is not receiving a social security benefit and has turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which jobseeker payment would not be payable to the partner if the partner were qualified for a jobseeker payment; or (c) if the person’s partner is receiving a social security benefit— the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.
1068-G9A For the purposes of paragraph 1068-G9(a), disregard steps 2, 2A and 3 of the method statement in point 1067G-A1.

1068-G9B For the purposes of paragraph 1068-G9(b), disregard steps 2 and 3 of the method statement in point 1068-A1.
Social Security Act 1991 29 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module G Income test Section 1068 Partner income excess 1068-G10 If: (a) a person is a member of a couple; and (b) the person’s partner is not receiving a social security pension, a service pension, income support supplement or a veteran payment; and (c) the partner’s ordinary income exceeds the partner income free area for the partner; then: (d) the person has a partner income excess; and (e) the person’s partner income excess is the amount by which the partner’s ordinary income exceeds the partner income free area.
Partner income reduction 1068-G11 If a person has a partner income excess, the person’s partner income reduction is an amount equal to 60% of the part of the partner’s ordinary income that exceeds the partner income free area.

Example: Facts: Susan’s partner Colin has an ordinary income of $800.

Assume that the partner income free area under point 1068-G9 is $640.

Application: Colin’s ordinary income exceeds the partner income free area.
He therefore has a partner income excess under point 1068-G10 of: $800 – $640  $160 Susan’s partner income reduction under point 1068-G11 is therefore: 60%  $160  $96 Ordinary income free area 1068-G12 A person’s ordinary income free area is $150.

Note: The income free area is used in the ordinary income test in relation to fortnightly income.
30 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Income test Module G Section 1068 Ordinary income excess 1068-G13 If a person’s ordinary income exceeds the person’s ordinary income free area: (a) the person has an ordinary income excess; and (b) the person’s ordinary income excess is the amount by which the person’s ordinary income exceeds the person’s ordinary income free area.
Ordinary income reduction—general 1068-G14 Subject to point 1068-G17, if a person has an ordinary income excess, the person’s ordinary income reduction is the sum of: (a) the person’s lower range reduction (see point 1068-G15); and (b) the person’s upper range reduction (if any) (see point 1068-G16).

Lower range reduction 1068-G15 The person’s lower range reduction is an amount equal to 50% of the part of the person’s ordinary income excess that does not exceed $106.
Upper range reduction 1068-G16 The person’s upper range reduction is an amount equal to 60% of the part (if any) of the person’s ordinary income excess that exceeds $106.
Ordinary income reduction for certain recipients of jobseeker payment 1068-G17 If: (a) a person has an ordinary income excess; and (b) the person is receiving jobseeker payment; and (c) the person is not a member of a couple; and (d) the person is the principal carer of a child; Social Security Act 1991 31 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module J Remote area allowance Section 1068 the person’s ordinary income reduction is an amount equal to 40% of the person’s ordinary income excess.
Module J—Remote area allowance Remote area allowance—person physically in remote area 1068-J1 An amount by way of remote area allowance is to be added to a person’s rate if: (aa) any of the following subparagraphs applies: (i) apart from this point, the person’s rate would be greater than nil; (ii) apart from this point, the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; (iii) apart from this point, the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force; (iv) apart from this point, the person’s rate would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); and (a) the person’s usual place of residence is situated in the remote area; and (b) the person is physically present in the remote area.
Note 1: For remote area see subsection 14(1).

Note 2: A person may be considered to be physically present in a remote area during temporary absences—see subsection 14(2).

Rate of remote area allowance 1068-J3 The rate of remote area allowance payable to a person is worked out using Table J.

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 4 for each FTB child, and regular care child, of the person.
32 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Benefit Rate Calculator B Part 3.6 Remote area allowance Module J Section 1068 Table J Remote area allowance Column 1 Column 2 Column 3 Column 4 Item Person’s family situation Basic allowance Additional allowance for each FTB child and regular care child 1.

2.

3.

5.
2.

3.

5.

Not member of couple Partnered Member of illness separated couple Partnered (partner in gaol) $18.20 $15.60 $18.20 $7.30 $7.30 $7.30 $18.20 $7.30 Meaning of remote area allowance 1068-J4 In Table J, remote area allowance means: (a) an amount added to a person’s social security pension or benefit by way of remote area allowance; or (b) a remote area allowance payable under point SCH6-G1 of the VEA.
In remote area 1068-J5 For the purposes of Table J in point 1068-J3, a person is in the remote area if: (a) the person’s usual place of residence is in the remote area; and (b) the person is physically present in the remote area.
Social Security Act 1991 33 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6 Benefit Rate Calculator B Module J Remote area allowance Section 1068 Special rule where partner has an FTB or regular care child but is not receiving a pension 1068-J7 If: (a) a person who is a member of a couple is qualified for an amount by way of additional allowance; and (b) the person’s partner is not receiving a pension or benefit; and (c) the person’s partner has an FTB child or a regular care child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child 1068-J8 If: (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and (b) the person’s partner has an FTB child or a regular care child; and (c) the person’s partner is not receiving additional allowance for the child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule dealing with the death of an FTB or regular care child 1068-J9 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.
34 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Section 1068A Part 3.6A—Parenting Payment Rate Calculator 1068A Rate of parenting payment—pension PP (single) (1) If a person is not a member of a couple, the person’s rate of parenting payment is the pension PP (single) rate.
(2) The pension PP (single) rate is worked out in accordance with the rate calculator at the end of this section.

Note: For rate of a person who is a member of a couple see section 1068B.
(3) If: (a) a person has a relationship with another person, whether of the same sex or a different sex (the other person); and (b) the relationship between them is a de facto relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A)); and (c) either or both of them are under the age of consent applicable in the State or Territory in which they are living; the person’s pension PP (single) rate is not to exceed the benefit PP (partnered) rate which would be payable to the person if the other person were the person’s partner.
Pension PP (Single) Rate Calculator Module A—Overall rate calculation process Method of calculating rate 1068A-A1 The rate of pension PP (single) is a daily rate.

That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).
Social Security Act 1991 35 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module A Overall rate calculation process Section 1068A Method statement Step 1.

Work out the person’s maximum basic rate using Module B below.

Step 1A.

Work out the amount of pension supplement using Module BA below.

Step 1B.

Work out the energy supplement (if any) using Module BB below.
Step 2.

Work out the amount per year (if any) of pharmaceutical allowance using Module C below.

Step 3.

Work out the amount per year (if any) for rent assistance in accordance with paragraph 1070A(b).

Step 4.

Add up the amounts obtained in Steps 1, 1A, 1B, 2 and 3: the result is called the maximum payment rate.

Step 5.

Apply the ordinary income test using Module E below to work out the income reduction.

Step 6.
Step 6.

Take the income reduction away from the maximum payment rate: the result is called the provisional annual payment rate.

Step 7.
The rate of pension PP (single) is the amount obtained by: (a) (b) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and 36 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Maximum basic rate Module B Section 1068A (c) adding any amount payable by way of remote area allowance (see Module F).
Note 1: Note 2: Note 3: If a person’s rate is reduced under Step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210.

In some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

An amount of remote area allowance is to be added under Step 7 only if the person’s provisional payment rate under Step 6 is greater than nil.
Module B—Maximum basic rate Maximum basic rate 1068A-B1 A person’s maximum basic rate is $21,470.80 per year ($825.80 per fortnight).

Note: The maximum basic rate is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Module BA—Pension supplement Pension supplement 1068A-BA1 A pension supplement amount is to be added to the person’s maximum basic rate.

Residents of pension age who are in Australia etc.


1068A-BA2 If the person is residing in Australia, has reached pension age and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks; the person’s pension supplement amount is: (c) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1068A-BA4; and (d) otherwise—the amount worked out under point 1068A-BA3.
Social Security Act 1991 37 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module BB Energy supplement Section 1068A Residents of pension age in Australia etc.—no election in force 1068A-BA3 The person’s pension supplement amount is the amount worked out by: (a) working out 66.33% of the combined couple rate of pension supplement; and (b) if the result is not a multiple of $2.60, rounding the result up or down to the nearest multiple of $2.60 (rounding up if the result is not a multiple of $2.60 but is a multiple of $1.30).
Note: For combined couple rate of pension supplement, see subsection 20A(1).

Residents of pension age in Australia etc.—election in force 1068A-BA4 The person’s pension supplement amount is the amount worked out as follows: (a) work out the amount for the person under point 1068A-BA3 as if the election were not in force; (b) from that amount, subtract the person’s minimum pension supplement amount.
Other persons 1068A-BA5 If the person is not covered by point 1068A-BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.

Module BB—Energy supplement 1068A-BB1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.
38 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Pharmaceutical allowance Module C Section 1068A Recipient has reached pension age 1068A-BB2 If the recipient has reached pension age, the recipient’s energy supplement is $366.60.
Recipient has not reached pension age 1068A-BB3 If the recipient has not reached pension age, the recipient’s energy supplement is $312.00.

Module C—Pharmaceutical allowance Qualification for pharmaceutical allowance 1068A-C1 Subject to points 1068A-C1A, 1068A-C2, 1068A-C3 and 1068A-C5, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.
No pharmaceutical allowance if person has reached pension age 1068A-C1A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person has reached pension age.
No pharmaceutical allowance if person receiving certain supplements under other Acts 1068A-C2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving: (a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.
Social Security Act 1991 39 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module C Pharmaceutical allowance Section 1068A No pharmaceutical allowance before advance payment period ends 1068A-C3 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and (b) the person’s advance payment period has not ended.
Note: For advance payment period see point 1068A-C4.

Advance payment period 1068A-C4(1) A person’s advance payment period starts on the day on which the advance pharmaceutical allowance is paid to the person.

(2) The period ends after the number of paydays worked out using the following formula have passed: Amount of advance  26 Pharmaceutical allowance rate where: amount of advance is the amount of the advance paid to the person.
pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the person’s rate of pension PP (single) on the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.
No pharmaceutical allowance if annual limit reached 1068A-C5 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if: (a) the person has received an advance pharmaceutical allowance during the current calendar year; and (b) the total amount paid to the person for that year by way of: 40 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Ordinary income test Module E Section 1068A (i) pharmaceutical allowance; and (ii) advance pharmaceutical allowance; equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.
Note 1: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (7).

Note 2: The annual limit is affected by the following: (a) (b) how long during the calendar year the person was on pension or benefit; the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.

Amount of pharmaceutical allowance 1068A-C7 The amount of pharmaceutical allowance is $140.40 per year ($5.40 per fortnight).
Note: The annual amount is adjusted annually in line with CPI increases (see section 1206A).

Module E—Ordinary income test Effect of income on maximum payment rate 1068A-E1 This is how to work out the effect of a person’s ordinary income on the person’s maximum payment rate: Method statement Step 1.

Work out the amount of the person’s ordinary income on a yearly basis.

Step 2.

Work out the person’s ordinary income free area (see points 1068A-E14 to 1068A-E18 below).
Social Security Act 1991 41 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module E Ordinary income test Section 1068A Note: A person’s ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person’s maximum payment rate.

Step 3.
Step 3.

Work out whether the person’s ordinary income exceeds the person’s ordinary income free area.

Step 4.

Step 5.

If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Step 6.
Step 6.

Use the person’s ordinary income excess to work out the person’s reduction for ordinary income using points 1068A-E19 and 1068A-E20 below.

Note 1: Note 2: See point 1068A-A1 (Steps 5 and 6) for the significance of the person’s reduction for ordinary income.
The application of the ordinary income test is affected by provisions concerning the following: (a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10); (b) business income (sections 1074 and 1075); (c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10); income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10); (e) disposal of income (sections 1106 to 1111).
(d) Directed termination payments excluded 1068A-E2 If: (a) a person’s employment has been terminated; and 42 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Ordinary income test Module E Section 1068A (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 82-10F of the Income Tax (Transitional Provisions) Act 1997; the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.
Certain leave payments taken to be ordinary income—employment continuing 1068A-E3 If: (a) a person is employed; and (b) the person is on leave for a period; and (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of the leave period; the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.
Certain termination payments taken to be ordinary income 1068A-E4 If: (a) a person’s employment has been terminated; and (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise); the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.
More than one termination payment on a day 1068A-E5 If: (a) the person is covered by point 1068A-E4; and Social Security Act 1991 43 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module E Ordinary income test Section 1068A (b) the person receives more than one termination payment on a day; the income maintenance period is worked out by adding the periods to which the payments relate.
Start of income maintenance period—employment continuing 1068A-E6 If the person is covered by point 1068A-E3, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated 1068A-E7 If the person is covered by point 1068A-E4, the income maintenance period starts, subject to point 1068A-E8, on the day the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment 1068A-E8 If a person who is covered by point 1068A-E4 is subject to an income maintenance period (the first period) and the person is paid another termination payment during that period (the second leave payment), the income maintenance period for the second termination payment commences on the day after the end of the first period.
1068A-E9 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).
Note 3: If an income maintenance period applies to a person, then, during that period: (a) the pension PP (single) claimed may not be payable to the person; or 44 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Ordinary income test Module E Section 1068A (b) the amount of the pension PP (single) payable to the person may be reduced.
When a person receives a leave payment or a termination payment 1068A-E10 For the purposes of points 1068A-E2 to 1068A-E9 (inclusive), a person (the first person) is taken to receive a leave payment or termination payment if the payment is made to another person: (a) at the direction of the first person or a court; or (b) on behalf of the first person; or (c) for the benefit of the first person; or the first person waives or assigns the first person’s right to receive the payment.
Single payment in respect of different kinds of termination payments 1068A-E11 If a person who is covered by point 1068A-E4 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1068A-E3 to 1068A-E10 (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
Definitions 1068A-E12 In points 1068A-E3 to 1068A-E12 (inclusive): leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include: (a) an instalment of parental leave pay; or (b) dad and partner pay.
period to which the payment relates means: (a) if the payment is a leave payment—the leave period to which the payment relates; or Social Security Act 1991 45 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module E Ordinary income test Section 1068A (b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or (c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if: (i) the person’s employment had continued; and (ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
redundancy payment includes a payment in lieu of notice, but does not include a directed termination payment within the meaning of section 82-10F of the Income Tax (Transitional Provisions) Act 1997. termination payment includes: (a) a redundancy payment; and (b) a leave payment relating to a person’s employment that has been terminated; and (c) any other payment that is connected with the termination of a person’s employment.
Payment of arrears of periodic compensation payments 1068A-E13 If: (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving a compensation affected payment; and (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation; 46 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Ordinary income test Module E Section 1068A the person is taken to receive, on each day in the periodic payments period, an amount calculated by dividing the amount received by the number of days in the periodic payments period.
Note: For compensation affected payment and periodic payments period see section 17.

How to calculate a person’s ordinary income free area 1068A-E14 A person’s ordinary income free area is worked out using Table E. The ordinary income free area is the amount in Column 2 plus the additional amount in Column 4 for each dependent child of the person.
Table E—Ordinary income free area Column 1 Column 2 Column 3 Column 4 Column 5 Item Basic free area per year Basic free area per fortnight Additional free area per year Additional free area per fortnight 1 $2,600 $100 $639.60 $24.60 Note 1: For dependent child see section 5 and point 1068A-E21.

Note 2: The basic free area per year is indexed annually in line with CPI increases (see sections 1191 to 1194).
No additional free area for certain prescribed student children 1068A-E15 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 receives carer allowance for the child.
Reduction of additional free area for dependent children 1068A-E16 The additional free area for a dependent child is reduced by the annual amount of any payment received by the person for or in respect of that particular child.

The payments referred to in point 1068A-E17 do not result in a reduction.
Social Security Act 1991 47 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module E Ordinary income test Section 1068A Payments that do not reduce additional free area 1068A-E17 No reduction is to be made under point 1068A-E16 for a payment: (a) under this Act; or (b) of maintenance income; or (c) under the Veterans’ Entitlements Act; or (d) under an Aboriginal study assistance scheme; or (e) under the Assistance for Isolated Children Scheme.
Note: For Aboriginal study assistance scheme see subsection 23(1).
Examples of payments reducing additional free area 1068A-E18 Examples of the kinds of payments that result in a reduction under point 1068A-E16 are: (a) amounts received from State authorities or registered public benevolent institutions in respect of the boarding out of the child; or (b) amounts of superannuation or compensation paid in respect of the child; or (c) amounts (other than amounts covered by point 1068A-E17) paid in respect of the child under educational schemes; or (d) foster care allowance payments made by a State welfare authority.
Ordinary income excess 1068A-E19 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Reduction for ordinary income 1068A-E20 A person’s reduction for ordinary income is: Ordinary income excess  0.4 1068A-E21 In this Module: dependent child, in relation to a person, includes any child of the person who is under 18 and is receiving a youth allowance.
48 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Remote area allowance Module F Section 1068A Module F—Remote area allowance Remote area allowance 1068A-F1 An amount by way of remote area allowance is to be added to a person’s rate if: (a) any of the following subparagraphs applies: (i) apart from this point, the person’s rate would be greater than nil; (ii) apart from this point, the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; (iii) apart from this point, the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force; (iv) apart from this point, the person’s rate would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); and (b) the person’s usual place of residence is situated in a remote area; and (c) the person is physically present in the remote area.
Note: For remote area and physically present in the remote area see section 14.

Rate of remote area allowance 1068A-F2 The rate of remote area allowance payable to a person is worked out using Table F. The rate of remote area allowance is the amount in Column 2 plus the additional corresponding amount in Column 4 for each FTB child, and each regular care child, of the person.
Social Security Act 1991 49 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module A Overall rate calculation process Section 1068B Table F—Remote area allowance Column 1 Column 2 Column 3 Column 4 Column 5 Item Basic allowance per year Basic allowance per fortnight Additional allowance per year Additional allowance per fortnight 1 $473.20 $18.20 $189.80 $7.30 1068B Rate of parenting payment—PP (partnered) (1) If a person is a member of a couple, the person’s rate of parenting payment is the benefit PP (partnered) rate.
(2) The benefit PP (partnered) rate is worked out in accordance with the rate calculator at the end of this section.

Note: For member of a couple see section 4.

Benefit PP (Partnered) Rate Calculator Module A—Overall rate calculation process Method of calculating rate—general 1068B-A1 The rate of benefit PP (partnered) is a daily rate.

That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.
There are 2 ways of working out the fortnightly rate: (a) one for a person who is not a partner of a non-independent YA recipient (see point 1068B-A2); and (b) one for a person who is a partner of a non-independent YA recipient (see point 1068B-A3).

Note: For partner of a non-independent YA recipient see subsection 23(1).
50 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Overall rate calculation process Module A Section 1068B Method of calculating rate for person who is not a partner of a non-independent YA recipient 1068B-A2 If a person is not the partner of a non-independent YA recipient, the fortnightly rate of benefit PP (partnered) for the person is worked out as follows: Method statement Step 1.
Work out the person’s maximum basic rate using Module C below.

Step 2.

Work out the amount per fortnight (if any) of rent assistance in accordance with paragraph 1070A(a).

Step 2A.

Work out the pension supplement amount (if any) using Module DA below.

Step 2B.

Work out the energy supplement (if any) using Module DB below.

Step 3.

Work out the amount per fortnight (if any) of pharmaceutical allowance using Module E below.

Step 4.
Step 4.

Add up the amounts obtained in steps 1 to 3: the result is called the maximum payment rate.

Step 5.

Apply the income test using Module D below to work out the person’s income reduction.

Step 6.

Take the income reduction away from the maximum payment rate: the result is called the provisional payment rate.

Step 7.
The rate of benefit PP (partnered) is the difference between: (a) the provisional payment rate; and Social Security Act 1991 51 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module A Overall rate calculation process Section 1068B (b) any advance payment deduction (see Part 3.16A); plus, except where the person is a CDEP Scheme participant in respect of the whole or part of the period for which the rate of payment is being worked out, any amount by way of remote area allowance that, under Module G, is to be added to the person’s rate of benefit PP (partnered).
Note 1: For partner of a non-independent YA recipient see subsection 23(1).

Note 2: If a person’s rate is reduced under step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210 (maximum basic rate first, then rent assistance).
Method of calculating rate for partner of a non-independent YA recipient 1068B-A3 If a person is the partner of a non-independent YA recipient, the fortnightly rate of benefit PP (partnered) for the person is worked out as follows: Method statement Step 1.

Work out the person’s maximum basic rate using Module C below.

Step 2.

Work out the amount per fortnight (if any) of rent assistance in accordance with paragraph 1070A(a).

Step 2A.
Step 2A.

Work out the pension supplement amount (if any) using Module DA below.

Step 2B.

Work out the energy supplement (if any) using Module DB below.

Step 3.

Work out the amount per fortnight (if any) of pharmaceutical allowance using Module E below.
52 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Maximum basic rate Module C Section 1068B Step 4.

Add up the amounts obtained in steps 1 to 3: the result is called the maximum payment rate.

Step 5.

Apply the income test using Module E of the Rate Calculator in section 1068A to work out the person’s income reduction.

Step 6.
Step 6.

Take the income reduction away from the maximum payment rate: the rate is called the provisional payment rate.

Step 7.
Step 7.

The rate of benefit is the difference between: (a) the provisional payment rate; and (b) any advance payment deduction (see Part 3.16A); plus, except where the person is a CDEP Scheme participant in respect of the whole or part of the period for which the rate of payment is being worked out, any amount by way of remote area allowance that, under Module G, is to be added to the person’s rate of benefit PP (partnered).

Note 1: For partner of a non-independent YA recipient see subsection 23(1).
Note 2: If a person’s rate is reduced under step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210 (maximum basic rate first, then rent assistance).
Module C—Maximum basic rate Maximum basic rate 1068B-C2 If a person is not a CDEP Scheme participant in respect of the whole or part of the period for which the rate of payment is being worked out, the person’s maximum basic rate is worked out using Social Security Act 1991 53 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module D Income test Section 1068B Table C. Work out the person’s family situation.
The maximum basic rate is the corresponding amount in Column 3.

Table C—Maximum basic rates Column 1 Column 2 Item Person’s family situation Person not covered by item 2, 3 or 4 Member of illness separated couple Member of respite care couple Partnered (partner in gaol) Column 3 Rate $565.40 $667.50 $667.50 $667.50 For illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

The rates are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).
1 2 3 4 Note 1: Note 2: Maximum basic rate—CDEP Scheme participant 1068B-C3 The maximum basic rate of a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is nil (see section 500W).
Module D—Income test Effect of income on maximum payment rate 1068B-D1 This is how to work out the effect of a person’s ordinary income, and the ordinary income of the person’s partner, on the person’s maximum payment rate: 54 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Income test Module D Section 1068B Method statement Step 1.
Work out the amount of the person’s ordinary income on a fortnightly basis.

Note: The amount of the person’s ordinary income is affected by points 1068B-D2 to 1068B-D21.

Step 2.

Work out the partner income free area using point 1068B-D22.

Note: The partner income free area is the maximum amount of ordinary income the person’s partner can have without affecting the person’s rate.

Step 3.

Use point 1068B-D23 to work out the person’s partner income excess.

Step 4.
Step 4.

Use the person’s partner income excess to work out the person’s partner income reduction using point 1068B-D24.

Step 5.

Work out whether the person’s ordinary income exceeds the person’s ordinary income free area (see point 1068B-D27).

Note: A person’s ordinary income free area is the maximum amount of ordinary income the person can have without affecting the person’s rate.

Step 6.

Step 7.
Step 6.

Step 7.

If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.
Social Security Act 1991 55 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module D Income test Section 1068B Step 8.

Use the person’s ordinary income excess to work out the person’s ordinary income reduction using points 1068B-D29 to 1068B-D31.

Step 9.
Step 9.

Add the person’s ordinary income reduction and partner income reduction: the result is the person’s income reduction referred to in step 5 of the method statement in point 1068B-A2.

Note 1: For ordinary income see section 8.

Note 2: Note 3: See point 1068B-A2 (step 6) for the significance of the person’s income reduction.
The application of the ordinary income test is affected by provisions concerning the following: (a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10); (b) business income (sections 1074 and 1075); (c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10); income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10); (e) disposal of income (sections 1106 to 1111).
(d) Ordinary income of members of certain couples 1068B-D2 If a person’s partner is receiving a social security pension, a service pension, income support supplement or a veteran payment, the person’s ordinary income is taken to be one half of the sum of: (a) the amount that would be the person’s ordinary income if he or she were not a member of a couple; and (b) the amount that would be the ordinary income of the person’s partner if the partner were not a member of a couple.
Board and lodging 1068B-D6 A person’s ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.
56 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Income test Module D Section 1068B Lump sum payments arising from termination of employment 1068B-D7 Subject to points 1068B-D8 to 1068B-D18 (inclusive), if: (a) a person’s employment has been terminated; and (b) as a result, the person is entitled to a lump sum payment from the person’s former employer; the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.
Directed termination payments excluded 1068B-D8 If: (a) a person’s employment has been terminated; and (b) as a result the person is entitled to a lump sum payment from the person’s former employer; and (c) the payment, or part of the payment, is a directed termination payment within the meaning of section 82-10F of the Income Tax (Transitional Provisions) Act 1997; the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.
Certain leave payments taken to be ordinary income—employment continuing 1068B-D9 If: (a) a person is employed; and (b) the person is on leave for a period; and (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of the leave period; the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.
Social Security Act 1991 57 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module D Income test Section 1068B Certain termination payments taken to be ordinary income 1068B-D10 If: (a) a person’s employment has been terminated; and (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise); the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.
More than one termination payment on a day 1068B-D11 If: (a) the person is covered by point 1068B-D10; and (b) the person receives more than one termination payment on a day; the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing 1068B-D12 If the person is covered by point 1068B-D9, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.
Start of income maintenance period—employment terminated 1068B-D13 If the person is covered by point 1068B-D10, the income maintenance period starts, subject to point 1068B-D14, on the day the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment 1068B-D14 If a person who is covered by point 1068B-D10 is subject to an income maintenance period (the first period) and the person is paid another termination payment during that period (the second leave payment), the income maintenance period for the second 58 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Income test Module D Section 1068B termination payment commences the day after the end of the first period.
1068B-D15 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).
Note 3: If an income maintenance period applies to a person, then, during that period: (a) the benefit PP (partnered) claimed may not be payable to the person; or the amount of the benefit PP (partnered) payable to the person may be reduced.
(b) When a person receives a leave payment or a termination payment 1068B-D16 For the purposes of points 1068B-D8 to 1068B-D15 (inclusive), a person (the first person) is taken to receive a leave payment or termination payment if the payment is made to another person: (a) at the direction of the first person or a court; or (b) on behalf of the first person; or (c) for the benefit of the first person; or the first person waives or assigns the first person’s right to receive the payment.
Single payment in respect of different kinds of termination payments 1068B-D17 If a person who is covered by point 1068B-D10 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1068B-D9 to 1068B-D16 (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the Social Security Act 1991 59 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module D Income test Section 1068B single payment is worked out by adding the periods to which the separate payments relate.
Definitions 1068B-D18 In points 1068B-D9 to 1068B-D18 (inclusive): leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include: (a) an instalment of parental leave pay; or (b) dad and partner pay.
period to which the payment relates means: (a) if the payment is a leave payment—the leave period to which the payment relates; or (b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or (c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if: (i) the person’s employment had continued; and (ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
redundancy payment includes a payment in lieu of notice, but does not include a directed termination payment within the meaning of section 82-10F of the Income Tax (Transitional Provisions) Act 1997.
60 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Income test Module D Section 1068B termination payment includes: (a) a redundancy payment; and (b) a leave payment relating to a person’s employment that has been terminated; and (c) any other payment that is connected with the termination of a person’s employment.
Period over which ordinary income taken into account 1068B-D19 Subject to points 1068B-D8 to 1068B-D18 (inclusive), a person’s ordinary income (except employment income) is to be taken into account over such period, not exceeding 52 weeks, as the Secretary determines.

Note 1: This point, in conjunction with point 1068B-D20, enables the Secretary to determine the person’s fortnightly income amount that best represents the person’s income situation.
Note 2: See Division 1AA of Part 3.10 for the treatment of employment income.

Fortnightly rate of ordinary income 1068B-D20 For the purposes of this Module, the person’s ordinary income (except employment income) for such a period is to be reduced to a fortnightly rate rounded to the nearest cent (rounding 0.5 cents downwards).
Payment of arrears of periodic compensation payments 1068B-D21 If: (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving a compensation affected payment; and (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation; the person is taken to receive, on each day in the periodic payments period, an amount calculated by dividing the amount received by the number of days in the periodic payments period.
Social Security Act 1991 61 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module D Income test Section 1068B Note: For compensation affected payment and periodic payments period see section 17.
Partner income free area 1068B-D22 The partner income free area for a person is: (a) if the person’s partner is not receiving a social security benefit and has not turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full-time study (see section 541B); or (b) if the person’s partner is not receiving a social security benefit and has turned 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which jobseeker payment would not be payable to the partner if the partner were qualified for a jobseeker payment; or (c) if the person’s partner is receiving a social security benefit— the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.
1068B-D22A For the purposes of paragraph 1068B-D22(a), disregard steps 2, 2A and 3 of the method statement in point 1067G-A1.

1068B-D22B For the purposes of paragraph 1068B-D22(b), disregard steps 2 and 3 of the method statement in point 1068-A1.
Partner income excess 1068B-D23 If: (b) the person’s partner is not receiving a social security pension, a service pension, income support supplement or a veteran payment; and (c) the partner’s ordinary income exceeds the partner income free area for the partner; the person’s partner income excess is the amount by which the partner’s ordinary income exceeds the partner income free area.

Otherwise, the person’s partner income excess is nil.
62 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Income test Module D Section 1068B Partner income reduction 1068B-D24 If a person has a partner income excess, the person’s partner income reduction is an amount equal to 60% of the part of the partner’s ordinary income that exceeds the partner income free area.
Ordinary income free area 1068B-D27 A person’s ordinary income free area is $150.

Note: The income free area is used in the ordinary income test in relation to fortnightly income.

Ordinary income excess 1068B-D28 If a person’s ordinary income exceeds the person’s ordinary income free area: (a) the person has an ordinary income excess; and (b) the person’s ordinary income excess is the amount by which the person’s ordinary income exceeds the person’s ordinary income free area.
Ordinary income reduction 1068B-D29 If a person has an ordinary income excess, the person’s ordinary income reduction is the sum of: (a) the person’s lower range reduction (see point 1068B-D30); and (b) the person’s upper range reduction (if any) (see point 1068B-D31).

Lower range reduction 1068B-D30 The person’s lower range reduction is an amount equal to 50% of the part of the person’s ordinary income excess that does not exceed $106.
Social Security Act 1991 63 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module DA Pension supplement Section 1068B Upper range reduction 1068B-D31 The person’s upper range reduction is an amount equal to 60% of the part (if any) of the person’s ordinary income excess that exceeds $106.
Module DA—Pension supplement Pension supplement 1068B-DA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia, has reached pension age and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
1068B-DA2 The person’s pension supplement amount is: (a) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1068B-DA4; and (b) otherwise—the amount worked out under point 1068B-DA3.
Amount if no election in force 1068B-DA3 The person’s pension supplement amount is the amount worked out by: (a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and (b) dividing the result by 26; and (c) if: (i) the person is not partnered; and (ii) the amount resulting from paragraph (b) is not a multiple of 10 cents; rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of 10 cents but is a multiple of 5 cents).
64 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Energy supplement Module DB Section 1068B Item Person’s family situation Use this % 1 2 3 4 Partnered Member of illness separated couple Member of respite care couple Partnered (partner in gaol) 50% 66.33% 66.33% 66.33% Note: For combined couple rate of pension supplement, see subsection 20A(1).
Amount if election in force 1068B-DA4 The person’s pension supplement amount is the amount worked out as follows: (a) work out the amount for the person under point 1068B-DA3 as if the election were not in force; (b) from that amount, subtract 1/26 of the person’s minimum pension supplement amount.
Module DB—Energy supplement 1068B-DB1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.
Recipient has reached pension age 1068B-DB2 If the recipient has reached pension age, the recipient’s energy supplement is the amount worked out using the following table: Social Security Act 1991 65 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module E Pharmaceutical allowance Section 1068B Energy supplement Item Recipient’s family situation 1 2 3 4 Partnered Member of an illness separated couple Member of a respite care couple Partnered (partner in gaol) Recipient has not reached pension age Amount of energy supplement $10.60 $14.10 $14.10 $14.10 1068B-DB3 If the recipient has not reached pension age, the recipient’s energy supplement is the amount worked out using the following table: Energy supplement Item Recipient’s family situation for maximum basic rate Amount of energy supplement 1 2 If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1068B-C2 If the recipient’s maximum basic rate is worked out under item 2, 3 or 4 of the table in point 1068B-C2 $7.90 $9.50 Module E—Pharmaceutical allowance Qualification for pharmaceutical allowance 1068B-E1 Subject to points 1068B-E1A, 1068B-E2, 1068B-E3, 1068B-E4 and 1068B-E6, an additional amount by way of pharmaceutical allowance is to be included in a person’s maximum payment rate in points 1068B-A2 and 1068B-A3 if: (b) the person is an Australian resident, or has a qualifying residence
 exemption for parenting payment; and (d) one or more of the following applies: 66 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Pharmaceutical allowance Module E Section 1068B (i) the person has turned 60, and has been receiving income support payments in respect of a continuous period of at least 9 months (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this paragraph); (ii) under section 502H, the person is covered by a participation exemption under Division 3A of Part 2.10; (ii) the person is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act; (iii) the person has a partial capacity to work.
Note 1: For income support payment see subsection 23(1).

Note 2: Note 3: For the determination of the continuous period in respect of which a person received income support payments see section 38B.

For Australian resident and qualifying residence exemption see section 7.

Note 4: For partial capacity to work see section 16B.
No pharmaceutical allowance if person receiving pension supplement 1068B-E1A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if a pension supplement amount has been added to that rate.
No pharmaceutical allowance if person receiving certain supplements under other Acts 1068B-E2 Pharmaceutical allowance is not to be included in a person’s maximum basic rate if the person is receiving: (a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or Social Security Act 1991 67 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module E Pharmaceutical allowance Section 1068B (c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.
No pharmaceutical allowance if partner receiving certain supplements under other Acts 1068B-E3 Pharmaceutical allowance is not to be included in a person’s maximum basic rate if: (a) the person is a member of a couple; and (b) the person’s partner is receiving: (i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or (ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or (iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or (iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and (c) the person’s partner is not receiving a service pension or a veteran payment.
No pharmaceutical allowance before advance payment period ends 1068B-E4 Pharmaceutical allowance is not to be included in a person’s provisional payment rate if: (a) the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and (b) the person’s advance payment period has not ended.

Note: For advance payment period see point 1068B-E5.
68 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Pharmaceutical allowance Module E Section 1068B Advance payment period 1068B-E5(1) A person’s advance payment period starts on the day on which the advance pharmaceutical allowance is paid to the person.
1068B-E5(2) The period ends after the number of paydays worked out using the following formula have passed: Amount of advance  26 Pharmaceutical allowance rate where: amount of advance is the amount of the advance paid to the person.
pharmaceutical allowance rate is the fortnightly amount of pharmaceutical allowance which would be included in the person’s maximum payment rate in working out the benefit PP (partnered) instalment for the day on which the advance is paid if parenting payment were payable to the person and pharmaceutical allowance were to be included in the person’s maximum payment rate.
(The person’s maximum payment rate is the maximum payment rate at step 4 of whichever of the method statements in points 1068B-A2 and 1068B-A3 is applicable to the person.)

Note: The person may have commenced receiving parenting payment after having been a pension recipient and have received an advance while a pension recipient.
No pharmaceutical allowance if annual limit reached 1068B-E6 Pharmaceutical allowance is not to be included in a person’s provisional payment rate if: (a) the person has received an advance pharmaceutical allowance during the current calendar year; and (b) the total amount paid to the person for that year by way of: (i) pharmaceutical allowance; and (ii) advance pharmaceutical allowance; Social Security Act 1991 69 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module E Pharmaceutical allowance Section 1068B equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.
Note 1: Note 2: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (7).

The annual limit is affected by: (a) how long during the calendar year the person was on pension or benefit; and (b) whether the person’s rate of pharmaceutical allowance varies during the calendar year.
Amount of pharmaceutical allowance 1068B-E8 The amount of pharmaceutical allowance is the amount per fortnight worked out using Table E. Table E—Pharmaceutical allowance amounts Column 1 Column 2 Item Person’s family situation Person not covered by item 2, 3, 4 or 5 Member of illness separated couple Member of respite care couple Partnered (partner getting service pension) Partnered (partner in gaol) Column 3 Amount per fortnight $2.70 $5.40 $5.40 $2.70 $5.40 Note 1: Note 2: For illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
The amounts in Column 3 are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1206A).
70 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Remote area allowance Module G Section 1068B Module G—Remote area allowance Remote area allowance—person physically in remote area 1068B-G1 An amount by way of remote area allowance is to be added in step 7 of the method statements in points 1068B-A2 and 1068B-A3 to a person’s rate of benefit PP (partnered) if: (b) any of the following subparagraphs applies: (i) apart from this point, the person’s rate of benefit PP (partnered) would be greater than nil; (ii) apart from this point, the person’s rate of benefit PP (partnered) would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; (iii) apart from this point, the person’s rate of benefit PP (partnered) would be nil merely because an election by the person under subsection 1061VA(1) is in force; (iv) apart from this point, the person’s rate of benefit PP (partnered) would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); and (c) the person’s usual place of residence is in a remote area; and (d) the person is physically present in the remote area.
Note 1: For remote area see subsection 14(1).

Note 2: A person may be considered to be physically present in a remote area during temporary absences—see subsection 14(2).

Rate of remote area allowance 1068B-G2 The rate of remote area allowance payable to a person is worked out using Table G. 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 the additional corresponding amount in Column 4 for each FTB child, and each regular care child, of the person.
Social Security Act 1991 71 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.6A Parenting Payment Rate Calculator Module G Remote area allowance Section 1068B Table G—Remote area allowance Column 1 Column 2 Item Person’s family situation Column 3 Basic allowance 1 2 3 4 Person not covered by item 2, 3 or 4 Member of illness separated couple Member of respite care couple Partnered (partner in gaol) $15.60 $18.20 $18.20 $18.20 Column 4 Additional allowance for each FTB child and regular care child $7.30 $7.30 $7.30 $7.30 Note: For illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Meaning of remote area allowance 1068B-G3 In point 1068B-G2, remote area allowance means: (a) an amount added to a person’s social security pension or benefit by way of remote area allowance; or (b) a remote area allowance payable under point SCH6-G1 of the VEA.

FTB or regular care child must be present in Australia 1068B-G4 Additional allowance is not payable for an FTB child, or a regular care child, unless the child is physically present in Australia.
Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child 1068B-G5 If: (a) an amount of remote area allowance is to be added to the person’s rate; and (b) the person’s partner has an FTB child or a regular care child; and 72 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Parenting Payment Rate Calculator Part 3.6A Remote area allowance Module G Section 1068B (c) the person’s partner is not receiving an additional amount of remote area allowance for the child; the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.
Special rule dealing with the death of an FTB or regular care child 1068B-G6 If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.
Social Security Act 1991 73 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 1 Operation of this Part Section 1070 Part 3.7—Rent assistance Division 1—Operation of this Part 1070 When this Part applies This Part applies if the rate of a person’s social security payment is to be calculated in accordance with any of the following Rate Calculators: (a) Pension Rate Calculator A (carer payments and certain age and disability support pensions); (c) Pension Rate Calculator D (certain disability support pensions); (d) Youth Allowance Rate Calculator; (da) Austudy Payment Rate Calculator; (e) Benefit Rate Calculator B (mature age allowance under Part 2.12B, jobseeker payment and partner and widow allowance); (f) Pension PP (Single) Rate Calculator or Benefit PP (Partnered) Rate Calculator (parenting payments).
1070A Effect of this Part If a person to whom this Part applies qualifies for rent assistance in accordance with Division 2, to help cover the cost of rent: (a) if paragraph (b) does not apply—the amount per fortnight worked out in accordance with Division 3 is added to the person’s maximum basic rate for the social security payment; or (b) if the rate of the person’s social security payment is to be calculated in accordance with Pension Rate Calculator A or D, or the Pension PP (Single) Rate Calculator—the amount per fortnight worked out in accordance with Division 3 is multiplied by 26 to calculate an amount per year and the amount per year is added to the person’s maximum basic rate for the social security payment.
74 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Qualification for rent assistance Division 2 Section 1070B Division 2—Qualification for rent assistance 1070B Qualification—general rule A person qualifies for rent assistance if the person satisfies: (a) the common requirements set out in section 1070C; and (b) any specific requirement, set out in a later section of this Division, applicable to the person’s social security payment.
1070C Common requirements (about aged care residence, home ownership and rent) The common requirements are that: (a) the person is not an aged care resident, and is not taken to be an aged care resident for the purposes of the Rate Calculator concerned; and (b) the person is not an ineligible homeowner; and (c) the person pays, or is liable to pay, rent, other than Government rent, in respect of a period in respect of premises in Australia; and (d) the person’s fortnightly rent is more than the rent threshold amount (see section 1070T).
1070D Specific requirement (carer payments and certain age and disability support pensions) (1) If the rate of the person’s social security payment is to be calculated in accordance with Pension Rate Calculator A and subsection (2) applies, the specific requirement applicable to the person’s social security payment is that set out in subsection (3).
(2) This subsection applies if: (a) the following conditions are satisfied: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; (ii) the person is entitled to be paid family tax benefit; or Social Security Act 1991 75 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 2 Qualification for rent assistance Section 1070E (b) the following conditions are satisfied: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; (ii) the person, or the person’s partner, is entitled to be paid family tax benefit.
(3) The specific requirement is that: (a) in a paragraph (2)(a) case, either of the following is satisfied: (i) the person’s maximum Part A rate of family tax benefit does not include rent assistance; (ii) the person’s maximum Part A rate of family tax benefit includes rent assistance and clause 38J of Schedule 1 to the Family Assistance Act applies to reduce the person’s Part A rate of family tax benefit; and (b) in a paragraph (2)(b) case, either of the following is satisfied: (i) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit does not include rent assistance; (ii) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit includes rent assistance and clause 38J or 38K of Schedule 1 to the Family Assistance Act applies to reduce the person’s, or the person’s partner’s, Part A rate of family tax benefit.
(4) Subsections (1), (2) and (3) do not apply if: (a) the person’s social security payment is disability support pension; and (b) the person has not turned 21.

Note: The specific requirement for a person who is receiving disability support pension and has not turned 21 is in section 1070F.
1070E Specific requirement (certain parenting payments) If: 76 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Qualification for rent assistance Division 2 Section 1070F (a) the rate of the person’s social security payment is to be calculated in accordance with the Pension PP (Single) Rate Calculator; and (b) the person is entitled to be paid family tax benefit; the specific requirement applicable to the social security payment is that either of the following is satisfied: (c) the person’s maximum Part A rate of family tax benefit does not include rent assistance; (d) the person’s maximum Part A rate of family tax benefit includes rent assistance and clause 38J of Schedule 1 to the Family Assistance Act applies to reduce the person’s Part A rate of family tax benefit.
1070F Specific requirement (certain disability support pensions) (1) If: (a) the person’s social security payment is disability support pension; and (b) the person has not turned 21; and (c) the rate of the person’s social security payment is to be calculated in accordance with Pension Rate Calculator A or Pension Rate Calculator D; the specific requirement applicable to the social security payment is that the person comply with subsection (2) or (3).
Person who has not turned 18 (2) The person complies with this subsection if: (a) the person has not turned 18; and (b) one of the following applies: (i) the person is a member of a couple and, if the person’s partner is living with the person in their home, the person’s partner is not receiving incentive allowance; (ii) the person is in disability accommodation; (iii) the person is independent; Social Security Act 1991 77 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 2 Qualification for rent assistance Section 1070F (iv) the person is living away from the person’s parental home because of a medical condition of the person; and (c) if: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; either of the following is satisfied: (iii) the person’s maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s maximum Part A rate of family tax benefit includes rent assistance and clause 38J of Schedule 1 to the Family Assistance Act applies to reduce the person’s Part A rate of family tax benefit; and (d) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person’s partner, is entitled to be paid family tax benefit; either of the following is satisfied: (iii) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit includes rent assistance but clause 38J or 38K of Schedule 1 to the Family Assistance Act applies to reduce the person’s, or the person’s partner’s, Part A rate of family tax benefit.
Person who has turned 18 (3) The person complies with this subsection if: (a) the person has turned 18; and (b) one of the following applies: 78 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Qualification for rent assistance Division 2 Section 1070F (i) the person is a member of a couple and, if the person’s partner is living with the person in their home, the person’s partner is not receiving incentive allowance; (ii) the person is in disability accommodation; (iii) the person is living away from the person’s parental home permanently or indefinitely; and (c) if: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; either of the following is satisfied: (iii) the person’s maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s maximum Part A rate of family tax benefit includes rent assistance and clause 38J of Schedule 1 to the Family Assistance Act applies to reduce the person’s Part A rate of family tax benefit; and (d) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person’s partner, is entitled to be paid family tax benefit; either of the following is satisfied: (iii) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit includes rent assistance but clause 38J or 38K of Schedule 1 to the Family Assistance Act applies to reduce the person’s, or the person’s partner’s, Part A rate of family tax benefit.
Social Security Act 1991 79 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 2 Qualification for rent assistance Section 1070G (4) For the purposes of applying the definition of living away from the person’s parental home in subsection (3), a step-parent or guardian is taken to be a parent.
1070G Specific requirement (youth allowance) (1) If the rate of the person’s social security payment is to be calculated in accordance with the Youth Allowance Rate Calculator, the specific requirement applicable to the social security payment is that: (a) the person: (i) is independent but is not an accommodated independent person; or (ii) is not independent and is required to live away from home; and (b) the person does not have a partner with a rent increased pension; and (c) if: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; either of the following is satisfied: (iii) the person’s maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s maximum Part A rate of family tax benefit includes rent assistance and clause 38J of Schedule 1 to the Family Assistance Act applies to reduce the person’s Part A rate of family tax benefit; and (d) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person’s partner, is entitled to be paid family tax benefit; either of the following is satisfied: 80 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Qualification for rent assistance Division 2 Section 1070H (iii) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit includes rent assistance but clause 38J or 38K of Schedule 1 to the Family Assistance Act applies to reduce the person’s, or the person’s partner’s, Part A rate of family tax benefit.
(2) In this section, accommodated independent person and required to live away from home have the same meanings as in Part 3.5.
1070H Specific requirement (austudy payment, mature age allowance under Part 2.12B, jobseeker payment, partner allowance or widow allowance) (1) If the rate of the person’s social security payment is to be calculated in accordance with the Austudy Payment Rate Calculator or Benefit Rate Calculator B, the specific requirement applicable to the social security payment is that set out in subsection (2).
(2) The specific requirement is that: (a) if the person: (i) is not a member of a couple; and (ii) is not living away from the principal home of a parent permanently or indefinitely; the person has turned 25; and (b) the person does not have a partner with a rent increased pension; and (c) if: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; either of the following is satisfied: Social Security Act 1991 81 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 2 Qualification for rent assistance Section 1070J (iii) the person’s maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s maximum Part A rate of family tax benefit includes rent assistance and clause 38J of Schedule 1 to the Family Assistance Act applies to reduce the person’s Part A rate of family tax benefit; and (d) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person’s partner, is entitled to be paid family tax benefit; either of the following is satisfied: (iii) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit includes rent assistance but clause 38J or 38K of Schedule 1 to the Family Assistance Act applies to reduce the person’s, or the person’s partner’s, Part A rate of family tax benefit.
(3) For the purposes of subparagraph (2)(a)(ii), a step-parent or guardian is taken to be a parent.
1070J Specific requirement (certain parenting payments) If the rate of the person’s social security payment is to be calculated in accordance with the Benefit PP (Partnered) Rate Calculator, the specific requirement applicable to the social security payment is that: (a) the person’s partner is not receiving a rent increased pension; and (b) if: (i) the person is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and 82 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Qualification for rent assistance Division 2 Section 1070J (ii) the person is entitled to be paid family tax benefit; either of the following is satisfied: (iii) the person’s maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s maximum Part A rate of family tax benefit includes rent assistance and clause 38J of Schedule 1 to the Family Assistance Act applies to reduce the person’s Part A rate of family tax benefit; and (c) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person’s partner, is entitled to be paid family tax benefit; either of the following is satisfied: (iii) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit does not include rent assistance; (iv) the person’s, or the person’s partner’s, maximum Part A rate of family tax benefit includes rent assistance but clause 38J or 38K of Schedule 1 to the Family Assistance Act applies to reduce the person’s, or the person’s partner’s, Part A rate of family tax benefit.
Social Security Act 1991 83 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 3 Rate of rent assistance Section 1070K Division 3—Rate of rent assistance 1070K Rate depends on social security payment and family situation A person’s rate of rent assistance depends on the person’s social security payment and the person’s family situation.
1070L Rate for carer payments and certain age and disability support pensions (1) The person’s rate of rent assistance is worked out under this section if the rate of the person’s social security payment is to be calculated in accordance with Pension Rate Calculator A.

(2) Using the following table, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3.
This is the person’s rate of rent assistance per fortnight but only up to the person’s maximum rent assistance rate.

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is rate B worked out using column 4 of the table.

If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of rate B.
Rate of rent assistance Column 1 Column 2 Item 1 2 Person’s family situation Not a member of a couple Column 3 Rate A    3  Fortnightly rent  $82.80    4 Column 4 Rate B $93.20 Partnered and partner does not have rent increased pension    3  Fortnightly rent  $134.80 4 $88.00    84 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Rate of rent assistance Division 3 Section 1070L Column 3 Rate A Column 4 Rate B    3  Fortnightly rent  $134.80    8    3  Fortnightly rent  $134.80    8 Half the rate specified in column 4 of item 2 Half the rate specified in column 4 of item 2 Rate of rent assistance Column 1 Column 2 Item 3 4 Person’s family situation Partnered and partner: (a) is receiving a social security pension; and (b) has rent increased pension Partnered and partner: (a) is receiving a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) does not have a dependent child or dependent children Social Security Act 1991 85 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 3 Rate of rent assistance Column 3 Rate A    3  Fortnightly rent  $161.20 8    3  Fortnightly rent  $161.20 8 Column 4 Rate B $54.80 $62.00       Section 1070L Rate of rent
 assistance Column 1 Column 2 Item 5 6 Person’s family situation Partnered and partner: (a) is receiving a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) has 1 or 2 dependent children Partnered and partner: (a) is receiving a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) has 3 or more dependent children 86 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL:
 Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Rate of rent assistance Division 3 Section 1070M Rate of rent assistance Column 1 Column 2 Item 7 8 9 10 Person’s family situation Partnered— member of an illness separated couple Partnered— member of a respite care couple Partnered— member of a temporarily separated couple Partnered (partner in gaol) Column 3 Rate A       3  3  Fortnightly rent  $82.80 4 Fortnightly rent  $82.80 4          3  Fortnightly rent  $82.80    4    3  Fortnightly rent  $82.80    4 Column 4 Rate B $93.20 $93.20 $88.00 $93.20 (3) Subsections (1) and (2) do not apply if: (a) the person’s social security payment is disability support pension; and (b) the person has not turned 21.
Note: The rate of rent assistance for a person who is receiving disability support pension and has not turned 21 is worked out: (a) under section 1070N if the person has not turned 18; and (b) under section 1070P if the person has turned 18.
1070M Rate for certain parenting payments (1) The person’s rate of rent assistance is worked out under this section if the rate of the person’s social security payment is to be Social Security Act 1991 87 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 3 Rate of rent assistance Section 1070N calculated in accordance with the Pension PP (Single) Rate Calculator.
(2) Using the following table, calculate rate A for the person using the formula in column 2.

This will be the person’s rate of rent assistance per fortnight but only up to the person’s maximum rent assistance rate.

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is rate B worked out using column 3 of the table.

If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of rate B.
Rate of rent assistance Column 1 Column 2 Item 1 Rate A    3  Fortnightly rent  $82.80    4 Column 3 Rate B $93.20 1070N Rate for disability support pension (person aged under 18) (1) The person’s rate of rent assistance is worked out under this section if: (a) the person is receiving disability support pension; and (b) the person has not turned 18; and (c) the rate of the person’s pension is to be calculated in accordance with Pension Rate Calculator A or Pension Rate Calculator D. (2) Using the table below, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3.
This is the person’s rate of rent assistance per fortnight but only up to the person’s maximum rent assistance rate.

The person’s maximum rent assistance rate is rate B worked out using column 4 of the table.
88 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Rate of rent assistance Division 3 Section 1070N Rate of rent assistance Column 1 Column 2 Item 1 2 3 Person’s family situation Not a member of a couple and: (a) in disability accommodation; or (b) independent Partnered and partner does not have rent increased pension Partnered and partner: (a) is receiving a social security pension; and (b) has rent increased pension Column 3 Rate A    3  Fortnightly rent  $82.80    4 Column 4 Rate B $93.20    3  Fortnightly rent  $134.80 4 $88.00       3  Fortnightly rent  $134.80    8 Half the rate specified in column 4 of item 2 Social Security Act 1991 89 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 3 Rate of rent assistance Column 3 Rate A    3  Fortnightly rent  $134.80    8 Column 4 Rate B Half the rate specified in column 4 of item 2    3  Fortnightly rent  $161.20 8 $54.80    Section 1070N Rate of rent assistance Column 1 Column 2 Item 4 5 Person’s family situation Partnered and partner: (a) is receiving a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) does not have a dependent child or dependent children Partnered and partner: (a) is receiving
 a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) has 1 or 2 dependent children 90 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Rate of rent assistance Division 3 Section 1070N Rate of rent assistance Column 1 Column 2 Item Person’s family situation Partnered and partner: (a) is receiving
 a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) has 3 or more dependent children Partnered— member of an illness separated couple Partnered— member of a respite care couple Partnered— member of a temporarily separated couple Partnered (partner in gaol) Column 3 Rate A    3  Fortnightly rent  $161.20    8 Column 4 Rate B $62.00             3  3  3  3  Fortnightly rent  $82.80 4 Fortnightly rent  $82.80 4 Fortnightly rent  $82.80 4 Fortnightly rent  $82.80 4             $93.20 $93.20 $88.00 $93.20 Social Security Act 1991 91 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 3 Rate of rent assistance Section 1070P 1070P Rate for disability support pension (person aged between 18 and 21) (1) The person’s rate of rent assistance is worked out under this section if: (a) the person is receiving disability support pension; and (b) the person has turned 18 but has not turned 21; and (c) the rate of the person’s pension is to be calculated in accordance with Pension Rate Calculator A or Pension Rate Calculator D. (2) Using the table below, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3.
This is the person’s rate of rent assistance per fortnight but only up to the person’s maximum rent assistance rate.

The person’s maximum rent assistance rate is rate B worked out using column 4 of the table.
Rate of rent assistance Column 1 Column 2 Item 1 2 92 Person’s family situation Not a member of a couple and: (a) in disability accommodation; or (b) living away from the person’s parental home permanently or indefinitely Partnered and partner does not have rent increased pension Column 3 Rate A    3  Fortnightly rent  $82.80    4 Column 4 Rate B $93.20    3  Fortnightly rent  $134.80 4 $88.00    Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Rate of rent assistance Division 3 Section 1070P Column 3 Rate A    3  Fortnightly rent  $134.80    8    3  Fortnightly rent  $134.80    8 Column 4 Rate B Half the rate specified in column 4 of item 2 Half the rate specified in column 4 of item 2 Rate of rent assistance Column 1 Column 2 Item 3 4 Person’s family situation Partnered and partner: (a) is receiving a social security pension; and (b) has rent increased pension Partnered and partner: (a) is receiving a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) does not have a dependent child or dependent children Social Security Act 1991 93 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 3 Rate of rent assistance Section 1070P Rate of rent assistance Column 1
 Column 2 Item 5 6 7 Person’s family situation Partnered and partner: (a) is receiving a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) has 1 or 2 dependent children Partnered and partner: (a) is receiving a service pension, income support supplement or a veteran payment; and (b) has rent increased pension; and (c) has 3 or more dependent children Partnered— member of an illness separated couple Column 3 Rate A    3  Fortnightly rent  $161.20
    8 Column 4 Rate B $54.80    3  Fortnightly rent  $161.20 8 $62.00       3  Fortnightly rent  $82.80 4 $93.20    94 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Rate of rent assistance Division 3 Section 1070Q Rate of rent assistance Column 1 Column 2 Item 8 9 10 Person’s family situation Partnered— member of a respite care couple Partnered— member of a temporarily separated couple Partnered (partner in gaol) Column 3 Rate A       3  3  Fortnightly rent  $82.80 4 Fortnightly rent  $82.80 4          3  Fortnightly rent  $82.80    4 Column 4 Rate B $93.20 $88.00 $93.20 1070Q Rate for youth allowance, austudy payment, mature age allowance under Part 2.12B, jobseeker payment, partner allowance and widow allowance (1) The person’s rate of rent assistance is worked out under this section if the rate of the person’s social security payment is to be calculated in accordance with the Youth Allowance Rate Calculator, the Austudy Payment Rate Calculator or Benefit Rate Calculator B.
(2) Using the table below, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3.

This is the person’s rate of rent assistance per fortnight but only up to the person’s maximum rent assistance rate.

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is rate B worked out using column 4 of the table.
If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of rate B.
Social Security Act 1991 95 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 3 Rate of rent assistance Section 1070Q Rate of rent assistance Column 1 Column 2 Item Person’s family situation Not a member of a couple Column 3 Rate A    3  Fortnightly rent  $82.80    4 Partnered— partner does not have rent increased benefit Partnered— partner has rent increased benefit       3  3  Fortnightly rent  $134.80 4 Fortnightly rent  $134.80 8       Partnered— member of an illness separated couple    3  Fortnightly rent  $82.80    4 Partnered— member of a respite care couple Partnered— member of a temporarily separated couple       3  3  Fortnightly rent  $82.80 4 Fortnightly rent  $82.80 4       Column 4 Rate B $93.20 $88.00 Half the rate specified in column 4 of item 2 $93.20 $93.20 $88.00 96 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Rate of rent assistance Division 3 Section 1070R Rate of rent assistance Column 1 Column 2 Item 7 Person’s family situation Partnered (partner in gaol) Column 3 Rate A    3  Fortnightly rent  $82.80    4 Column 4 Rate B $93.20 1070R Rate for certain parenting payments (1) The person’s rate of rent assistance is worked out under this section if the
 rate of the person’s social security payment is to be calculated in accordance with Benefit PP (Partnered) Rate Calculator.
(2) Using the table below, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3.

This is the person’s rate of rent assistance per fortnight but only up to the person’s maximum rent assistance rate.

The person’s maximum rent assistance rate is rate B worked out using column 4 of the table.
Social Security Act 1991 97 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 3 Rate of rent assistance Section 1070R Rate of rent assistance Column 1 Column 2 Column 3 Item Person’s family situation Partnered— partner does not have rent increased benefit Partnered— partner has rent increased benefit Partnered— member of an illness separated couple Partnered— member of a respite care couple Partnered— member of a temporarily separated couple Partnered (partner in gaol) Rate of rent assistance       3  3  Fortnightly rent  $134.80 4 Fortnightly rent  $134.80 8             3  3  Fortnightly rent  $82.80 4 Fortnightly rent  $82.80 4             3  3  Fortnightly rent  $82.80 4 Fortnightly rent  $82.80 4       Column 4 Maximum rate $88.00 Half the rate specified in column 4 of item 1 $93.20 $93.20 $88.00 $93.20 98 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Certain concepts used in this Part Division 4 Section 1070S Division 4—Certain concepts used in this Part 1070S Division has effect for purposes of Part This Division has effect for the purposes of this Part.
1070T Rent threshold amount (1) If the rate of a person’s social security payment is to be calculated in accordance with the Pension PP (Single) Rate Calculator, the person’s rent threshold amount is $82.80.

(2) In any other case, a person’s rent threshold amount is worked out in accordance with subsection (3).

(3) First, identify which of sections 1070L, 1070N, 1070P, 1070Q and 1070R applies to work out the rate of rent assistance for the person’s social security payment.
Next, identify which family situation in the table in that section applies to the person.

The person’s rent threshold amount is the amount in the formula in column 3 of the table, in relation to the family situation, that is deducted from fortnightly rent.

Example: If a person who is not a member of a couple receives an age pension, the person’s rent threshold amount is worked out as follows.

First, identify section 1070L as the section applicable to an age pension.
Then identify the family situation in item 1 of the table in that section as applicable to the person.

Finally, the person’s rent threshold amount is $82.80, being the amount that, in the formula in column 3 of that table, is deducted from the person’s fortnightly rent.

Indexation of the $82.80 has been ignored for the purposes of this example.

1070U Fortnightly rent Fortnightly rent is the fortnightly rent paid or payable by the person whose rate of social security payment is being calculated.
Social Security Act 1991 99 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 4 Certain concepts used in this Part Section 1070V 1070V Rent paid by a member of certain couples Rent paid by a member of a couple where person’s partner is living with the person in their home (1) If 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.
Rent paid by a member of an illness separated, respite care couple or temporarily separated couple (2) If a person is a member of an illness separated couple, respite care couple or temporarily separated couple, any rent that the person’s partner pays or is liable to pay in respect of the premises or lodgings occupied by the person is to be treated as paid or payable by the person.
1070W Partner with a rent increased pension A person has a partner with a rent increased pension if: (a) the partner is living with the person in their home; and (b) the partner receives a social security pension, a service pension, income support supplement or a veteran payment; and (c) the rate of the pension or supplement is increased to take account of rent paid or payable by the person.
1070X Partner with a rent increased benefit Youth Allowance Rate Calculator (1) If the rate of a person’s social security payment is to be calculated in accordance with the Youth Allowance Rate Calculator, the person’s partner has a rent increased benefit if the partner: (a) is living with the person in their home; and (b) either: 100 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Rent assistance Part 3.7 Certain concepts used in this Part Division 4 Section 1070X (i) is receiving a social security benefit the rate of which is increased to take account of rent; or (ii) is receiving a designated ABSTUDY payment, or would be receiving such a payment but for the partner’s income.
Note 1: See also subsections 23(4A) and (4AA).

Note 2: For designated ABSTUDY payment, see subsection (5).
Benefit Rate Calculator B (2) If the rate of a person’s social security payment is to be calculated in accordance with Benefit Rate Calculator B, the person’s partner has a rent increased benefit if the partner: (a) is living with the person in their home; and (b) either: (i) is receiving a social security benefit the rate of which is increased to take account of rent; or (ii) is receiving a designated ABSTUDY payment, or would be receiving such a payment but for the partner’s income.
Note 1: See also subsections 23(4A) and (4AA).

Note 2: For designated ABSTUDY payment, see subsection (5).
Benefit PP (Partnered) Rate Calculator (3) If the rate of a person’s social security payment is to be calculated in accordance with the Benefit PP (Partnered) Rate Calculator, the person’s partner has a rent increased benefit if the partner: (a) is living with the person in their home; and (b) either: (i) is receiving a social security benefit the rate of which is increased to take account of rent; or (ii) is receiving a designated ABSTUDY payment, or would be receiving such a payment but for the partner’s income.
Note 1: See also subsections 23(4A) and (4AA).

Social Security Act 1991 101 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.7 Rent assistance Division 4 Certain concepts used in this Part Section 1070X Note 2: For designated ABSTUDY payment, see subsection (5).
Austudy Payment Rate Calculator (4) If the rate of a person’s social security payment is to be calculated in accordance with the Austudy Payment Rate Calculator, the person’s partner has a rent increased benefit if the partner: (a) is living with the person in their home; and (b) either: (i) is receiving a social security benefit the rate of which is increased to take account of rent; or (ii) is receiving a designated ABSTUDY payment, or would be receiving such a payment but for the partner’s income.
Note 1: See also subsections 23(4A) and (4AA).

Note 2: For designated ABSTUDY payment, see subsection (5).

Designated ABSTUDY payment (5) For the purposes of this section, a designated ABSTUDY payment is a payment under the scheme known as the ABSTUDY scheme: (a) the rate of which is increased to take account of rent; and (b) that includes an amount identified as living allowance.
102 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Seniors Health Card Income Test Calculator Part 3.9 Section 1071 Part 3.9—Seniors Health Card Income Test Calculator Note: Section 10A contains many of the definitions that are relevant to the provisions of this Part.
1071 Seniors Health Card Income Test Calculator The Seniors Health Card Income Test Calculator at the end of this section is to be used in working out whether a person satisfies the seniors health card income test for the purposes of this Act.

Seniors Health Card Income Test Calculator Satisfying the seniors health card income test 1071-1 This is how to work out whether a person satisfies the seniors health card income test at a particular time (the test time).

Method statement Step 1.


Work out the amount of the person’s adjusted taxable income for the reference tax year.

Step 1A.

If, at the test time, the person, or the person’s partner (if any), has at least one long-term financial asset (see point 1071-13), work out the person’s deemed income amount under: (a) (b) if, at the test time, the person is not a member of a couple—point 1071-11A; or if, at the test time, the person is a member of a couple—point 1071-11B.

Step 1B.
Step 1B.

Work out the sum of the amounts at step 1 and step 1A (if any).

Social Security Act 1991 103 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.9 Seniors Health Card Income Test Calculator Section 1071 Step 2.

Work out the person’s seniors health card income limit using point 1071-12.

Step 3.

Work out whether the amount at step 1B exceeds the seniors health card income limit.

Step 4.

Step 5.
Step 4.

Step 5.

If the amount at step 1B is less than the person’s seniors health card income limit, the person satisfies the seniors health card income test.

If the amount at step 1B is equal to or exceeds the person’s seniors health card income limit, the person does not satisfy the seniors health card income test.
Reference tax year 1071-2(1) In the ordinary case, a person’s reference tax year is: (a) if the person has received a notice of assessment of his or her taxable income for the tax year immediately preceding the tax year in which the test time occurred—that immediately preceding tax year; or (b) otherwise—the tax year immediately preceding the tax year applicable under paragraph (a).
(2) However, if the person has informed the Secretary in writing that the person wishes to have his or her entitlement to a seniors health card determined by reference to his or her adjusted taxable income for the tax year in which the test time occurred (the current tax year), the person’s reference tax year is the current tax year.
Adjusted taxable income 1071-3 For the purposes of this Part, a person’s adjusted taxable income for a particular tax year is the sum of the following amounts (income components): (a) the person’s taxable income for that year, disregarding the person’s assessable FHSS released amount (within the 104 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Seniors Health Card Income Test Calculator Part 3.9 Section 1071 meaning of the Income Tax Assessment Act 1997) for that year; (b) the person’s fringe benefits value for that year; (c) the person’s target foreign income for that year; (d) the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for that year; (e) the person’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year.
Note 1: For taxable income see subsection 23(1) and point 1071-4.

Note 2: For fringe benefits value see point 1071-6.

Note 3: For target foreign income see subsection 10A(2) and point 1071-7.

Taxable income 1071-4 For the purposes of this Part, a person’s taxable income for a particular tax year is: (a) the person’s assessed taxable income for that year; or (b) if the person does not have an assessed taxable income for that year—the person’s accepted estimate of taxable income for that year.
Assessed taxable income 1071-5 For the purposes of this Part, a person’s assessed taxable income for a particular tax year at a particular time is the most recent of: (a) if, at that time, the Commissioner of Taxation has made an assessment or an amended assessment of that taxable income—that taxable income according to the assessment or amended assessment; or (b) if, at that time, a tribunal has amended an assessment or an amended assessment made by the Commissioner—that taxable income according to the amendment made by the tribunal; or (c) if, at that time, a court has amended an assessment or an amended assessment made by the Commissioner or an Social Security Act 1991 105 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.9 Seniors Health Card Income Test Calculator Section 1071 amended assessment made by a tribunal—that taxable income according to the amendment made by the court.
Fringe benefits value 1071-6 For the purposes of this Part, a person’s fringe benefits value for a particular tax year is the person’s accepted estimate of the amount by which the total of the assessable fringe benefits received or to be received by the person in the tax year exceeds $1,000.

Note: For assessable fringe benefit see subsection 10A(2) and Part 3.12A.
Target foreign income 1071-7 For the purposes of this Part, a person’s target foreign income for a particular tax year is the person’s accepted estimate of the amount of that income for that year.

Total net investment loss 1071-8 For the purposes of this Part, a person’s total net investment loss for a particular tax year is the person’s accepted estimate of the amount of that loss for that year.
Accepted estimate 1071-9 For the purposes of this Part, a person’s accepted estimate of an income component for a particular tax year is that income component according to the most recent notice given by the person to the Secretary under point 1071-10 and accepted by the Secretary for the purposes of this Part.
Notice estimating income component 1071-10(1) A person may give the Secretary a notice, in a form approved by the Secretary, setting out the person’s estimate of an income component of the person for a tax year.
106 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Seniors Health Card Income Test Calculator Part 3.9 Section 1071 (2) The notice is to contain, or be accompanied by, such information as is required by the form to be contained in it or to accompany it, as the case may be.

(3) The Secretary is to accept a notice only if the Secretary is satisfied that the estimate is reasonable.
Adjusted taxable income of members of couples 1071-11 If a person is a member of a couple, add the couple’s adjusted taxable incomes for the reference tax year and divide by 2 to work out the amount of the person’s adjusted taxable income for the reference tax year.

Deemed income amount 1071-11A This is how to work out the person’s deemed income amount under this point: Method statement Step 1.

Work out the total value of all of the person’s long-term financial assets (see point 1071-13) at the test time.
Step 2.

Work out under section 1076 the amount of ordinary income the person would be taken to receive per year on the financial assets: (a) on the assumption that the only financial assets of the person were the financial assets referred to in step 1; and (b) on the assumption that the total value of the person’s financial assets were the amount at step 1.

Step 3.

The result at step 2 is the person’s deemed income amount.
Social Security Act 1991 107 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.9 Seniors Health Card Income Test Calculator Section 1071 1071-11B This is how to work out the person’s deemed income amount under this point: Method statement Step 1.

Work out the total value of all of the person’s long-term financial assets (see point 1071-13) at the test time.

Step 2.
Step 2.

If, at the test time, the person’s partner has reached the minimum age mentioned in section 301-10 of the Income Tax Assessment Act 1997, work out the total value of all of the person’s partner’s long-term financial assets (see point 1071-13) at the test time.

Step 3.
Step 3.

Work out under section 1077 the amount of ordinary income the couple would be taken to receive per year on the financial assets: (a) (b) (c) on the assumption that section 1077 applied to the person and the person’s partner; and on the assumption that the only financial assets of the person and the person’s partner were the financial assets referred to in steps 1 and 2; and on the assumption that the total value of the couple’s financial assets were the sum of the amounts at steps 1 and 2.

Step 4.
Step 4.

Divide the amount at step 3 by 2: the result is the person’s deemed income amount.

Seniors health card income limit 1071-12 A person’s seniors health card income limit is worked out using the Seniors Health Card Income Limit Table.

Work out which family situation in the table applies to the person.
The person’s seniors health card income limit is the corresponding amount in column 3 108 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Seniors Health Card Income Test Calculator Part 3.9 Section 1071 plus an additional corresponding amount in column 4 for each dependent child of the person.
Seniors Health Card Income Limit Table Column 1 Column 2 Column 3 Column 4 Item Person’s family situation Amount per year Additional dependent child Amount per year $639.60 $639.60 $639.60 $50,000 $40,000 $50,000 Not member of couple Partnered Member of illness separated couple Member of respite care couple Partnered (partner in gaol) $50,000 $639.60 $50,000 $639.60 Note: The amounts in column 3 are to be indexed on 20 September 2014 and each later 20 September in line with CPI increases (see sections 1190 to 1194).
Long-term financial asset 1071-13 For the purposes of this Part, a long-term financial asset is: (a) a financial investment within the meaning of paragraph (i) of the definition of financial investment in subsection 9(1), where the asset-tested income stream (long term) arises under a complying superannuation plan (within the meaning of the Income Tax Assessment Act 1997) that is not a constitutionally protected fund (within the meaning of that Act); or (b) a financial investment within the meaning of paragraph (j) of the definition of financial investment in subsection 9(1).
Note: Schedule 7 to the Social Services and Other Legislation Amendment (2014 Budget Measures No.
6) Act 2014 preserves the rules in this Social Security Act 1991 109 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.9 Seniors Health Card Income Test Calculator Section 1071 Calculator for a certain kind of long-term financial asset that was being provided to a person immediately before 1 January 2015 where the person held a seniors health card immediately before that day provided that, since that day, the person has held a seniors health card.
110 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Health Care Card Income Test Calculator Part 3.9A Section 1071A Part 3.9A—Health Care Card Income Test Calculator 1071A Health care card income test The Health Care Card Income Test Calculator at the end of this section is to be used in working out whether a person satisfies the health care card income test for the purposes of Division 3 of Part 2A.1.
Health Care Card Income Test Calculator Satisfying the health care card income test: persons claiming a card 1071A-1 This is how to work out whether a person claiming a health care card satisfies the health care card income test on the day on which the person claims the card, whether or not the person is the holder of a health care card at that time.

Method statement Step 1.


Work out the amount of the person’s ascertained income for the period of 8 weeks ending on the day on which the person lodged the claim.

Step 2.

Work out the amount of the person’s allowable income for the period.

Step 3.

If the person’s ascertained income for the period is less than the person’s allowable income for the period, the person satisfies the health care card income test.
Social Security Act 1991 111 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.9A Health Care Card Income Test Calculator Section 1071A Step 4.

If the person’s ascertained income for the period equals or exceeds the person’s allowable income for the period, the person does not satisfy the health care card income test.
Satisfying the health care card income test: cardholders 1071A-2 This is how to work out whether a person who holds a health care card satisfies the health care card income test at a particular time where there has been a change in circumstances.

Method statement Step 1.

Work out the amount of the person’s ascertained income for the period of 8 weeks ending on the day on which the change of circumstances occurred.

Step 2.

Work out the amount of the person’s allowable income for the period.

Step 3.
Step 3.

Step 4.

If the person’s ascertained income for the period is less than 125% of the person’s allowable income for that period, the person satisfies the health care card income test.

If the person’s ascertained income for the period is 125% or more of the person’s allowable income for that period, the person does not satisfy the health care card income test.
Working out allowable income 1071A-2A For the purposes of step 2 of the method statement in point 1071A-1 or 1071A-2: (a) disregard steps 1A, 2 and 3 of the method statement in point 1068-A1; and 112 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Health Care Card Income Test Calculator Part 3.9A Section 1071A (b) the amount at step 1B of the method statement in point 1068-A1 is taken to be the amount applicable under item 5 of the table in point 1068-C3.
Cessation of dependency 1071A-3 For the purposes of point 1071A-2, if a person (the first person) ceases to be a dependant of another person who is the holder of a health care card: (a) the fact that the first person has so ceased is to be disregarded for a period of 4 weeks commencing on the day on which the first person so ceased; and (b) if, at the end of the period, the first person has not become again a dependant of that other person, the first person is taken to have ceased to be a dependant of the other person at the expiration of that period of 4 weeks.
Definitions 1071A-4 In this Part: allowable income, in relation to any period of 8 weeks, means: (a) in relation to a person who had a dependant or dependants on the last day of the period—the amount worked out by multiplying by 8, or such other number as is prescribed, the aggregate of: (i) the amount of the weekly rate of income that would, on the last day of the period, be sufficient to prevent both members of a one-income couple from receiving jobseeker payment; and (ii) $20, or such other amount as is prescribed; and (iii) an amount worked out by multiplying $34, or such higher amount as is prescribed, by the number of the dependants of the person on the last day of the period; or (b) in relation to a person who had no dependants on the last day of the period—the amount worked out by multiplying by 8, or such other number as is prescribed, an amount equal to Social Security Act 1991 113 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.9A Health Care Card Income Test Calculator Section 1071A 60%, or such other percentage as is prescribed, of the aggregate of the amount worked out under subparagraph (a)(i) and the amount referred to in subparagraph (a)(ii) if paragraph (a) had applied to the person.
ascertained income, in relation to a period, means: (a) in relation to a person who is not a member of a couple—the income of the person in respect of that period; and (b) in relation to a person who is a member of a couple—the income of the person and his or her partner in respect of that period.
income, in relation to a person, means ordinary income and, to the extent that they are not ordinary income, includes: (aa) payments of a social security pension or a social security benefit; and (a) if the person is receiving a social security pension or benefit—the person’s maintenance income (if any) within the meaning of the Family Assistance Act; and (b) payments of a pension under the Veterans’ Entitlements Act; and (c) payments of a pension payable by a foreign country, being a pension that, in the opinion of the Secretary, is similar in character to a pension referred to in paragraph (b); and (ca) payments of income support supplement; and (cb) a payment under Part VIIAB (DFISA) of the Veterans’ Entitlements Act (including a payment made under regulations made under that Part); and (d) payments under the scheme known as the New Enterprise Incentive Scheme; and (e) payments of compensation, including compensation within the meaning of the Military Rehabilitation and Compensation Act; and (f) instalments of parental leave pay; and (g) dad and partner pay.
114 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Health Care Card Income Test Calculator Part 3.9A Section 1071A 1071A-5 If a weekly rate of income referred to in subparagraph (a)(i) of the definition of allowable income in point 1071A-4 or an amount worked out under paragraph (b) of that definition includes an amount of cents, the amount of that weekly rate is, for the purposes of that definition, increased to the nearest whole dollar.
1071A-6 A couple is a one-income couple for the purposes of point 1071A-4 if only one member of the couple is receiving income.
Social Security Act 1991 115 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1 Ordinary income concept and treatment of certain income amounts Section 1072 Part 3.10—General provisions relating to the ordinary income test Division 1—Ordinary income concept and treatment of certain income amounts 1072 General meaning of ordinary income A reference in this Act to a person’s ordinary income for a period is a reference to the person’s gross ordinary income from all sources for the period calculated without any reduction, other than a reduction under Division 1A.
Note 1: For ordinary income see subsection 8(1).

Note 2: For other provisions affecting the amount of a person’s ordinary income see section 1073AA (work bonus), sections 1074 and 1075 (business income), Division 1B (income from financial assets (including income streams (short term) and certain income streams (long term)) and Division 1C (income from income streams not covered by Division 1B).
1072A Treatment of certain lump sum payments (1) This section applies if: (a) a person has claimed a social security pension or a social security benefit; and (b) on or after the first day of the period of 12 months ending at the end of the day the person made the claim, the person receives an amount of income in the form of a lump sum payment of arrears of periodic payments; and (c) the lump sum payment is not income within the meaning of Division 1B or 1C of this Part; and (d) the lump sum payment is not in relation to remunerative work undertaken by the person; and (e) the lump sum payment is not an exempt lump sum; and (f) the lump sum payment is not a payment of compensation.
116 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Ordinary income concept and treatment of certain income amounts Division 1 Section 1073 (2) The Secretary may determine that the person is taken to have received the lump sum payment over such period, not exceeding 52 weeks, as the Secretary determines.
(3) The period determined by the Secretary must begin on the day on which the person received the lump sum payment.

(4) For each day in the period determined by the Secretary, the person is taken to have received an amount of ordinary income worked out by dividing the amount of the lump sum payment by the number of days in that period.
1073 Certain amounts taken to be received over 12 months (1) Subject to points 1067G-H5 to 1067G-H20 (inclusive), 1067L-D5 to 1067L-D16 (inclusive), 1068-G7AF to 1068-G7AR (inclusive), 1068A-E2 to 1068A-E12 (inclusive) and 1068B-D7 to 1068B-D18 (inclusive), if a person receives, whether before or after the commencement of this section, an amount that: (a) is not income within the meaning of Division 1B or 1C of this Part; and (b) is not: (i) income in the form of periodic payments; or (ii) ordinary income from remunerative work undertaken by the person; or (iii) an exempt lump sum.
the person is, for the purposes of this Act, taken to receive one fifty-second of that amount as ordinary income of the person during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.
(2) Subsection (1) applies to a person who has claimed one of the following: (a) jobseeker payment; (c) youth allowance; (d) widow allowance; (e) partner allowance; Social Security Act 1991 117 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1 Ordinary income concept and treatment of certain income amounts Section 1073 even if the person: (g) has to serve an ordinary waiting period or a liquid assets test waiting period in respect of the payment or allowance claimed; or (h) is subject to an income maintenance period in respect of the payment or allowance claimed; or (i) is subject to a seasonal work preclusion period; during the period of 12 months referred to in subsection (1).
118 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Work bonus Division 1AAA Section 1073AA Division 1AAA—Work bonus 1073AA Work bonus (1) This section applies to a person if: (a) the person’s rate of social security pension is calculated in accordance with Pension Rate Calculator A at the end of section 1064; and (b) the person has reached pension age.
Note: For pension age see subsections 23(5A), (5B), (5C) and (5D).

Work bonus income greater than or equal to income concession amount (2) If the person’s work bonus income for an instalment period is greater than or equal to the income concession amount for that period, then, for the purposes of Module E of that Rate Calculator, the amount of the person’s work bonus income for that period is reduced by an amount equal to the income concession amount.

Note: For work bonus income, see subsection (4BA).


Example 1: David has $2,300 of work bonus income in an instalment period of 14 days.

David’s rate of social security pension for that period is greater than nil.

David’s work bonus income for that period is reduced by $300, leaving David $2,000 of work bonus income for that period.

Example 2: Amy has $1,000 of work bonus income in an instalment period of 14 days.

Amy’s rate of social security pension for that period is greater than nil.
Amy’s work bonus income for that period is reduced by $300, leaving Amy $700 of work bonus income for that period.
(3) If the person’s unused concession balance (see section 1073AB) is greater than or equal to the amount (the current amount) of the person’s work bonus income that remains after applying subsection (2) of this section in relation to an instalment period: Social Security Act 1991 119 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AAA Work bonus Section 1073AA (a) for the purposes of Module E of that Rate Calculator, the person’s work bonus income for that period is further reduced to nil; and (b) if the person’s rate of social security pension for that period is greater than nil—the person’s unused concession balance is reduced by an amount equal to the current amount.
Example 1: To continue example 1 in subsection (2), assume David’s unused concession balance is $2,000.

The current amount is $2,000.

David’s work bonus income for that period is further reduced to nil.

David’s unused concession balance is now nil.

Example 2: To continue example 2 in subsection (2), assume Amy’s unused concession balance is $1,600.

The current amount is $700.

Amy’s work bonus income for that period is further reduced to nil.

Amy’s unused concession balance is now $900.
(4) If the person’s unused concession balance (see section 1073AB) is greater than nil but less than the amount of the person’s work bonus income that remains after applying subsection (2) of this section in relation to an instalment period: (a) for the purposes of Module E of that Rate Calculator, the person’s work bonus income for that period is further reduced by an amount equal to that unused concession balance; and (b) if the person’s rate of social security pension for that period is greater than nil—the person’s unused concession balance is reduced to nil.
Example: Bill has $1,300 of work bonus income in an instalment period of 14 days.

Bill’s rate of social security pension for that period is greater than nil.

Under subsection (2), Bill’s work bonus income for that period is reduced by $300, leaving Bill $1,000 of work bonus income for that period.

Assume Bill’s unused concession balance is $800.

Under subsection (4), Bill’s work bonus income for that period is further reduced by $800 leaving Bill $200 of work bonus income for that period.
120 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Work bonus Division 1AAA Section 1073AA Bill’s unused concession balance is now nil.
Work bonus income less than income concession amount (4A) If the person has work bonus income for an instalment period but that income is less than the income concession amount for that period: (a) for the purposes of Module E of that Rate Calculator, the person’s work bonus income for that period is reduced to nil; and (b) if the person’s rate of social security pension for that period is greater than nil—the person’s unused concession balance (see section 1073AB) is increased, subject to subsection 1073AB(2), by an amount equal to the difference between that income concession amount and that work bonus income (before it was reduced).
Note: For work bonus income, see subsection (4BA).

Example: Emma has $100 of work bonus income in an instalment period of 14 days.

Emma’s rate of social security pension for that period is greater than nil.

Emma’s work bonus income for that period is reduced to nil.

Emma’s unused concession balance is increased by $200.
No work bonus income (4B) If: (a) the person has no work bonus income for an instalment period; and (b) the person’s rate of social security pension for that period is greater than nil; the person’s unused concession balance (see section 1073AB) is increased, subject to subsection 1073AB(2), by an amount equal to the income concession amount for that period.

Note: For work bonus income, see subsection (4BA).
Social Security Act 1991 121 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AAA Work bonus Section 1073AA Definitions (4BA) For the purposes of this section, a person’s work bonus income for an instalment period is the sum of the following: (a) the person’s employment income taken, in accordance with Division 1AA, to have been received for that period; (b) the sum of the person’s gainful work income for each day in that period.
Note: For employment income, see section 8.

(4BB) For the purposes of this section, a person’s gainful work income for a day in an instalment period is the amount worked out using the following formula: Annual amount 364 where: annual amount means the annual amount of ordinary income of the person that is earned, derived or received by the person from gainful work (within the meaning of section 1073AAA) undertaken by the person, being the annual amount as last determined by the Secretary.
(4BC) The amount at paragraph (4BA)(b) is to be rounded to the nearest cent (rounding 0.5 cents downwards).
(4C) The income concession amount is: (a) for an instalment period of 14 days—$300; and (b) for an instalment period of less than 14 days—the amount worked out using the following formula: $300  Number of days in the instalment period 14 122 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Work bonus Division 1AAA Section 1073AA Interpretation (5A) If a person has gainful work income for an instalment period, the rate of the person’s gainful work income on a yearly basis for each day in that period may be worked out using the following formula: Total amount of gainful work income for that period Number of days in that period  364 Note: This subsection will be relevant to working out the person’s rate of social security pension in accordance with Pension Rate Calculator A at the end of section 1064 or Pension Rate Calculator C at the end of section 1066.
(5B) An amount worked out under subsection (5A) is to be rounded to the nearest cent (rounding 0.5 cents downwards).

(6) If the person is a member of a couple, apply this section in relation to the person, and to the person’s partner, before applying point 1064-E2.

(7) In working out a person’s employment income for the purposes of this section, disregard subsection 8(1B).
(8) If: (a) the person is a member of a couple; and (b) the person’s partner’s work bonus income (within the meaning of section 46AA of the Veterans’ Entitlements Act 1986) is reduced by one or more amounts (each of which is a reduction amount) under section 46AA of that Act; then, in applying point 1064-E2, the ordinary income of the person’s partner is to be reduced by an amount equal to the total of the reduction amounts.
Social Security Act 1991 123 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AAA Work bonus Section 1073AAA 1073AAA Meaning of gainful work General rule (1) For the purposes of this Division, gainful work is work for financial gain or reward (other than as an employee), where: (a) the work involves personal exertion on the part of the person concerned; and (b) the work is carried on within or outside Australia.
Disregard managing or administering family financial investments and real property (2) Work undertaken by a person is taken not to be gainful work for the purposes of this Division to the extent to which the work consists of the management or administration of any financial investment, or any real property, in which any of the following has a legal or equitable interest: (a) a member of the person’s family group; (b) a company that is a family company in relation to the person; (c) the trustee or trustees of a trust that is a family trust in relation to the person.
Note: For financial investment, see section 9.

Disregard domestic duties (3) Work undertaken by a person is taken not to be gainful work for the purposes of this Division if the work consists of carrying out: (a) domestic tasks; or (b) household maintenance tasks; or (c) gardening tasks; or (d) similar tasks; in relation to: (e) the person’s place of residence; or (f) if the person has 2 or more places of residence—any of those places of residence.
124 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Work bonus Division 1AAA Section 1073AAA Definitions (4) For the purposes of this section, a place of residence includes: (a) if the place is a dwelling-house—any land or building that is adjacent to the dwelling-house and that is used primarily for private or domestic purposes in association with that dwelling-house; or (b) if the place is a flat or home unit—a garage or storeroom that is used for private or domestic purposes in association with the flat or home unit.
(5) In this section: family company, in relation to a person, means a company where: (a) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of any or all of the members of the person’s family group; or (b) any or all of the members of the person’s family group are in a position to cast, or control the casting of, more than 50% of the maximum number of votes that may be cast at a general meeting of the company; or (c) both: (i) the company has one or more shareholders; and (ii) each shareholder is a member of the person’s family group.
family group, in relation to a person, means the group consisting of the person and the family members of the person.

If the person has no family members, the person is taken to be a family group in the person’s own right.

Note: For family member, see subsection 23(1).

family trust, in relation to a person, means a trust where a member of the person’s family group benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust.
Social Security Act 1991 125 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AAA Work bonus Section 1073AB 1073AB Unused concession balance Initial unused concession balance of nil (1) A person has an unused concession balance of nil on the first day that is after 30 June 2011 and is a day on which section 1073AA applies to the person.
Maximum unused concession balance (2) If, apart from this subsection, the person’s unused concession balance would exceed $7,800, that balance is instead taken to be $7,800.

Example: John has an unused concession balance of $7,700.

John has $100 of work bonus income in an instalment period of 14 days.

Instead of John’s unused concession balance increasing to $7,900 under subsection 1073AA(4A), John’s unused concession balance increases to $7,800.
Effect of ceasing to receive social security pension (3) If the person ceases to receive the social security pension referred to in paragraph 1073AA(1)(a), the person retains the person’s unused concession balance immediately before that cessation.

Note: If section 1073AA applies to the person again, the person’s unused concession balance will be that retained balance.
126 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Employment income attribution rules Division 1AA Section 1073A Division 1AA—Employment income attribution rules 1073A Attribution of employment income paid in respect of a particular period or periods (1) This section applies if: (a) a person is receiving a social security pension or a social security benefit; and (b) the person’s rate of payment of the pension or benefit is worked out with regard to the income test module of a rate calculator in this Chapter; and (c) one or more amounts of employment income, each of which is in respect of a particular period or periods (each period is an employment period), are paid in an instalment period of the person to or for the benefit of the person by the same employer.
Note 1: Note 2: If the person has multiple employers, this section applies separately in relation to each employer.

If a person is receiving a social security pension and is paid employment income monthly, section 1073B may apply to that income instead of this section.

Note 3: Section 1073BA deals with the payment of employment income that is not in respect of a particular period.
(2) The person is taken to have received the employment income over a period (the assessment period) that consists of the number of days that is equal to the sum of the number of days in each employment period, where the assessment period begins on the first day of the instalment period in which the amounts of employment income are paid.

Example: On 3 June a person is paid $756 employment income for work the person performed in the period beginning on 9 May and ending at the end of 29 May.
The number of days in the employment period is 21.

Assume the instalment period begins on 1 June.

The person is taken to have received the $756 over the period beginning on 1 June and ending at the end of 21 June (a period of 21 days).
Social Security Act 1991 127 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AA Employment income attribution rules Section 1073A (3) Subject to subsection (4), for each day in the assessment period, the person is taken to have received an amount of employment income worked out by dividing the total amount of the employment income covered by paragraph (1)(c) by the number of days in the assessment period.
Example: To continue the example in subsection (2), the person is taken to have received $36 ($756/21) on each of the days in the period beginning on 1 June and ending at the end of 21 June.
(4) If the person is taken, under subsection (3), to have received employment income (the attributed employment income) during a part, but not the whole, of a particular instalment period, the person is taken to receive on each day in that instalment period an amount of employment income worked out by dividing the total amount of the attributed employment income by the number of days in the instalment period.
Example: To continue the example in subsection (2), for the instalment period beginning on 15 June and ending at the end of 28 June the person is taken, under subsection (3), to have received employment income during a part of that instalment period (15 June to 21 June).

The person is taken to have received $252 ($36 x 7).

Under subsection (4), the person is taken to receive on each day in that instalment period an amount of employment income of $18 ($252/14).
Interpretation (5) This section applies in relation to an amount of employment income paid on a day in an instalment period, whether or not the amount is received on that day.

(6) In applying subsection (2) in relation to one or more amounts of employment income paid by a particular employer in an instalment period, in working out the sum of the number of days in each employment period, if a day in an employment period overlaps with a day in another employment period, that day must only be counted once.
128 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Employment income attribution rules Division 1AA Section 1073B 1073B Attribution of employment income paid monthly (1) This section applies if: (a) a person is receiving a social security pension; and (b) the person’s rate of payment of the pension is worked out with regard to the income test module of a rate calculator in this Chapter; and (c) an amount (the initial amount) of employment income, in respect of a period of 1 month, is paid on a day in a calendar month (the initial calendar month) to or for the benefit of the person by the person’s employer; and (d) the Secretary is satisfied that, for the reasonably foreseeable future, an amount of employment income, in respect of a period of 1 month, equal to the initial amount will be paid to or for the benefit of the person by that employer on the following: (i) the corresponding day in each calendar month (a later calendar month) after the initial calendar month; (ii) if there is no such day in a later calendar month month—the last day of the later calendar month.
Note: If the person has multiple employers, this section applies separately in relation to each employer.
(2) Subject to this section, for the day on which the initial amount is paid and for each day after that day, the person is taken to have received an amount of employment income worked out as follows: Initial amount  12 364 (3) If, after the day on which the initial amount is paid, the Secretary ceases to be satisfied as mentioned in paragraph (1)(d) in relation to the person and the person’s employer, then subsection (2) ceases to apply in relation to the person and the person’s employer at the end of the period of 1 month beginning on the last payment day.
(4) For the purposes of this section, a payment day is: Social Security Act 1991 129 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AA Employment income attribution rules Section 1073BA (a) the day in the calendar month on which the initial amount is paid by the person’s employer; or (b) the following on which an amount of employment income equal to the initial amount is paid to or for the benefit of the person by that employer: (i) a corresponding day in a later calendar month; (ii) if there is no such day in a later calendar month—the last day of the later calendar month.
(5) If the person is taken, under this section, to have received employment income (the attributed employment income) during a part, but not the whole, of a particular instalment period, the person is taken to receive on each day in that instalment period an amount of employment income worked out by dividing the total amount of the attributed employment income by the number of days in the instalment period.
(6) Section 1073A does not apply to an amount of employment income covered by paragraph (4)(a) or (b).

Interpretation (7) This section applies in relation to an amount of employment income paid on a day in a calendar month, whether or not the amount is received on that day.

(8) Subsection (3) does not prevent a later application of this section in relation to the person, whether in connection with the same employer or another employer.
1073BA Attribution of employment income paid not in respect of a particular period (1) This section applies if: (a) a person is receiving a social security pension or a social security benefit; and 130 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Employment income attribution rules Division 1AA Section 1073BA (b) the person’s rate of payment of the pension or benefit is worked out with regard to the income test module of a rate calculator in this Chapter; and (c) an amount of employment income is paid on a day to or for the benefit of the person; and (d) the employment income is not in respect of a particular period.
(2) The person is taken to have received that employment income over such period, not exceeding 52 weeks, as the Secretary determines.
Note 1: When determining the period, the Secretary may take into the nature of the person’s remunerative work; the nature of the person’s employment income; the person’s financial interests; consideration the following: (a) (b) (c) (d) any financial hardship which may be caused to the person; (e) whether the employment income relates to remunerative work that was undertaken at a time when the person was not receiving a social security pension or a social security benefit.
Note 2: The period determined by the Secretary should be fair and reasonably beneficial, taking into account the financial interests of the person receiving the social security pension or social security benefit.

(3) The period determined by the Secretary must begin on the first day of the instalment period in which the amount of employment income is paid.
(4) Subject to subsection (5), for each day in the period determined by the Secretary, the person is taken to have received an amount of employment income worked out by dividing the amount of employment income covered by paragraph (1)(c) by the number of days in that period.
(5) If the person is taken, under subsection (4), to have received employment income (the attributed employment income) during a part, but not the whole, of a particular instalment period, the person is taken to receive on each day in that instalment period an amount of employment income worked out by dividing the total amount of the attributed employment income by the number of days in the instalment period.
Social Security Act 1991 131 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AA Employment income attribution rules Section 1073BB Interpretation (6) This section applies in relation to an amount of employment income paid on a day, whether or not the amount is received on that day.
1073BB Anti-avoidance (1) This section applies if: (a) a person (the relevant person) is receiving a social security pension or a social security benefit; and (b) the relevant person earns or derives employment income during the whole or a part of an instalment period of the person; and (c) one or more entities (who may be, or may include, the relevant person) enter into, commence to carry out, or carry out, a scheme to defer the payment of that employment income; and (d) it would be concluded that the entity, or any of the entities, who entered into, commenced to carry out, or carried out, the scheme did so for the sole or dominant purpose of obtaining a social security advantage for a person (who may be the relevant person or may be the entity or one of the entities).
(2) The Secretary may determine that the relevant person is taken to have received an amount of employment income, equal to the amount of employment income referred to in paragraph (1)(b), over the period determined by the Secretary.

(3) The period determined by the Secretary must begin on the first day of the instalment period referred to in paragraph (1)(b).
(4) Subject to subsection (5), for each day in the period determined by the Secretary, the relevant person is taken to have received an amount of employment income worked out by dividing the total amount of the employment income referred to in paragraph (1)(b) by the number of days in that period.
132 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Employment income attribution rules Division 1AA Section 1073BB (5) If the relevant person is taken, under subsection (4), to have received employment income (the attributed employment income) during a part, but not the whole, of a particular instalment period, the relevant person is taken to receive on each day in that instalment period an amount of employment income worked out by dividing the total amount of the attributed employment income by the number of days in the instalment period.
(6) Sections 1073A, 1073B and 1073BA do not apply in relation to the payment of the employment income referred to in paragraph (1)(b).

(7) A determination under subsection (2) has effect accordingly.
Obtaining a social security advantage (8) For the purposes of this section, an entity has a purpose of obtaining a social security advantage for a person (who may be the entity) if the entity has a purpose of: (a) enabling the person to obtain any of the following: (i) a social security pension; (ii) a social security benefit; (iii) a service pension; (iv) income support supplement; (v) a veteran payment; (vi) a payment under a current special educational assistance scheme; or (b) enabling the person to obtain any of the following at a higher rate than would otherwise have been payable: (i) a social security pension; (ii) a social security benefit; (iii) a service pension; (iv) income support supplement; (v) a veteran payment; (vi) a payment under a current special educational assistance scheme.
Social Security Act 1991 133 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AA Employment income attribution rules Section 1073BC Definitions (9) In this section: entity means any of the following: (a) an individual; (b) a company within the meaning of the Income Tax Assessment Act 1997; (c) a trust; (d) a partnership within the meaning of the Income Tax Assessment Act 1997; (e) any other unincorporated association or body of persons; (f) a corporation sole; (g) a body politic.
scheme means: (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; or (b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.
1073BC Exclusion of certain payments Sections 1073A, 1073B, 1073BA and 1073BB do not apply in relation to the following: (a) a payment in respect of which a person is taken to have received ordinary income for a period under point 1064-F4, 1066A-G4, 1067G-H11, 1067L-D5, 1068-G7AG, 1068A-E3 or 1068B-D9; (b) a payment in respect of which a person is taken to receive an amount under point 1064-F10, 1066A-G10, 1067G-H15, 1067L-D11 or 1068-G7AL; (c) an amount that a person’s ordinary income is taken to include under point 1067G-H5 or 1068-G7AA.
134 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Employment income attribution rules Division 1AA Section 1073BD 1073BD Daily attribution of employment income for amounts not elsewhere covered in this Division If: (a) a person is receiving a social security pension or a social security benefit; and (b) the person’s rate of payment of the pension or benefit is worked out with regard to the income test module of a rate calculator in this Chapter; and (c) the person is taken, under a provision of this Act (except section 1073A, 1073B, 1073BA or 1073BB), to receive employment income during the whole or a part of a particular instalment period of the person; the person is taken to receive, on each day in that instalment period, an amount of employment income worked out by dividing the total amount of the employment income referred to in paragraph (c) by the number of days in the instalment period.
1073C Fortnightly or yearly expression of attributed employment income If, in accordance with the operation of section 1073A, 1073B, 1073BA, 1073BB or 1073BD, a person is taken to receive a particular amount of employment income on each day in an instalment period: (a) the rate of the person’s employment income on a fortnightly basis for that day may be worked out by multiplying that amount by 14; and (b) the rate of the person’s employment income on a yearly basis for that day may be worked out by multiplying that amount by 364.
Social Security Act 1991 135 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AB Working credit accrual and depletion rules and their consequences Section 1073D Division 1AB—Working credit accrual and depletion rules and their consequences 1073D To whom do working credit accrual and depletion rules apply?
The rules in this Division apply to a person (a working credit participant): (a) who is receiving a social security pension or a social security benefit; and (b) whose rate of payment of the pension or benefit is worked out with regard to the income test module of a rate calculator in this Chapter; and (c) who has not reached pension age; and (d) to whom the student income bank does not apply.
1073E Opening balance Basic opening balance rule (1) Subject to this section, each working credit participant has, on becoming a working credit participant, a working credit opening balance of nil.
Opening balance following cancellation of social security pension or benefit (2) If: (a) a person ceases to be a working credit participant or a person to whom the student income bank applies because of a determination to cancel, or an automatic cancellation of, the person’s social security pension or social security benefit; and (b) the person had a working credit balance or a student income bank balance greater than nil immediately before the date of effect of the determination or cancellation; and 136 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Working credit accrual and depletion rules and their consequences Division 1AB Section 1073E (c) the person makes, or is taken to have made, a new claim for a social security pension or social security benefit; and (d) the Secretary determines that the new claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (b); and (e) the person becomes a working credit participant on a day (the participation day), being either the day with effect from which the new claim is granted or a day following that day; the working credit balance mentioned in paragraph (b), or the student income bank balance mentioned in that paragraph to the extent that it does not exceed the threshold amount (see subsection (7)), becomes the opening balance of the working credit applicable to the person on the participation day.
Opening balance following suspension of social security pension or benefit (3) If: (a) a person ceases to be a working credit participant because of a determination to suspend the person’s social security pension or social security benefit; and (b) the person had a working credit balance greater than nil immediately before the date of effect of the determination; and (c) within 12 months after the date of effect of the determination, the payment of the person’s pension or benefit is resumed; and (d) the person becomes a working credit participant on the day with effect from which the person’s pension or benefit is resumed; the working credit balance mentioned in paragraph (b) becomes the opening balance of the working credit applicable to the person on the day mentioned in paragraph (d).
Social Security Act 1991 137 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AB Working credit accrual and depletion rules and their consequences Section 1073E Opening balance following suspension and subsequent cancellation of social security pension or benefit (4) If: (a) a person ceases to be a working credit participant or a person to whom the student income bank applies because of a determination to suspend the person’s social security pension or social security benefit; and (b) while the person’s pension or benefit is suspended there is a determination to cancel the person’s pension or benefit; and (c) the person had a working credit balance or a student income bank balance greater than nil immediately before the date of effect of the suspension determination; and (d) the person makes, or is taken to have made, a new claim for a social security pension or social security benefit; and (e) the Secretary determines that the new claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (c); and (f) the person becomes a working credit participant on a day (the participation day), being either the day with effect from which the new claim is granted or a day following that day; the working credit balance mentioned in paragraph (c), or the student income bank balance mentioned in that paragraph to the extent that it does not exceed the threshold amount (see subsection (7)), becomes the opening balance of the working credit applicable to the person on the participation day.
Opening balance following cessation of full-time study by youth allowance recipient (5) If: (a) a person is receiving youth allowance and is undertaking full-time study; and (b) the person ceases to undertake full-time study; and (c) either because of a determination made as a result of that cessation or, if no determination is necessary, because of the cessation itself, the person, on a day (the participation day): 138 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Working credit accrual and depletion rules and their consequences Division 1AB Section 1073E (i) ceases to be a person to whom the student income bank set out in Module J of the Youth Allowance Rate Calculator applies; and (ii) becomes a working credit participant; and (d) the person had a student income bank balance greater than nil immediately before the participation day; the student income bank balance mentioned in paragraph (d), to the extent that it does not exceed the threshold amount (see subsection (7)), becomes the opening balance of the working credit applicable to the person on the participation day.
Opening balance following cessation as a new apprentice by youth allowance recipient (5A) If: (a) a person is receiving youth allowance and is a new apprentice; and (b) the person ceases to be a new apprentice; and (c) either because of a determination made as a result of that cessation or, if no determination is necessary, because of the cessation itself, the person, on a day (the participation day): (i) ceases to be a person to whom the student income bank set out in Module J of the Youth Allowance Rate Calculator applies; and (ii) becomes a working credit participant; and (d) the person had a student income bank balance greater than nil immediately before the participation day; the student income bank balance mentioned in paragraph (d), to the extent that it does not exceed the threshold amount (see subsection (7)), becomes the opening balance of the working credit applicable to the person on the participation day.
Opening balance following cessation of ABSTUDY payment (6) If: (a) a person to whom the income bank under the ABSTUDY scheme applies stops being such a person; and Social Security Act 1991 139 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AB Working credit accrual and depletion rules and their consequences Section 1073F (b) the person becomes a working credit participant on a day (the participation day) within 12 months after so stopping; and (c) immediately before so stopping, the person had a credit balance greater than nil under the scheme; the credit balance, to the extent that it does not exceed the threshold amount (see subsection (7)), becomes the opening balance of the working credit applicable to the person on the participation day.
Threshold amount (7) In this section: threshold amount means: (a) if, on the participation day, the person is receiving youth allowance, the person is not undertaking full-time study and the person is not a new apprentice—$3,500; or (b) in any other case—$1,000.
1073F Working out accruals and depletions of working credit for social security beneficiaries This section determines, in respect of each working credit participant who is receiving a social security benefit, whether, for each day in an instalment period: (a) there is an accrual to the participant’s working credit balance; or (b) the participant’s working credit balance is unaffected; or (c) the participant’s working credit balance is depleted; and, if there is an accrual to, or a depletion from, the participant’s working credit balance, the amount of that accrual or depletion.
Method statement Step 1.

Work out the amount (including a nil amount) of the participant’s employment income taken, in accordance with Division 1AA, to have been received on that day.
140 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Working credit accrual and depletion rules and their consequences Division 1AB Section 1073F Step 2.

Multiply the amount determined under step 1 by 14.

This is the participant’s rate of employment income on a fortnightly basis for the day.

Step 3.
Step 3.

Add to the participant’s rate of employment income on a fortnightly basis for the day the participant’s rate of any other ordinary income on a fortnightly basis for the day.

This is the participant’s rate of total ordinary income on a fortnightly basis for the day.

Step 4.
Step 4.

If the participant’s rate of total ordinary income on a fortnightly basis for the day is less than $48, there is an accrual to the participant’s working credit balance for the day of an amount equal to one fourteenth of the amount by which $48 exceeds that rate.
The maximum working credit balance is: (a) if the participant became a working credit participant on a day under subsection 1073E(2), (3), (4), (5), (5A) or (6) and on that day the participant was receiving youth allowance, the participant was not undertaking full-time study and the participant was not a new apprentice—$3,500; or (b) in any other case—$1,000.

Step 5.
Step 5.

If the participant’s rate of total ordinary income on a fortnightly basis for the day is at least $48 but does not exceed the ordinary income free area applicable to the participant for the day under the income test module of the appropriate rate calculator, the participant’s working credit balance for the day is neither increased nor reduced.

Step 6.
If the participant’s rate of total ordinary income on a fortnightly basis for the day is at least $48 and exceeds Social Security Act 1991 141 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AB Working credit accrual and depletion rules and their consequences Section 1073G the participant’s applicable ordinary income free area for the day, the participant’s working credit balance, if it is greater than nil on the day, is depleted on that day by the least of: (a) (b) the amount of employment income determined under step 1; or one fourteenth of the amount by which the participant’s rate of total ordinary income on a fortnightly basis exceeds the participant’s applicable ordinary income free area; or (c) the participant’s available working credit balance.
1073G Working out the effect of a working credit depletion on the fortnightly rate of ordinary income for a social security beneficiary If, under section 1073F, the working credit balance of a working credit participant is depleted on a particular day, the participant’s rate of ordinary income on a fortnightly basis for that day is reduced by the working credit depletion amount applicable to that day, determined under step 6 of the method statement, multiplied by 14.
1073H Working out accruals and depletions of working credit for social security pensioners This section determines, in respect of each working credit participant who is receiving a social security pension, whether, for each day in an instalment period: (a) there is an accrual to the participant’s working credit balance; or (b) the participant’s working credit balance is unaffected; or (c) the participant’s working credit balance is depleted; 142 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Working credit accrual and depletion rules and their consequences Division 1AB Section 1073H and, if there is an accrual to, or a depletion from, the participant’s working credit balance, the amount of that accrual or depletion.
Method statement Step 1.

Work out the amount (including a nil amount) of the participant’s employment income taken, in accordance with Division 1AA, to have been received on that day.

Step 2.

Multiply the amount determined under step 1 by 364.

This is the participant’s rate of employment income on a yearly basis for the day.

Step 3.

Add to the participant’s rate of employment income on a yearly basis for the day the participant’s rate of any other ordinary income on a yearly basis for the day.
This is the participant’s rate of total ordinary income on a yearly basis for the day.

Step 4.

Divide the participant’s rate of total ordinary income on a yearly basis for the day by 26.

This is the participant’s rate of total ordinary income, expressed on a fortnightly basis, for the day.

Step 5.

Divide the yearly ordinary income free area applicable to the participant for the day under the ordinary income test module of the appropriate rate calculator by 26.
This is the participant’s applicable ordinary income free area, expressed on a fortnightly basis, for the day.

Step 6.

If the participant’s rate of total ordinary income, expressed on a fortnightly basis, for the day, is less than $48, there is an accrual to the participant’s working credit balance, for the day, of an amount equal to one fourteenth of the amount by which $48 exceeds that rate.

The maximum working credit balance is $1,000.


Social Security Act 1991 143 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1AB Working credit accrual and depletion rules and their consequences Section 1073I Step 7.

Step 8.
Step 8.

If the participant’s rate of total ordinary income, expressed on a fortnightly basis, for the day, is at least $48 but does not exceed the participant’s applicable ordinary income free area, expressed on a fortnightly basis for the day in accordance with step 5, the participant’s working credit balance for the day is neither increased nor reduced.
If the participant’s rate of total ordinary income, expressed on a fortnightly basis, for the day, is at least $48 and exceeds the participant’s applicable ordinary income free area, expressed on a fortnightly basis for the day in accordance with step 5, the participant’s working credit balance, if it is greater than nil on the day, is depleted on that day by the least of: (a) (b) the amount of employment income determined under step 1; or one fourteenth of the amount by which the participant’s rate of total ordinary income, expressed on a fortnightly basis, exceeds the participant’s applicable ordinary income free area, expressed on that basis; or (c) the participant’s available working credit balance.
1073I Working out the effect of a working credit depletion on the yearly rate of ordinary income for a social security pensioner If, under section 1073H, the working credit balance of a working credit participant is depleted on a particular day, the participant’s rate of ordinary income on a yearly basis for that day is reduced by the working credit depletion amount applicable to that day, determined under step 8 of the method statement, multiplied by 364.
144 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Working credit accrual and depletion rules and their consequences Division 1AB Section 1073J 1073J Working credit balance prevents loss of qualification in certain cases If: (a) a person receiving disability support pension, carer payment, youth allowance or jobseeker payment is a working credit participant; and (b) either: (i) the participant commences to be taken, under a provision of this Act, to receive employment income; or (ii) there is an increase in the employment income that is taken, under a provision of this Act, to be received by the participant; and (c) the participant has a working credit balance greater than nil at the start of the instalment period of the participant in which the commencement or increase occurs; and (d) but for the commencement or increase, the participant would have continued to be qualified for the payment mentioned in paragraph (a) until the earlier of: (i) a day determined under Division 8 or 9 of Part 3 of the Administration Act; or (ii) the day on which the participant’s working credit balance is reduced to nil; the participant is to be treated as if he or she had continued to be so qualified until the earlier of the days determined as referred to in subparagraphs (d)(i) and (ii).
Social Security Act 1991 145 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1A Business income Section 1074 Division 1A—Business income 1074 Ordinary income from a business—treatment of trading stock (1) If: (a) a person carries on a business; and (b) the value of all the trading stock on hand at the end of a tax year is greater than the value of all the trading stock on hand at the beginning of that tax year; the person’s ordinary income for that tax year in the form of profits from the business is to include the amount of the difference in values.
(2) If: (a) a person carries on a business; and (b) the value of all the trading stock on hand at the end of a tax year is less than the value of all the trading stock on hand at the beginning of that tax year; the person’s ordinary income for that tax year in the form of profits from the business is to be reduced by the amount of the difference in values.
1075 Permissible reductions of business income (1) Subject to subsection (2), if a person carries on a business, the person’s ordinary income from the business is to be reduced by: (a) losses and outgoings that relate to the business and are allowable deductions for the purposes of section 8-1 of the Income Tax Assessment Act 1997; and (b) amounts that relate to the business and can be deducted in respect of plant (within the meaning of the Income Tax Assessment Act 1997) under Division 40 of that Act; and 146 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Business income Division 1A Section 1075 (c) amounts that relate to the business and are allowable deductions under section 290-60 of the Income Tax Assessment Act 1997.
(2) If, under Division 1B, a person is taken to receive ordinary income on a financial investment, that ordinary income is not to be reduced by the amount of any expenses incurred by the person because of that investment.

Note: For financial investment see subsection 9(1).
(3) If a person’s ordinary income for a period includes rental income from a property that is not business income, the person’s ordinary income from that property is to be reduced by losses and outgoings that relate to the property and are allowable deductions for the purposes of section 8-1 of the Income Tax Assessment Act 1997 for that period.
(4) If the amount of the allowable deductions relating to a property for a period under section 8-1 of the Income Tax Assessment Act 1997 exceeds the amount of the rental income from the property for that period, the amount of the ordinary income from the property for that period is taken to be nil.
Social Security Act 1991 147 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1B Income from financial assets (including income streams (short term) and certain income streams (long term)) Section 1076 Division 1B—Income from financial assets (including income streams (short term) and certain income streams (long term)) 1076 Deemed income from financial assets—persons other than members of couples (1) This section applies to a person who is not a member of a couple.
(2) A person who has financial assets is taken, for the purposes of this Act, to receive ordinary income on those assets in accordance with this section.

(3) If the total value of the person’s financial assets is equal to or less than the person’s deeming threshold, the ordinary income the person is taken to receive per year on the financial assets is the amount worked out by multiplying the value of those assets by the below threshold rate.
(3A) If the total value of the person’s financial assets exceeds the person’s deeming threshold, the ordinary income that the person is taken to receive is worked out as follows: Method statement Step 1.

Multiply the person’s deeming threshold by the below threshold rate.

Note 1: Note 2: For deeming threshold see subsection 1081(1).

For below threshold rate see subsection 1082(1).

Step 2.

Subtract the deeming threshold from the total value of the person’s financial assets.
Note: For deeming threshold see subsection 1081(1).

148 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Income from financial assets (including income streams (short term) and certain income streams (long term)) Division 1B Section 1077 Step 3.

Multiply the remainder worked out at Step 2 by the above threshold rate.
Note: For above threshold rate see subsection 1082(2).

Step 4.

The total of the amounts worked out at Steps 1 and 3 represents the ordinary income the person is taken to receive per year on the financial assets.

(4) The person is taken, for the purposes of this Act, to receive one fifty-second of the amount calculated under subsection (3) or (3A) as ordinary income of the person during each week.
1077 Deemed income from financial assets—members of pensioner couples (1) This section applies to the members of a pensioner couple.

(2) If one or both of the members of a couple have financial assets, the members of the couple are taken, for the purposes of this Act, to receive together ordinary income on those assets in accordance with this section.
(3) If the total value of the couple’s financial assets is equal to or less than the couple’s deeming threshold, the ordinary income the couple is taken to receive per year on the financial assets is the amount worked out by multiplying the value of those assets by the below threshold rate.

(3A) If the total value of the couple’s financial assets exceeds the couple’s deeming threshold, the ordinary income that the couple is taken to receive is worked out as follows: Method statement Step 1.
Multiply the couple’s deeming threshold by the below threshold rate.

Note 1: For deeming threshold see subsection 1081(2).
Social Security Act 1991 149 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1B Income from financial assets (including income streams (short term) and certain income streams (long term)) Section 1078 Note 2: For below threshold rate see subsection 1082(1).

Step 2.
Step 2.

Subtract the deeming threshold from the total value of the couple’s financial assets.

Note: For deeming threshold see subsection 1081(2).

Step 3.

Multiply the remainder worked out at Step 2 by the above threshold rate.

Note: For above threshold rate see subsection 1082(2).

Step 4.

The total of the amounts worked out at Steps 1 and 3 represents the ordinary income the couple is taken to receive per year on the financial assets.
(4) Each member of the couple is taken, for the purposes of this Act, to receive, as ordinary income during each week, an amount worked out under the following formula: Amount calculated under subsection 3 or 3A    52   0.5 1078 Deemed income from financial assets—members of non-pensioner couples (1) This section applies to a person who is a member of a couple, other than a pensioner couple.
(2) A person who has financial assets is taken, for the purposes of this Act, to receive ordinary income on those assets in accordance with this section.

(3) If the total value of the person’s financial assets is equal to or less than the person’s deeming threshold, the ordinary income the person is taken to receive per year on the financial assets is the amount worked out by multiplying the value of those assets by the below threshold rate.
150 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Income from financial assets (including income streams (short term) and certain income streams (long term)) Division 1B (3A) If the total value of the person’s financial assets exceeds the person’s deeming threshold, the ordinary income that the person is taken to receive is worked out as follows: Section 1081 Method statement Step 1.
Multiply the person’s deeming threshold by the below threshold rate.

Note 1: Note 2: For deeming threshold see subsection 1081(3).

For below threshold rate see subsection 1082(1).

Step 2.

Subtract the deeming threshold from the total value of the person’s financial assets.

Note: For deeming threshold see subsection 1081(3).

Step 3.

Multiply the remainder worked out at Step 2 by the above threshold rate.

Note: For above threshold rate see subsection 1082(2).

Step 4.
Step 4.

The total of the amounts worked out at Steps 1 and 3 represents the ordinary income the person is taken to receive per year on the financial assets.

(4) The person is taken, for the purposes of this Act, to receive one fifty-second of the amount calculated under subsection (3) or (3A) as ordinary income of the person during each week.

1081 Deeming threshold (1) The deeming threshold for a person who is not a member of a couple is $30,000.
(2) The deeming threshold for a pensioner couple is $50,000.

(3) The deeming threshold for a member of a couple, other than a pensioner couple, is an amount equal to one-half of the amount fixed by subsection (2).
Social Security Act 1991 151 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1B Income from financial assets (including income streams (short term) and certain income streams (long term)) Section 1082 Note: The amounts fixed by subsections (1) and (2) are indexed every 1 July.

See sections 1190–1192.


1082 Below threshold rate, above threshold rate (1) For the purposes of this Division, the below threshold rate is the rate determined, by legislative instrument, by the Minister to be the below threshold rate for the purposes of this Division.

(2) For the purposes of this Division, the above threshold rate is the rate determined, by legislative instrument, by the Minister to be the above threshold rate for the purposes of this Division.
(3) A rate determined under this section must be in the form of a specified percentage.

1083 Actual return on financial assets not treated as ordinary income (1) Subject to subsection (2), any return on a financial asset that a person actually earns, derives or receives is taken, for the purposes of this Act, not to be ordinary income of the person.
(2) If, because of: (a) a determination under subsection 1084(1); or (b) the operation of subsection 1084(2); a financial investment is not to be regarded as a financial asset for the purposes of section 1076, 1077 or 1078, subsection (1) does not apply to any return on the investment that the person actually earns, derives or receives.
1084 Certain money and financial investments not taken into account (1) The Minister may determine that: (a) specified financial investments; or (b) a specified class of financial investments; 152 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Income from financial assets (including income streams (short term) and certain income streams (long term)) Division 1B Section 1084A are not to be regarded as financial assets for the purposes of section 1076, 1077 or 1078.
(2) If a financial investment is an unrealisable asset for the purposes of section 1129, 1130B or 1131, the financial asset is not to be regarded as a financial asset for the purposes of section 1076, 1077 or 1078.

(3) A determination under subsection (1): (a) must be in writing; and (b) takes effect on the day on which it is made or on such other day (whether earlier or later) as is specified in the determination.
1084A Valuation and revaluation of certain financial investments The total value of a person’s listed securities and managed investments (being listed securities and managed investments that fluctuate depending on the market) (the relevant investments) is determined in accordance with the following: (a) an initial total valuation is to be given to the relevant investments on 1 July 1996, or when a new claim is determined, by the method set out in departmental guidelines; (b) that total valuation continues in effect until the relevant investments are revalued by the method set out in departmental guidelines, and that revaluation must occur: (i) on 20 March in each calendar year after 1996; and (ii) on 20 September in each calendar year after 1996; and (iii) when the person requests a revaluation of one or more of the person’s listed securities and managed investments; and (iv) following an event that affects the relevant investments and is the subject of a notice given under section 68 of the Administration Act.
Social Security Act 1991 153 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1C Income from income streams not covered by Division 1B Section 1097A Division 1C—Income from income streams not covered by Division 1B Subdivision B—Income streams that are not family law affected income streams 1097A Scope of Subdivision (1) This Subdivision applies to income streams that are not family law affected income streams.
(2) However, this Subdivision does not apply to: (a) an asset-tested income stream (long term) that is an account-based pension within the meaning of the Superannuation Industry (Supervision) Regulations 1994; or (b) an asset-tested income stream (long term) that is an annuity (within the meaning of the Superannuation Industry (Supervision) Act 1993) provided under a contract that meets the requirements determined in an instrument under subsection 9(1EA) of this Act.
Note 1: Note 2: For treatment of an income stream mentioned in subsection (2), see Division 1B.
Part 2 of Schedule 11 to the Social Services and Other Legislation Amendment Act 2014 preserves the rules in this Subdivision for a certain kind of income stream that was being provided to a person immediately before 1 January 2015 where the person was receiving an income support payment immediately before that day provided that, since that day, that income stream has been provided to the person and the person has been continuously receiving an income support payment.
1098 Income from asset-test exempt income stream (1) For the purpose of working out the annual rate of ordinary income of a person from an asset-test exempt income stream to which this Subdivision applies, the person is taken to receive from that income stream each year the amount worked out under section 1099 or 1099A.
154 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Income from income streams not covered by Division 1B Division 1C Section 1099 Note: For asset-test exempt income stream see sections 9A, 9B and 9BA.
(2) Sections 1099 and 1099A do not apply if: (a) the income stream is covered by subsection 9BA(1); or (b) on the income stream’s commencement day, there was a reasonable likelihood that the income stream would have been covered by subsection 9BA(1), but the income stream is no longer covered by that subsection.

Note: See section 1099AA.


1099 Income—income stream not a defined benefit income stream If the asset-test exempt income stream to which this Subdivision applies is not a defined benefit income stream, the amount that the person is taken to receive from the income stream each year is worked out as follows: Annual payment – Purchase price Relevant number where: annual payment means the amount payable to the person for the year under the income stream.

purchase price has the meaning given by subsection 9(1).
relevant number has the meaning given by subsection 9(1).

Example: Mark is 65 years old and single.

He purchases an annuity for $100,000 with a term based on life expectancy (i.e.

15.41 years, which he chooses to round up to 16 years).

The annuity has all the revised characteristics listed in the legislation.

His annual payment from the annuity totals $9,895.
Mark’s assessable income from this income stream is: $9,895 –      $100,000 16 years       $3,645 Social Security Act 1991 155 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1C Income from income streams not covered by Division 1B Section 1099A 1099A Income—income stream is a defined benefit income stream (1) Subject to subsection (2), if the asset-test exempt income stream to which this Subdivision applies is a defined benefit income stream, the amount that the person is taken to receive from the income stream each year is worked out as follows: Annual payment – Deductible amount where: annual payment means the amount payable to the person for the year under the income stream.
deductible amount has the meaning given by subsection 9(1).
Cap on deductible amount (2) If: (a) the defined benefit income stream is not a military defined benefit income stream; and (b) apart from this subsection, the deductible amount under subsection (1) in relation to the income stream for the year would exceed 10% of the amount payable to the person for the year under the income stream; then that deductible amount is taken to be an amount equal to 10% of the amount payable to the person for the year under the income stream.
1099AA Income from market-linked asset-test exempt income stream (1) If either of the following conditions is satisfied in relation to the asset-test exempt income stream to which this Subdivision applies: (a) the income stream is covered by subsection 9BA(1); (b) on the income stream’s commencement day, there was a reasonable likelihood that the income stream would have been covered by subsection 9BA(1), but the income stream is no longer covered by that subsection; 156 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Income from income streams not covered by Division 1B Division 1C Section 1099AA the annual rate of ordinary income of a person from the income stream is worked out under whichever of subsections (2) and (3) is applicable.
Recipient makes election (2) If: (a) the person has elected that a particular amount is to be the payment, or the total of the payments, to be made under the income stream in respect of a period (the payment period) that: (i) consists of the whole or a part of a particular financial year; and (ii) begins on or after the income stream’s commencement day; and (b) the election is in force on a particular day in the payment period; the annual rate of ordinary income of the person from the income stream on that day is worked out using the following formula:      where: Total payments Days in payment period Purchase price  Relevant number      365 365   purchase price has the meaning given by subsection 9(1).
relevant number has the meaning given by subsection 9(1).

total payments means the payment, or the total of the payments, to be made under the income stream in respect of the payment period.
Recipient does not make election (3) If the person has not elected that a particular amount is to be the payment, or the total of the payments, to be made under the income stream in respect of a period (the payment period) that: (a) consists of the whole or a part of a particular financial year; and Social Security Act 1991 157 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1C Income from income streams not covered by Division 1B Section 1099B (b) begins on or after the income stream’s commencement day; the annual rate of ordinary income of the person from the income stream on each day during the payment period is worked out using the following formula:      where: Default amount Days in payment period Purchase price  Relevant number      365 365   default amount means 100% of the amount worked out for the financial year using the formula in subsection 9BA(5) (for pro-rating, see subsection (4)).
purchase price has the meaning given by subsection 9(1).

relevant number has the meaning given by subsection 9(1).

(4) If the income stream’s commencement day is not a 1 July, the default amount (within the meaning of subsection (3)) for the financial year starting on the preceding 1 July must be reduced on a pro-rata basis by reference to the number of days in the financial year that are on and after the commencement day.
Exception—income stream’s commencement day happens in June (5) If: (a) the income stream’s commencement day happens in June; and (b) no payment is made under the income stream for the financial year in which the commencement day happens; subsections (2), (3) and (4) do not apply in working out the annual rate of ordinary income of the person from the income stream on a day in that financial year.
1099B Income from asset-tested income stream (long term) (1) For the purpose of working out the annual rate of ordinary income of a person from an asset-tested income stream (long term) to 158 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Income from income streams not covered by Division 1B Division 1C Section 1099C which this Subdivision applies, the person is taken to receive from that income stream each year the amount worked out under section 1099C or 1099D.
(2) Sections 1099C and 1099D do not apply to an income stream if section 1099DAA applies to the income stream.
1099C Income—asset-tested income stream (long term) that is not a defined benefit income stream If the asset-tested income stream (long term) to which this Subdivision applies is not a defined benefit income stream, the amount that the person is taken to receive from the income stream each year is worked out as follows: Purchase price – Residual capital value Relevant number         Annual payment – where: annual payment means the amount payable to the person for the year under the income stream.
purchase price has the meaning given by subsection 9(1).

relevant number has the meaning given by subsection 9(1).

residual capital value has the meaning given by subsection 9(1).

Note: For treatment of asset-tested income streams (short term) see Division 1B of Part 3.10.

Example: Sally is 65 years old and single.

She purchases a 10 year annuity for $150,000, with a residual capital value of $20,000.

Her total annual annuity payment is $18,337.
Sally’s assessable income from her 10 year annuity is: $18,337 – $150,000 – $20,000 10  $5,337 Social Security Act 1991 159 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1C Income from income streams not covered by Division 1B Section 1099D 1099D Income—asset-tested income stream (long term) that is a defined benefit income stream (1) Subject to subsection (2), if the asset-tested income stream (long term) to which this Subdivision applies is a defined benefit income stream, the amount that the person is taken to receive from the income stream each year is worked out as follows: Annual payment – Deductible amount where: annual payment means the amount payable to the person for the year under the income stream.
deductible amount has the meaning given by subsection 9(1).
Cap on deductible amount (2) If: (a) the defined benefit income stream is not a military defined benefit income stream; and (b) apart from this subsection, the deductible amount under subsection (1) in relation to the income stream for the year would exceed 10% of the amount payable to the person for the year under the income stream; then that deductible amount is taken to be an amount equal to 10% of the amount payable to the person for the year under the income stream.
1099DAA Income from certain low-payment asset-tested income streams (1) If: (a) an income stream is an asset-tested income stream (long term) to which this Subdivision applies; and (b) the income stream is an allocated pension within the meaning of the Superannuation Industry (Supervision) Regulations 1994; and 160 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Income from income streams not covered by Division 1B Division 1C Section 1099DAA (c) one or more payments have been, or are to be, made under the income stream in respect of a period (the payment period) that: (i) consists of the whole or a part of a financial year; and (ii) begins on or after the income stream’s commencement day; and (d) on a day in the payment period, the amount worked out using the formula in subsection (2) is less than the amount worked out using the formula in subsection (3); the annual rate of ordinary income of a person from the income stream on that day is worked out under subsection (3).
Annual rate based on total payments (2) For the purposes of paragraph (1)(d), the formula in this subsection is:      where: Total payments Days in payment period  Purchase price  Relevant number 365  365      purchase price has the meaning given by subsection 9(1).

relevant number has the meaning given by subsection 9(1).

total payments means the payment, or the total of the payments, made, or to be made, under the income stream in respect of the payment period.
Annual rate based on minimum amount (3) For the purposes of paragraph (1)(d), the formula in this subsection is:       Minimum amount Days in payment period  Purchase price  Relevant number 365  365       Social Security Act 1991 161 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1C Income from income streams not covered by Division 1B Section 1099DAB where: minimum amount means the minimum amount calculated in accordance with the method determined, by legislative instrument, by the Minister for the purposes of this definition.
purchase price has the meaning given by subsection 9(1).

relevant number has the meaning given by subsection 9(1).

Exception—income stream’s commencement day happens in June (4) If: (a) the income stream’s commencement day happens in June; and (b) no payment is made under the income stream for the financial year in which the commencement day happens; subsections (2) and (3) do not apply in working out the annual rate of ordinary income of the person from the income stream on a day in that financial year.
1099DAB Income—asset-tested income stream (lifetime) If the income stream is an asset-tested income stream (lifetime), the amount that the person is taken to receive from the income stream each year is worked out as follows: Annual payment  0.6 where: annual payment means the amount payable to the person for the year under the income stream.

Subdivision C—Family law affected income streams 1099DA Scope of Subdivision (1) This Subdivision applies to family law affected income streams.
162 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Income from income streams not covered by Division 1B Division 1C Section 1099DB (2) However, this Subdivision does not apply to: (a) an asset-tested income stream (long term) that is an account-based pension within the meaning of the Superannuation Industry (Supervision) Regulations 1994; or (b) an asset-tested income stream (long term) that is an annuity (within the meaning of the Superannuation Industry (Supervision) Act 1993) provided under a contract that meets the requirements determined in an instrument under subsection 9(1EA) of this Act.
Note 1: Note 2: For treatment of an income stream mentioned in subsection (2), see Division 1B.
Part 2 of Schedule 11 to the Social Services and Other Legislation Amendment Act 2014 preserves the rules in this Subdivision for a certain kind of income stream that was being provided to a person immediately before 1 January 2015 where the person was receiving an income support payment immediately before that day provided that, since that day, that income stream has been provided to the person and the person has been continuously receiving an income support payment.
1099DB Income from asset-test exempt income streams (1) For the purpose of working out the annual rate of ordinary income of a person from an asset-test exempt income stream to which this Subdivision applies, the person is taken to receive from that income stream each year: (a) if the income stream is not a defined benefit income stream— the amount determined by the Secretary under this paragraph; or (b) if the income stream is a defined benefit income stream—the amount determined by the Secretary under this paragraph.
(2) In making a determination under paragraph (1)(a) or (b), the Secretary must comply with any relevant decision-making principles in force under section 1099DD.
Social Security Act 1991 163 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1C Income from income streams not covered by Division 1B Section 1099DC 1099DC Income from asset-tested income stream (long term) (1) For the purpose of working out the annual rate of ordinary income of a person from an asset-tested income stream (long term) to which this Subdivision applies, the person is taken to receive from that income stream each year: (a) if the income stream is not a defined benefit income stream— the amount determined by the Secretary under this paragraph; or (b) if the income stream is a defined benefit income stream—the amount determined by the Secretary under this paragraph.
(2) In making a determination under paragraph (1)(a) or (b), the Secretary must comply with any relevant decision-making principles in force under section 1099DD.

1099DCA Income from asset-tested income stream (lifetime) (1) For the purpose of working out the annual rate of ordinary income of a person from an asset-tested income stream (lifetime) to which this Subdivision applies, the person is taken to receive from that income stream each year the amount determined by the Secretary under this subsection.
(2) In making a determination under subsection (1), the Secretary must comply with any relevant decision-making principles in force under section 1099DD.

1099DD Decision-making principles The Secretary may, by legislative instrument, formulate principles (decision-making principles) to be complied with by him or her in making decisions under: (a) paragraph 1099DB(1)(a); or (b) paragraph 1099DB(1)(b); or (c) paragraph 1099DC(1)(a); or (d) paragraph 1099DC(1)(b); or (e) subsection 1099DCA(1).
164 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Aged care accommodation bonds: certain transactions before 6 November 1997 Division 1D Division 1D—Aged care accommodation bonds: certain transactions before 6 November 1997 Section 1099E 1099E Scope of Division (1) This Division applies to a person if: (a) at any time from the beginning of 1 October 1997 until the end of 5 November 1997, the person became liable to pay an accommodation bond for entry to a residential care service; and (b) either an accommodation charge would have been payable for the entry, or the person would have been a charge exempt resident, had section 44-8B and Division 57A of the Aged Care (Transitional Provisions) Act 1997 been in force at the time of the entry; and (c) the person later made an agreement (a refund agreement) with the provider of the service that the person’s liability to pay an accommodation bond for the entry was to be replaced with a liability to pay an accommodation charge for the entry, and that any payment of any of the bond was to be refunded to the person.
Note: For accommodation bond, accommodation charge and charge exempt resident, see subsection 11(1).
(2) This Division also applies to a person if the Secretary is satisfied that: (a) on or before 5 November 1997, the person sold his or her principal home for the sole or principal purpose of raising money to pay an accommodation bond for entry to a residential care service; and (b) either an accommodation charge would have been payable for the entry, or the person would have been a charge exempt resident, had section 44-8B and Division 57A of the Aged Care Act 1997 been in force at the time of the entry.
Note: For accommodation bond, accommodation charge and charge exempt resident, see subsection 11(1).
Social Security Act 1991 165 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1D Aged care accommodation bonds: certain transactions before 6 November 1997 Section 1099F (3) This Division also applies to the partner of a person covered by subsection (1) or (2) (even if the person so covered is now deceased).
(4) For the purposes of subsection (2), the time at which a person sells his or her home is the time when he or she comes under a legal obligation to transfer the home to the buyer.

1099F Exempt bond amount does not count as income The person’s exempt bond amount (see section 1099H) does not count as income of the person for the purposes of this Act.

Note: Income is otherwise defined in section 8.


1099G Person’s ordinary income reduced using financial asset rules (1) For the purposes of this section, assume that the person’s exempt bond amount (see section 1099H) were a financial asset of the person.
(2) The person’s ordinary income for a year is reduced by the amount of ordinary income taken to be received on the asset for the year, as worked out under Division 1B (income from financial assets (including income streams (short term) and certain income streams (long term)).

(3) In working out that reduction, assume that the total value of the person’s financial assets exceeded the person’s deeming threshold (deeming threshold is a term used in Division 1B).
1099H Meaning of exempt bond amount (1) The following is how to work out a person’s exempt bond amount.

(2) If the person is covered by subsection 1099E(1) (but not subsection 1099E(2)), the person’s exempt bond amount is any amount of accommodation bond payment refunded to the person under the refund agreement mentioned in that subsection.
166 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Aged care accommodation bonds: certain transactions before 6 November 1997 Division 1D Section 1099H (3) If the person is covered by subsection 1099E(2) (but not subsection 1099E(1)), the person’s exempt bond amount is the gross proceeds of the sale mentioned in that subsection, less: (a) any costs incurred in the course of the sale; and (b) the amount of any debt the person or the person’s partner owed immediately before the sale, so far as the debt was secured by the home at that time.
(4) If the person is covered by both subsections 1099E(1) and (2), the person’s exempt bond amount is the greater of the 2 amounts worked out under subsections (2) and (3) of this section.

(5) If the person is covered by subsection 1099E(3), the person’s exempt bond amount is equal to the exempt bond amount of the person’s partner, as worked out under subsection (2), (3) or (4) of this section.
(6) But in all of the above cases, if the person currently has a partner (who is not deceased), the person’s exempt bond amount is half of what it would otherwise be.
Social Security Act 1991 167 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 1E Refunds to charge exempt residents Section 1099J Division 1E—Refunds to charge exempt residents 1099J Scope of Division (1) This Division applies to an amount (the refunded amount) that is refunded as mentioned in paragraph 56-1(kc) or 56-3(ic) of the Aged Care Act 1997 (as in force before 1 July 2014) to a person because the person is or was a charge exempt resident.
Note: For charge exempt resident, see subsection 11(1).

(2) This Division also applies to an amount (also called the refunded amount) that is paid to a person under paragraph 44-8A(6)(b) of the Aged Care (Transitional Provisions) Act 1997 because the person is or was a charge exempt resident.

Note: For charge exempt resident, see subsection 11(1).

(3) To avoid doubt, this Division does not apply if the amount is paid to the person’s estate or to any other person.
1099K Refunded amount does not count as income The refunded amount does not count as income of the person for the purposes of this Act.

Note: Income is otherwise defined in section 8.

1099L Person’s ordinary income reduced using financial asset rules (1) For the purposes of this section, assume that the refunded amount were a financial asset of the person.
(2) The person’s ordinary income for a year is reduced by the amount of ordinary income taken to be received on the asset for the year, as worked out under Division 1B (income from financial assets (including income streams (short term) and certain income streams (long term)).
168 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Refunds to charge exempt residents Division 1E Section 1099M (3) In working out that reduction, assume that the total value of the person’s financial assets exceeded the person’s deeming threshold (deeming threshold is a term used in Division 1B).
1099M Application of Division This Division applies in relation to a person who is a charge exempt resident at any time, whether before or after the commencement of the Division.
Social Security Act 1991 169 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 2 Conversion of foreign currency amounts Section 1100 Division 2—Conversion of foreign currency amounts 1100 How value of a payment received in a foreign currency is to be determined (1) If: (a) the rate of a payment to be made to a person under this Act is being worked out for a calculation day; and (b) an amount received by the person in a foreign currency needs to be taken into account in working out the rate; the value in Australian currency of the amount received is to be determined in accordance with this section.
(2) Except in the case of: (a) amounts received in a foreign currency in respect of which the Secretary determines that it is not appropriate for this subsection to apply; or (b) a payment, or class or kind of payments, received in a foreign currency, being a payment or a class or kind of payments in respect of which the Secretary determines that it is not appropriate for this subsection to apply; the value in Australian currency of the amount received is to be calculated using the appropriate market exchange rate for the foreign currency on the fifth business day before the calculation day.
(3) For the purposes of subsection (2), the appropriate market exchange rate on a particular day for a foreign currency to which subsection (2) applies is: (a) if there is an on-demand airmail buying rate for the currency available at the Commonwealth Bank of Australia at the start of business in Sydney on that day and the Secretary determines it is appropriate to use that rate—that rate; or (b) in any other case: (i) if there is another rate of exchange for the currency, or there are other rates of exchange for the currency, available at the Commonwealth Bank of Australia at the 170 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Conversion of foreign currency amounts Division 2 Section 1100A start of business in Sydney on that day and the Secretary determines it is appropriate to use the other rate or one of the other rates—the rate so determined; or (ii) otherwise—a rate of exchange for the currency available from another source at the start of business in Sydney on that day that the Secretary determines it is appropriate to use.
(4) In the case of a foreign currency or a payment in a foreign currency in respect of which the Secretary has determined that it is not appropriate for subsection (2) to apply, the value in Australian currency of the amount received is to be calculated using a rate of exchange that the Secretary determines to be appropriate.

(5) The Secretary may make written determinations for the purposes of this section.
(6) In this section: business day means a day other than: (a) a Saturday; or (b) a Sunday; or (c) a day that is a public holiday or bank holiday in Canberra or Sydney.

calculation day means the first business day for each month.

month means one of the 12 months of the calendar year.
1100A Determining value of a payment originally denominated in a foreign currency but made in Australian currency (1) This section applies if, for the purposes of working out for a calculation day the rate of a payment to be made to a person under this Act, it is necessary to take account of a payment (the foreign payment): (a) that the person received from a source overseas; and (b) that was originally denominated in a foreign currency but was received by the person in Australian currency.
Social Security Act 1991 171 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 2 Conversion of foreign currency amounts Section 1100A (2) For those purposes, the value in Australian currency of the foreign payment is taken to be the value that would have been determined under section 1100 had the person received the foreign payment in the foreign currency.
(3) Subsection (2) has effect regardless of the amount of the foreign payment actually received by the person in Australian currency.

(4) In this section: calculation day has the same meaning as in section 1100.
172 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Disposal of ordinary income Division 3 Section 1106 Division 3—Disposal of ordinary income 1106 Disposal of ordinary income (1) For the purposes of this Act, a person disposes of ordinary income of the person if: (a) the person engages in a course of conduct that directly or indirectly: (i) destroys the source of the income; or (ii) disposes of the income or the source of the income; or (iii) diminishes the income; and (b) one of the following subparagraphs is satisfied: (i) the person receives no consideration in money or money’s worth for the destruction, disposal or diminution; (ii) the person receives inadequate consideration in money or money’s worth for the destruction, disposal or diminution; (iii) the Secretary is satisfied that the person’s purpose, or the person’s dominant purpose, in engaging in that course of conduct was to obtain a social security advantage.
(2) For the purposes of subsection (1), a person has a purpose of obtaining a social security advantage if the person has a purpose of: (a) obtaining, or enabling the person’s partner to obtain, a social security pension, a social security benefit, a youth training allowance, a service pension, income support supplement or a veteran payment; or (b) obtaining, or enabling the person’s partner to obtain, a social security pension, a social security benefit, a youth training allowance, a service pension, income support supplement or a veteran payment at a higher rate than that which would otherwise have been payable; or Social Security Act 1991 173 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 3 Disposal of ordinary income Section 1107 (c) ensuring that the person or the person’s partner would be qualified for fringe benefits for the purposes of this Act or the Veterans’ Entitlements Act.
(3) Paragraph (1)(a) does not apply if: (a) the source of the income is a deprived asset, or (b) the income is earned, derived or received from a transaction involving a deprived asset.

Note: For amount of disposition see section 1107.
1107 Amount of disposition If a person disposes of ordinary income, the amount of the disposition is the amount that, in the Secretary’s opinion, is: (a) if the person receives no consideration for the destruction, disposal or diminution—the annual rate of the diminution of the income because of the destruction, disposal or diminution; or (b) if the person receives consideration for the destruction, disposal or diminution—the annual rate of the diminution of the income because of the destruction, disposal or diminution less the part (if any) of the consideration that the Secretary considers to be fair and reasonable in all the circumstances of the case.
1108 Disposal of ordinary income—individuals If a person who is not a member of a couple has disposed of ordinary income of the person, the amount of that disposition is to be included in the person’s ordinary income for the purposes of this Act.

Note 1: For disposes of ordinary income see section 1106.

Note 2: For amount of disposition see section 1107.

Note 3: For ordinary income see subsection 8(1): ordinary income includes investment income but does not include maintenance income.
174 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Disposal of ordinary income Division 3 Section 1109 1109 Disposal of ordinary income—members of couples (1) Subject to subsections (1A), (1B), (2), (3) and (4), if a person who is a member of a couple has disposed of ordinary income of the person: (a) 50% of the amount of the disposition is to be included in the person’s ordinary income; and (b) 50% of the amount of the disposition is to be included in the person’s partner’s ordinary income.
Note 1: For disposes of ordinary income see section 1106.

Note 2: For amount of disposition see section 1107.
(1A) Subject to subsection (3), for the purposes of the application of this Act in relation to a person’s rate of social security benefit, if: (a) a person who is a member of a couple has disposed of ordinary income of the person; and (b) the amount of the disposition is not greater than the least amount that, if added to the person’s ordinary income (disregarding this section), would cause the person’s rate of benefit to be reduced to nil; the amount of the disposition is to be included in the person’s ordinary income.
(1B) Subject to subsection (3), for the purposes of the application of this Act in relation to a person’s rate of social security benefit, if: (a) a person who is a member of a couple has disposed of ordinary income of the person; and (b) the amount of the disposition is greater than the least amount that, if added to the person’s ordinary income (disregarding this section), would cause the person’s rate of benefit to be reduced to nil; then: (c) the second of the amounts referred to in paragraph (b) is to be included in the person’s ordinary income; and (d) the difference between the 2 amounts referred to in paragraph (b) is to be included in the person’s partner’s ordinary income.
Social Security Act 1991 175 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.10 General provisions relating to the ordinary income test Division 3 Disposal of ordinary income Section 1111 (2) If: (a) amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and (b) the person and the person’s partner cease to be members of the same couple; any amount that was included in the ordinary income of the person’s former partner because of the disposition is to be included in the person’s ordinary income.
(3) If: (a) amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and (b) the person dies; no amount is to be included in the ordinary income of the person’s partner because of the disposition.
(4) If: (a) an amount is included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and (b) the person’s partner dies; any amount that would, if the person’s partner had not died, be included in the ordinary income of the person’s partner because of the disposition is to be included in the person’s ordinary income.
Note: For ordinary income see subsection 8(1): ordinary income includes investment income but does not include maintenance income.
1111 Dispositions more than 5 years old to be disregarded This Division does not apply to a disposition of ordinary income that took place: (a) more than 5 years before the time when: 176 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the ordinary income test Part 3.10 Disposal of ordinary income Division 3 Section 1111 (i) the person who disposed of the ordinary income; or (ii) if the person who disposed of the ordinary income was, at the time of disposition, a member of a couple—the person’s partner; became qualified for a social security pension; or (b) less than 5 years before the time referred to in paragraph (a) and before the time when the Secretary is satisfied that the person who disposed of the ordinary income could reasonably have expected that the person or the person’s partner would become qualified for such a pension.
Social Security Act 1991 177 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1118 Part 3.12—General provisions relating to the assets test Division 1—Value of person’s assets 1118 Certain assets to be disregarded in calculating the value of a person’s assets (1) In calculating the value of a person’s assets for the purposes of this Act (other than sections 198F to 198MA (inclusive), Division 1B of Part 3.10, Division 2 and sections 1133 and 1135A), disregard the following: (a) if the person is not a member of a couple—the value of any right or interest of the person in the person’s principal home that is a right or interest that gives the person reasonable security of tenure in the home; (b) if the person is a member of a couple—the value of any right or interest of the person in one residence that is the principal home of the person, of the person’s partner or of both of them that is a right or interest that gives the person or the person’s partner reasonable security of tenure in the home; (c) the value of any life interest of the person other than: (i) a life interest in the principal home of the person, of the person’s partner or of both of them; or (ii) a life interest created by the person, by the person’s partner or by both of them; or (iii) a life interest created on the death of the person’s partner; (d) the
 value of any asset-test exempt income stream of the person, other than a partially asset-test exempt income stream; (da) half of the value of any partially asset-test exempt income stream of the person; (e) any amount that is: 178 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1118 (i)
 received by the person within the immediately preceding period of 90 days; and (ii) is excluded from the definition of income in subsection 8(1) by subsection 8(4) or (5); (f) the value of the person’s investment in: (i) a superannuation fund; or (ii) an approved deposit fund; or (iv) an ATO small superannuation account; until the person: (v) reaches pension age; or (vi) starts to receive a pension or annuity out of the fund; (g) if: (i) the person has a granny flat interest in the person’s principal home; and (ii) the granny flat interest gives the person reasonable security of tenure in the home; and (iii) the person acquired or retained the granny flat interest before 22 August 1990; the value of the granny flat interest; (ga) if: (i) the person has a granny flat interest in the person’s principal home; and (ii) the person is a person to whom subsection 1150(2), 1151(2), 1152(2), 1152(5), 1153(2), 1154(2), 1155(2), 1156(2) or 1157(2) applies; the value of the granny flat interest; Note: A person described in subparagraph (ii) will have acquired or retained the granny flat interest on or after 22 August 1990 (see section 1145A).
(gb) if: (i) the person is a sale leaseback resident; and Social Security Act 1991 179 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1118 (ii) the person is a person to whom subsection 1150(2), 1151(2), 1152(2), 1152(5), 1153(2), 1154(2), 1155(2), 1156(2) or 1157(2) applies; the value of any right or interest of the person in the sale leaseback home; (h) the value of any contingent, remainder or reversionary interest of the person (other than an interest created by the person, by the person’s partner or by both of them); (j) the value of any assets (other than a contingent, remainder or reversionary interest) to which the person is entitled from the estate of a deceased person but which has not been, and is not able to be, received; (k) the value of any medal or other decoration awarded (whether to the person or another person) for valour that is owned by the person otherwise than for the purposes of investment or a hobby; (m) the value of: (i) any cemetery plot acquired by the person for the burial of the person or the person’s partner; and (ii) any funeral expenses paid in advance by the person in respect of the funeral of the person or the person’s partner; (ma) an amount invested in an exempt funeral investment and any return on the investment; (n) if: (i) personal property of the person is designed for use by a
 disabled person; and (ii) the person, the person’s partner, a dependent child of the person or a dependent child of the person’s partner is disabled; the value of the property; (p) if: (i) personal property of the person is modified so that it can be used by a disabled person; and 180 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12
 Value of person’s assets Division 1 Section 1118 (ii) the person, the person’s partner, a dependent child of the person or a dependent child of the person’s partner is disabled; the part of the value of the property that is attributable to the modifications; (q) if the person is provided with a motor vehicle under the scheme administered by the Commonwealth known as the gift car scheme—the value of that motor vehicle; (r) if the person has sold a residence that was the principal home of the person on terms and has purchased, also on terms, another residence that is the principal home of the person— so much of the balance due to the person in respect of the sale as will be applied by the person in respect of the purchase of the other residence; (s) the amount of any insurance or compensation payments received by the person because of the loss of or damage to buildings, plant or personal effects within the immediately preceding 12 months or such longer period as the Secretary determines for any special reason for a particular payment; (sa) if subsection (1AB) applies (application of insurance etc.
payments to rebuilding etc.
)—the amount worked out under that subsection, during the period mentioned in subsection (1AC); (sb) if a person has received an NDIS amount—the amount worked out under subsection (1AD); (t) the value of any native title rights and interests of the person, or of a community or group of which the person is a member; (u) the amount of any accommodation bond balance in respect of an accommodation bond paid by the person; (v) the amount of any refundable deposit balance in respect of a refundable deposit paid by the person.
Note 1: For granny flat interest see subsection 12A(2).

Note 2: For principal home see section 11A.

Note 3: For reasonable security of tenure see subsection 11A(10).

Note 4: For exempt funeral investment see section 19E.
Social Security Act 1991 181 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1118 Application of insurance etc.

payments to rebuilding etc.
(1AA) Subsection (1AB) applies if: (a) a person receives any insurance or compensation payments because of loss of or damage to a building (including the person’s principal home) or plant; and (b) either: (i) if the building or plant was lost—the person applies the whole or a part of those payments to build another building or plant to replace the building or plant that was lost; or (ii) if the building or plant was damaged—the person applies the whole or a part of those payments to rebuild, repair or renovate the building or plant.
(1AB) For the purposes of paragraph (1)(sa), the amount that may be disregarded is: (a) the value of the building or plant that is being built, rebuilt, repaired or renovated, to the extent that those payments are so applied; and (b) if a building whose value is being disregarded under paragraph (a) of this subsection is to be the person’s principal home: (i) the value of the land on which the building is being built, rebuilt, repaired or renovated to the extent that, once the building becomes the person’s principal home, the land will, under section 11A, be included in a reference to the principal home; and (ii) the value of any other structure, on that land, that is to be the person’s principal home to the extent that the structure was built before the person began applying the payments.
(1AC) For the purposes of paragraph (1)(sa), the amount worked out under subsection (1AB) may be disregarded during the period: (a) beginning when the payments are received; and (b) ending at the earlier of the following times: 182 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1118 (i) 12 months, or such longer period as the Secretary determines for any special reason, after that time; (ii) when the building, rebuilding, repair or renovation of the building or plant is complete.
NDIS amounts (1AD) For the purposes of paragraph (1)(sb), the amount that may be disregarded is the value of the sum of: (a) the NDIS amounts received by the person; and (b) any return on those amounts that the person earns, derives or receives; less the sum of the amounts spent by the person in accordance with an NDIS plan (whether in the person’s capacity as an NDIS participant or as a person managing the funding under an NDIS plan for an NDIS participant).
Definitions (1A) In this section: native title rights and interests means: (a) native title rights and interests within the meaning of section 223 of the Native Title Act 1993; (b) any rights and interests of a similar nature under any law of a State, a Territory or a foreign country (whether or not the rights and interests relate to land or waters outside Australia); but, to avoid any doubt, does not include any right or interest in a lease or licence, or in a freehold estate.
partially asset-test exempt income stream means: (a) an asset-test exempt income stream that: (i) is an income stream (other than a defined benefit income stream) covered by subsection 9A(1) or (1A), 9B(1) or 9BA(1); and (ii) has a commencement day during the period from 20 September 2004 to 19 September 2007 (both dates inclusive); and Social Security Act 1991 183 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1118 (iii) is not covered by principles (if any) determined for the purposes of this subparagraph, by legislative instrument, by the Secretary; or (b) an income stream that: (i) has a commencement day happening on or after 20 September 2007; and (ii) is covered by principles determined for the purposes of this subparagraph, by legislative instrument, by the Secretary.
Application of proceeds of sale of principal home (1B) Subsection (2) applies if: (a) a person sells the person’s principal home; and (b) either: (i) the person does not have a right or interest in a principal home; or (ii) the person has a right or interest in a principal home that the Secretary is satisfied does not give the person reasonable security of tenure in the home; and (c) before the end of 12 months, or any longer period determined under subsection (2B), after the sale, one or more of the following applies: (i) the person intends to apply the whole or a part of the proceeds of the sale to build, rebuild, repair or renovate another residence that is to be the person’s principal home; (ii) the person applies the whole or a part of the proceeds of the sale to build, rebuild, repair or renovate another residence that is to be the person’s principal home; (iii) the person intends to apply the whole or a part of the proceeds of the sale to purchase another residence that is to be the person’s principal home.
(2) For the purposes of this Act (other than Division 1B of Part 3.10): (a) if subparagraph (1B)(c)(i) applies—disregard the proceeds, to the extent that the person intends to apply those proceeds to 184 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1118 build, rebuild, repair or renovate the other residence, until the earlier of the following times: (i) the period mentioned in paragraph (1B)(c) ends; (ii) the Secretary becomes satisfied that the person has ceased to have that intention; or (b) if subparagraph (1B)(c)(ii) applies—disregard the value of the following, until the end of the period mentioned in paragraph (1B)(c), to the extent that the person applies those proceeds to build, rebuild, repair or renovate that other residence: (i) the value of the other residence; (ii) the value of the land on which the other residence is being built, rebuilt, repaired or renovated to the extent that, once the building becomes the person’s principal home, the land will, under section 11A, be included in a reference to the principal home; (iii) the value of any other structure, on that land, that is to be the person’s principal home to the extent that the structure was built before the person began applying those proceeds; or (c) if subparagraph (1B)(c)(iii) applies—disregard the proceeds, to the extent that the person intends to apply those proceeds to purchase the other residence, until the earlier of the following times: (i) the period mentioned in paragraph (1B)(c) ends; (ii) the Secretary becomes satisfied that the person has ceased to have that intention.
(2A) Subsection (2) does not apply to the calculation of the value of a person’s assets for the purposes of sections 198F to 198MA or 1123 to 1128 (disposal of assets).
(2B) For the purposes of subsection (1B), the Secretary may determine, in writing, a period of up to 24 months if: (a) a person who has sold his or her principal home is making reasonable attempts to purchase, build, repair or renovate another residence; and Social Security Act 1991 185 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1118A (b) the person has been making those attempts within a reasonable period after selling the principal home; and (c) the person has experienced delays beyond his or her control in purchasing, building, repairing or renovating the other residence.
Value of certain personal effects of less than $10,000 (3) For the purposes of this section, if: (a) the value of any assets of a person or, if the person is a member of a couple, of the person and the person’s partner, that consists of the contents of a principal home and of other personal effects that are used primarily within the principal home does not exceed $10,000; and (b) the assets are used primarily for private or domestic purposes; the value of the assets is to be taken to be $10,000 unless the person satisfies the Secretary that the value of the assets is less than $10,000.
This section subject to sections 1145A to 1157 (4) This section has effect subject to sections 1145A to 1157 (special residences).
1118A Value of superannuation investments determined by Minister to be disregarded (1) The value of a person’s investment in a superannuation fund, an approved deposit fund or an ATO small superannuation account is to be disregarded in calculating the value of the person’s assets for the purposes of this Act (other than section 198H, 198HA, 198HB, 198J, 198JA, 198JB, 198K or 198L, subparagraph 263(1)(d)(iv), Division 1B of Part 3.10, or section 1124A, 1125, 1125A, 1126, 1133 or 1135A) if the investment is specified in a determination made under subsection (2).
186 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1118AA (2) The Minister may specify: (a) a specified investment in a superannuation fund, an approved deposit fund or an ATO small superannuation account; or (b) a specified class of investments in a superannuation fund, an approved deposit fund or an ATO small superannuation account; in a determination for the purpose of subsection (1).
(3) A determination under subsection (2) must be in writing.

(4) A determination under subsection (2) takes effect on the day on which it is made or on such other day (whether earlier or later) as is specified in the determination.
1118AA Value of assets reduced by amounts received from Mark Fitzpatrick Trust (1) In this section: application day, in relation to a person who was a recipient of a social security payment immediately before 28 September 1995, means the day, on or after that date, on which the person applied or applies for review of the rate of that social security payment because of the expected enactment, or the operation, of this section.
(2) Subject to subsection (3), the value of a person’s assets for the purposes of this Act (other than subparagraph 501E(1)(d)(iv) and sections 1124A, 1125, 1125A and 1126) is reduced by the sum of any amounts received by the person from the Mark Fitzpatrick Trust.
(3) Subsection (2) has effect, or is taken to have had effect, as the case may be: (a) for a person who was a recipient of a social security pension immediately before 28 September 1995—on the first pension payday after the application day; or (b) for a person who was a recipient of a social security payment other than a social security pension immediately before Social Security Act 1991 187 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1118AB 28 September 1995—on the next day, after the application day, on which the person received or receives an instalment of the payment; or (c) for a person who became or becomes a recipient of a social security payment on or after 28 September 1995—on the day on which the person received or receives the first instalment of the payment.
1118AB Value of person’s assets reduced: certain transactions to do with aged care accommodation bonds (1) This section applies to a person if Division 1D of Part 3.10 applies to the person.

(2) For the purposes of this Act (other than subparagraph 501E(1)(d)(iv) and sections 1124A, 1125, 1125A and 1126), the total value of the person’s assets is reduced by the person’s exempt bond amount (as defined by section 1099H).
1118AC Value of person’s assets reduced: refunds to charge exempt residents (1) This section applies to a person if Division 1E of Part 3.10 applies to the person.

(2) For the purposes of this Act (other than subparagraph 501E(1)(d)(iv) and sections 1124A, 1125, 1125A and 1126), the total value of the person’s assets is reduced by the refunded amount (as defined by section 1099J).
1119 Value of asset-tested income streams that are not defined benefit income streams, asset-tested income streams (lifetime) or family law affected income streams (1) This section applies to a person’s asset-tested income stream if it is not a defined benefit income stream, it is not an asset-tested income stream (lifetime) and it is not a family law affected income stream.
188 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1119 Note: For defined benefit income streams, see section 1120.

For asset-tested income streams (lifetime), see sections 1120AA and 1120AB.

For family law affected income streams, see section 1120A.
(2) The value of the income stream is, for the purposes of the assets test, worked out: (a) if the person receives payments from the income stream 2 or more times a year—in relation to each 6 month period of the income stream’s term; and (b) if the person receives a payment from the income stream only once a year—in relation to each 12 month period of the income stream’s term.
(3) If the income stream has an account balance, the value of the income stream, for the purposes of the assets test, is the value of the account balance at the beginning of the 6 month or 12 month period (as the case requires) referred to in subsection (2).
(4) If the income stream does not have an account balance, the value of the income stream is, for the purposes of the assets test, worked out as follows:               Purchase price – where: Purchase price – Residual capital value Relevant number         Term elapsed        purchase price has the meaning given by subsection 9(1).

relevant number has the meaning given by subsection 9(1).

residual capital value has the meaning given by subsection 9(1).
term elapsed is the number of years of the term that have elapsed since the commencement day of the income stream, rounded down: (a) in the case of an income stream referred to in paragraph (2)(a)—to the nearest half-year; and (b) in the case of an income stream referred to in paragraph (2)(b)—to the nearest whole year.
Social Security Act 1991 189 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1120 Example: Sally is 65 years old and single.

She purchases a 10 year annuity for $150,000 with a residual capital value of $20,000.

Her total annual annuity payment is $18,337.

Monthly payments commence on 1 January.
Her assessable asset for the first six months will be: $150,000 –           $150,000 – $20,000 10 years       0 year       $150,000 Her assessable asset after 30 June in that year will be: $150,000 –           $150,000 – $20,000 10 years       0.5 year       $143,500 1120 Value of asset-tested income streams that are defined benefit income streams (1) This section applies to a person’s asset-tested income stream if it is a defined benefit income stream and it is not a family law affected income stream.
Note: For family law affected income streams, see section 1120A.

(2) The value of the income stream is, for the purposes of the assets test, worked out in relation to each 12 month period of the income stream’s term.

(3) The value of the income stream is, for the purposes of the assets test, worked out as follows: Annual payment where:  Pension valuation factor annual payment means the amount payable to the person for the relevant 12 month period under the income stream.
pension valuation factor means the pension valuation factor that applies to the person in accordance with the determination made, by legislative instrument, by the Minister for the purposes of this section.
190 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1120AA 1120AA Value of asset-tested income streams (lifetime) that are managed investments (1) This section applies to a person’s asset-tested income stream (lifetime), that does not arise under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993, in relation to a day that is before the person’s assessment day (within the meaning of section 1120AB) for the income stream.
Note: For asset-tested income stream (lifetime), see subsection 9(1).

(2) However, this section does not apply to a family law affected income stream.

Note: For family law affected income streams, see section 1120A.

Value of income stream (3) Subject to this section, the value of the person’s income stream is, for the purposes of the assets test, the purchase amount for the income stream.
Purchase amount (4) For the purposes of this section, the purchase amount for the income stream is: (a) subject to paragraph (b)—if one or more amounts have been paid for the income stream, the sum of each compounded amount in relation to an amount paid for the income stream, as worked out under subsection (5), less any commuted amounts; or (b) if the circumstances determined in an instrument under subsection (7) apply in relation to the income stream—the amount worked out in accordance with that instrument.
(5) A compounded amount in relation to an amount paid for the income stream is worked out by applying the following formula for each relevant adjustment day (from the earliest to the latest): Social Security Act 1991 191 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1120AA Compounded amount for the relevant adjustment day      where: 1  Relevant above threshold rate for the relevant adjustment day     compounded amount for the relevant adjustment day means: (a) for the earliest relevant adjustment day—the amount that was paid for the income stream; or (b) for each later relevant adjustment day—the result of applying the formula for the most recent earlier relevant adjustment day.
relevant above threshold rate for the relevant adjustment day means the following: (a) if the relevant adjustment day is the relevant payment day— zero; (b) if the relevant adjustment day is a 12-month anniversary of the relevant payment day—the rate applicable under subsection 1082(2) for that relevant adjustment day, expressed as a decimal fraction.

relevant adjustment day means each of the following: (a) the relevant payment day; (b) each 12-month anniversary of the relevant payment day.
relevant payment day means the day that the amount was paid for the income stream.

(6) If the income stream is a joint income stream, then, for the purposes of applying subsections (4) and (5) to the person and to a day covered by subsection (1), an amount paid for the income stream is taken to be that amount multiplied by the proportion of the income stream attributable to the person on that day.

(7) The Secretary may make a legislative instrument for the purposes of paragraph (4)(b).
192 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1120AB 1120AB Value of asset-tested income streams (lifetime) that are not managed investments (1) This section applies to a person’s asset-tested income stream (lifetime) in relation to a day that is on or after the person’s assessment day for the income stream.
Note 1: Note 2: For asset-tested income stream (lifetime), see subsection 9(1).

For assessment day, see subsections (6) and (7) of this section.

This section applies separately in relation to each asset-tested income stream (lifetime) of a person.

(2) However, this section does not apply to a family law affected income stream.

Note: For family law affected income streams, see section 1120A.
Value of income stream (3) Subject to this section, the value of the person’s income stream is, for the purposes of the assets test, worked out as follows: (a) for a day in the period beginning on the person’s assessment day for the income stream and ending at the end of the person’s threshold day for the income stream: Purchase amount  0.6 (b) for a day after the person’s threshold day for the income stream: Purchase amount  0.3 Note: For threshold day, see subsections (9) and (10).
For purchase amount, see subsection (12).

(4) The Secretary may, by legislative instrument, determine one or more methods for working out the value of an asset-tested income stream (lifetime) for persons to whom this section applies.

(5) If one or more amounts worked out in accordance with the instrument are higher than the amount under subsection (3), then the value of the person’s income stream is, for the purposes of the assets test, the highest of those amounts.
Social Security Act 1991 193 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1120AB Assessment day (6) Subject to subsection (7), for the purposes of this section, a person’s assessment day for an asset-tested income stream (lifetime) is: (a) if the income stream arises under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993—the latest of the following: (i) the day the person first satisfies a condition of release that is mentioned in regulations under the Superannuation Industry (Supervision) Act 1993 and is of a kind determined in an instrument under subsection (8); (ii) the day the first amount was paid for the income stream; (iii) the day the person acquired the income stream (if no amount is identifiable as having been paid for the income stream); or (b) otherwise: (i) if the commencement day in relation to the income stream is before the day the person reaches pension age—the commencement day in relation to the income stream; or (ii) in any other case—the latest of the day the first amount was paid for the income stream, the day the person reaches pension age and the day the person acquired the income stream (if no amount is identifiable as having been paid for the income stream).
Note: For commencement day, see subsection 9(1).
(7) For the purposes of this section, a person’s assessment day for an asset-tested income stream (lifetime) that reverted to the person as a reversionary beneficiary is: (a) if the income stream reverted to the person on or after the commencement day in relation to the income stream—the day of the reversion; or (b) if the income stream reverted to the person before the commencement day in relation to the income stream and the 194 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1120AB income stream arises under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993: (i) if the commencement day in relation to the income stream is before the day the person first satisfies a condition of release that is mentioned in regulations under the Superannuation Industry (Supervision) Act 1993 and is of a kind determined in an instrument under subsection (8)—the commencement day in relation to the income stream; or (ii) in any other case—the later of the day of the reversion and the day the person first satisfies a condition of release that is mentioned in regulations under the Superannuation Industry (Supervision) Act 1993 and is of a kind determined in an instrument under subsection (8); or (c) if the income stream reverted to the person before the commencement day in relation to the income stream and the income stream does not arise under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993: (i) if the commencement day in relation to the income stream is before the day the person reaches pension age—the commencement day in relation to the income stream; or (ii) in any other case—the later of the day of the reversion and the day the person reaches pension age.
Note: For commencement day, see subsection 9(1).

(8) The Secretary may, by notifiable instrument, determine a kind of condition of release for the purposes of subparagraphs (6)(a)(i) and (7)(b)(i) and (ii).
Threshold day (9) Subject to subsection (10), for the purposes of this section, a person’s threshold day for an asset-tested income stream (lifetime) is worked out using the following method statement: Social Security Act 1991 195 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1120AB Method statement Step 1.
Work out, in relation to a man aged 65 on the person’s assessment day for the income stream, the number of expected years remaining in the man’s life, by reference to the instrument in force under subsection (11) on that assessment day, rounded down to the nearest whole number of years.

Note: The number of expected years remaining in a 65-year old man’s life is used no matter how old the person is and whether the person is a man or a woman.

Step 2.

Increase the number of years at step 1 by 65.

Step 3.
Step 3.

Subject to step 4, the person’s threshold day for the income stream is the later of the following days: (a) (b) the day before the person reaches the age in years worked out at step 2; the last day of the 5-year period beginning on the person’s assessment day for the income stream.

Step 4.
Step 4.

If the income stream is a joint income stream, the person’s threshold day for the income stream is the later of the following days: (a) the day before the oldest of the persons, to whom a proportion of the income stream is attributable on the person’s assessment day for the income stream, reaches the age in years worked out at step 2; (b) the last day of the 5-year period beginning on the person’s assessment day for the income stream.
(10) If: 196 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1120AB (a) an asset-tested income stream (lifetime) reverts to a person as a reversionary beneficiary on the death of another person; and (b) before the death of the other person, the other person’s assessment day for the income stream had occurred; then: (c) if, before the death of the other person, the other person’s threshold day for the income stream had not occurred—the reversionary beneficiary’s threshold day for the income stream is taken to be the day that would have been the other person’s threshold day if the other person had not died; and (d) if, before the death of the other person, the other person’s threshold day for the income stream had occurred—the reversionary beneficiary’s threshold day for the income stream is taken to be the other person’s threshold day; and (e) if the reversionary beneficiary’s assessment day for the income stream worked out under subsection (7) is on or after the reversionary beneficiary’s threshold day for the income stream worked out under paragraph (c) or (d) of this subsection: (i) paragraph (3)(a) is taken not to apply to the reversionary beneficiary and the income stream; and (ii) paragraph (3)(b) is taken to apply to the reversionary beneficiary and the income stream for a day that is on or after the reversionary beneficiary’s assessment day for the income stream.
(11) The Secretary may make a notifiable instrument for the purposes of step 1 of the method statement in subsection (9).

If there are Life Tables published by the Australian Government Actuary, the Secretary must be satisfied that the instrument is consistent with the latest of those Life Tables.
Purchase amount (12) For the purposes of this section, the purchase amount for the income stream is: Social Security Act 1991 197 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1120AB (a) subject to paragraph (b)—if one or more amounts have been paid for the income stream—the sum of: (i) each compounded amount in relation to an amount paid for the income stream before the person’s assessment day for the income stream, as worked out under subsection (13); and (ii) each amount paid for the income stream on or after that assessment day; less any commuted amounts; or (b) if the circumstances determined in an instrument under subsection (15) apply in relation to the income stream—the amount worked out in accordance with that instrument.
(13) A compounded amount in relation to an amount paid for the income stream before the person’s assessment day for the income stream is worked out by applying the following formula for each relevant adjustment day (from the earliest to the latest): Compounded amount for the relevant adjustment day      where: 1  Relevant above threshold rate for the relevant adjustment day     compounded amount for the relevant adjustment day means: (a) for the earliest relevant adjustment day—the amount that was paid for the income stream; or (b) for each later relevant adjustment day—the result of applying the formula for the most recent earlier relevant adjustment day.
relevant above threshold rate for the relevant adjustment day means: (a) if the relevant adjustment day is a 12-month anniversary of the relevant payment day—the rate applicable under subsection 1082(2) for that relevant adjustment day, expressed as a decimal fraction; or 198 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1120A (b) if the relevant adjustment day is the assessment day—the amount worked out in accordance with the following formula: The rate applicable under subsection 1082(2) for that day, expressed as a decimal fraction  Relevant number of days 365 relevant adjustment day means each of the following: (a) each 12-month anniversary of the relevant payment day that happens before the person’s assessment day; (b) the person’s assessment day.
Note: For assessment day, see subsections (6) and (7).

relevant number of days means the number of days in the period: (a) beginning on the day after: (i) if the assessment day is at least 12 months after the relevant payment day—the most recent 12-month anniversary of the relevant payment day; or (ii) otherwise—the relevant payment day; and (b) ending at the end of the assessment day.

relevant payment day means the day that the amount was paid for the income stream.
(14) If the income stream is a joint income stream, then, for the purposes of applying subsections (12) and (13) to the person and to a day covered by subsection (1), an amount paid for the income stream is taken to be that amount multiplied by the proportion of the income stream attributable to the person on that day.

(15) The Secretary may make a legislative instrument for the purposes of paragraph (12)(b).
1120A Value of asset-tested FLA income streams (1) This section applies to family law affected income streams.
Social Security Act 1991 199 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1120B (2) The value of an income stream that is not a defined benefit income stream is, for the purposes of the assets test, determined by the Secretary.
(3) The value of an income stream that is a defined benefit income stream is, for the purposes of the assets test, determined by the Secretary.

(4) In making a determination under subsection (2) or (3), the Secretary must comply with any relevant decision-making principles in force under subsection (5).

(5) The Secretary may, by legislative instrument, formulate principles (decision-making principles) to be complied with by him or her in making decisions under: (a) subsection (2); or (b) subsection (3).
1120B Value of partially asset-test exempt income streams (1) This section applies to income streams covered by paragraph 1118(1)(da).

(2) The value of such an income stream is, for the purposes of paragraph 1118(1)(da), worked out as follows: (a) if the income stream is a family law affected income stream—under section 1120A; (b) otherwise—under section 1119; as if the income stream were an asset-tested income stream to which that section applied.
1120C Value of superannuation reserves for superannuation funds of 4 members or less (1) This section applies in calculating the value of a person’s investment in a superannuation fund if: (a) the fund has 4 or fewer members; and 200 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1121 (b) the fund has reserves (within the meaning of section 115 of the Superannuation Industry (Supervision) Act 1993).
Note: The value of a person’s investment in a superannuation fund is only included in the value of the person’s assets after the person reaches pension age or starts to receive a pension or annuity out of the fund (see paragraph 1118(1)(f)).
(2) Despite paragraph 1118(1)(h), the value of the person’s investment in the superannuation fund includes the following amount: Person’s interest in the fund Total interest in the fund  Value of the fund’s reserves (3) However, if it is not possible to work out the person’s interest in the superannuation fund, the value of the person’s investment in the fund includes the following amount: Value of the fund’s reserves Number of members in the fund 1121 Effect of charge or encumbrance on value of assets (1) If there is a charge or encumbrance over a particular asset of the person, the value of the asset, for the purposes of calculating the value of the person’s assets for the purposes of this Act (other than Division 1B of Part 3.10), is to be reduced by the value of that charge or encumbrance.
Note: This section does not apply to an asset to which section 1121A (primary production assets) applies.

(1A) Subsection (1) does not apply to a charge that arises under section 1138.

Note: See subsection (5) for a charge that arises under section 1138.
(2) Subsection (1) does not apply to a charge or encumbrance over an asset of a person to the extent that: (a) the charge or encumbrance is a collateral security; or Social Security Act 1991 201 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1121 (b) the charge or encumbrance was given for the benefit of a person other than the person or the person’s partner.
(3) Subsection (1) does not apply to a charge or encumbrance over assets that are to be disregarded under section 1118.

(3A) Subsection (1) does not apply to an asset that is an asset-tested income stream (long-term).

(3B) Subsection (1) does not apply to an asset that is a partially asset-test exempt income stream (within the meaning of section 1118).

(3C) Subsection (1) does not apply to an asset that is an asset-tested income stream (lifetime).
(4) If: (a) there is a charge or encumbrance over assets; and (b) the charge does not arise under section 1138; and (c) the assets consist of assets whose value is to be disregarded under section 1118 and other assets; the amount to be deducted under subsection (1) is: value of the charge or encumbrance  value of the other assets value of all the assets (5) If: (a) a person is or was participating in the pension loans scheme; and (b) either: (i) the person’s real assets are subject to a charge under section 1138; or (ii) if the person is a member of a couple—the couple’s real assets are subject to a charge under section 1138; then the value of those real assets, for the purposes of calculating the value of the person’s assets for the purposes of this Act (other than Division 1B of Part 3.10), is to be reduced by the amount of 202 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1121A the debt owed by the person under section 1135 because of that participation.
Note: If there are other charges or encumbrances over any of those real assets, there may be a further reduction under subsection (1) in the value of those assets.

(6) This section has effect subject to sections 1145A to 1157 (special residences).
1121A Effect of certain liabilities on value of assets used in primary production (1) For the purposes of working out the value of a person’s assets under this Act, if: (a) the person is: (i) a primary producer; or (ii) a family member of a primary producer; and (b) the person has assets (including real property) that are, in the Secretary’s opinion, used for the purposes of carrying on that primary production; and (c) the person also has liabilities that are, in the Secretary’s opinion, related to the carrying on of the primary production; then: (d) section 1121 does not apply in relation to the assets referred to in paragraph (b); and (e) those assets are taken to be a single asset (in this section called the primary production asset); and (f) the value of that single asset is worked out under subsection (2).
Note: For family member see subsection 23(1).

(2) The value of a person’s primary production asset is worked out in the following way: Social Security Act 1991 203 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 1 Value of person’s assets Section 1121B Method statement Step 1.
Add together the value of the assets referred to in paragraph (1)(b): the result is called the unencumbered value.

Step 2.

Add together the value of the liabilities referred to in paragraph (1)(c): the result is called the total liability.

Step 3.

Take the total liability away from the unencumbered value: the result is the value of the person’s primary production asset.

(3) If the result under Step 3 of the Method statement is less than nil, the value of the primary production asset is taken to be nil.
1121B Value of life policy (1) This section applies in relation to a person and a day (the assessment day) if: (a) the person has reached pension age; and (b) the person is the owner (within the meaning of subsection 10(2) of the Life Insurance Act 1995) of a life policy covered by paragraph 9(1)(a) or (b) of that Act; and (c) the person became the owner of the policy after the person reached pension age; and (d) the sum of each amount paid for the policy (regardless of who paid the amount) in any period of 12 months exceeds 15% of the maximum death benefit that would be payable in the event of the death of the person whose life is insured on the assessment day.
(2) The value of the life policy on the assessment day is, for the purposes of the assets test, the higher of the following: (a) the amount that would be payable to the person covered by paragraph (1)(b) if the policy were surrendered on that day; 204 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Value of person’s assets Division 1 Section 1122 (b) the sum of each amount paid for the policy by the person covered by paragraph (1)(b), less any commuted amounts.
1122 Loans If a person lends an amount after 27 October 1986, the value of the assets of the person for the purposes of this Act includes so much of that amount as remains unpaid but does not include any amount payable by way of interest under the loan.
Social Security Act 1991 205 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1123 Division 2—Disposal of assets 1123 Disposal of assets (1) For the purposes of this Act, a person disposes of assets of the person if: (a) the person engages in a course of conduct that directly or indirectly: (i) destroys all or some of the person’s assets; or (ii) disposes of all or some of the person’s assets; or (iii) diminishes the value of all or some of the person’s assets; and (b) one of the following subparagraphs is satisfied: (i) the person receives no consideration in money or money’s worth for the destruction, disposal or diminution; (ii) the person receives inadequate consideration in money or money’s worth for the destruction, disposal or diminution; (iii) the Secretary is satisfied that the person’s purpose, or the dominant purpose, in engaging in that course of conduct was to obtain a social security advantage.
Note: Under Division 4 of Part 3.18A, certain transfers of assets to special disability trusts can be taken not to be disposals of the assets (but this can be subject to a limit on the aggregate value of the transfers).
(2) For the purposes of subsection (1), a person has a purpose of obtaining a social security advantage if the person has a purpose of: (a) obtaining a social security pension, a social security benefit, a parenting allowance, a service pension, income support supplement or a veteran payment or enabling the person’s partner or someone else of whom the person is a family member to obtain such a pension, benefit, allowance, supplement or payment, or a youth training allowance; or (b) obtaining a social security pension, a social security benefit, a parenting allowance, a service pension, income support 206 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1124 supplement or a veteran payment, or enabling the person’s partner to obtain such a pension, benefit, allowance, supplement or payment, or a youth training allowance, at a higher rate than would have otherwise been payable; or (c) ensuring that the person or the person’s partner would be qualified for fringe benefits for the purposes of this Act or the Veterans’ Entitlements Act.
(3) For the purposes of subsection (1), the value of a person’s granny flat interest is to be taken not to be consideration received by the person if the interest was acquired or retained before 22 August 1990.

Note: For granny flat interest see subsection 11(9).
(4) If, under subsection 1147(1A), the value of a granny flat interest is less than the amount paid, or agreed to be paid, for the interest, then, for the purposes of this section, so much of the amount paid, or agreed to be paid, as exceeds the value of the interest is not consideration for the interest.

Note: For granny flat interest see subsection 11(9).
1124 Amount of disposal or disposition If a person disposes of assets, the amount of the disposal or disposition is: (a) if the person receives no consideration for the destruction, disposal or diminution—an amount equal to: (i) the value of the assets that are destroyed; or (ii) the value of the assets that are disposed of; or (iii) the amount of the diminution in the value of the assets whose value is diminished; or (b) if the person receives consideration for the destruction, disposal or diminution—an amount equal to: (i) the value of the assets that are destroyed; or (ii) the value of the assets that are disposed of; or Social Security Act 1991 207 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1124A (iii) the amount of the diminution in the value of the assets whose value is diminished; less the amount of the consideration received by the person in respect of the destruction, disposal or diminution.
Note: If subsection 1209ZA(2) applies in relation to the transfer of an asset to a special disability trust, that subsection has the effect of reducing the amount of the disposal or disposition.

1124A Disposal of assets in pre-pension years—individuals (1A) This section applies only to disposals of assets that took place before 1 July 2002.
(1) If: (a) a person is not a member of a couple when the person claims a pension, benefit or payment of a kind referred to in subsection 11(10A); and (b) the person has, during a pre-pension year of the person, disposed of an asset of the person; and (c) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the person during that pre-pension year, exceeds the disposal limit; then, for the purposes of determining whether a pension, benefit or payment is payable to the person, there is to be included in the value of the person’s assets for the period of 5 years that starts on the day on which the disposition took place: (d) the amount by which the sum of the amount of the first-mentioned disposition of assets and of the amounts (if any) of other dispositions of assets previously made by the person during that pre-pension year exceeds the disposal limit; or (e) the amount of the first-mentioned disposition; whichever is the lesser amount.
Note 1: For disposes of assets see section 1123.

Note 2: For amount of disposition see section 1124.
208 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1125 Note 4: If a pension or benefit is payable to the person, section 1125 operates to determine the rate of payment and section 1124A ceases to apply to the person.
(3) In this section: disposal limit means: (a) in relation to assets disposed of on or after 1 March 1986 and before 1 March 1991—$2,000; and (b) in relation to assets disposed of on or after 1 March 1991— $10,000.
1125 Disposal of assets in pension years—individuals (1) If, on or after 1 March 1986 and before 1 July 2002: (a) a person who is not a member of a couple has, during a pension year of the person, disposed of an asset of the person; and (b) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the person during that pension year, exceeds the disposal limit; then, for the purposes of this Act, there is to be included in the value of the person’s assets for the period of 5 years that starts on the day on which the disposition takes place: (c) the amount by which the sum of the amount of the first-mentioned disposition of assets, and of the amounts (if any) of other dispositions of assets previously made by the person during that pension year, exceeds the disposal limit; or (d) the amount of the first-mentioned disposition; whichever is the lesser amount.
Note 1: For disposes of assets see section 1123.

Note 2: For amount of disposition see section 1124.
(3) In this section: disposal limit means: Social Security Act 1991 209 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1125A (a) in relation to assets disposed of on or after 1 March 1986 and before 1 March 1991—$2,000; and (b) in relation to assets disposed of on or after 1 March 1991— $10,000.
1125A Disposal of assets in pre-pension years—members of couples (1A) This section applies only to disposals of assets that took place before 1 July 2002.
(1) Subject to subsections (3), (4) and (5), if: (a) a person has disposed of an asset; and (b) the person is a member of a couple when the person or the person’s partner claims a pension, benefit or payment of a kind referred to in subsection 11(10A) or when the person’s partner claims a youth training allowance; and (c) the person disposed of the asset: (i) during a pre-pension year of the person; or (ii) if the person has not claimed a pension, benefit or payment of a kind referred to in subsection 11(10A) but the person’s partner has claimed such a pension, benefit or payment or has claimed a youth training allowance— during a pre-pension year of the person’s partner; and (d) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre-pension year, exceeds the disposal limit; then, for the purposes of determining whether a pension, benefit, payment or allowance is payable to the person: (e) there is to be included in the value of the person’s assets for the period of 5 years that starts on the day on which the disposition took place: (i) 50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre-pension year exceeds the disposal limit; or 210 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive //
 Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1125A (ii) 50% of the amount of the first-mentioned disposition; whichever is the lesser amount; and (f) there is to be included in the value of the assets of the person’s partner for the period of 5 years that starts on the day on which the disposition took place: (i) 50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre-pension year exceeds the disposal limit; or (ii) 50% of the amount of the first-mentioned disposition; whichever is the lesser amount.
Note 1: For disposes of assets see section 1123.

Note 2: For amount of disposition see section 1124.

Note 4: If a pension or benefit is payable to the person, section 1126 operates to determine the rate of payment and section 1125A ceases to apply to the person.
(3) If: (a) amounts are included under subsection (1) in the value of a person’s assets who is a member of a couple and in the assets of the person’s partner because of a disposition of an asset by the person; and (b) the person and the person’s partner cease to be members of the same couple; any amount that was included in the value of the person’s former partner’s assets because of that disposition is to be included in the value of the person’s assets.
(4) If: (a) an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and the value of the assets of the person’s partner because of a disposition of an asset by the person; and Social Security Act 1991 211 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1126 (b) the person dies; an amount is not to be included in the value of the assets of the person’s partner because of that disposition.
(5) If: (a) an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and the value of the assets of the person’s partner because of a disposition of an asset by the person; and (b) the partner dies; any amount that would, if the partner had not died, be included in the value of the partner’s assets because of the disposition is to be included in the value of the person’s assets.
(6) In this section: disposal limit means: (a) in relation to assets disposed of on or after 1 March 1986 and before 1 March 1991—$4,000; and (b) in relation to assets disposed of on or after 1 March 1991— $10,000.
1126 Disposal of assets in pension years—members of couples (1) Subject to subsections (3) and (4), if, on or after 1 March 1986 and before 1 July 2002: (a) a person who is a member of a couple has disposed of an asset of the person: (i) during a pension year of the person; or (ii) if the person is not receiving a pension, benefit or payment of a kind referred to in subsection 11(10) but the person’s partner is receiving such a pension, benefit or payment or is receiving a youth training allowance— during a pension year of the person’s partner; and (b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously 212 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1126 made by the person or the person’s partner during that pension year, exceeds disposal limit; then, for the purposes of this Act: (c) there is to be included in the value of the person’s assets for the period of 5 years that starts on the day on which the disposition takes effect: (i) 50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during the pension year exceeds disposal limit; or (ii) 50% of the amount of the
 first-mentioned disposition; whichever is the lesser amount; and (d) there is to be included in the value of the assets of the person’s partner for the period of 5 years that starts on the day on which the disposition takes place: (i) 50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during the pension year exceeds disposal limit; or (ii) 50% of the amount of the first-mentioned disposition; whichever is the lesser amount.
Note 1: For disposes of assets see section 1123.

Note 2: For amount of disposition see section 1124.
(3) If: (a) amounts are included under subsection (1) in the value of a person’s assets who is a member of a couple and in the assets of the person’s partner because of a disposition of an asset by the person; and (b) the person and the person’s partner cease to be members of the same couple; any amount that was included in the value of the person’s former partner’s assets because of that disposition is to be included in the value of the person’s assets.
Social Security Act 1991 213 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1126AA (4) If: (a) an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and the value of the assets of the person’s partner because of a disposition of an asset by the person; and (b) the person dies; no amount is to be included in the value of the assets of the person’s partner because of that disposition.
(5) If: (a) an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and the value of the assets of the person’s partner because of a disposition of an asset by the person; and (b) the partner dies; any amount that would, if the partner had not died, be included in the value of the partner’s assets because of the disposition is to be included in the value of the person’s assets.
(6) In this section: disposal limit means: (a) in relation to assets disposed on or after 1 March 1986 and before 1 March 1991—$4,000; and (b) in relation to assets disposed of on or after 1 March 1991— $10,000.

1126AA Disposal of assets in income year—individuals Disposals to which section applies (1) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset by a person who is not a member of a couple at the time of the relevant disposal.
214 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1126AB Increase in value of assets (2) If the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets previously made by the person during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the person’s assets for the period of 5 years starting on the day on which the relevant disposal took place: (a) the amount of the relevant disposal; (b) the amount by which the sum of the amount of the relevant disposal and the amounts (if any) of other disposals of assets previously made by the person during the income year in which the relevant disposal took place, exceeds $10,000.
Note: See also section 1126E (about modification of this Division in respect of certain assets).
Previous joint disposals (3) If, during the income year in which the relevant disposal took place but before the time of the relevant disposal, the person was a member of a couple who jointly disposed of an asset, a reference in subsection (2) to the amounts (if any) of other disposals of assets previously made by the person during that income year includes a reference to one-half of the amount of the joint disposal.
1126AB Disposals of assets in 5 year period—individuals Disposal to which section applies (1) This section also applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset by a person who is not a member of a couple at the time of the relevant disposal.
Social Security Act 1991 215 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1126AB Increase in value of assets (2) If: (a) the sum of the amount of the relevant disposal and the amounts of any previous disposals of assets made during the rolling period by the person; less (b) the sum of any amounts included in the value of the person’s assets during the rolling period under section 1126AA, 1126AC or 1126AD or any previous application or applications of this section; exceeds $30,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the person’s assets for the period of 5 years starting on the day on which the relevant disposal took place: (c) an amount equal to the excess; (d) the amount of the relevant disposal.
Note: See also section 1126E (about modification of this Division in respect of certain assets).

Previous joint disposals (3) If, during the rolling period but before the time of the relevant disposal, the person was a member of a couple who jointly disposed of an asset, the reference in paragraph (2)(a) to the amounts of any previous disposals of assets made during the rolling period by the person includes a reference to one-half of the amount of the joint disposal.
Rolling period (4) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.
216 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1126AC 1126AC Disposal of assets in income year—members of couples Disposals to which section applies (1) If there is a disposal (the relevant disposal) on or after 1 July 2002 of an asset by: (a) a person who, at the time of the relevant disposal, is a member of a couple; or (b) the person referred to in paragraph (a) and the person who is, at that time, the partner of the person referred to in that paragraph; subsection (2) has effect.
Increase in value of assets (2) Subject to this section, if the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets previously made by the person, the person’s partner, or the person and the person’s partner, during the income year in which the relevant disposal took place (whether before or after they became members of the couple), exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the assets of the person and in the value of the assets of the partner for the period of 5 years starting on the day on which the relevant disposal took place: (a) one-half of the amount of the relevant disposal; (b) one-half of the amount by which the sum of the amount of the relevant disposal, and the amounts (if any) of other disposals of assets previously made by the person, the partner, or the person and the partner, during the income year in which the relevant disposal took place, exceeds $10,000.
Note: See also section 1126E (about modification of this Division in respect of certain assets).
Effect of ceasing to be member of couple (3) If, after the disposal referred to in paragraph (1)(a), the person and the person’s partner cease to be members of the same couple: Social Security Act 1991 217 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1126AD (a) no amount is to be included after the cessation in the value of the assets of the former partner because of that disposal; and (b) any amount that would, apart from this subsection, have been so included is to be included in the value of the assets of the person.
Effect of death of person (4) If, after the disposal referred to in paragraph (1)(a), the person dies, no amount is to be included in the value of the assets of the person’s partner because of that disposal.
Effect of death of partner (5) If, after the disposal referred to in paragraph (1)(a), the person’s partner dies, any amount that, if the partner had not died, would have been included in the value of the assets of the partner because of that disposal is to be included in the value of the assets of the person.
1126AD Disposal of assets in 5 year period—members of couples Disposals to which section applies (1) If there is a disposal (the relevant disposal) on or after 1 July 2002 of an asset by: (a) a person who, at the time of the relevant disposal, is a member of a couple; or (b) the person referred to in paragraph (a) and the person who is, at that time, the partner of the person referred to in that paragraph; subsection (2) has effect.
Increase in value of assets (2) Subject to this section, if: (a) the sum of the amount of the relevant disposal and the amounts of any previous disposals of assets made during the 218 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1126AD rolling period by the person, the person’s partner or the person and the person’s partner; less (b) the sum of any amounts included in the value of the assets of the person or of the partner during the rolling period under section 1126AA, 1126AB or 1126AC or any previous application or applications of this section; exceeds $30,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the assets of the person and in the value of the assets of the partner for the period of 5 years starting on the day on which the relevant disposal took place: (c) an amount equal to one-half of the excess; (d) one-half of the amount of the relevant disposal.
Note: See also section 1126E (about modification of this Division in respect of certain assets).
Effect of ceasing to be member of couple (3) If, after the disposal referred to in paragraph (1)(a), the person and the person’s partner cease to be members of the same couple: (a) no amount is to be included after the cessation in the value of the assets of the former partner because of that disposal; and (b) any amount that would, apart from this subsection, have been so included is to be included in the value of the assets of the person.
Effect of death of person (4) If, after the disposal referred to in paragraph (1)(a), the person dies, no amount is to be included in the value of the assets of the person’s partner because of that disposal.
Effect of death of partner (5) If, after the disposal referred to in paragraph (1)(a), the person’s partner dies, any amount that, if the partner had not died, would have been included in the value of the assets of the partner because Social Security Act 1991 219 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1126A of that disposal is to be included in the value of the assets of the person.
Rolling period (6) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.

1126A Disposal of assets in pre-pension year—family members (1A) This section applies only to disposals of assets that took place before 1 July 2002.
(1) Subject to this section, if: (a) a person (the relevant person) has disposed of an asset; and (b) the relevant person is a family member of another person (the other person) when the other person claims a youth allowance; and (c) the relevant person disposed of the asset during a pre-pension year of the other person; and (d) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during that pre-pension year, exceeds $10,000; then, for the purpose of determining whether a youth allowance is payable to the other person, there is to be included in the value of the other person’s assets for the period of 5 years that starts on the day on which the disposition took place: (e) the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during that pre-pension year exceeds $10,000; or (f) the amount of the first-mentioned disposition; whichever is the lesser amount.
220 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1126B Note 1: For disposes of assets see section 1123.

Note 2: For amount of disposition see section 1124.
(2) If: (a) amounts are included under subsection (1) in the value of the other person’s assets because of a disposition of an asset by the relevant person; and (b) the relevant person ceases to be a family member of the other person; any amount that was included in the value of the other person’s assets because of the disposition ceases to be included in the value of those assets.
(3) If: (a) an amount is included under subsection (1) in the value of the assets of the other person because of a disposition of an asset by the relevant person; and (b) the relevant person dies; any amount that was included in the value of those assets because of the disposition ceases to be included in the value of those assets.

1126B Disposal of assets in pension year—family members (1A) This section applies only to disposals of assets that took place before 1 July 2002.
(1) Subject to this section, if: (a) a person (the relevant person) has disposed of an asset during a pension year of another person (the other person) of whom the relevant person is a family member; and (b) the other person is receiving youth allowance; and (c) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during that pension year, exceeds $10,000; Social Security Act 1991 221 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1126C then, for the purposes of this Act, there is to be included in the value of the other person’s assets for the period of 5 years that starts on the day on which the disposition took place: (d) the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during the pension year exceeds $10,000; or (e) the amount of the first-mentioned disposition; whichever is the lesser amount.
Note 1: For disposes of assets see section 1123.

Note 2: For amount of disposition see section 1124.

(2) If: (a) amounts are included under subsection (1) in the value of the other person’s assets because of a disposition of an asset by the relevant person; and (b) the relevant person ceases to be a family member of the other person; any amount that was included in the value of the other person’s assets because of the disposition ceases to be included in the value of those assets.
(3) If: (a) an amount is included under subsection (1) in the value of the assets of the other person because of a disposition of an asset by the relevant person; and (b) the relevant person dies; any amount that was included in the value of those assets because of the disposition ceases to be included in the value of those assets.
1126C Disposal of assets in income year—family members Disposals to which section applies (1) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset by a person (the relevant person) who is a 222 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1126C family member of another person (the other person) who has claimed or is receiving a youth allowance.
Increase in value of assets (2) Subject to this section, if the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets previously made by the relevant person or the other person during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purpose of determining whether a youth allowance is payable to the other person, the lesser of the following amounts is to be included in the value of the other person’s assets for the period of 5 years starting on the day on which the relevant disposal took place: (a) the amount of the relevant disposal; (b) the amount by which the sum of the amount of the relevant disposal, and the amounts (if any) of other disposals of assets previously made by the relevant person or the other person during the income year in which the relevant disposal took place, exceeds $10,000.
Note: See also section 1126E (about modification of this Division in respect of certain assets).

Effect of ceasing to be family member (3) If: (a) an amount is included under subsection (2) in the value of the other person’s assets because of a disposal of an asset by the relevant person; and (b) the relevant person ceases to be a family member of the other person; any amount that was included in the value of those assets because of the disposal ceases to be included in the value of those assets.
Effect of death (4) If: Social Security Act 1991 223 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1126D (a) an amount is included under subsection (2) in the value of the other person’s assets because of a disposal of an asset by the relevant person; and (b) the relevant person dies; any amount that was included in the value of those assets because of the disposal ceases to be included in the value of those assets.
1126D Disposals of assets in 5 year period—family members Disposals to which section applies (1) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset by a person (the relevant person) who is a family member of another person (the other person) who has claimed or is receiving youth allowance.
Increase in value of assets (2) If: (a) the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets made during the rolling period by the relevant person or the other person; less (b) the sum of any amounts included in the value of the other person’s assets during the rolling period under section 1126C or any previous application or applications of this section; exceeds $30,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the other person’s assets for the period of 5 years starting on the day on which the relevant disposal took place: (c) an amount equal to the excess; (d) the amount of the relevant disposal.
Note: See also section 1126E (about modification of this Division in respect of certain assets).
224 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1126E Effect of ceasing to be family member (3) If: (a) amounts are included under subsection (2) in the value of the other person’s assets because of a disposal of an asset by the relevant person; and (b) the relevant person ceases to be a family member of the other person; any amount that was included in the value of those assets because of the disposal ceases to be included in the value of those assets.
Effect of death (4) If: (a) an amount is included under subsection (2) in the value of the other person’s assets because of a disposal of an asset by the relevant person; and (b) the relevant person dies; any amount that was included in the value of those assets because of the disposal ceases to be included in the value of those assets.
Rolling period (5) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.
1126E Modification of this Division in respect of certain assets (1) This section applies if: (a) in respect of a disposal (the relevant disposal) of an asset, an amount (the current amount) is being included under this Division (including because of this section) in the value of the assets of a person (the affected person); and (b) during the 5-year period referred to in subsection 1126AA(2), 1126AB(2), 1126AC(2), 1126AD(2), 1126C(2) or 1126D(2), one of the following events happens: Social Security Act 1991 225 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 2 Disposal of assets Section 1126E (i) in the case of section 1126AA or 1126AB—the person referred to in subsection 1126AA(1) or 1126AB(1) acquires the asset or receives consideration for the asset; (ii) in the case of section 1126AC or 1126AD—the person referred to in paragraph 1126AC(1)(a) or 1126AD(1)(a), or the person’s partner, acquires the asset or receives consideration for the asset or they jointly acquire the asset or jointly receive consideration for the asset; (iii) in the case of section 1126C or 1126D—the relevant person referred to in subsection 1126C(1) or 1126D(1) acquires the asset or receives consideration for the asset; and (c) during that 5-year period, the Secretary is notified in writing of the circumstances covered by paragraph (b).
(2) The Secretary may, having regard to the event, determine in writing that: (a) from the start of the day on which the notification occurs, section 1126AA, 1126AB, 1126AC, 1126AD, 1126C or 1126D ceases to apply in respect of the relevant disposal; or (b) both: (i) from the start of the day on which the notification occurs, the current amount ceases to be included in the value of the affected person’s assets; and (ii) from the start of the day on which the notification occurs until the end of that 5-year period, an amount specified in the determination (being an amount less than the current amount) is to be included in the value of the affected person’s assets in respect of the relevant disposal.
(3) The Secretary must give the affected person written notice of the determination.

(4) A determination under subsection (2) is not a legislative instrument.
226 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Disposal of assets Division 2 Section 1127 1127 Disposition more than 5 years old to be disregarded This Division does not apply to a disposition of an asset that took place: (a) more than 5 years before the time when: (i) the person who disposed of the asset; or (ii) if that person was, at the time when the disposition took place, a member of a couple—the person’s partner; or (iii) if that person was, at that time, a family member of another person who is receiving or claiming youth allowance and is not independent—the other person; became qualified for a social security pension or a social security benefit; or (b) less than 5 years before the time referred to in paragraph (a) and before the time when the Secretary is satisfied that the person who disposed of the asset could reasonably have expected that the person, the person’s partner or the other person, as the case may be, would become qualified for such a pension or benefit.
1127A Division does not apply for purposes of care receiver assets test This Division does not apply for the purposes of the assets test set out in Subdivision A of Division 1 of Part 2.5 (care receiver assets test).
Social Security Act 1991 227 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 3 Financial hardship Section 1129 Division 3—Financial hardship 1129 Access to financial hardship rules—pensions (1) If: (a) either: (i) a social security pension is not payable to a person because of the application of an assets test; or (ii) a person’s social security pension rate is determined by the application of an assets test; and (b) either: (i) sections 1108 and 1109 (disposal of income) and 1124A, 1125, 1125A, 1126, 1126AA, 1126AB, 1126AC, 1126AD and 1126E (so far as section 1126E relates to sections 1126AA, 1126AB, 1126AC and 1126AD) (disposal of assets) do not apply to the person; or (ii) the Secretary determines that the application of those sections to the person should, for the purposes of this section, be disregarded; and (c) the person, or the person’s partner, has an unrealisable asset; and (d) the person lodges with the Department, in a form approved by the Secretary, a request that this section apply to the person; and (e) the Secretary is satisfied that the person would suffer severe financial hardship if this section did not apply to the person; the Secretary must determine that this section applies to the person.
Note 1: For social security pension see subsection 23(1).

Note 2: For unrealisable asset see subsections 11(12) and (13).

(1A) In subsection (1): social security pension does not include a pension PP (single).

Note: Financial hardship rules for pension PP (single) are contained in sections 1130B and 1130C.
228 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Financial hardship Division 3 Section 1130 (2) A decision under subsection (1) takes effect: (a) on the day on which the request under paragraph (1)(d) was lodged with the Department; or (b) if the Secretary so decides in the special circumstances of the case—on a day not more than 6 months before the day referred to in paragraph (a).
1130 Application of financial hardship rules—pensions Value of unrealisable asset to be disregarded (1) If section 1129 applies to a person, the value of: (a) any unrealisable asset of the person; and (b) any unrealisable asset of the person’s partner; is to be disregarded in working out the person’s social security pension rate.
Deduction from social security pension maximum payment rate (2) If section 1129 applies to a person, there is to be deducted from the person’s social security pension maximum payment rate an amount equal to the person’s adjusted annual rate of ordinary income.
Adjusted annual rate of ordinary income (3) A person’s adjusted annual rate of ordinary income is an amount per year equal to the sum of: (a) the person’s annual rate of ordinary income (other than income from assets); and (b) the person’s annual rate of ordinary income from assets that are not assets tested; and (c) either: (i) the person’s annual rate of ordinary income from unrealisable assets; or (ii) the person’s notional annual rate of ordinary income from unrealisable assets; whichever is the greater; and Social Security Act 1991 229 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 3 Financial hardship Section 1130 (d) an amount per year equal to $19.50 for each $250 of the value of the person’s assets (other than disregarded assets); and (e) any amounts that are not income of the person because of paragraph 8(8)(zp).
Assets tested asset (4) For the purposes of subsection (3), an asset is not assets tested if the value of the asset is to be disregarded under subsection 1118(1).
Notional annual rate of ordinary income from unrealisable assets (5) A person’s notional annual rate of ordinary income from unrealisable assets is: (a) the amount per year equal to 2.5% of the value of the person’s and the person’s partner’s unrealisable assets; or (b) the amount per year that could reasonably be expected to be obtained from a purely commercial application of the person’s and the person’s partner’s unrealisable assets; whichever is the less.
Family farms (6) If: (a) an unrealisable asset is a farm; and (b) the farm is operated by a person who is a family member of the person to whom this section applies; and (c) it is not reasonable to expect the farm to be used for another purpose; the Secretary, in working out the amount per year that could reasonably be expected to be obtained from a purely commercial application of the farm, is to have regard to the overall financial situation of the person operating the farm.
(6A) If: (a) section 1129 applies to a person; and 230 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Financial hardship Division 3 Section 1130 (b) the person, or the person’s partner, owns residential premises; and (c) the premises are an unrealisable asset; and (d) a family member of the person, or of the partner, lives at the premises; and (e) one of the following conditions is satisfied: (i) the family member previously provided substantial care for the person or the partner at the premises at a time when the premises were the principal home of the person or the partner; (ii) the family member has resided at the premises for a period of, or periods that add up to, 10 years or more; (iii) the family member is: (A) a child of the person or the partner; and (B) disabled; and the person or the partner is promoting the independent living of the family member; and (f) it is not reasonable to expect the premises to be sold or otherwise used to provide income support for the person; the Secretary, in working out the amount per year that could reasonably be expected to be obtained from a purely commercial application of the premises, is to have regard to whether the family member is financially capable of obtaining suitable alternative accommodation.
Note: For family member see subsection 23(1).

(7) Subsections (6) and (6A) do not limit the matters to which the Secretary may have regard in exercising the powers under paragraph (5)(b).

(8) Subsection (2) applies: (a) subject to subsection (10); and (b) despite section 1064.
(9) If: Social Security Act 1991 231 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 3 Financial hardship Section 1130A (a) a person has disposed of assets and section 1125, 1126, 1126AA, 1126AB, 1126AC, 1126AD or 1126E (so far as section 1126E relates to section 1126AA, 1126AB, 1126AC or 1126AD) applies to the disposition; and (b) the Secretary has made a determination under subparagraph 1129(1)(b)(ii) in relation to the disposition; this section applies to the person as if the person had not disposed of the assets.
(10) If the sum of the rate of pension that would, apart from this subsection, be payable to a person and the annual rate of ordinary income of the person exceeds the maximum payment rate, the rate so payable is to be reduced by the amount per annum of the excess.

1130A Division does not apply for purposes of care receiver assets test This Division does not apply for the purposes of the assets test set out in Subdivision A of Division 1 of Part 2.5 (care receiver assets test).
1130B Access to financial hardship rules—pension PP (single) (1) If: (a) a pension PP (single) is not payable to a person because of the application of an assets test; and (b) the person is not receiving and is not eligible to apply for acceptable alternative Commonwealth income support; and (c) either: (i) sections 1108 and 1109 (disposal of income) and 1124A, 1125, 1125A, 1126, 1126AA, 1126AB, 1126AC, 1126AD and 1126E (so far as section 1126E relates to sections 1126AA, 1126AB, 1126AC and 1126AD) (disposal of assets) do not apply to the person; or 232 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Financial hardship Division 3 Section 1130B (ii) the Secretary decides that the application of those sections to the person should, for the purposes of this section, be disregarded; and (d) the person has an unrealisable asset; and (e) the person lodges with the Department, in a form approved by the Secretary, a request that this section apply to the person; and (f) the Secretary is satisfied that the person would suffer severe financial hardship if this section did not apply to the person; the Secretary must determine that this section applies to the person.
Note: For unrealisable asset see subsections 11(12) and (13).

(2) A reference in subsection (1) to acceptable alternative Commonwealth income support in relation to a person is a reference to payments (other than payments under the Farm Household Support Act 2014): (a) that are made available by the Commonwealth by way of income support; and (b) the rate of which is not less than the rate of pension PP (single) that would be applicable to the person if pension PP (single) were payable to the person.
(3) A decision under subsection (1) takes effect: (a) on the day on which the request under paragraph (1)(e) was lodged with the Department; or (b) if the Secretary so decides in the special circumstances of the case—on a day not more than 6 months before the day on which the request under paragraph (1)(e) was lodged with the Department.
Social Security Act 1991 233 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 3 Financial hardship Section 1130C 1130C Application of financial hardship rules—pension PP (single) Value of unrealisable asset to be disregarded (1) If section 1130B applies to a person, the value of any unrealisable asset of the person is to be disregarded in working out whether a pension PP (single) is payable to the person.
Deduction from pension PP (single) maximum payment rate (2) If section 1130B applies to a person, there is to be deducted from the person’s pension PP (single) maximum payment rate an amount equal to the person’s adjusted annual rate of ordinary income.

Note: For maximum payment rate see Step 4 of the method statement in point 1068A-A1.
Adjusted annual rate of ordinary income (3) The person’s adjusted annual rate of ordinary income is an amount per year equal to the sum of: (a) the person’s annual rate of ordinary income (other than income from assets); and (b) the person’s annual rate of ordinary income from assets that are not assets tested; and (c) either: (i) the person’s annual rate of ordinary income from unrealisable assets; or (ii) the person’s notional annual rate of ordinary income from unrealisable assets; whichever is the greater; and (d) an amount per year equal to $26.00 for each $250 of the value of the person’s assets (other than disregarded assets); and (e) any amounts that are not income of the person because of paragraph 8(8)(zp).
234 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Financial hardship Division 3 Section 1130C Assets tested asset (5) For the purposes of paragraph (3)(b), an asset is not assets tested if the value of the asset is to be disregarded under subsection 1118(1).
Notional annual rate of ordinary income from unrealisable assets (6) A person’s notional annual rate of ordinary income from unrealisable assets is: (a) the amount per year equal to 2.5 per cent of the value of the person’s unrealisable assets; or (b) the amount per year that could reasonably be expected to be obtained from a purely commercial application of the person’s unrealisable assets; whichever is the lesser.

(7) Subsection (2) applies: (a) subject to subsection (9); and (b) despite section 500Q.
(8) If: (a) a person has disposed of assets and section 1125, 1126, 1126AA, 1126AB, 1126AC, 1126AD or 1126E (so far as section 1126E relates to section 1126AA, 1126AB, 1126AC or 1126AD) applies to the disposition; and (b) the Secretary has made a determination under paragraph 1130B(1)(c) in relation to the disposition; this section applies to the person as if the person had not disposed of the assets.
(9) If the sum of the rate of pension PP (single) that would, apart from this subsection, be payable to a person and the annual rate of ordinary income of the person exceeds the maximum payment rate, the rate so payable is to be reduced by the amount per year of the excess.
Social Security Act 1991 235 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 3 Financial hardship Section 1131 1131 Access to financial hardship rules—benefits (1) If: (a) a social security benefit is not payable to a person because of the application of an assets test; and (b) the person is not receiving and is not eligible to apply for acceptable alternative Commonwealth income support; and (c) the person’s partner is not receiving and is not eligible to apply for acceptable alternative Commonwealth income support; and (d) either: (i) sections 1108 and 1109 (disposal of income) and 1124A, 1125, 1125A, 1126, 1126AA, 1126AB, 1126AC, 1126AD and 1126E (so far as section 1126E relates to sections 1126AA, 1126AB, 1126AC and 1126AD) (disposal of assets) do not apply to the person; or (ii) the Secretary decides that the application of those sections to the person should, for the purposes of this section, be disregarded; and (e) the person, or the person’s partner, has an unrealisable asset; and (f) the person lodges with the Department, in a form approved by the Secretary, a request that this section apply to the person; and (g) the Secretary is satisfied that the person would suffer severe financial hardship if this section did not apply to the person; the Secretary must determine that this section applies to the person.
Note: For unrealisable asset see subsections 11(12) and (13).

(1A) In subsection (1): assets test does not include the parental means test in section 1067G (Youth Allowance Rate Calculator).
(2) A reference in subsection (1) to acceptable alternative Commonwealth income support in relation to a person is a 236 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Financial hardship Division 3 Section 1132 reference to payments (other than payments under the Farm Household Support Act 2014): (a) that are made available by the Commonwealth by way of income support; and (b) the rate of which is not less than the rate of jobseeker payment, youth allowance or austudy payment that would be applicable to the person if that payment or allowance were payable to the person.
(3) A decision under subsection (1) takes effect: (a) on the day on which the request under paragraph (1)(f) was lodged with the Department; or (b) if the Secretary so decides in the special circumstances of the case—on a day not more than 6 months before the day on which the request under paragraph (1)(f) was lodged with the Department.
1132 Application of financial hardship rules—benefits Value of unrealisable asset to be disregarded (1) If section 1131 applies to a person, the value of: (a) any unrealisable asset of the person; and (b) any unrealisable asset of the person’s partner; is to be disregarded in working out whether a social security benefit is payable to the person.
Deduction from social security benefit maximum payment rate (2) If section 1131 applies to a person, there is to be deducted from the person’s social security benefit maximum payment rate an amount equal to the person’s adjusted fortnightly rate of ordinary income.

Note: For maximum payment rate, see, for example, Step 4 of the Method statement in point 1068-A1.
Social Security Act 1991 237 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 3 Financial hardship Section 1132 Adjusted fortnightly rate of ordinary income (3) The person’s adjusted fortnightly rate of ordinary income is an amount per fortnight equal to the sum of: (a) the person’s fortnightly rate of ordinary income (other than income from assets); and (b) the person’s fortnightly rate of ordinary income from assets that are not assets tested; and (c) either: (i) the person’s fortnightly rate of ordinary income from unrealisable assets; or (ii) the person’s notional fortnightly rate of ordinary income from unrealisable assets; whichever is the greater; and (d) an amount per fortnight equal to $1 for each $250 of the value of the person’s assets (other than disregarded assets); and (e) any amounts that are not income of the person because of paragraph 8(8)(zp).
Assets tested asset (4) For the purposes of paragraph (3)(b), an asset is not assets tested if the value of the asset is to be disregarded under subsection 1118(1).
Notional fortnightly rate of ordinary income from unrealisable assets (5) A person’s notional fortnightly rate of ordinary income from unrealisable assets is: (a) the amount per fortnight equal to one twenty-sixth of 2.5% of the value of the person’s and the person’s partner’s unrealisable assets; or 238 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Financial hardship Division 3 Section 1132 (b) the amount per fortnight that could reasonably be expected to be obtained from a purely commercial application of the person’s and the person’s partner’s unrealisable assets; whichever is the less.
(6) Subsection (2) applies: (a) subject to subsection (8); and (b) despite sections 601, 733, 1067G, 1067L and 1068.
(7) If: (a) a person has disposed of assets and section 1125, 1126, 1126AA, 1126AB, 1126AC, 1126AD or 1126E (so far as section 1126E relates to section 1126AA, 1126AB, 1126AC or 1126AD) applies to the disposition; and (b) the Secretary has made a determination under paragraph 1131(1)(d) in relation to the disposition; this section applies to the person as if the person had not disposed of the assets.
(8) If the sum of the rate of benefit that would, apart from this subsection, be payable to a person and the fortnightly rate of ordinary income of the person exceeds the maximum payment rate, the rate so payable is to be reduced by the amount per fortnight of the excess.
Social Security Act 1991 239 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 4 Pension loans scheme Section 1133AA Division 4—Pension loans scheme 1133AA Pension loans scheme definitions (1) In this Division, unless the contrary intention appears: disposes of real assets has its ordinary meaning.
maximum payment rate means the rate worked out at Step 4 of the Method statement in Module A of the relevant Pension Rate Calculator.

nominated amount means the amount (if any) specified to be the nominated amount under paragraph 1136(1A)(b) or subsection 1137(1) (as the case may be).

real assets, in relation to a person or couple, means the real property (including the principal home) of the person or couple in Australia, but does not include any real property specified under paragraph 1136(1A)(a).
(2) For the purposes of this Division, a reference to a charge under section 1138 includes a reference to a charge continued in force by subsection 1138(3) or paragraph 1139(2A)(b).
1133 Qualification for participation in pension loans scheme Person not member of a couple (1) A person who is not a member of a couple is qualified to participate in the pension loans scheme if: (a) the person is receiving or is qualified for: (i) age pension; or (ii) disability support pension; or (iii) carer payment; and (c) the person has reached pension age; and (ca) the person is not bankrupt; and 240 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Pension loans scheme Division 4 Section 1133 (cb) the person is not subject to a personal insolvency agreement under Part X of the Bankruptcy Act 1966; and (cc) the Secretary is satisfied that there is adequate and appropriate insurance in relation to the person’s real assets; and (d) either: (i) the Secretary is satisfied that the value of the person’s real assets (after deduction of any nominated amount) is sufficient to secure the payment of any debt that may become payable to the Commonwealth under this Division; or (ii) subsection (3) applies to the person.
Note 2: For real assets see subsection 1133AA(1).

Note 3: For nominated amount, see subsection 1133AA(1).

Note 4: For pension age see subsections 23(5A), (5B), (5C) and (5D).
Person member of a couple (2) A person who is a member of a couple is qualified to participate in the pension loans scheme if: (a) the person is receiving or is qualified for: (i) an age pension; or (ii) a disability support pension; or (iv) a carer payment; and (c) the person: (i) has reached pension age; or (ii) is the partner of a person who has reached pension age; and (ca) the person is not bankrupt; and (cb) the person is not subject to a personal insolvency agreement under Part X of the Bankruptcy Act 1966; and (cc) the Secretary is satisfied that there is adequate and appropriate insurance in relation to the couple’s real assets; and Social Security Act 1991 241 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 4 Pension loans scheme Section 1133 (d) either: (i) the Secretary is satisfied that the value of the couple’s real assets (after deduction of any nominated amount) is sufficient to secure the payment of any debt that may become payable to the Commonwealth under this Division; or (ii) subsection (3) applies to both of the members of the couple.
Note 2: For real assets see subsection 1133AA(1).

Note 3: For nominated amount, see subsection 1133AA(1).

Note 4: For pension age see subsections 23(5A), (5B), (5C) and (5D).
(3) This subsection applies to a person if: (a) either: (i) the person is an attributable stakeholder of a company or trust (within the meaning of Part 3.18); or (ii) the person is a member of a couple and the other member of the couple is an attributable stakeholder of a company or trust (within the meaning of Part 3.18); and (b) the company or trustee has given the Commonwealth a guarantee that the company or trustee will pay any debt that may become payable to the Commonwealth by the person under this Division; and (c) the company’s or trustee’s liability under the guarantee is secured by a charge against real property of the company or trust in Australia; and (d) the Secretary is satisfied that the value of that real property is sufficient to secure the payment of any amount that may become payable by the company or trustee under the guarantee; and (e) the Secretary has, by writing, approved the guarantee and the charge.
242 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Pension loans scheme Division 4 Section 1134 Value of real property (4) In working out the value of real property for the purposes of subparagraph (1)(d)(i) or (2)(d)(i) or paragraph (3)(d): (a) disregard section 1121; and (b) the Secretary may take into account any charge or encumbrance over the property.
1134 Effect of participation in pension loans scheme—pension rate (1) If: (a) a person is qualified to participate in the pension loans scheme; and (b) the person makes a request to participate under section 1136; and (d) the Secretary is satisfied that the amount of any debt that becomes payable by the person to the Commonwealth under this Division is readily recoverable; then: (e) the rate of the pension payable to the person by operation of the scheme is to be: (i) 1.5 multiplied by the maximum payment rate; or (ia) if DFISA under Part VIIAB of the Veterans’ Entitlements Act is payable to the person—1.5 multiplied by the maximum payment rate less the DFISA rate; or (ii) some other rate nominated by the person; whichever is the lowest.
Note: For maximum payment rate see subsection 1133AA(1).

(2) The pension is to commence to be paid at the rate payable by operation of the scheme in respect of the first instalment period for which an instalment is paid after the request is lodged.
Social Security Act 1991 243 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 4 Pension loans scheme Section 1135 1135 Effect of participation in pension loans scheme—creation of debt (1) If the rate of the pension payable by operation of the pension loans scheme is more than the rate that would have been received by the person but for the operation of the scheme, the person owes a debt to the Commonwealth.
(3) This is how to work out the amount of the debt owed by the person from time to time: Method statement Step 1.

Work out the sum of the amount of pension received by the person from time to time under the pension loans scheme: the result is the primary loan amount.

Step 2.

Add to the primary loan amount the amount of any registration costs payable by the person under subsection 1143(4): the result is the registration cost adjusted amount.

Step 3.
Step 3.

Take away from the registration cost adjusted amount the sum of the amount of pension (if any) that would have been received by the person but for the operation of the scheme: the result is the basic amount of debt.

Step 4.

Add to the basic amount of debt the amount of interest payable.

The interest payable is compound interest at the rate fixed under subsection (4) and compounding fortnightly: the result is the total amount of debt.

Step 5.
Step 5.

From the total amount of debt take away any amount of the debt already paid to the Commonwealth: the result is the current amount of debt owed by the person.
244 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Pension loans scheme Division 4 Section 1135A (4) The rate at which compound interest is payable under subsection (3) is the rate fixed from time to time by the Minister by legislative instrument.
1135A Effect of participation in pension loans scheme—maximum loan available (1) The maximum loan available to a person under the pension loans scheme is the amount worked out using the formula: age component amount  value of real assets 10,000 where: age component amount means the amount that is specified in a determination under subsection (3) and that relates to: (a) if the person is not a member of a couple—the age the person turned on his or her last birthday; or (b) if the person is a member of a couple—the age the younger member of the couple turned on his or her last birthday.
value of real assets means: (a) if neither subparagraph 1133(1)(d)(ii) nor subparagraph 1133(2)(d)(ii) applied to the person when the person made his or her request to participate in the pension loans scheme—the value of the real assets (after deduction of any nominated amount); or (b) if subparagraph 1133(1)(d)(ii) or (2)(d)(ii) applied to the person when the person made his or her request to participate in the pension loans scheme—the value of the charge referred to in paragraph 1133(3)(c).
Note 1: For real assets see subsection 1133AA(1).

Note 2: For nominated amount see subsection 1133AA(1).
(2) For the purposes of subsection (1), the following provisions have effect: Social Security Act 1991 245 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 4 Pension loans scheme Section 1136 (a) if, but for this paragraph, the value of real assets would be an amount that exceeds $10,000 but is not a multiple of $10,000, the value is to be taken to be the next lower amount that is a multiple of $10,000; (b) if, but for this paragraph, the value of real assets would be less than $10,000, the value is to be taken to be nil.
(3) The Minister may, by legislative instrument, make a determination for the purposes of the following: (a) the definition of age component amount in subsection (1) of this section; (b) the definition of age component amount in subsection 52ZCA(1) of the Veterans’ Entitlements Act 1986.

1136 Need for a request to participate (1) A person who wants to participate in the pension loans scheme must make a request to participate in accordance with this section.
(1A) A request under subsection (1) must: (a) specify any real property that is not to be included in working out the value of real assets for the purposes of sections 1133 and 1135A, or that is not to be subject to a charge under section 1138; and (b) specify an amount (if any) to be the nominated amount for the purposes of this Division; and (c) specify the rate of the pension (if any) nominated by the person for the purposes of subparagraph 1134(1)(e)(ii).
(1B) Paragraphs (1A)(a) and (b) do not apply if subparagraph 1133(1)(d)(ii) or (2)(d)(ii) applied to the person when the person made his or her request to participate in the pension loans scheme.

(2) The request must be signed: (a) if the person is not a member of a couple—by the person; or (b) if the person is a member of a couple—by both members of the couple.
246 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Pension loans scheme Division 4 Section 1137 (3) The request must be: (a) in writing; and (b) in a form approved by the Secretary; and (c) lodged at an office of the Department.
1137 Need for a request to later nominate or change nominated amount or rate of pension (1) A person who is participating in the pension loans scheme and who wants to: (a) nominate an amount to be the nominated amount for the purposes of this Division; or (b) nominate a rate of pension for the purposes of subparagraph 1134(1)(e)(ii); or (c) change the nominated amount earlier specified; or (d) change the rate of the pension earlier specified; must make a request that specifies the nomination or change (as the case may be).
(1A) Paragraphs (1)(a) and (c) do not apply if subparagraph 1133(1)(d)(ii) or (2)(d)(ii) applied to the person when the person made his or her request to participate in the pension loans scheme.

(2) A request under subsection (1) must be signed: (a) if the person is not a member of a couple—by the person; or (b) if the person is a member of a couple—by both members of the couple.

(3) The request must: (a) be in writing; and (b) be lodged at an office of the Department.
Social Security Act 1991 247 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 4 Pension loans scheme Section 1137A 1137A Non-receipt of social security pension or social security payment (1) This section applies for the purposes of a provision (the relevant provision) of this or another Act if: (a) the relevant provision provides a benefit (whether the benefit is a pension, benefit, payment, supplement, subsidy, pensioner concession card, seniors health card or any other sort of benefit) to a person; and (b) in relation to that benefit, it is necessary to work out whether: (i) the person or another person is receiving or is not receiving a social security pension or social security payment or is receiving or is not receiving a particular kind of social security pension whose rate may be worked out under this Division; or (ii) the person or another person is a recipient or is not a recipient of a social security pension or social security payment or is a recipient or is not a recipient of a particular kind of social security pension whose rate may be worked out under this Division; or (iii) a social security pension or social security payment, or a particular kind of social security pension whose rate may be worked out under this Division, is payable to the person or another person.
(2) For the purposes of the relevant provision: (a) a person is taken not to be receiving a social security pension or social security payment or the particular kind of social security pension; and (b) a person is taken not to be a recipient of a social security pension or social security payment or the particular kind of social security pension; and (c) a social security pension or social security payment, or the particular kind of social security pension, is taken not to be payable to the person; merely because: 248 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Pension loans scheme Division 4 Section 1138 (d) the person receives a social security pension, or the kind of social security pension, at a rate worked out under this Division; or (e) a social security pension, or the kind of social security pension, is payable to the person at a rate worked out under this Division.
(3) Subsection (2) does not apply in relation to a person and a day if on that day: (a) the person is receiving a social security pension at a rate worked out under this Division; and (b) but for the operation of this Division, the person would have been receiving that pension at a rate greater than nil.
1138 Existence of debt results in charge over real assets Person not member of a couple (1) If a person who is not a member of a couple is participating in the pension loans scheme, the person’s real assets are subject to a charge in favour of the Commonwealth to secure the payment of the debt to the Commonwealth.
Person member of a couple (2) If: (a) a person who is a member of a couple is participating in the pension loans scheme; and (b) the person’s partner has signed the person’s request under subsection 1136(2); the couple’s real assets are subject to a charge in favour of the Commonwealth to secure the payment of a debt to the Commonwealth.
(3) If: (a) the pension loans scheme ceases to operate in relation to a person because of the effect of section 1141, 1141A or 1142; and Social Security Act 1991 249 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 4 Pension loans scheme Section 1139 (b) at the time the scheme ceases to operate, the person owes a debt to the Commonwealth because of the person’s participation in the scheme; the charge in favour of the Commonwealth under subsection (1) or (2) of this section continues in relation to the real assets until the debt is repaid or recovered.
Note 1: Section 1141 provides that a person ceases to participate in the scheme if the debt owed by the person exceeds the maximum loan available.

Note 1A: Section 1141A provides that the scheme ceases to operate in relation to a person if the Secretary is satisfied that the person ceases to be qualified to participate in the scheme and the Secretary determines that the scheme ceases to operate in relation to the person.

Note 2: Section 1142 provides for a person to withdraw from the scheme.
(4) This section does not apply if subparagraph 1133(1)(d)(ii) or (2)(d)(ii) applied to the person when the person made his or her request to participate in the pension loans scheme.

1139 Debt not to be recovered until after death (1) The Commonwealth is not entitled to recover a debt under section 1135 from a person until after the person’s death.
(2) In the following circumstances, the Commonwealth is not entitled to recover the debt until after the person’s death and after: (a) if: (i) the person was a member of a couple at the time of death; and (ii) the person’s partner survives the person; and (iii) an amount of bereavement payment is payable to the partner because of the person’s death; the last instalment of bereavement payment has been paid; or (b) if: (i) the person was a member of a couple at the time of death; and (ii) the person’s partner survives the person; and 250 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Pension loans scheme Division 4 Section 1140 (iii) the person’s partner has the use of the assets or part of the assets that are subject to a charge; and (iv) the partner has reached pension age; the death of the partner.
Note: For pension age see subsections 23(5A), (5B), (5C) and (5D).

(2A) In relation to the period between the person’s death and the time of recovery of the debt by the Commonwealth: (a) compound interest continues to accrue, and forms part of the debt, in accordance with Step 4 of the Method statement in subsection 1135(3); and (b) the charge in favour of the Commonwealth under section 1138 continues in relation to the real assets until the debt is recovered.
(3) This section is subject to section 1140 (enforcement of charge if assets change hands).

(4) If the Secretary decides that the debt is to be recovered before the events referred to in subsection (1) or (2), the debt may be so recovered in spite of those subsections.
1140 Enforcement of charge (1) If: (a) real assets of a person are subject to a charge under section 1138; and (b) any of those real assets cease to be real assets of the person; and (c) the person receives proceeds from the sale or other disposal of the real assets; the Secretary may recover from the person, out of those proceeds, the whole or part of the debt secured by the charge.
(2) If: (a) real assets of a person are subject to a charge under section 1138; and Social Security Act 1991 251 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 4 Pension loans scheme Section 1141 (b) any of those real assets are disposed of to another person (in this section called the new owner); the Secretary may, subject to subsection (3), enforce the charge against those real assets.
(2A) For the purposes of paragraph (2)(b), it does not matter whether: (a) the disposal of the real assets is by way of sale, transfer, gift, will or otherwise; or (b) the disposal is by the person referred to in paragraph (2)(a) or any other person.

(3) The Secretary may not enforce the charge against the assets if the new owner is a bona fide purchaser for value without notice.
1141 Person ceases to participate in pension loans scheme if debt exceeds maximum loan available If: (a) a person is participating in the pension loans scheme; and (b) the debt owed by the person under section 1135 exceeds the maximum loan available to the person under the scheme; the scheme ceases to operate in relation to the person at the beginning of the first instalment period for the pension being paid to the person that begins after the debt exceeds the maximum loan available.
Note 1: Note 2: The maximum loan available is worked out by using the formula set out in subsection 1135A(1).

For repayment or recovery of the debt owed by the person see sections 1139 and 1142A.
1141A Secretary may cease person’s participation in pension loans scheme (1) If: (a) a person is participating in the pension loans scheme; and (b) the Secretary is satisfied that the person ceases to be qualified to participate in the scheme; 252 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Pension loans scheme Division 4 Section 1142 the Secretary may determine that the scheme ceases to operate in relation to the person.
The scheme ceases to operate in relation to the person at the beginning of the first instalment period for the social security pension being paid to the person that begins after the determination is made.

Note: For repayment or recovery of the debt owed by the person, see sections 1139 and 1142A.

(2) The Secretary must give the person notice of the determination.

(3) A determination under subsection (1) is not a legislative instrument.
1142 Person withdraws from pension loans scheme (1) If a person who is participating in the pension loans scheme makes a request to withdraw from the scheme, the scheme ceases to operate in relation to the person at the beginning of the first instalment period for the pension being paid to the person that begins after the request is lodged.

Note: For repayment or recovery of the debt owed by the person, see sections 1139 and 1142A.
(2) A request under subsection (1) must be signed: (a) if the person is not a member of a couple—by the person; or (b) if the person is a member of a couple—by both members of the couple.

(3) The request must: (a) be in writing; and (b) be lodged at an office of the Department.
1142A Repayment or recovery of debt after pension loans scheme ceases to operate (1) The debt owed by a person under section 1135, at the time the pension loans scheme ceases to operate in relation to the person by Social Security Act 1991 253 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 4 Pension loans scheme Section 1143 operation of section 1141, 1141A or 1142, may be repaid by the person at any time.
Note 1: Section 1141 provides that a person ceases to participate in the scheme if the debt owed by the person exceeds the maximum loan available.

Note 1A: Section 1141A provides that the scheme ceases to operate in relation to a person if the Secretary is satisfied that the person ceases to be qualified to participate in the scheme and the Secretary determines that the scheme ceases to operate in relation to the person.

Note 2: Section 1142 provides for a person to withdraw from the scheme.
(2) If the debt owed by the person is not repaid by the person at the time the scheme ceases to operate in relation to the person, compound interest continues to accrue, and forms part of the debt, in accordance with Step 4 of the Method statement in subsection 1135(3), until the debt is repaid or recovered.

(3) If the debt is not repaid under subsection (1) of this section, subject to section 1139 the Commonwealth is entitled to recover the debt.
Note: Section 1139 provides that a debt cannot be recovered from a person until after the person’s death.

1143 Registration of charge (1) If real assets are subject to a charge under section 1138, the Secretary may lodge a notice in writing of the charge with the appropriate officer of the State or Territory in which the real assets are situated.
(2) The appropriate officer may register the charge as if the Secretary’s notice were an instrument of charge or encumbrance duly executed under the laws in force in the State or Territory.

(3) The Secretary may require the person whose real assets are subject to the charge to execute an instrument relating to the registration of the charge.
(4) If the Commonwealth incurs costs associated with: (a) the registration of the charge; or 254 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Pension loans scheme Division 4 Section 1144 (b) the registration of the discharge of the charge; those costs are payable by the person whose real assets are subject to the charge.
1144 Manner of enforcement of charge If a charge against real assets is enforceable under this Division, the Secretary may enforce the charge against those real assets or against part of those real assets in any manner that the Secretary decides.

1144A Division does not apply for purposes of care receiver assets test (1) This Division does not apply for the purposes of the assets test set out in Subdivision A of Division 1 of Part 2.5 (care receiver assets test).
(2) This section is for the avoidance of doubt.
Social Security Act 1991 255 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1145A Division 5—Provisions relating to special residences and special residents Subdivision A—General 1145A Application of Division to granny flat residents This Division applies to a granny flat resident only if the resident acquired or retained the person’s granny flat interest in the person’s principal home on or after 22 August 1990.
1146 Basis for different treatment This Division’s operation on a special resident depends on: (a) whether the resident is: (i) not a member of a couple; or (ii) a member of a couple; or (iii) a member of an illness separated couple; or (iv) a member of an ordinary couple with different principal homes; and (b) the resident’s entry contribution; and (c) the resident’s extra allowable amount.

Note 1: For member of an ordinary couple with different principal homes see subsection 12(2).
Note 2: For entry contribution see section 1147.

Note 3: For extra allowable amount see section 1148.
1147 Entry contribution (1) A special resident’s entry contribution is: (a) if the resident is not a member of a couple—the resident’s individual residence contribution; or (b) if the resident is a member of a couple, shares the resident’s principal home with the resident’s partner and is not a member of an illness separated couple—an amount equal to 256 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1147 50% of the resident’s individual residence contribution and of the partner’s individual residence contribution; or (c) if the resident is a member of an illness separated couple— the resident’s individual residence contribution; or (d) if: (i) the resident is a member of an ordinary couple with different principal homes; and (ii) the principal home of the resident’s partner is not a special residence; the resident’s individual residence contribution; or (e) if: (i) the resident is a member of an ordinary couple with different principal homes; and (ii) the principal home of the resident’s partner is also a special residence; an amount equal to 50% of the resident’s individual residence contribution and of the partner’s individual residence contribution.
(1A) A special resident’s entry contribution is the resident’s individual residence contribution plus the amount paid, or agreed to be paid, for the resident’s current right (if any) to share the resident’s principal home with a partner if: (a) the resident was a member of a couple at the time when the resident took up residence in the retirement village or granny flat; and (b) the resident has ceased to be a member of a couple.
(1B) A special resident’s entry contribution is the resident’s individual residence contribution if: (a) the resident was a member of a couple at the time when the sale leaseback agreement was entered into; and (b) the resident has ceased to be a member of a couple.
(1C) For the purposes of this Division, the individual residence contribution is: Social Security Act 1991 257 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1148 (a) for a retirement village resident—the total amount paid, or agreed to be paid, for the resident’s current right to live in the retirement village; and (b) for a granny flat resident—the total amount paid, or agreed to be paid, for the resident’s current right to live in the granny flat; and (c) for a sale leaseback resident—the deferred payment amount.
Note: For deferred payment amount see section 12B.
(1D) For the purposes of paragraph (1C)(b): (a) the total amount paid to obtain for a person his or her current right to live in a granny flat is the amount equal to the value of the person’s granny flat interest; and (b) the value of a person’s granny flat interest is: (i) unless subparagraph (ii) applies—the amount paid, or agreed to be paid, for the interest; or (ii) if the Secretary considers that, for any special reason in any particular case, that value should be another amount—that other amount.
(2) An amount that is rent for the purposes of this Act is to be disregarded in applying subsections (1), (1A) and (1B).
1148 Extra allowable amount Residence taken up before 13 June 1989 (1) If a retirement village resident became entitled to take up residence in the retirement village before 13 June 1989, the resident’s extra allowable amount is: (a) if the resident is not a member of a couple—$64,000; or (b) if the resident is a member of an illness separated couple— $64,000; or (c) in any other case—$32,000.
258 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1148 Residence taken up on or after 13 June 1989 (2) If a retirement village resident became entitled to take up residence in the retirement village on or after 13 June 1989, the resident’s extra allowable amount is: (a) if the resident is not a member of a couple—the amount that, as at the time when the resident becomes entitled to take up that residence, is the difference between the pension “single” homeowner AVL and the pension “single” non-homeowner AVL; or (b) if the resident is a member of an illness separated couple— the amount that, as at the time when the resident becomes entitled to take up that residence, is the difference between the pension “single” homeowner AVL and the pension “single” non-homeowner AVL; or (c) in any other case—the amount that, as at the time when the resident becomes entitled to take up that residence, is the difference between the pension “partnered” homeowner AVL and the pension “partnered” non-homeowner AVL.
(2A) A granny flat resident’s extra allowable amount is: (a) if the resident is not a member of a couple—the amount that, as at the time when the resident becomes entitled to the granny flat interest, is the difference between the pension “single” homeowner AVL and the pension “single” non-homeowner AVL; or (b) if the resident is a member of an illness separated couple— the amount that, as at the time when the resident becomes entitled to the granny flat interest, is the difference between the pension “single” homeowner AVL and the pension “single” non-homeowner AVL; or (c) in any other case—the amount that, as at the time when the resident becomes entitled to the granny flat interest, is the difference between the pension “partnered” homeowner AVL and the pension “partnered” non-homeowner AVL.
(2B) A sale leaseback resident’s extra allowable amount is: Social Security Act 1991 259 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1149 (a) if the resident is not a member of a couple—the amount that, as at the time when the sale leaseback agreement is entered into, is the difference between the pension “single” homeowner AVL and the pension “single” non-homeowner AVL; or (b) if the resident is a member of an illness separated couple— the amount that, as at the time when the sale leaseback agreement is entered into, is the difference between the pension “single” homeowner AVL and the pension “single” non-homeowner AVL; or (c) in any other case—the amount that, as at the time when the sale leaseback agreement is entered into, is the difference between the pension “partnered” homeowner AVL and the pension “partnered” non-homeowner AVL.
(3) For the purposes of this section, a person becomes entitled to take up residence in a retirement village when the person becomes entitled to take up residence in a retirement village pursuant to the agreement under which the person’s current right to live in the retirement village arises.
(4) In this section, “pension ‘single’ homeowner AVL”, “pension ‘single’ non-homeowner AVL”, “pension ‘partnered’ homeowner AVL” and “pension ‘partnered’ non-homeowner AVL” have the same meaning as in Part 3.16 (Indexation).
1149 Renegotiation of retirement village agreement If a person who has a right to live in a retirement village under an agreement enters into a new agreement under which the person obtains a right to live in the retirement village, then, for the purposes of this Division, the total amount paid, or agreed to be paid, for the person’s current right to live in the retirement village is the sum of the following amounts: (a) the total amount paid under the new agreement for that right; and (b) so much (if any) of: 260 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1150 (i) any amount paid under an earlier agreement to obtain a right for the person to live in the retirement village; and (ii) any amount that was, or would have been, payable to the person upon the termination of an earlier agreement; as ought, in the Secretary’s opinion, to be attributed to the cost of the person’s current right to live in the retirement village.
Subdivision B—Residents who are not members of a couple 1150 Residents who are not members of a couple (1) This section applies to a special resident who is not a member of a couple.

Entry contribution above extra allowable amount (2) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was more than the extra allowable amount; the resident is to be taken, for the purposes of this Act, to be a homeowner.
Entry contribution equal to or below extra allowable amount (3) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was equal to or less than the extra allowable amount; then, for the purposes of this Act: (c) the resident is to be taken not to have a right or interest in relation to the resident’s principal home; and (d) the resident’s assets are to be taken to include an asset the value of which is equal to the amount of the resident’s entry contributions; and Social Security Act 1991 261 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1151 (e) sections 198H, 198HA, 198HB, 198J, 198JA and 198JB, subsection 1118(1) and section 1125 do not apply to the asset that the resident is, because of paragraph (d) of this subsection, to be taken to have.
(4) Subsection (3) applies: (a) whether or not the resident actually has any right or interest in the resident’s principal home; and (b) whatever the value of any right or interest that the resident does have in the resident’s principal home.
Subdivision C—Residents who are members of couple and share principal home 1151 Members of couples (1) This section applies to a special resident if: (a) the resident is a member of a couple; and (b) the resident shares the resident’s principal home with the resident’s partner.
Entry contribution above extra allowable amount (2) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was more than the extra allowable amount; the resident is to be taken, for the purposes of this Act, to be a homeowner.
Entry contribution equal to or below extra allowable amount (3) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was equal to or less than the extra allowable amount; then, for the purposes of this Act: 262 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1152 (c) the resident is to be taken not to have a right or interest in relation to the resident’s principal home; and (d) the resident’s assets are to be taken to include an asset the value of which is equal to the amount of the resident’s entry contribution; and (e) sections 198K and 198L, subsection 1118(1) and section 1126 do not apply to the asset that the resident is, because of paragraph (d) of this subsection, to be taken to have.
(4) Subsection (3) applies: (a) whether or not the resident actually has any right or interest in the resident’s principal home; and (b) whatever the value of any right or interest that the resident does have in the resident’s principal home.
Subdivision D—Residents who are members of illness separated couple 1152 Members of illness separated couples (both in special residences) (1) This section applies to a special resident if: (a) the resident is a member of an illness separated couple; and (b) the principal home of the resident’s partner is also a special residence.
Both entry contributions above extra allowable amount (2) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution, and the entry contribution of the resident’s partner, were each more than the extra allowable amount concerned; then, for the purposes of this Act: (c) the resident is to be taken to be a homeowner; and Social Security Act 1991 263 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1152 (d) any right or interest of the resident in the partner’s principal home is to be disregarded in calculating the actual value of the resident’s assets for the purposes of this Act; and (e) any right or interest of the partner in his or her principal home, or in the resident’s principal home, is to be disregarded in calculating the actual value of the partner’s assets for the purposes of this Act.
Both entry contributions equal to or below extra allowable amount (3) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution, and the entry contribution of the resident’s partner, were each equal to or less than the extra allowable amount concerned; then, for the purposes of this Act: (c) the resident is to be taken not to have a right or interest in relation to the resident’s principal home; and (d) the resident’s assets are to be taken to include an asset the value of which is equal to the amount of the resident’s entry contribution; and (e) sections 198K and 198L, subsection 1118(1) and section 1126 do not apply to the asset that the resident is, because of paragraph (d) of this subsection, taken to have.
(4) Subsection (3) applies: (a) whether or not the resident actually has any right or interest in the resident’s principal home; and (b) whatever the value of any right or interest that the resident does have in the resident’s principal home.
Person’s entry contribution above extra allowable amount and partner’s entry contribution equal to or below extra allowable amount (5) If: (a) this section applies to a special resident; and 264 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1153 (b) the resident’s entry contribution was more than the extra allowable amount; and (c) the resident’s partner’s entry contribution was equal to or less than the extra allowable amount; the following provisions apply for the purposes of the application of this Act to the resident and to the partner: (d) the resident is to be taken to be a homeowner; (e) for the purposes of this Act: (i) both the resident, and the partner, are to be taken not to have a right or interest in relation to the partner’s principal home; and (ii) the partner’s assets are to be taken to include an asset whose value is equal to the amount of the partner’s entry contribution; and (iii) sections 198K and 198L, subsection 1118(1) and section 1126 do not apply to the asset that the partner is, because of subparagraph (ii) of this paragraph, to be taken to have; (f) any right or interest of the partner in the resident’s principal home is to be disregarded in calculating the actual value of the partner’s assets for the purposes of this Act; (g) the resident’s assets value limit and the partner’s assets value limit are both to be taken to be $237,500.
Note: The amount in paragraph (g) is adjusted annually: see section 1205.

(6) Subsection (5) applies: (a) whether or not the resident’s partner actually has any right or interest in the partner’s principal home; and (b) whatever the value of any right or interest that the partner does have in the partner’s principal home.
1153 Members of illness separated couples (partner not in special residence and partner homeowner) (1) This section applies to a special resident if: (a) the resident is a member of an illness separated couple; and Social Security Act 1991 265 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1153 (b) the principal home of the resident’s partner is not a special residence; and (c) the right or interest of the partner in the partner’s principal home is to be disregarded because of paragraph 1118(1)(b).
Entry contribution above extra allowable amount (2) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was more than the extra allowable amount; then: (c) for the purposes of this Act, the resident is to be taken to be a homeowner; and (d) any right or interest of the resident in the partner’s principal home referred to in paragraph (1)(c) is to be disregarded in calculating the actual value of the resident’s assets for the purposes of this Act; and (e) any right or interest of the partner in the resident’s principal home is also to be disregarded in calculating the actual value of the partner’s assets for the purposes of this Act.
Entry contribution equal to or below extra allowable amount (3) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was equal to or less than the extra allowable amount; the following provisions apply for the purposes of the application of this Act to the resident and to the resident’s partner: (c) for the purposes of this Act: (i) the resident is to be taken not to be a homeowner; and (ia) the partner is to be taken not to have a right or interest in relation to the resident’s principal home; and 266 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1154 (ii) the resident’s assets are to be taken to include an asset the value of which is equal to the amount of the resident’s entry contribution; and (iii) sections 198K and 198L, subsection 1118(1) and section 1126 do not apply to the asset that the resident is, because of subparagraph (ii) of this paragraph, to be taken to have; (d) any right or interest of the resident in the partner’s principal home referred to in paragraph (1)(c) is to be disregarded in calculating the actual value of the resident’s assets for the purposes of this Act; (e) the resident’s assets value limit and the partner’s assets value limit are both to be taken to be $237,500.
Note: The amount in paragraph (e) is adjusted annually: see section 1205.

(4) Subsection (3) applies: (a) whether or not the resident actually has any right or interest in the resident’s principal home; and (b) whatever the value of any right or interest that the resident does have in the resident’s principal home.
1154 Members of illness separated couples (partner not in special residence and partner not homeowner) (1) This section applies to a special resident if: (a) the resident is a member of an illness separated couple; and (b) the principal home of the resident’s partner is not a special residence; and (c) the resident’s partner does not have a right or interest in the partner’s principal home that is to be disregarded because of paragraph 1118(1)(b).
Entry contribution above extra allowable amount (2) If: (a) this section applies to a special resident; and Social Security Act 1991 267 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1154 (c) the resident’s entry contribution was more than the extra allowable amount; the following provisions apply for the purposes of the application of this Act to the resident and to the partner: (d) for the purposes of this Act, the resident is to be taken to be a homeowner; (e) any right or interest of the partner in the resident’s principal home is to be disregarded in calculating the actual value of the partner’s assets for the purposes of this Act; (f) the resident’s assets value limit and the partner’s assets value limit are both to be taken to be $237,500.
Note: The amount in paragraph (f) is adjusted annually: see section 1205.
Entry contribution equal to or below extra allowable amount (4) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was equal to or less than the extra allowable amount; then, the following provisions apply for the purposes of the application of this Act to the resident and to the resident’s partner: (c) both the resident, and the partner, are to be taken not to have a right or interest in relation to the resident’s principal home; (d) the resident’s assets are to be taken to include an asset the value of which is equal to the amount of the resident’s entry contribution; (e) sections 198K and 198L, subsection 1118(1) and section 1126 do not apply to the asset that the resident is, because of paragraph (d) of this subsection, taken to have.
(5) Subsection (4) applies: (a) whether or not the resident actually has any right or interest in the resident’s principal home; and (b) whatever the value of any right or interest that the resident does have in the resident’s principal home.
268 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1155 Subdivision E—Residents who are members of ordinary couple with different principal homes 1155 Members of ordinary couple with different principal homes (both in special residences) (1) This section applies to a special resident if: (a) the resident is a member of an ordinary couple with different principal homes; and (b) the principal home of the resident’s partner is also a special residence.
Both entry contributions above extra allowable amount (2) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution and the partner’s entry contribution, were each more than the extra allowable amount concerned; then, for the purposes of this Act: (c) the resident and the partner are each to be taken to be home owners; and (d) the value of the resident’s principal home is taken to be the resident’s individual residence contribution; and (e) the value of the partner’s principal home is taken to be the partner’s individual residence contribution; and (f) any right or interest of the resident in: (i) the more valuable of the 2 principal homes; or (ii) where the value of the 2 principal homes is the same— the principal home of the younger person; (in this subsection called the more valuable principal home) is to be disregarded in calculating the actual value of the resident’s assets; and (g) any right or interest of the partner in the more valuable principal home is to be disregarded in calculating the actual value of the partner’s assets; and Social Security Act 1991 269 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1156 (h) the assets of the person whose principal home is not the more valuable principal home are to be taken to include an asset the value of which is equivalent to the amount of that person’s entry contribution.
Both entry contributions equal to or below extra allowable amount (3) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution, and the partner’s entry contribution, were each less than or equal to the extra allowable amount concerned; then, for the purposes of this Act: (c) the resident and the partner are each to be taken not to have a right or interest in relation to the resident’s principal home or the partner’s principal home; and (d) the resident’s assets are taken to include an amount equal to the resident’s individual residence contribution; and (e) the partner’s assets are taken to include an amount equal to the partner’s individual residence contribution.
(4) Subsection (3) applies: (a) whether or not the resident actually has any right or interest in the resident’s principal home; and (b) whatever the value of any right or interest that the resident does have in the resident’s principal home; and (c) whether or not the partner actually has any right or interest in the partner’s principal home; and (d) whatever the value of any right or interest that the partner does have in the partner’s principal home.
1156 Members of ordinary couple with different principal homes (partner not in special residence and partner homeowner) (1) This section applies to a special resident if: (a) the resident is a member of an ordinary couple with different principal homes; and 270 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1157 (b) the principal home of the resident’s partner is not a special residence; and (c) the right or interest of the partner in the partner’s principal home would, but for this section, be disregarded because of paragraph 1118(1)(b).
(2) If this section applies to a special resident, then, for the purposes of this Act: (a) the resident and the resident’s partner are each to be taken to have a right or interest in a principal home to which paragraph 1118(1)(b) applies; and (b) the value of the resident’s principal home is to be taken to be the amount of the resident’s entry contribution; and (c) any right or interest of the resident in: (i) the more valuable of the 2 principal homes; or (ii) where the value of the 2 principal homes is the same— the principal home that is not a special residence; (in this subsection called the more valuable principal home) is to be disregarded in calculating the actual value of the resident’s assets; and (d) any right or interest of the partner in the more valuable principal home is to be disregarded in calculating the actual value of the partner’s assets; and (e) the assets of the person whose principal home is not the more valuable principal home are to be taken to include an asset whose value is equivalent to the value of the less valuable principal home.
1157 Members of ordinary couple with different principal homes (partner not in special residence and partner not homeowner) (1) This section applies to a special resident if: (a) the resident is a member of an ordinary couple with different principal homes; and Social Security Act 1991 271 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12 General provisions relating to the assets test Division 5 Provisions relating to special residences and special residents Section 1157 (b) the principal home of the resident’s partner is not a special residence; and (c) the partner does not have a right or interest in the partner’s principal home that is to be disregarded because of paragraph 1118(1)(b).
Entry contribution above extra allowable amount (2) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was more than the amount that would be the extra allowable amount if the resident were not a member of a couple; then, for the purposes of this Act, the resident and the partner are each to be taken to have a right or interest in a principal home to which paragraph 1118(1)(b) applies.
Entry contribution equal to or below extra allowable amount (3) If: (a) this section applies to a special resident; and (b) the resident’s entry contribution was equal to or less than the amount that would be the extra allowable amount if the resident were not a member of a couple; then, the following provisions apply for the purposes of the application of this Act to the resident and to the resident’s partner: (c) both the resident, and the partner, are to be taken not to have a right or interest in relation to the resident’s principal home; and (d) the resident’s assets are to be taken to include an asset whose value is equal to the amount of the resident’s entry contribution.
(4) Subsection (3) applies: (a) whether or not the resident actually has any right or interest in the resident’s principal home; and 272 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 General provisions relating to the assets test Part 3.12 Provisions relating to special residences and special residents Division 5 Section 1157 (b) whatever the value of any right or interest that the resident does have in the resident’s principal home; and (c) whether or not the partner actually has any right or interest in the resident’s principal home; and (d) whatever the value of any right or interest that the partner does have in the resident’s principal home.
Social Security Act 1991 273 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 1 Purpose of this Part Section 1157A Part 3.12A—Provisions for carer allowance and seniors health card income test Division 1—Purpose of this Part 1157A Purpose of Part (1) Division 2 of this Part describes the kind of benefits that can be assessable fringe benefits.
Divisions 3 to 9 tell you how to work out the value of the assessable fringe benefits received by a person in a tax year.

Division 10 deals with foreign currency conversions.

These provisions are necessary for the purposes of the carer allowance income test and the Seniors Health Card Income Test Calculator.

Note 1: For assessable fringe benefit see section 10A.

Note 2: A fringe benefit is one that is provided by an employer to an employee in respect of the employee’s employment (see section 10A).
(2) Section 10A contains many of the definitions that are relevant to the provisions of this Part.
274 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Benefits that may be assessable fringe benefits Division 2 Section 1157B Division 2—Benefits that may be assessable fringe benefits 1157B Benefits received in or outside Australia This Part applies to a fringe benefit whether the benefit is received in or outside Australia.
1157C Car benefits (1) A person (the employee) receives a car benefit if: (a) a car held by another person (the provider): (i) is applied to a private use by the employee or an associate of the employee; or (ii) is taken under subsection (2), (3) or (4) to be available for the private use of the employee or an associate of the employee; and (b) either: (i) the provider is the employer, or an associate of the employer, of the employee; or (ii) the car is applied or available in that way under an arrangement between: (A) the provider or another person; and (B) the employer or an associate of the employer.
(2) A car is taken, for the purposes of subsection (1), to be available at a particular time for the private use of the employee or an associate of the employee if: (a) the car is held by a person who is: (i) the employer; or (ii) an associate of the employer; or (iii) some other person with whom, or in respect of whom, the employer or associate has an arrangement relating to the use or availability of the car; and (b) the car is garaged or kept at or near a place of residence of the employee or of an associate of the employee.
Social Security Act 1991 275 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 2 Benefits that may be assessable fringe benefits Section 1157C (3) A car is taken, for the purposes of subsection (1), to be available at a particular time for the private use of the employee or an associate of the employee if: (a) the car is held by a person who is: (i) the employer; or (ii) an associate of the employer; or (iii) some other person with whom, or in respect of whom, the employer or associate has an arrangement relating to the use or availability of the car; and (b) the car is not at business premises of: (i) the employer; or (ii) an associate of the employer; or (iii) some other person with whom, or in respect of whom, the employer or associate has an arrangement relating to the use or availability of the car; and (c) either: (i) the employee is entitled to apply the car to a private use at that time; or (ii) the employee is not performing the duties of his or her employment at that time and has custody or control of the car; or (iii) an associate of the employee is entitled to use the car at that time; or (iv) an associate of the employee has custody or control of the car at that time.
(4) For the purposes of subsection (3), if a prohibition on the use of a car, or on the application of a car for a private use, by a person is not consistently enforced, the person is taken to be entitled to use the car, or to apply the car to a private use, despite the prohibition.
(5) For the purposes of this section, a car that is let on hire to a person under a hire-purchase agreement is taken: (a) to have been purchased by the person at the time when the person first took the car on hire; and (b) to have been owned by the person at all material times.
276 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Benefits that may be assessable fringe benefits Division 2 Section 1157D (6) A reference in this Part to a car held by a person (the provider) does not include a reference to: (a) a taxi let on hire to the provider; or (b) a car let on hire to the provider under an agreement of a kind that is ordinarily entered into by persons taking cars on hire intermittently as occasion requires on an hourly, daily, weekly or other short-term basis.
(7) Paragraph (6)(b) does not apply if the car has been or may reasonably be expected to be on hire under successive agreements of a kind that result in substantial continuity of the hiring of the car.

1157D Exempt car benefits (1) Except in so far as section 1157C provides that the application or availability of a car held by a person is a car benefit, the application or availability of a car held by a person is exempt.
(2) A car benefit provided in respect of the employment of the employee is exempt if: (a) the car is: (i) a taxi, panel van or utility truck; or (ii) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers); and (b) the only private use of the car at a time when the benefit was provided was: (i) work-related travel of the employee; and (ii) other minor, infrequent and irregular private use by the employee or an associate of the employee.
(3) A car benefit provided in respect of the employment of the employee is exempt if the car was unregistered at all times when the car was held by the person who provided the car.
Social Security Act 1991 277 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 2 Benefits that may be assessable fringe benefits Section 1157E 1157E School fees benefits Payment to recipient (1) If: (a) a person (the provider) pays an amount to another person (the recipient); and (b) the amount is for fees for: (i) tuition at primary or secondary level provided by a school; or (ii) books or equipment provided by the school in relation to that tuition; and (c) the tuition, books or equipment is provided to: (i) a dependent child of the recipient or the recipient’s partner; or (ii) a person who would be a dependent child of the recipient or the recipient’s partner if the person was not receiving a jobseeker payment or a youth allowance; the payment constitutes a school fees benefit provided by the provider to the recipient.
Note: For school see section 10A.
Payment to or on behalf of the school (2) If: (a) a person (the provider) pays an amount to or on behalf of a school; and (b) the amount is for fees for: (i) tuition at primary or secondary level provided by the school; or (ii) books or equipment provided by the school in relation to that tuition; and (c) the tuition, books or equipment is provided to: (i) a dependent child of a person (the recipient) or the recipient’s partner; or 278 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Benefits that may be assessable fringe benefits Division 2 Section 1157F (ii) a person who would be a dependent child of the recipient or the recipient’s partner if the person was not receiving a jobseeker payment; the payment constitutes a school fees benefit provided by the provider to the recipient.
Note: For school see section 10A.

Boarding fees (3) For the purposes of subsections (1) and (2), if: (a) a school is providing tuition at primary or secondary level to a dependent child of a person; and (b) the child is boarding at the school; the fees that are payable for the child to board at the school are taken to be fees for the tuition provided by the school to the child.
1157F Health insurance benefits Payment to recipient (1) If: (a) a person (the provider) pays an amount to another person (the recipient); and (b) the amount is for the cost of health insurance; and (c) the health insurance covers: (i) the recipient; or (ii) the recipient’s partner; or (iii) a dependent child of the recipient or the recipient’s partner; or (iv) a person who would be a dependent child of the recipient or the recipient’s partner if the person was not receiving a jobseeker payment or a youth allowance; the payment constitutes a health insurance benefit provided by the provider to the recipient.
Social Security Act 1991 279 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 2 Benefits that may be assessable fringe benefits Section 1157G Payment to the health insurance fund (2) If: (a) a person (the provider) pays an amount to a health insurance fund; and (b) the amount is for the cost of health insurance; and (c) the health insurance covers: (i) a person (the recipient); or (ii) the recipient’s partner; or (iii) a dependent child of the recipient or the recipient’s partner; or (iv) a person who would be a dependent child of the recipient or the recipient’s partner if the person was not receiving a jobseeker payment; the payment constitutes a health insurance benefit provided by the provider to the recipient.
1157G Loan benefits (1) Subject to subsection (1A), if a person (the provider) makes a loan to another person (the recipient), the making of the loan constitutes a loan benefit provided by the provider to the recipient.
(1A) The making of the loan does not constitute a loan benefit provided by the provider to the recipient if: (a) the provider is the Defence Force, or a body one of the objects or functions of which is making loans to employees of the Defence Force; and (b) the recipient is an employee of the Defence Force.
Late payment of debt (2) For the purposes of this section, if: (a) a person (the debtor) is under an obligation to pay or repay an amount (the principal amount) to another person (the creditor); and 280 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Benefits that may be assessable fringe benefits Division 2 Section 1157G (b) the principal amount is not the whole or a part of the amount of a loan; and (c) after the due date for payment or repayment of the principal amount, the whole or part of the principal amount remains unpaid; the following provisions have effect: (d) the creditor is taken, immediately after the due date, to have made a loan (the deemed loan) of the principal amount to the debtor; (e) at any time when the debtor is under an obligation to repay any part of the principal amount, the debtor is taken to be under an obligation to repay that part of the deemed loan; (f) the deemed loan is taken to have been made: (i) if interest accrues on so much of the principal amount as remains from time to time unpaid—at the rate of interest at which that interest accrues; or (ii) in any other case—at a nil rate of interest.
(3) Subject to subsection (4), a loan is a deferred interest loan if interest is payable on the loan at a rate that exceeds nil.
(4) A loan is not a deferred interest loan if: (a) the whole of the interest is due for payment within 6 months after the loan is made; or (b) all of the following conditions are satisfied: (i) interest on the loan is payable by instalments; (ii) the intervals between instalments do not exceed 6 months; (iii) the first instalment is due for payment within 6 months after the loan is made.
(5) For the purposes of this section, if a person (the provider) makes a deferred interest loan (the principal loan) to another person (the recipient), the following provisions apply: (a) the provider is taken, at the end of: (i) the period of 6 months starting on the day on which the principal loan was made; and Social Security Act 1991 281 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 2 Benefits that may be assessable fringe benefits Section 1157H (ii) each subsequent period of 6 months; to have made a loan (the deemed loan) to the recipient; (b) the amount of the loan is taken to be equal to the amount by which the interest (the accrued interest) that has accrued on the principal loan in respect of the period exceeds the amount (if any) paid in respect of the accrued interest before the end of the period; (c) if any part of the accrued interest becomes payable or is paid after the time when the deemed loan is taken to have been made, the deemed loan is to be reduced accordingly; (d) the deemed loan is taken to have been made at a nil rate of interest.
(6) Paragraph (5)(a) only applies to a period of 6 months if the recipient is under an obligation during the whole of the period to repay the whole or a part of the principal loan.

(7) For the purposes of this Part, if no interest is payable in respect of a loan, a nil rate of interest is taken to be payable in respect of the loan.
1157H Exempt loan benefit (3) The making of a loan is exempt if: (a) the loan consists of an advance by the employer to the employee; and (b) the loan is made for the sole purpose of enabling the employee to meet expenses incurred in performing the duties of his or her employment; and (c) the amount of the loan is not substantially greater than the amount of those expenses that could reasonably be expected to be incurred by the employee; and (d) the employee is required: (i) to account to the employer for expenses met from the loan; and (ii) to repay (whether by set-off or otherwise) any amount not so accounted for.
282 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Benefits that may be assessable fringe benefits Division 2 Section 1157I (4) The making of a loan is exempt if: (a) the loan consists of an advance by the employer to the employee; and (b) the sole purpose of the making of the loan is to enable the employee to pay any of the following amounts payable by the employee in respect of accommodation: (i) a rental bond; (ii) a security deposit in respect of electricity, gas or telephone services; (iii) any similar amount; and (c) the employee is required to repay (whether by set-off or otherwise) the loan amount of the advance.
1157I Housing benefits (1) The subsistence of a housing right granted by a person (the provider) to another person (the recipient) constitutes a housing benefit provided by the provider to the recipient.
(2) The payment of money or other valuable consideration by an employer directly or indirectly to an employee (other than an employee of the Defence Force) to enable or assist the employee to meet costs associated with a loan to which subsection (4) applies constitutes a housing benefit provided by the employer to the employee.

Note: For employee and employer see section 10A.


(3) The payment of money or other valuable consideration by an employer directly or indirectly to an employee of the Defence Force to meet costs associated with a loan to which subsection (4) applies does not constitute a housing benefit provided by the employer to the employee.
(4) This subsection applies to a loan made to, or used by, a person (whether in his or her own right or jointly with his or her partner) wholly: Social Security Act 1991 283 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 2 Benefits that may be assessable fringe benefits Section 1157I (a) to enable the person to acquire a prescribed interest in land on which a dwelling or a building containing a dwelling was subsequently to be constructed; or (b) to enable the person to acquire a prescribed interest in land and construct, or complete the construction of, a dwelling or a building containing a dwelling on the land; or (c) to enable the person to construct, or complete the construction of, a dwelling or a building containing a dwelling on land in which the person held a prescribed interest; or (d) to enable the person to acquire a prescribed interest in land on which there was a dwelling or a building containing a dwelling; or (e) to enable the person to acquire a prescribed interest in a stratum unit in relation to a dwelling; or (f) to enable the person to extend a building that: (i) is a dwelling or contains a dwelling; and (ii) is constructed on land in which the person held a prescribed interest; by adding a room or part of a room to the building or part of the building containing the dwelling, as the case may be; or (g) if the person held a prescribed interest in a stratum unit in relation to a dwelling—to enable the person to extend the dwelling by adding a room or part of a room to the dwelling; or (h) to enable the person to repay a loan that was made to, and used by, the person wholly for a purpose mentioned in paragraph (a) to (g).
Note 1: For dwelling see subsection 10A(7).

Note 2: For prescribed interest see subsections 10A(10) to (14).

Note 3: For stratum units see subsection 10A(8).
(5) The payment of money or other valuable consideration by an employer directly or indirectly to an employee to enable or assist the employee to meet costs associated with enjoying a housing 284 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Benefits that may be assessable fringe benefits Division 2 Section 1157J right constitutes a housing benefit provided by the employer to the employee.
Note: For employee, employer and housing right see section 10A.

(6) For the avoidance of doubt, subsection (5) does not apply to payments to which subsection (2) or (3) applies.
1157J Exempt housing benefits—live-in residential care workers (1) If, during a period: (a) the employer of an employee is: (i) a government body; or (ii) a registered religious institution; or (iii) a company that is registered under the Australian Charities and Not-for-profits Commission Act 2012 and does not meet the description of the subtype of entity in column 2 of item 4of the table in subsection 25-5(5) of that Act; or (iv) a company that is a not-for-profit entity and is not an ACNC type of entity; whose activities consist of, or include, caring for mature persons or disadvantaged persons; and (b) the duties of the employee’s employment consist of, or consist principally of, caring for mature or disadvantaged persons; and (c) in the performance of those duties, the employee lives, together with mature persons or disadvantaged persons, in residential premises of the employer; and (d) the fact that the employee lives in those premises is directly related to the provision, in the course of the performance of the duties of the employee’s employment, of care to the mature persons or disadvantaged persons living in those premises; any benefit arising from the provision, during that period, of that accommodation to the employee or to the employee and a partner or dependent child of the employee who resides in those premises with the employee is exempt.
Social Security Act 1991 285 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 2 Benefits that may be assessable fringe benefits Section 1157JA (2) In this section: residential premises means a house or hostel used exclusively for the provision of residential accommodation to: (a) mature persons or disadvantaged persons and dependent children of mature persons or disadvantaged persons; and (b) persons the duties of whose employment consist of, or consist principally of, caring for persons referred to in paragraph (a); and (c) partners and children of persons referred to in paragraph (b).
1157JA Expense benefits (1) A person (the employee) receives an expense benefit if an amount is paid to, or on behalf of, the employee or a person connected with the employee by: (a) an employer of the employee; or (b) an associate of the employer; or (c) a person (the arranger), other than the employer or an associate of the employer, under an arrangement between: (i) the employer or an associate of the employer; and (ii) the arranger or another person; and is so paid in connection with an expense or expenses of a private nature that have been, or will or may be, incurred by the employee or person connected with the employee.
(2) The following are persons connected with the employee: (a) a partner of the employee; (b) a dependent child of the employee or of the employee’s partner; (c) a person who would be a dependent child of the employee or of the employee’s partner if the person was not receiving a jobseeker payment.
286 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Benefits that may be assessable fringe benefits Division 2 Section 1157JB 1157JB Exempt expense benefit An amount paid as mentioned in subsection 1157JA(1) is exempt if: (a) the amount is paid to reimburse expenses incurred in connection with the employee’s employment; or (b) the employee requires the amount to be applied in paying expenses related to the employee’s employment.
1157JC Financial investment benefit (1) A person (the employee) receives a financial investment benefit if: (a) an employer of the employee; or (b) an associate of the employer; or (c) a person (the arranger), other than the employer or an associate of the employer, under an arrangement between: (i) the employer or an associate of the employer; or (ii) the arranger or another person; pays for, or reimburses the cost of, the acquisition of a financial investment by the employee or a person connected with the employee.
(2) The making by a person, for the benefit of another person, of contributions to a superannuation fund or an ATO small superannuation account does not constitute payment for the acquisition of a financial investment by the other person.
(3) The following are persons connected with the employee: (a) a partner of the employee; (b) a dependent child of the employee or of the employee’s partner; (c) a person who would be a dependent child of the employee or of the employee’s partner if the person was not receiving a jobseeker payment.
Social Security Act 1991 287 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 3 Value of car fringe benefits Section 1157K Division 3—Value of car fringe benefits 1157K Method of valuing car fringe benefits (1) Subject to subsection (2), the value of a car fringe benefit is to be worked out in accordance with section 1157L.
(2) If a determination is in force under section 1157M, the value of a car fringe benefit is to be worked out in accordance with the determination.

1157L Value of car fringe benefits (1) This is how to work out the value of a car fringe benefit: Method statement Step 1.

Work out the engine capacity of the car and go to the relevant Part of the Car Fringe Benefits Value Table.

Step 2.

Work out how old the car is and go to the appropriate row in the Table.

Step 3.
Step 3.

Work out how many complete months in the appropriate tax year the person had or will have the car fringe benefit and go to the appropriate column in the Table: the number where that row and column intersect is the value of the car fringe benefit.

Note: If the person is a member of a couple, the value of the car fringe benefit is to be halved in certain circumstances (see subsection (3)).
288 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of car fringe benefits Division 3 (2) The following Table is to be used in working out the value of a car fringe benefit: Section 1157L CAR FRINGE BENEFITS VALUE TABLE PART A—Car engine size up to 1600cc Period of use (completed months) PART B—Car engine size 1601cc to 2850cc PART C—Car engine size more than 2850cc 2016
car age item (years) 1.
2.

3.

4.

5.

6.

7.

8.

9.

1 10.

10+ 11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.
10+ 10+ (3) If: (a) the person is a member of a couple; and (b) the person’s partner receives a car fringe benefit in the appropriate tax year; and Social Security Act 1991 289 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 3 Value of car fringe benefits Section 1157M (c) the person’s and the partner’s car fringe benefits relate to the same car; the value of the car fringe benefit is to be halved.
1157M Minister may determine alternative method of valuing car fringe benefits (1) The Minister may, by legislative instrument, determine an alternative method for valuing car fringe benefits.

(2) The determination: (a) commences on the day after the day when it is registered in the Federal Register of Legislation under the Legislation Act 2003; and (b) ceases to have effect 6 months after the day it commences, if it has not already been revoked.
290 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of school fees fringe benefits Division 4 Section 1157N Division 4—Value of school fees fringe benefits 1157N Value of school fees fringe benefits The value of a school fees fringe benefit is the amount of the payment that constitutes the school fees benefit.
Social Security Act 1991 291 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 5 Value of health insurance fringe benefits Section 1157O Division 5—Value of health insurance fringe benefits 1157O Value of health insurance fringe benefits The value of a health insurance fringe benefit is the amount of the payment that constitutes the health insurance benefit.
292 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of loan fringe benefits Division 6 Section 1157P Division 6—Value of loan fringe benefits 1157P Method of valuing loan fringe benefits (1) Subject to subsection (2), the value of a loan fringe benefit is to be worked out in accordance with section 1157Q.
(2) If a determination is in force under section 1157R, the value of a loan fringe benefit is to be worked out in accordance with the determination.

1157Q Value of loan fringe benefits (1) This is how to work out the value of a loan fringe benefit: Method statement Step 1.

Work out whether the loan is a housing loan or another type of loan.

Note: For housing loan see subsection 10A(9).

Step 2.

Work out the notional rate of interest for the loan using subsection (2), (3) or (4).

Step 3.
Step 3.

Work out the actual rate of interest for the loan in the appropriate tax year using subsection (5).

Step 4.

Work out whether the actual rate of interest exceeds the notional rate of interest.

Step 5.

If the actual rate of interest is equal to or exceeds the notional rate of interest, the value of the loan fringe benefit is nil.

Note: If the value of the loan fringe benefit is nil, you do not have to go any further in the Method statement.
Social Security Act 1991 293 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 6 Value of loan fringe benefits Section 1157Q Step 6.

If the actual rate of interest is less than the notional rate of interest, take the actual rate of interest away from the notional rate of interest.

Step 7.
Step 7.

Work out the amount of the loan (both the principal and interest) that is outstanding in the appropriate tax year using subsection (6).

Step 8.

Multiply the rate of interest obtained in Step 6 and the amount obtained in Step 7: the result is the interim value of the loan.

Step 9.

Work out how many complete weeks in the appropriate tax year the person had or will have the loan: the result is the number of allowable weeks.

Step 10.
Step 10.

Apply the formula: number of allowable weeks  52 interim value of the loan Step 11.

The amount obtained by applying the formula in Step 10 is the value of the loan fringe benefit.

Note: If the person is a member of a couple, the value of the loan fringe benefit is to be halved in certain circumstances (see subsection (7)).

(2) The notional rate of interest for the tax year ending 30 June 1993 is: (a) 10% for a housing loan; and (b) 13.5% for any other loan.
(3) The notional rate of interest for the tax years ending 30 June 1994 and 30 June 1995 is: (a) 6.95% for a housing loan; and (b) 11.75% for any other loan.
294 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of loan fringe benefits Division 6 Section 1157Q (4) The notional rate of interest for any subsequent tax year is the market rate of interest for 1 April in the preceding tax year.
(4A) For the purposes of subsection (4): market rate of interest, for a particular day, means: (a) for a housing loan—the lowest variable rate of interest for a housing loan; or (b) for any other loan—the lowest variable rate of interest for any other loan; that is available on that day from a bank which is one of 4 banks specified in a determination made, by legislative instrument, by the Minister.
(5) The actual rate of interest for the loan is: (a) if the loan starts after 1 July in the appropriate tax year—the rate of interest that is payable under the loan on the day on which the loan starts; and (b) in any other case—the rate of interest that is payable under the loan on 1 July in the appropriate tax year.
(6) The amount of the loan that is outstanding is: (a) if the loan starts after 1 July in the appropriate tax year—the amount that is outstanding on the day on which the loan starts; and (b) in any other case—the amount that is outstanding on 1 July in the appropriate tax year.
(7) If: (a) the person is a member of a couple; and (b) the person’s partner receives a loan fringe benefit in the appropriate tax year; and (c) the person’s and the partner’s loan fringe benefits relate to the same loan; the value of the loan fringe benefit obtained in Step 11 of the Method statement is to be halved.
Social Security Act 1991 295 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 6 Value of loan fringe benefits Section 1157R 1157R Minister may determine alternative method of valuing loan fringe benefits (1) The Minister may, by legislative instrument, determine an alternative method for valuing loan fringe benefits.
(2) The determination: (a) commences on the day after the day when it is registered in the Federal Register of Legislation under the Legislation Act 2003; and (b) ceases to have effect 6 months after the day it commences, if it has not already been revoked.
296 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of housing fringe benefits Division 7 Section 1157S Division 7—Value of housing fringe benefits Subdivision A—Grants of housing rights 1157S Methods of valuing housing fringe benefits—grants of housing rights (1) Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to a person who is not an employee of the Defence Force is to be worked out in accordance with section 1157T.
(2) Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to an employee of the Defence Force is to be worked out in accordance with section 1157TA.

(3) If: (a) a determination is in force under section 1157U; and (b) the determination applies to housing fringe benefits to which subsection 1157I(1) applies; the value of a housing fringe benefit to which subsection 1157I(1) applies is to be worked out in accordance with the determination.
1157T Value of grants of housing rights—general (1) This is how to work out the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to a person who is not an employee of the Defence Force: Method statement Step 1.

Work out the location of the unit of accommodation and go to the appropriate row of the Housing Fringe Benefits Value Table.
Social Security Act 1991 297 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 7 Value of housing fringe benefits Section 1157T Step 2.

Work out the type of accommodation and go to the appropriate column in the Table: the number where the row and column intersect is the weekly market rent of the unit of accommodation.
Note: If the person is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subsection (4)).

Step 3.

Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person.

Step 4.

Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 3: the result is the provisional value of the housing fringe benefit.

Step 5.
Step 5.

Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3).

Note: If the person is a member of a couple, the allowable rent is to be halved in certain circumstances (see subsection (4)).

Step 6.

Take the allowable rent away from the provisional value of the housing fringe benefit: the result is the value of the housing fringe benefit.
(2) The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to a person who is not an employee of the Defence Force: 298 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of housing fringe benefits Division 7 Section 1157T Housing fringe benefits value table Location Type of accommodation House, flat or home unit 3 or more bedrooms 1-2 bedrooms Any other unit of accommodation Metropolitan Non-metropolitan Special housing 140 100 80 Outside Australia 140 120 90 80 120 85 70 25 85 Note 1: Note 2: For unit of accommodation, metropolitan location, non-metropolitan location and special housing location see section 10A.
A housing fringe benefit that is received outside Australia is to be valued (see section 1157B).

Note 3: For Australia see subsection 23(1).

(3) The allowable rent is the amount of rent that the Secretary is satisfied is payable for the unit of accommodation in the appropriate tax year by: (a) if the person is not a member of a couple—the person; or (b) if the person is a member of a couple—the person and the person’s partner.
(4) If: (a) the person is a member of a couple; and (b) the person’s partner receives a housing fringe benefit in the appropriate tax year; and (c) the person’s and the partner’s housing fringe benefits relate to the same unit of accommodation; the weekly market rent obtained in Step 2 of the Method statement and the allowable rent obtained in Step 5 of the Method statement are both to be halved.
Social Security Act 1991 299 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 7 Value of housing fringe benefits Section 1157TA 1157TA Value of grants of housing rights—employees of the Defence Force (1) This is how to work out the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to an employee of the Defence Force: Method statement Step 1.
Work out the type of accommodation and go to the appropriate column in the Housing Fringe Benefits Value Table (Defence Force Employees): the number in the appropriate column is the weekly market rent of the unit of accommodation.

Note: If the person is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subsection (4)).

Step 2.

Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person.

Step 3.
Step 3.

Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 2: the result is the provisional value of the housing fringe benefit.

Step 4.

Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3).

Note: If a person is a member of a couple, the allowable rent is to be halved in certain circumstances (see subsection (4)).

Step 5.
Step 5.

Take the allowable rent away from the provisional value of the housing fringe benefit: the result is the value of the housing fringe benefit.

Note: For employee see section 10A.
300 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of housing fringe benefits Division 7 Section 1157TA (2) The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(1) applies that is provided to an employee of the Defence Force: Housing Fringe Benefits Value Table (Defence Force Employees) Type of accommodation House, flat or home unit 3 or more bedrooms 80 1-2 bedrooms Any other unit of accommodation 80 25 Note 1: For employee see section 10A.
Note 2: For unit of accommodation see section 10A.

Note 3: A housing fringe benefit that is received outside Australia is to be valued (see section 1157B).

Note 4: For Australia see subsection 23(1).

(3) The allowable rent is the amount of rent that the Secretary is satisfied is payable for the unit of accommodation in the appropriate tax year by: (a) if the person is not a member of a couple—the person; or (b) if the person is a member of a couple—the person and the person’s partner.
(4) If: (a) the person is a member of a couple; and (b) the person’s partner receives a housing fringe benefit in the appropriate tax year; and (c) the person’s and the partner’s housing fringe benefits relate to the same unit of accommodation; the weekly market rent obtained in Step 1 of the Method statement and the allowable rent obtained in Step 4 of the Method statement are both to be halved.
Social Security Act 1991 301 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 7 Value of housing fringe benefits Section 1157TB Subdivision B—Payments associated with loans 1157TB Method of valuing housing fringe benefits—payments associated with loans (1) Subject to subsection (2), the value of a housing fringe benefit to which subsection 1157I(2) applies is to be worked out in accordance with section 1157TC.
(2) If: (a) a determination is in force under section 1157U; and (b) the determination applies to housing fringe benefits to which subsection 1157I(2) applies; the value of a housing fringe benefit to which subsection 1157I(2) applies is to be worked out in accordance with the determination.

1157TC Value of payments associated with loans The value of a housing fringe benefit to which subsection 1157I(2) applies is the amount of the payment that constitutes the housing benefit.
Subdivision C—Payments associated with enjoying housing rights 1157TD Methods of valuing housing fringe benefits—payments associated with enjoying housing rights (1) Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to a person who is not an employee of the Defence Force is to be worked out in accordance with section 1157TE.
(2) Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to an employee of the Defence Force is to be worked out in accordance with section 1157TF.
302 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of housing fringe benefits Division 7 Section 1157TE (3) If: (a) a determination is in force under section 1157U; and (b) the determination applies to housing fringe benefits to which subsection 1157I(5) applies; the value of a housing fringe benefit to which subsection 1157I(5) applies is to be worked out in accordance with the determination.
1157TE Value of payments associated with enjoying housing rights—general (1) This is how to work out the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to a person who is not an employee of the Defence Force: Method statement Step 1.

Work out the location of the unit of accommodation and go to the appropriate row of the Housing Fringe Benefits Value Table.

Step 2.
Step 2.

Work out the type of accommodation and go to the appropriate column in the Table: the number where the row and column intersect is the weekly market rent of the unit of accommodation.

Note: If the person is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subsection (4)).

Step 3.

Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person.

Step 4.
Step 4.

Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 3: the result is the provisional value of the housing fringe benefit.

Social Security Act 1991 303 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 7 Value of housing fringe benefits Section 1157TE Step 5.
Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3).

Note: If a person is a member of a couple, the allowable rent is to be halved in certain circumstances (see subsection (4)).

Step 6.

Work out the amount the employer paid or will pay by way of the housing fringe benefits in respect of the unit of accommodation in the appropriate tax year: the result is the employer subsidy.

Step 7.
Step 7.

Work out the amount (if any) by which the allowable rent exceeds the employer subsidy: the result is the employee contribution.

Note: If the employer subsidy equals or exceeds the allowable rent, the employee contribution is nil.

Step 8.

Take the employee contribution away from the provisional value of the housing fringe benefit: the result is the value of the housing fringe benefit.
(2) The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to a person who is not an employee of the Defence Force: Housing fringe benefits value table Location Type of accommodation House, flat or home unit 3 or more bedrooms 1-2 bedrooms Any other unit of accommodation Metropolitan Non-metropolitan Special housing Outside Australia 140 100 80 140 120 90 80 120 85 70 25 85 304 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of housing fringe benefits Division 7 Section 1157TF Note 1: Note 2: For unit of accommodation, metropolitan location, non-metropolitan location and special housing location see section 10A.
A housing fringe benefit that is received outside Australia is to be valued (see section 1157B).

Note 3: For Australia see subsection 23(1).

(3) The allowable rent is the amount of rent that the Secretary is satisfied is payable for the unit of accommodation in the appropriate tax year by: (a) if the person is not a member of a couple—the person; or (b) if the person is a member of a couple—the person and the person’s partner.
(4) If: (a) the person is a member of a couple; and (b) the person’s partner receives a housing fringe benefit in the appropriate tax year; and (c) the person’s and the partner’s housing fringe benefits relate to the same unit of accommodation; the weekly market rent obtained in Step 2 of the Method statement and the allowable rent obtained in Step 5 of the Method statement are both to be halved.
1157TF Value of payments associated with enjoying housing rights—employees of the Defence Force (1) This is how to work out the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to an employee of the Defence Force: Method statement Step 1.

Work out the type of accommodation and go to the appropriate column in the Housing Fringe Benefits Value Table (Defence Force Employees): the number in the appropriate column is the weekly market rent of the unit of accommodation.
Social Security Act 1991 305 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 7 Value of housing fringe benefits Section 1157TF Note: If the person is a member of a couple, the weekly market rent is to be halved in certain circumstances (see subsection (4)).

Step 2.
Step 2.

Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person.

Step 3.

Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 2: the result is the provisional value of the housing fringe benefit.

Step 4.

Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3).
Note: If a person is a member of a couple, the allowable rent is to be halved in certain circumstances (see subsection (4)).

Step 5.

Work out the amount the employer paid or will pay by way of the housing fringe benefits in respect of the unit of accommodation in the appropriate tax year: the result is the employer subsidy.

Step 6.

Work out the amount (if any) by which the allowable rent exceeds the employer subsidy: the result is the employee contribution.
Note: If the employer subsidy equals or exceeds the allowable rent, the employee contribution is nil.

Step 7.

Take the employee contribution away from the provisional value of the housing fringe benefit: the result is the value of the housing fringe benefit.
(2) The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(5) applies that is provided to an employee of the Defence Force: 306 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of housing fringe benefits Division 7 Section 1157TF Housing Fringe Benefits Value Table (Defence Force Employees) Type of accommodation House, flat or home unit 1-2 bedrooms Any other unit of accommodation 3 or more bedrooms 80 80 25 Note 1: For employee see section 10A.
Note 2: For unit of accommodation see section 10A.

Note 3: A housing fringe benefit that is received outside Australia is to be valued (see section 1157B).

Note 4: For Australia see subsection 23(1).

(3) The allowable rent is the amount of rent that the Secretary is satisfied is payable for the unit of accommodation in the appropriate tax year by: (a) if the person is not a member of a couple—the person; or (b) if the person is a member of a couple—the person and the person’s partner.
(4) If: (a) the person is a member of a couple; and (b) the person’s partner receives a housing fringe benefit in the appropriate tax year; and (c) the person’s and the partner’s housing fringe benefits relate to the same unit of accommodation; the weekly market rent obtained in Step 1 of the Method statement and the allowable rent obtained in Step 4 of the Method statement are both to be halved.
Social Security Act 1991 307 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 7 Value of housing fringe benefits Section 1157U Subdivision D—Alternative methods of valuing housing fringe benefits 1157U Minister may determine alternative method of valuing housing fringe benefits (1) The Minister may, by legislative instrument, determine an alternative method for valuing housing fringe benefits.
(1A) A determination under subsection (1) may apply to all housing fringe benefits or only to specified kinds of housing fringe benefits.

(2) The determination: (a) commences on the day after the day when it is registered in the Federal Register of Legislation under the Legislation Act 2003; and (b) ceases to have effect 6 months after the day it commences, if it has not already been revoked.
308 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Value of expense fringe benefit Division 8 Section 1157UA Division 8—Value of expense fringe benefit 1157UA Value of expense fringe benefits The value of an expense fringe benefit is the amount of the payment that constitutes the expense benefit.
Social Security Act 1991 309 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.12A Provisions for carer allowance and seniors health card income test Division 9 Value of financial investment fringe benefit Section 1157UB Division 9—Value of financial investment fringe benefit 1157UB Value of financial investment fringe benefit The value of a financial investment fringe benefit is the value of the financial investment benefit that constitutes the financial investment fringe benefit when the financial investment benefit is received.
310 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Provisions for carer allowance and seniors health card income test Part 3.12A Foreign currency rates Division 10 Section 1157V Division 10—Foreign currency rates 1157V Foreign currency rates (1) If: (a) it is necessary, for the purposes of this Part, to work out an amount or value of a fringe benefit; and (b) the amount or value of the benefit is expressed in a foreign currency; the amount or value in Australian currency is to be worked out using the market exchange rate for 1 July in the appropriate tax year.
(2) If there is no market exchange rate for 1 July in the appropriate tax year (for example, because of a national public holiday), the market exchange rate to be used is the market exchange rate that applied on the last working day immediately before that 1 July.

(3) For the purposes of this section, the market exchange rate of a foreign currency is the on-demand airmail buying rate for that currency available at the Commonwealth Bank of Australia.
Social Security Act 1991 311 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.13 Imprisonment Section 1158 Part 3.13—Imprisonment 1158 Some social security payments not payable during period in gaol or in psychiatric confinement following criminal charge An instalment of a social security pension, a social security benefit, a parenting payment, a carer allowance, a mobility allowance or a pensioner education supplement is not payable to a person in respect of a day on which the person is: (a) in gaol; or (b) undergoing psychiatric confinement because the person has been charged with an offence.
Note 1: For in gaol see subsection 23(5).

Note 2: For psychiatric confinement see subsections 23(8) and (9).
1159 Payment may be redirected to dependent partner or child (1) If: (a) a social security pension (other than pension PP (single)) is not payable to a person on a pension payday because of section 1158; and (b) the person’s partner is dependent on the person; the Secretary may authorise the payment of all or some of the instalment that would otherwise have been payable to the person to be paid to: (c) the partner; or (d) someone else for the benefit of the partner.
(2) If: (a) a social security pension (other than pension PP (single)) is not payable to a person on a pension payday because of section 1158; and 312 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Imprisonment Part 3.13 Section 1159A (b) a young person is dependent on the person; the Secretary may authorise the payment of all or some of the instalment that would otherwise have been payable to the person to be paid to: (c) the young person; or (d) someone else for the benefit of the young person.
1159A Person not qualified for some concession cards when in gaol or in psychiatric confinement following criminal charge (1) A person is not qualified under section 1061ZG or 1061ZO for a seniors health card or health care card on a day on which the person is: (a) in gaol; or (b) undergoing psychiatric confinement because the person has been charged with an offence.

Note 1: For in gaol see subsection 23(5).

Note 2: For psychiatric confinement see subsections 23(8) and (9).
(2) This section has effect despite sections 1061ZG and 1061ZO.
Social Security Act 1991 313 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 1 General Section 1160 Part 3.14—Compensation recovery Division 1—General 1160 General effect of Part (1) This Part operates in certain specified circumstances to do one or more of the following: (a) reduce a person’s compensation affected payment; (b) render a person’s compensation affected payment not payable; (c) require the repayment of some or all of a person’s compensation affected payment; because of the receipt of compensation by the person or the person’s partner.
(2) This Part applies whether or not there is any connection between the circumstances that give rise to the person’s qualification for the compensation affected payment and the circumstances that give rise to the receipt of compensation by the person or the person’s partner.
1161 Application of Part (1) Subject to subsections (2) to (6A), payments of a compensation affected payment are affected under this Part if: (a) whether the compensation was received before or after the commencement of this Part, the compensation affected payment is: (i) a jobseeker payment in relation to which, under Subdivision BA of Division 1 of Part 2.12, the recipient of the payment is not required to satisfy the activity test; or (i) a jobseeker payment in relation to which the recipient of the payment is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration 314 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 General Division 1 Section 1161 Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act; or (iii) a sickness benefit under the 1947 Act; or (iv) a rehabilitation allowance under the 1947 Act payable in place of sickness benefit under the 1947 Act; or (b) in the case of any other kind of compensation affected payment, the compensation was received on or after 1 May 1987 and the claim for the compensation affected payment was made on or after 1 May 1987.
(2) This Part applies to a pension PP (single) if: (a) the compensation was received on or after 20 March 1992; and (b) the claim for the pension was made on or after 20 March 1992.

(3) This Part applies to carer payment if: (a) the compensation was received on or after 1 January 1993; and (b) the claim for the carer payment was made on or after 1 January 1993.
(5) This Part applies to partner allowance if: (a) the compensation was received on or after 20 September 1994; and (b) the claim for the allowance was made on or after 20 September 1994.

(6) This Part applies to age pension if: (a) the compensation was received on or after 20 March 1997; and (b) the person’s provisional commencement day or start day for the age pension is on or after 20 March 1997.
(6A) Subject to section 1161A, this Part applies to a compensation affected payment to which paragraph (l), (m) or (n) of the definition of that expression in subsection 17(1) applies if: (a) the compensation is received on or after 1 July 2004; and Social Security Act 1991 315 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 1 General Section 1161A (b) either: (i) if the compensation affected payment to which that paragraph applies is one in respect of which a claim must be made for a person to be qualified for the payment—a claim is made for the payment on or after 1 July 2004; or (ii) if the compensation affected payment to which that paragraph applies is not one in respect of which a claim must be made for a person to be qualified for the payment—the compensation affected payment is received on or after 1 July 2004.
1161A Application of Part to supplementary compensation affected payments (1) For the purposes of this section: (a) a reference to a supplementary compensation affected payment is a reference to a compensation affected payment to which paragraph (l), (m) or (n) of the definition of compensation affected payment in subsection 17(1) applies; and (b) a supplementary compensation affected payment relates to any allowance, supplement, pension or payment of a kind that, in the applicable paragraph of the definition of compensation affected payment in subsection 17(1), is labelled as the underlying compensation affected payment.
(2) Except as mentioned in this section, this Part does not apply to a supplementary compensation affected payment.
(3) If: (a) as a result of the operation of section 1169, any underlying compensation affected payment to which a supplementary compensation affected payment relates was not payable in relation to the day on which the supplementary compensation affected payment was received; or (b) as a result of the operation of section 1173 or 1174, the rate of any underlying compensation affected payment to which a 316 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 General Division 1 Section 1161A supplementary compensation affected payment relates was reduced to nil in relation to the day on which the supplementary compensation affected payment was received; or (c) the following conditions are satisfied: (i) the rate of any of the compensation affected payments that would have been made as mentioned in subparagraph 1181(1)(b)(ii) or (2)(d)(ii) or 1184A(2)(c)(ii) or (3)(d)(ii) is nil; (ii) the compensation affected payment is an underlying compensation affected payment to which a supplementary compensation affected payment relates; (iii) the underlying compensation affected payment was made in relation to the day on which the supplementary compensation affected payment was received; or (d) an adverse determination mentioned in subsection 1184I(1) has the effect that: (i) any underlying compensation affected payment to which a supplementary compensation affected payment
 relates is cancelled or suspended in relation to the day on which the supplementary compensation affected payment was received; or (ii) the rate of any underlying compensation affected payment to which a supplementary compensation affected payment relates is reduced to nil in relation to the day on which the supplementary compensation affected payment was received; then: (e) in any case—the supplementary compensation affected payment is not payable; and (f) if paragraph (d) applies—for the purposes of subsection 1184I(1), the amount of the supplementary compensation affected payment is taken to be an amount that the person in relation to whom it was made is liable to pay to the Commonwealth because of the determination.
Social Security Act 1991 317 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 1 General Section 1161A (4) If: (a) any of: (i) the payments of the compensation affected payment mentioned in paragraph 1179(b); or (ii) the compensation affected payments mentioned in paragraph 1184A(1)(a); is an underlying compensation affected payment to which a supplementary compensation affected payment relates; and (b) the underlying compensation affected payment was made in relation to the day on which the supplementary compensation affected payment was received; then the sum mentioned in that paragraph is increased by the amount of the supplementary compensation affected payment.
(5) If: (a) the rate of any of the compensation affected payments that would have been made as mentioned in subparagraph 1181(1)(b)(ii) or (2)(d)(ii) or 1184A(2)(c)(ii) or (3)(d)(ii) is nil; and (b) the compensation affected payment is an underlying compensation affected payment to which a supplementary compensation affected payment relates; and (c) the underlying compensation affected payment was made in relation to the day on which the supplementary compensation affected payment was received; then the difference mentioned in paragraph 1181(1)(b) or (2)(d) or 1184A(2)(c) or (3)(d) is increased by the amount of the supplementary compensation affected payment.
(6) If a compensation affected payment that would have been reduced as mentioned in subsection 1184A(4): (a) would have been reduced to nil; and (b) is an underlying compensation affected payment to which a supplementary compensation affected payment relates; and (c) was received in relation to the day on which the supplementary compensation affected payment was received; 318 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 General Division 1 Section 1162 then the recoverable amount mentioned in subsection 1184A(4) is increased by the amount of the supplementary compensation affected payment, but only to the extent that the sum of all increases under this subsection in relation to the periodic compensation payments does not exceed the sum of the amounts of those payments.
1162 Part to bind Crown This Part binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.

1163 Interpretation (1) In a provision of this Part (other than section 1164), a reference to the payment or receipt of periodic compensation payments includes a reference to the payment or receipt, as the case may be, of arrears of periodic compensation payments.
(2) A reference in this Part to periodic compensation payments is a reference to: (a) a periodic compensation payment; or (b) if 2 or more periodic compensation payments relate to the same period, those payments.

(3) In this Part, a reference to a person’s partner receiving or claiming a compensation affected payment includes a reference to the partner receiving or claiming a compensation affected pension within the meaning of the Veterans’ Entitlements Act.
1164 Certain lump sums to be treated as though they were received as periodic compensation payments If: (a) a person was entitled to periodic compensation payments under a law of a State or Territory; and Social Security Act 1991 319 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 1 General Section 1165 (b) the person’s entitlement to the periodic payments was converted under the law of the State or Territory into an entitlement to a lump sum; and (c) the lump sum was calculated by reference to a period; this Part applies to the person as if: (d) the person had not received: (i) the lump sum; or (ii) if the lump sum was to be paid in instalments—any of the instalments; and (e) the person had received in each fortnight during the period a periodic compensation payment equal to: Lump sum amount Number of fortnights in the period where: lump sum amount is the amount of the lump sum referred to in paragraph (b); number of fortnights in the period is the number of whole fortnights in the period referred to in paragraph (c).
1165 Effect of certain State and Territory laws If: (a) a law of a State or Territory provides for the payment of compensation; and (b) the law includes a provision to the effect that a person’s compensation under the law is to be or may be reduced or cancelled if the person is qualified for or receives payments under this Act; this Act applies as if the person had received under the law the compensation that the person would have received under the law if the provision referred to in paragraph (b) had not been enacted.
320 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Enforcement of compensation rights Division 2 Section 1166 Division 2—Enforcement of compensation rights 1166 Secretary may require person to take action to obtain compensation (1) If: (a) a person receives or claims a compensation affected payment; and (b) the person or the person’s partner is, or, in the Secretary’s opinion, may be, entitled to compensation; and (c) the person or the partner: (i) has taken no action to claim or obtain the compensation; or (ii) has taken no action that the Secretary considers reasonable to claim or obtain the compensation; the Secretary may require the person or the partner to take the action specified by the Secretary.
(2) The action specified by the Secretary is to be the action that the Secretary considers reasonable to enable the person to claim or obtain the compensation.

(3) Even though a person has entered into an agreement to give up the person’s right to compensation, the Secretary may form the opinion that the person may be entitled to compensation if the Secretary is satisfied that the agreement is void, ineffective or unenforceable.
(4) For the purposes of subsection (3), a person enters into an agreement to give up the person’s right to compensation if the person: (a) enters into an agreement to waive the person’s right to compensation; or (b) enters into an agreement to withdraw the person’s claim for compensation.
Social Security Act 1991 321 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 2 Enforcement of compensation rights Section 1167 1167 Failure to comply with a requirement to take action to obtain compensation (1) If the Secretary, under section 1166, requires a person who receives or claims a compensation affected payment to take action to claim or obtain compensation, the compensation affected payment is not payable to the person or is not to be granted, as the case may be, unless the person complies with the requirement.
(2) If the Secretary requires the partner of a person who receives or claims a compensation affected payment to take action to claim or obtain compensation, the compensation affected payment is not payable to the person or is not to be granted, as the case may be, unless the partner complies with the requirement.
322 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Receipt of compensation Division 3 Section 1168 Division 3—Receipt of compensation 1168 Application A provision of this Division that refers to a person receiving or claiming a compensation affected payment and receiving a lump sum compensation payment has effect regardless of whether the lump sum compensation payment was received before or after the person received or claimed the compensation affected payment.
1169 Compensation affected payment not payable during lump sum preclusion period (1) If: (a) a person receives or claims a compensation affected payment; and (b) the person receives a lump sum compensation payment; the compensation affected payment is not payable to the person in relation to any day or days in the lump sum preclusion period.
(2) In this section: lump sum compensation payment does not include a lump sum payment: (a) to which section 1164 applies; or (b) that relates only to arrears of periodic compensation payments.
1170 Lump sum preclusion period (1) Subject to subsection (2), if a person receives both periodic compensation payments and a lump sum compensation payment, the lump sum preclusion period is the period that: (a) begins on the day following the last day of the periodic payments period or, where there is more than one periodic payments period, the day following the last day of the last periodic payments period; and Social Security Act 1991 323 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 3 Receipt of compensation Section 1171 (b) ends at the end of the number of weeks worked out under subsections (4) and (5).
(2) If a person chooses to receive part of an entitlement to periodic compensation payments in the form of a lump sum, the lump sum preclusion period is the period that: (a) begins on the first day on which the person’s periodic compensation payment is a reduced payment because of that choice; and (b) ends at the end of the number of weeks worked out under subsections (4) and (5).
(3) If neither of subsections (1) and (2) applies, the lump sum preclusion period is the period that: (a) begins on the day on which the loss of earnings or loss of capacity to earn began; and (b) ends at the end of the number of weeks worked out under subsections (4) and (5).
(4) The number of weeks in the lump sum preclusion period in relation to a person is the number worked out using the formula: Compensation part of lump sum Income cut-out amount (5) If the number worked out under subsection (4) is not a whole number, the number is to be rounded down to the nearest whole number.
1171 Deemed lump sum payment arising from separate payments (1) If: (a) a person receives 2 or more lump sum payments in relation to the same event that gave rise to an entitlement of the person to compensation (the multiple payments); and (b) at least one of the multiple payments is made wholly or partly in respect of lost earnings or lost capacity to earn; 324 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Receipt of compensation Division 3 Section 1172 the following paragraphs have effect for the purposes of this Act and the Administration Act: (c) the person is taken to have received one lump sum compensation payment (the single payment) of an amount equal to the sum of the multiple payments; (d) the single payment is taken to have been received by the person: (i) on the day on which he or she received the last of the multiple payments; or (ii) if the multiple payments were all received on the same day, on that day.
(2) A payment is not a lump sum payment for the purposes of paragraph (1)(a) if it relates exclusively to arrears of periodic compensation.
1172 Lump sum compensation not counted as ordinary income If an amount of a compensation affected payment is not payable to a person under section 1169 because the person has received a lump sum compensation payment, that lump sum compensation payment is not to be regarded as ordinary income of either the person or the person’s partner (if any) for the purposes of a provision of this Act, other than point 1071A-4.
1173 Effect of periodic compensation payments on rate of person’s compensation affected payment (1) If: (a) a person receives periodic compensation payments; and (b) the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, qualified for, and receiving, a compensation affected payment; and (c) the person receives or claims a compensation affected payment in relation to a day or days in the periodic payments period; Social Security Act 1991 325 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 3 Receipt of compensation Section 1174 the rate of the person’s compensation affected payment in relation to that day or those days is reduced in accordance with subsection (2).
(2) The person’s daily rate of compensation affected payment is reduced by the amount of the person’s daily rate of periodic compensation.

(3) The reference in subsection (2) to a daily rate of periodic compensation is a reference to the amount worked out by dividing the total amount of the periodic compensation payments referred to in paragraph (1)(a) by the number of days in the periodic payments period.
(4) If: (a) a person receives periodic compensation payments; and (b) at the time of the event that gave rise to the entitlement of the person to compensation, the person was qualified for, and was receiving, a compensation affected payment; and (c) the person receives or claims a compensation affected payment in relation to a day or days in the periodic payments period; the periodic compensation payments are to be treated as ordinary income of the person for the purposes of this Act.
1174 Effect of periodic compensation payments on rate of partner’s compensation affected payment (1) If: (a) a person receives periodic compensation payments; and (b) the person is a member of a couple; and (c) the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, qualified for, and receiving, a compensation affected payment; and (d) the person is qualified for a compensation affected payment in relation to a day or days in the periodic payments period but, solely because of the operation of this Part, does not, or would not, receive the payment; and 326 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Receipt of compensation Division 3 Section 1175 (e) the person’s partner receives or claims a compensation affected payment in relation to a day or days in the periodic payments period; the amount (if any) by which the daily rate of periodic compensation payable to the person exceeds the daily rate of the compensation affected payment for which the person is qualified in relation to a day or days in the periodic payments period (the excess amount) is to be treated as ordinary income of the person’s partner for the purpose of the calculation of the amount of the compensation affected payment referred to in paragraph (e).
(2) The reference in subsection (1) to a daily rate of periodic compensation is a reference to the amount worked out by dividing the total amount of the periodic compensation payments referred to in paragraph (1)(a) by the number of days in the periodic payments period.
(3) For the purposes of subsection (1): (a) the amount that would, apart from this section, be the amount of the partner’s ordinary income in relation to the day or days referred to in paragraph (1)(e) is to be increased by the excess amount; and (b) the increased amount is to be taken to be the amount of the partner’s ordinary income in relation to that day or those days, as the case may be.
1175 Rate reduction under both income/assets test and this Part If the rate of a person’s compensation affected payment is reduced under this Part, the reduction applies to the person’s rate as reduced under the ordinary income test Module or the assets test Module of the relevant Rate Calculator.
1176 Periodic compensation not counted as ordinary income If an instalment of a compensation affected payment payable to a person is reduced under section 1173 because of the receipt of periodic compensation payments, those payments are not to be Social Security Act 1991 327 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 3 Receipt of compensation Section 1176 regarded as ordinary income of the person for the purposes of a provision of this Act, other than point 1071A-4.
328 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Recoverable amounts Division 4 Section 1177 Division 4—Recoverable amounts Subdivision A—Preliminary 1177 Interpretation If: (a) a person is liable to make a compensation payment to another person; or (b) an authority of a State or Territory has determined that it will make a compensation payment to another person, whether or not it is liable to make the payment; then, for the purposes of this Division, in relation to the person to whom the compensation is payable or is to be paid, the following paragraphs have effect: (c) a reference to the lump sum preclusion period is a reference to the period that would represent the lump sum preclusion period if the compensation were paid in accordance with the liability or determination; (d) a reference to the periodic payments period is a reference to the period that would represent the periodic payments period if the compensation were paid in accordance with the liability or determination.
Subdivision B—Recovery from recipient of compensation affected payment 1178 Repayment of amount where both lump sum and payments of compensation affected payment have been received (1) If: (a) a person receives a lump sum compensation payment; and (b) the person receives payments of a compensation affected payment in relation to a day or days in the lump sum preclusion period; Social Security Act 1991 329 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 4 Recoverable amounts Section 1179 the Secretary may, by written notice to the person, determine that the person is liable to pay to the Commonwealth the amount specified in the notice.
(2) The amount to be specified in the notice is the recoverable amount under section 1179.

1179 The section 1178 recoverable amount The recoverable amount under this section is equal to the smaller of the following amounts: (a) the compensation part of the lump sum compensation payment; (b) the sum of the payments of the compensation affected payment made to the person in relation to a day or days in the lump sum preclusion period.
1180 Repayment where both periodic compensation payments and payments of compensation affected payment have been received (1) If: (a) a person receives periodic compensation payments; and (b) the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, qualified for, and receiving, a compensation affected payment; and (c) the person receives payments of a compensation affected payment in relation to a day or days in the periodic payments period; and (d) the payments referred to in paragraph (c) have not been reduced to nil as a result of the operation of section 1173; the Secretary may, by written notice to the person, determine that the person is liable to pay to the Commonwealth the amount specified in the notice.
(2) The amount to be specified in a notice for the purpose of subsection (1) is the recoverable amount under section 1181.
330 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Recoverable amounts Division 4 Section 1181 1181 The section 1180 recoverable amount (1) Subject to subsection (2), the recoverable amount under this section is equal to the smaller of the following amounts: (a) the sum of the periodic compensation payments; (b) the difference between: (i) the sum of the compensation affected payments made to the person in relation to a day or days in the periodic payments period; and (ii) the sum of the compensation affected payments that would have been made to the person in relation to any such day or days had those payments been made at the rate to which the payments were reduced as a result of the operation of section 1173.
(2) If: (a) a person is a member of a couple; and (b) the person’s partner receives a compensation affected payment in relation to a day or days in the periodic payments period; the recoverable amount under this section is equal to the smaller of the following amounts: (c) the sum of the periodic compensation payments; (d) the difference between: (i) the sum of the compensation affected payments made to the person and the person’s partner in relation to a day or days in the periodic payments period; and (ii) the sum of the compensation affected payments that would have been made to the person and the person’s partner in relation to any such day or days had those payments been made at the rates to which the payments were reduced as a result of the operation of sections 1173 and 1174.
Social Security Act 1991 331 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 4 Recoverable amounts Section 1182 Subdivision C—Recovery from compensation payers and insurers 1182 Secretary may send preliminary notice to potential compensation payer or insurer (1) If: (a) a person (the claimant) makes a claim against another person (the potential compensation payer) for compensation; and (b) the claimant claims a compensation affected payment in relation to a day or days in the periodic payments period or the lump sum preclusion period, as the case may be; the Secretary may give written notice to the potential compensation payer that the Secretary may wish to recover an amount from the potential compensation payer.
(2) If: (a) a person (the claimant) makes a claim against a person (the potential compensation payer) for compensation; and (b) the claimant claims a compensation affected payment for a day or days in the periodic payments period or the lump sum preclusion period, as the case may be; and (c) an insurer, under a contract of insurance, may be liable to indemnify the potential compensation payer against any liability arising from the claim for compensation; the Secretary may give written notice to the insurer that the Secretary may wish to recover an amount from the insurer.
(3) A notice must contain: (a) a statement of the potential compensation payer’s or insurer’s obligation under section 1183; and (b) a statement of the effect of section 1184D so far as it relates to the notice.
332 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Recoverable amounts Division 4 Section 1183 1183 Potential compensation payer or insurer must notify Secretary of liability (1) If a person (the potential compensation payer): (a) is given a notice under subsection 1182(1) in relation to a person; and (b) whether before or after receiving the notice, the potential compensation payer becomes liable to pay compensation to the person; the potential compensation payer must give written notice to the Secretary of the liability within 7 days after: (c) becoming liable; or (d) receiving the notice; whichever happens later.
Penalty: Imprisonment for 12 months.

(2) If an insurer: (a) is given a notice under subsection 1182(2) in relation to a claim by a person; and (b) whether before or after receiving the notice, the insurer becomes liable to indemnify the potential compensation payer, either wholly or partly, in relation to the claim; the insurer must give written notice to the Secretary of the liability within 7 days after: (c) becoming liable; or (d) receiving the notice; whichever happens later.
Penalty: Imprisonment for 12 months.

(3) Strict liability applies to: (a) an element of an offence against subsection (1) that a notice is a notice under subsection 1182(1); and (b) an element of an offence against subsection (2) that a notice is a notice under subsection 1182(2).
Social Security Act 1991 333 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 4 Recoverable amounts Section 1184 1184 Secretary may send recovery notice to compensation payer or insurer (1) If: (a) a person (the compensation payer): (i) is liable to pay compensation to a person (a claimant); or (ii) where the compensation payer is an authority of a State or Territory, has determined that a payment by way of compensation is to be made to a claimant; and (b) the claimant has received a compensation affected payment in relation to a day or days in the periodic payments period or the lump sum preclusion period, as the case may be; the Secretary may give written notice to the compensation payer that the Secretary proposes to recover from the compensation payer the amount specified in the notice.
(2) If: (a) an insurer is liable, under a contract of insurance, to indemnify a compensation payer against any liability arising from a person’s claim for compensation; and (b) the person has received a compensation affected payment in relation to a day or days in the periodic payments period or the lump sum preclusion period, as the case may be; the Secretary may give written notice to the insurer that the Secretary proposes to recover from the insurer the amount specified in the notice.
(3) If a compensation payer or insurer is given notice under subsection (1) or (2), as the case may be, the compensation payer or insurer is liable to pay to the Commonwealth the amount specified in the notice.

(4) The amount to be specified in the notice is the recoverable amount under section 1184A.

(5) A notice under this section must contain a statement of the effect of section 1184D so far as it relates to such a notice.
334 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Recoverable amounts Division 4 Section 1184A (6) This section applies to an amount payable by way of compensation in spite of any law of a State or Territory (however expressed) under which the compensation is inalienable.
1184A The section 1184 recoverable amount (1) If a person receives compensation affected payments in relation to a day or days in a lump sum preclusion period, the recoverable amount under this section is equal to the smallest of the following amounts: (a) the sum of all compensation affected payments made to the person that relate to a day or days in a lump sum preclusion period; (b) the compensation part of the lump sum payment; (c) in the case of a compensation payer—the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving: (i) a notice under section 1182 in relation to the matter; or (ii) if the compensation payer has not received a notice under section 1182—the notice under section 1184 in relation to the matter; (d) in the case of an insurer—the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving: (i) a notice under section 1182 in relation to the matter; or (ii) if the insurer has not received a notice under section 1182—the notice under section 1184 in relation to the matter.
(2) Subject to subsection (4), if: (a) a person receives compensation affected payments in relation to a day or days in a periodic payments period; and (b) either: (i) the person is not a member of a couple; or (ii) the person’s partner neither receives nor claims a compensation affected payment in relation to any day in the periodic payments period; Social Security Act 1991 335 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 4 Recoverable amounts Section 1184A the recoverable amount under this section is equal to the smallest of the following amounts: (c) the difference between: (i) the sum of all compensation affected payments made to the person that relate to a day or days in a periodic payments period; and (ii) the sum of all compensation affected payments that would have been made to the person in relation to any such day or days had those payments been reduced in accordance with section 1173; (d) the sum of the amounts of the periodic compensation payments; (e) in the case of a compensation payer—the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving: (i) a notice under section 1182 in relation to the matter; or (ii) if the compensation payer has not received a notice under section 1182—the notice under section 1184 in relation to the matter; (f) in the case of an insurer—the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving: (i) a notice under section 1182 in relation to the matter; or (ii) if the insurer has not received a notice under section 1182—the notice under section 1184 in relation to the matter.
(3) Subject to subsection (4), if: (a) the person claiming compensation is a member of a couple; and (b) compensation affected payments received by the person were received in relation to a day or days in a periodic payments period; and (c) the person’s partner receives a compensation affected payment in relation to a day or days in the periodic payments period; 336 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Recoverable amounts Division 4 Section 1184A the recoverable amount under this section is equal to the smallest of the following amounts: (d) the difference between: (i) the sum of all compensation affected payments made to the person and the person’s partner in relation to a day or days in the periodic payments period; and (ii) the sum of all compensation affected payments that would have been made to the person and the person’s partner in relation to any such day or days had those payments been reduced as a result of the operation of section 1173 or 1174; (e) the sum of the amounts of the periodic compensation payments; (f) in the case of a compensation payer—the maximum amount that the compensation payer is liable to pay to the person in relation to the matter at any time after receiving: (i) a notice under section 1182 in relation to the matter; or (ii) if the compensation payer has not received a notice under section 1182—the notice under section 1184 in relation to the matter; (g) in the case of an insurer—the maximum amount for which the insurer is liable to indemnify the compensation payer in relation to the matter at any time after receiving: (i) a notice under section 1182 in relation to the matter; or (ii) if the insurer has not received a notice under section 1182—the notice under section 1184 in relation to the matter.
(4) If: (a) at the time of the event that gave rise to the entitlement of a person to compensation, the person was qualified for, and was receiving, a compensation affected payment; and (b) the person or the person’s partner received or claimed a compensation affected payment in relation to a day or days in the periodic payments period; Social Security Act 1991 337 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 4 Recoverable amounts Section 1184B the recoverable amount is the amount determined by the Secretary to be the total amount by which the person’s, or the person’s partner’s, compensation affected payment in relation to a day or days in the periodic payments period would have been reduced if a determination had been made under Division 7 of Part 3 of the Administration Act because of point 1064-E3, 1066A-F2A, 1067G-H25, 1067L-D24, 1068-G8A, 1068A-E13 or 1068B-D21 of this Act.
1184B Preliminary notice or recovery notice suspends liability to pay compensation (1) If a compensation payer has been given a notice under section 1182 or 1184 in relation to the compensation payer’s liability, or possible liability, to pay compensation, the compensation payer is not liable to pay that compensation while the notice has effect.
(2) If an insurer has been given a notice under section 1182 or 1184 in relation to the insurer’s liability, or possible liability, to indemnify a compensation payer against a liability arising from a claim for compensation: (a) the insurer is not liable to so indemnify the compensation payer; and (b) the compensation payer is not liable to pay that compensation; while the notice has effect.
1184C Compensation payer’s or insurer’s payment to Commonwealth discharges liability to compensation claimant (1) Payment to the Commonwealth of an amount that a compensation payer is liable to pay under section 1184 in relation to a person operates, to the extent of the payment, as a discharge of the compensation payer’s liability to pay compensation to the person.
338 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Recoverable amounts Division 4 Section 1184D (2) Payment to the Commonwealth of an amount that an insurer is liable to pay under section 1184 in relation to a person operates, to the extent of the payment, as a discharge of: (a) the insurer’s liability to the compensation payer; and (b) the compensation payer’s liability to pay compensation to the person.
1184D Offence to make compensation payment after receiving preliminary notice or recovery notice (1) If a person (the potential compensation payer) has been given a notice under section 1182 or 1184 in relation to the payment of compensation to a person, the potential compensation payer must not make the compensation payment to the person.

Penalty: Imprisonment for 12 months.


(1A) Subsection (1) does not apply if: (a) in the case of a notice under section 1182—the Secretary has given the potential compensation payer written notice that the notice under section 1182 is revoked; or (b) in the case of a notice under section 1184—the potential compensation payer has paid to the Commonwealth the amount specified in the notice; or (c) the Secretary has given the potential compensation payer written permission to pay the compensation.
(2) If an insurer has been given a notice under section 1182 or 1184 in relation to the insurer’s liability to indemnify a compensation payer, the insurer must not make any payment to the compensation payer in relation to that liability.

Penalty: Imprisonment for 12 months.
(2A) Subsection (2) does not apply if: (a) in the case of a notice under section 1182—the Secretary has given the insurer written notice that the notice under section 1182 is revoked; or Social Security Act 1991 339 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 4 Recoverable amounts Section 1184E (b) in the case of a notice under section 1184—the insurer has paid to the Commonwealth the amount specified in the notice; or (c) the Secretary has given the insurer written permission to pay the amount.
(3) Strict liability applies to an element of an offence against subsection (1) or (2) that: (a) a notice is a notice under section 1182; or (b) a notice is a notice under section 1184.
1184E Liability of compensation payer or insurer to pay the Commonwealth if there is a contravention of section 1184D (1) A compensation payer or insurer who contravenes section 1184D is, in addition to being liable under that section, liable to pay to the Commonwealth: (a) if the contravention relates to a notice under section 1182— an amount determined by the Secretary; or (b) if the contravention relates to a notice under section 1184— the recoverable amount specified in the notice.
(2) The amount determined by the Secretary under paragraph (1)(a) must not be more than the smallest of the amounts worked out: (a) if the person is not a member of a couple—under subsection 1184A(1), (2) or (4), as the case requires; or (b) if the person is a member of a couple—under subsection 1184A(1), (2), (3) or (4), as the case requires.
(3) This section applies in relation to a payment by way of compensation in spite of any law of a State or Territory (however expressed) under which the compensation is inalienable.
340 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Recoverable debts Division 5 Section 1184F Division 5—Recoverable debts 1184F Debts resulting from notices under section 1178 or 1180 If the Secretary gives a person a notice under section 1178 or 1180 determining that the person is liable to pay to the Commonwealth the amount specified in the notice, the amount so specified is a debt due by the person to the Commonwealth.
1184G Debts resulting from notices under section 1184 If the Secretary gives a person a notice under section 1184 that the Secretary proposes to recover a specified amount from the person, the specified amount is a debt due by the person to the Commonwealth.

1184H Debts resulting from contravention of section 1184D (1) An amount payable by a compensation payer under section 1184E is a debt due by the compensation payer to the Commonwealth.
(2) An amount payable by an insurer under section 1184E is a debt due by the insurer to the Commonwealth.

1184I Compensation arrears debts (1) If an adverse determination is made in relation to a person because of point 1064-E3, 1066A-F2A, 1067G-H25, 1067L-D24, 1068-G8A, 1068A-E13 or 1068B-D21, the amount that the person is liable to pay to the Commonwealth because of the determination is a debt due by the person to the Commonwealth.
(2) In this section: adverse determination means a determination under section 79, 80, 81 or 82 of the Administration Act.
Social Security Act 1991 341 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 6 Miscellaneous Section 1184J Division 6—Miscellaneous 1184J Secretary may give recovery notice either to compensation payer or to insurer but not to both (1) The Secretary is not to give a notice to an insurer under section 1184 about a matter if there is a notice to a compensation payer under section 1184 in force in relation to the same matter.
(2) The Secretary is not to give a notice to a compensation payer under section 1184 about a matter if there is a notice to an insurer under section 1184 in force in relation to the same matter.

1184K Secretary may disregard some payments (1) For the purposes of this Part, the Secretary may treat the whole or part of a compensation payment as: (a) not having been made; or (b) not liable to be made; if the Secretary thinks it is appropriate to do so in the special circumstances of the case.
(2) If: (a) a person or a person’s partner receives or claims a compensation affected payment; and (b) the person receives compensation; and (c) the set of circumstances that gave rise to the claim for compensation is not related to the set of circumstances that gave rise to the person’s or the person’s partner’s receipt of, or claim for, the compensation affected payment; the fact that those 2 sets of circumstances are unrelated does not alone constitute special circumstances for the purposes of subsection (1).
342 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Compensation recovery Part 3.14 Miscellaneous Division 6 Section 1184L 1184L Application to review compensation decision—disability support pension (1) This section applies if a person claims a disability support pension and: (a) the Secretary decides under section 1167 that the pension is not to be granted or is not payable; or (b) the Secretary decides under section 1169 that the pension is not payable; or (c) the Secretary decides that, if the person were qualified for the pension, the rate of the pension would be reduced to nil under section 1173.
(2) If: (a) an application referred to in section 142 of the Administration Act is made for AAT first review of that decision; and (b) at the time of the application, the Secretary has not taken the necessary steps to satisfy himself or herself whether the person is qualified for the disability support pension; and (c) the person who claimed the disability support pension requests the Secretary, in writing, to take those steps; the Secretary must take those steps as soon as practicable after the request is made.
1185 Special provision for certain recipients of dependency-based payments (1) This section applies to a person if: (a) the person is a member of a couple; and (b) the person was a member of the same couple immediately before 20 September 2001; and (c) the person’s partner was receiving a compensation affected payment immediately before 20 September 2001; and (d) the person was receiving a dependency-based payment immediately before 20 September 2001; and (e) the person was born on or before 1 July 1955.
Social Security Act 1991 343 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.14 Compensation recovery Division 6 Miscellaneous Section 1185 (2) If this section applies to a person, the following paragraphs have effect: (a) the dependency-based payment does not cease to be payable to the person only because the person’s partner receives periodic compensation payments; (b) in spite of Division 3, the person continues to be qualified for the dependency-based payment to the same extent as he or she would have if the person’s partner had not received the payments of compensation.
(3) Paragraph (2)(b) does not prevent a dependency-based payment being cancelled, or ceasing to be payable, under a provision of the social security law, other than a provision of this Part.

(4) Paragraph (2)(b) does not prevent the rate of a dependency-based payment being reduced or cancelled under the social security law because of the operation of section 1174.

(5) In this section: dependency-based payment means: (b) mature age partner allowance; or (c) partner allowance.
344 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 New Enterprise Incentive Scheme Part 3.15 Section 1186 Part 3.15—New Enterprise Incentive Scheme 1186 General effect of Part This Part adjusts the social security pension or benefit rate of a person who is receiving or whose partner is receiving, payments under the scheme known as the New Enterprise Incentive Scheme (NEIS).
1187 Reduction in rate of payments under this Act if recipient or partner also receiving payments under New Enterprise Incentive Scheme (NEIS) (1) If: (a) an instalment of: (ia) age pension; or (i) disability support pension; or (iii) carer payment; or (iv) parenting payment; or (vi) special needs pension; is payable to a person during an instalment period; and (b) NEIS is payable to the person during that instalment period; the rate of the payment referred to in paragraph (a) is to be reduced under this Part.
(1A) If: (a) a payment of: (ia) widow allowance; or (ii) jobseeker payment; or (iv) special benefit; or (iva) partner allowance; or (va) mature age allowance under Part 2.12B; is payable to a person during an instalment period; and Social Security Act 1991 345 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15 New Enterprise Incentive Scheme Section 1188 (b) NEIS is payable to the person, or in respect of the person, during that instalment period; the rate of the payment referred to in paragraph (a) is to be reduced under this Part.
(2) If: (a) an instalment of: (ia) age pension; or (i) disability support pension; is payable to a person during an instalment period; and (b) NEIS is payable to the person during that instalment period; and (c) an instalment of carer payment in respect of the person is payable to the person’s partner during an instalment period; the rate of the partner’s payment is to be reduced under this Part.
1188 Rate reduction under this Part (1) Subject to subsection (2), if a person’s rate of payment under this Act is to be reduced under this Part because of a NEIS payment, the amount of rate reduction is to be equal to the amount of the NEIS payment.
(2) If: (a) a person’s rate of payment under this Act is to be reduced under this Part because of a NEIS payment; and (b) the person’s partner’s rate of payment under this Act is also to be reduced under this Part (see subsection 1187(2)) because of the NEIS payment; the amount of rate reduction for both the person and the person’s partner is to be equal to 50% of the amount of the NEIS payment.

(3) A person’s rate of payment under this Act is not to be reduced below nil under subsection (1) or (2).
346 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A Preliminary Division 1 Section 1188A Part 3.15A—Community Development Employment Projects Scheme Division 1—Preliminary 1188A General effect of Part (1) This Part has the effect, in certain circumstances, of reducing a person’s social security entitlement in respect of a period in respect of which the person is a CDEP Scheme participant.
(2) This Part also provides, in certain circumstances, a supplement for a person for a period in respect of which the person is a CDEP Scheme participant.
1188B CDEP Scheme participants (1) If immediately before 1 July 2009 a person was entitled to receive a CDEP Scheme payment under an agreement of the kind referred to in the definition of CDEP Scheme provider in subsection 23(1), the person is a CDEP Scheme participant in respect of a day on or after 1 July 2009 if the person is entitled, on that day, to receive such a payment under such an agreement.

Note: For CDEP Scheme payment see subsection 23(1).
(2A) Without limiting persons who are not CDEP Scheme participants, a person who is undertaking an activity approved by the Secretary under section 1188BA as a Northern Territory CDEP transitional activity is not a CDEP Scheme participant.

1188BA Approval of Northern Territory CDEP transitional activities (1) The Secretary may, in writing, approve an activity as a Northern Territory CDEP transitional activity for the purposes of this Act.
(2) An approval under subsection (1) is not a legislative instrument.
Social Security Act 1991 347 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 1 Preliminary Section 1188BB 1188BB Effect of undertaking Northern Territory CDEP transitional activities A person is not taken to be: (a) a worker carrying out work in any capacity for the Commonwealth, or an employee of the Commonwealth, for the purposes of the Work Health and Safety Act 2011; or (b) an employee within the meaning of section 5 of the Safety, Rehabilitation and Compensation Act 1988; or (c) an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992; or (d) an employee for the purposes of the Fair Work Act 2009; merely by undertaking an activity approved by the Secretary under section 1188BA as a Northern Territory CDEP transitional activity for the purposes of this Act.
348 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A Reduction in rate of pension or allowance Division 2 Section 1188C Division 2—Reduction in rate of pension or allowance 1188C Reductions in rate of payments under this Act if recipient or partner also receiving payments under CDEP Scheme (1) If: (a) an instalment of any of the following: (i) age pension; (ii) disability support pension; (iv) carer payment; (v) parenting payment at the rate applicable for a person who is not a member of a couple; (ix) special needs pension; is payable to a person in respect of a payment period or in respect of a pension payday; and (b) a CDEP Scheme payment is payable to the person or the person’s partner in respect of the whole or a part of that payment period or in respect of that pension payday, as the case may be; the following provisions have effect: (c) if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person exceeds the person’s threshold: (i) the amount of the instalment is reduced by the part of the CDEP Scheme payment that does not exceed the person’s threshold; and (ii) the ordinary income of the person includes the part of the CDEP Scheme payment that exceeds the person’s threshold; (d) if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person does not exceed the person’s threshold: (i)
 the amount of the instalment is reduced by the amount of the CDEP Scheme payment; and (ii) the CDEP Scheme payment is not ordinary income of the person; Social Security Act 1991 349 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 2 Reduction in rate of pension or allowance Section 1188C (e) if a CDEP Scheme payment referred to in paragraph (b)
 that is payable to the person’s partner exceeds the partner’s threshold: (i) the part of the CDEP Scheme payment that does not exceed the partner’s threshold is not ordinary income of the person or of the person’s partner; and (ii) the ordinary income of the person’s partner includes the part of the CDEP Scheme payment that exceeds the partner’s threshold; (f) if a CDEP Scheme payment referred to in paragraph (b) that is payable to the person’s partner does not exceed the partner’s threshold, the CDEP Scheme payment is not ordinary income of the person or of the person’s partner.
(2) If a person who had been receiving instalments of a pension payment, allowance or benefit referred to in paragraph (1)(a) dies, then, in calculating any bereavement payment in respect of the person, any deductions made from the amounts of the instalments under subparagraph (1)(c)(i), (d)(i) or (e)(i) are to be disregarded.
(3) If: (a) a payment of any of the following: (i) widow allowance; (ii) jobseeker payment; (iii) youth allowance; (iv) parenting payment at the rate applicable for a person who is a member of a couple; (v) partner allowance; (vii) special benefit; is payable to a person in respect of a payment period; and (b) a CDEP Scheme payment is payable to the person in respect of the whole or a part of that period; the following provisions have effect: (c) if the CDEP Scheme payment referred to in paragraph (b) exceeds the person’s threshold, the ordinary income of the 350 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A Reduction in rate of pension or allowance Division 2 Section 1188C person includes the part of the CDEP Scheme payment that exceeds the person’s threshold; (d) if the CDEP Scheme payment referred to in paragraph (b) does not exceed the person’s threshold, the CDEP Scheme payment is not ordinary income of the person; (e) if a payment of a social security benefit referred to in paragraph (a) is payable to the person’s partner in respect of the payment period, the ordinary income of the person, for the purposes of working out the rate of the person’s partner’s social security benefit, includes an amount equal to the person’s CDEP payment.
(4) This section applies in respect of payment periods beginning on or after 20 March 2000.
(5) In this section: threshold: (a) in relation to a person, means the amount referred to in column 4 of Table A in this subsection that is applicable in relation to the person having regard to the type of pension, allowance, benefit or payment referred to in column 2 of that table that would be payable to the person if the person were not a CDEP Scheme participant and the situation (if any) referred to in column 3 of that table that is applicable to the person; or (b) in relation to the partner of a person, means: (i) if the partner is not receiving any pension, allowance, benefit or other payment under this Act—the amount specified in item 7 of column 3B of Table B in point 1068-B1; or (ii) if the partner is receiving a pension, allowance, benefit or other payment under this Act—the amount that would be applicable under the appropriate item in Table A in this subsection if that table applied to the partner, having regard to the type of pension, allowance, benefit or other payment referred to in column 2 of that table that is payable to the partner and the situation (if any) Social Security Act 1991 351 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 2 Reduction in rate of pension or allowance Section 1188C referred to in column 3 of that table that is applicable to the partner.
Column 3 Situation Column 4 Person’s threshold Table A—Threshold amounts Column 1 Column 2 Type of pension, allowance, benefit or payment Age pension Item 1 2 3 Not member of a couple Age pension Member of a couple Disability support pension Not member of a couple The amount specified in column 3B of item 4A of Table B in point 1068-B1 The amount specified in column 3B of item 7 of Table B in point 1068-B1 The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the amount specified in column 4 of the item of Table B in point 1066A-B1 (including any amount required to be added by point 1066A-C1) that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser 352 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A Reduction in rate of pension or allowance Division 2 Section 1188C Table A—Threshold amounts Column 1 Column 2 Type of pension, allowance, benefit or payment Column 3 Situation Column 4 Person’s threshold Item 4 6 7 11 12 16 Disability support pension Member of a couple Carer payment Not member of a couple Carer payment Member of a couple Special needs pension Not member of a couple Special needs pension Member of a couple Jobseeker payment Not member of a couple and is under the age of 60 The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the
 amount specified in column 4 of the item in Table B in point 1066A-B1 (including any amount required to be added by point 1066A-C1) that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser The amount specified in column 3B of item 4A of Table B in point 1068-B1 The amount specified in column 3B of item 7 of Table B in point 1068-B1 The amount specified in column 3B of item 4A of Table B in point 1068-B1 The amount specified in column 3B of item 7 of Table B in
 point 1068-B1 The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser Social Security Act 1991 353 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 2 Reduction in rate of pension or allowance Section 1188C Table A—Threshold amounts Column 1 Column 2 Item Type of pension, allowance, benefit or payment Column 3 Situation Column 4 Person’s threshold The amount specified in column 3B of item 5 of Table B in point 1068-B1 The amount specified in column 3B of item 4B of Table B in point 1068-B1 17 Jobseeker payment Not member of a couple, is over the age of 60, and has been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment 18 Jobseeker payment Not member of a couple, is over the age of 60, and has not been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment 354 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions
 relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A Reduction in rate of pension or allowance Division 2 Section 1188C Table A—Threshold amounts Column 1 Column 2 Type of pension, allowance, benefit or payment Item 19 Column 3 Situation Column 4 Person’s threshold Jobseeker payment Not member of a couple and has a dependent child The amount specified in column 3A of item 4A of Table B in point 1068-B1 The amount worked out under point 1068-B5 19A Jobseeker
 payment Not member of a couple and not required to satisfy the activity test because of a determination in relation to the person under subsection 602C( 3) or (3A) 20 Jobseeker payment Member of illness separated couple, whether or not the person has a dependent child 21 Jobseeker payment Member of a couple whether or not the person has a dependent child The amount specified in column 3B of item 9 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser Social Security Act 1991 355 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 2 Reduction in rate of pension or allowance Section 1188C Table A—Threshold amounts Column 1 Column 2 Item Type of pension, allowance, benefit or payment Column 3 Situation Column 4 Person’s threshold The amount specified in column 3B of item 11 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser The amount specified in column 3B of item 4A of Table B in point 1068-B1 The
 amount specified in column 3B of item 5 of Table B in point 1068-B1 22 Jobseeker payment Member of a couple but partner in gaol 23 24 Widow allowance Under the age of 60 Widow allowance Over the age of 60 and has been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment 356 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal
 Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A Reduction in rate of pension or allowance Division 2 Section 1188C Column 3 Situation Column 4 Person’s threshold Table A—Threshold amounts Column 1 Column 2 Item Type of pension, allowance, benefit or payment 25 Widow allowance 26 Special benefit Over the age of 60 and has not been receiving for a continuous period of at least 9 months one or more of a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment Not member of a couple 27 Special benefit Member of a couple The amount specified in column 3B of item 4B of Table B in point 1068-B1 The amount specified in column 3B of item 4A of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser Social Security Act 1991 357 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 2 Reduction in rate of pension or allowance Section 1188C Table A—Threshold amounts Column 1 Column 2
 Item Type of pension, allowance, benefit or payment 28 Partner allowance Column 3 Situation Column 4 Person’s threshold The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply to the person if the person were not a CDEP Scheme participant, whichever is the lesser The amount specified in column 3B of item 4A of Table B in point 1068-B1 The amount specified in column 3B of item 7 of Table B in point 1068-B1 or the maximum basic rate that would apply
 to the person if the person were not a CDEP Scheme participant, whichever is the lesser The amount specified in column 3 of the item of Table BA in point 1067G-B2 that would apply to the person if the person were not a CDEP Scheme participant The amount specified in column 3 of the item of Table BB in point 1067G-B3 that would apply to the person if the person were not a CDEP Scheme participant 31 32 Parenting payment Not member of a couple Parenting payment Member of a couple 33 Youth allowance Not independent 34 Youth allowance Independent 358 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A Reduction in rate of pension or allowance Division 2 Section 1188C Table A—Threshold amounts Column 1 Column 2 Item Type of pension, allowance, benefit or payment 35 Youth allowance Column 3 Situation Column 4 Person’s threshold The amount worked out under point 1067G-B3A Independent, not long term income support student, not member of a couple and has an exemption under section 542FA because of a determination in relation to the person under subsection 542FA (3) or (3A) Note: For CDEP Scheme payment see subsection 23(1).
(5A) To avoid doubt, for the purposes of item 19 of Table A in subsection (5), a person is taken to have a dependent child if point 1068-B1B has the effect that the person’s maximum basic rate of jobseeker payment is worked out as if the person had a dependent child.

(5B) Subsection (5A) does not limit the circumstances in which a person has a dependent child for the purposes of the item mentioned in that subsection.
(6) In items 26 and 27 of Table A in subsection (5), a reference to the maximum basic rate that would apply to a person is a reference to the amount that would be the person’s maximum basic rate if the person were receiving the appropriate payment.
(7) For the purpose of subsection (6), the appropriate payment is the social security payment, other than special benefit, that, in the opinion of the Secretary, is the social security payment that it is Social Security Act 1991 359 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 2 Reduction in rate of pension or allowance Section 1188C equitable to take into account for the purposes of subsection (6), having regard to the circumstances of the person concerned.
(8) To avoid doubt, for the purposes of item 34 of Table A in subsection (5), a person is taken to have a dependent child if point 1067G-B3AA has the effect that the person’s maximum basic rate of youth allowance is worked out as if the person had a dependent child.

(9) Subsection (8) does not limit the circumstances in which a person has a dependent child for the purposes of the item mentioned in that subsection.
360 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A CDEP Scheme Participant Supplement Division 3 Section 1188D Division 3—CDEP Scheme Participant Supplement 1188D Entitlement to Supplement: people receiving pension-type payments on or after 20 March 1999 (1) This section applies in respect of: (a) payment periods beginning on or after 20 March 1999; and (b) pension paydays occurring on or after that date.
(2) This section applies to a person in respect of a payment period (the relevant payment period) or in respect of a pension payday (the relevant pension payday) if: (a) an instalment of any of the following: (i) age pension; (ii) disability support pension; (iv) carer payment; (v) parenting payment at the rate applicable for a person who is not a member of a couple; (viii) special needs pension; is payable to a person in respect of the relevant payment period or the relevant pension payday; and (b) the person meets the requirements of subsection (3) or (4).
(3) The requirements of this subsection are: (a) that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday; and (b) that a CDEP Scheme payment is payable to the person in respect of the relevant payment period or the relevant pension payday.
(4) The requirements of this subsection are: (a) that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday; and (b) that a CDEP Scheme payment was payable to the person: Social Security Act 1991 361 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 3 CDEP Scheme Participant Supplement Section 1188E (i) in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period; or (ii) in respect of the 3 pension paydays immediately before the relevant pension payday.
(5) If this section applies to the person in respect of the relevant payment period or the relevant pension payday, then, subject to subsection (6), a CDEP Scheme Participant Supplement of $20.80 is payable to the person in respect of that period or payday.

Note: For CDEP Scheme payment see subsection 23(1).

(6) A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.
1188E Entitlement to Supplement between 20 March 1999 and 19 March 2000: people not covered by section 1188D (1) This section applies in respect of: (a) payment periods beginning on or after 20 March 1999 and not later than 19 March 2000; or (b) pension paydays occurring on or after 20 March 1999 and not later than 19 March 2000.
(2) This section applies to a person in respect of a payment period (the relevant payment period) or in respect of a pension payday (the relevant pension payday) if the person meets the requirements of subsections (3) and (4).
(3) The requirements of this subsection are: (a) that the person is a CDEP Scheme participant in respect of the relevant payment period or the relevant pension payday; and (b) that a CDEP Scheme payment was payable to the person: (i) in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period; or 362 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A CDEP Scheme Participant Supplement Division 3 Section 1188E (ii) in respect of the 3 pension paydays immediately before the relevant pension payday.
(4) The requirement of this subsection is that the person satisfies the CDEP Scheme Participant Supplement income test in respect of the relevant payment period, or in respect of the payment period in which the relevant pension payday occurs, as mentioned in subsection (5) or (6), as the case requires.

(5) This is how to work out whether a person who is not a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement Step 1.


If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2.

Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3.

Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4.
Step 4.

Assume that the person’s maximum basic rate is the sum of: (a) (b) the amount specified in column 3B of item 4A of Table B in point 1068-B1; and the amount specified in column 4 of item 1 of Table F in point 1068-F15.

Step 5.

Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3 and 4.
Social Security Act 1991 363 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 3 CDEP Scheme Participant Supplement Section 1188E Step 6.

The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 5 is greater than zero.
(6) This is how to work out whether a person who is a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement Step 1.

If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2.

Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3.

Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.
Step 4.

Work out the total amount of any CDEP Scheme payments payable to the person’s partner in respect of the period.

Step 5.

Assume that the person’s partner’s ordinary income worked out on a fortnightly basis is increased by the total amount worked out under Step 4.

Step 6.

Assume that the person’s maximum basic rate is the sum of: (a) (b) the amount specified in column 3B of item 7 of Table B in point 1068-B1; and the amount specified in column 4 of item 2 of Table F in point 1068-F15.
364 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A CDEP Scheme Participant Supplement Division 3 Section 1188F Step 7.

Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3, 5 and 6.

Step 8.
Step 8.

The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 7 is greater than zero.

(7) If this section applies to the person in respect of the relevant payment period or the relevant pension payday then, subject to subsections (8) and (9), a CDEP Scheme Participant Supplement of $20 is payable to the person in respect of that period or payday.
(8) A CDEP Scheme Participant Supplement is not payable to a person under subsection (7) if: (a) the Secretary has made a request of the person in respect of the tax file number of the person or of his or her partner; and (b) the person has failed to satisfy the request; and (c) the Secretary has not exempted the person from having to satisfy the request.

Note 1: CDEP Scheme participant see subsection 23(1).

Note 2: For CDEP Scheme payment see subsection 23(1).
(9) A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.

1188F Entitlement to Supplement on or after 20 March 2000: people not covered by section 1188D (1) This section applies in respect of payment periods beginning on or after 20 March 2000.
(2) Subject to subsection (3), this section applies to a person: (a) in respect of a payment period (the relevant payment period) if the person is qualified in respect of that period for any of the following: Social Security Act 1991 365 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 3 CDEP Scheme Participant Supplement Section 1188F (i) widow allowance; (ii) jobseeker payment; (iii) youth allowance; (iv) special benefit; (v) parenting payment at the rate applicable for a person who is a member of a couple; (vi) partner allowance; (vii) mature age allowance under Part 2.12B; or (b) in respect of a payment period (also the relevant payment period) if the person is qualified in respect of that period for any of the following: (i) age pension; (ii) disability support pension; (iv) carer payment; (v) parenting payment at the rate applicable for a person who is not a member of a couple; (viii) special needs pension; but the pension, payment or allowance for which the person is qualified under this paragraph is not payable to the person in respect of that period.
(3) This section does not apply to a person in respect of the relevant payment period unless the person meets the requirements of subsections (4), (5), (6) and (7) in respect of the relevant payment period.
(4) The requirements of this subsection are: (a) that the person is a CDEP Scheme participant in respect of the relevant payment period; and (b) that a CDEP Scheme payment was payable to the person in respect of a payment period the whole or a part of which occurred within the 3 payment periods immediately before the relevant payment period.
(5) The requirement of this subsection is that the person satisfies the CDEP Scheme Participant Supplement income test in respect of 366 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A CDEP Scheme Participant Supplement Division 3 Section 1188F the relevant payment period as mentioned in subsection (8) or (9), as the case requires.
(6) The requirement of this subsection is that the relevant payment period does not fall within: (a) a waiting period; or (b) a liquid assets test waiting period; or (c) a lump sum preclusion period; or (d) a compensation preclusion period (see Part 3.14).
(7) The requirement of this subsection is that the relevant payment period does not fall within a period in respect of which the relevant allowance, benefit or payment referred to in paragraph (2)(a) or the relevant pension, payment or allowance referred to in paragraph (2)(b) is not payable to the person because of the operation of a provision of this Act relating to: (a) seasonal or intermittent workers; or (b) the value of the assets of the person or of his or her partner.
(8) This is how to work out whether a person who is not a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.

Method statement Step 1.

If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2.

Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3.

Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.
Step 4.
Assume that the person’s maximum basic rate is the sum of: Social Security Act 1991 367 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 3 CDEP Scheme Participant Supplement Section 1188F (a) (b) the amount specified in column 3B of item 4A of Table B in point 1068-B1; and the amount specified in column 4 of item 1 of the table in section 1070Q.
Step 5.

Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3 and 4.

Step 6.

The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 5 is greater than zero.

(9) This is how to work out whether a person who is a member of a couple satisfies the CDEP Scheme Participant Supplement income test in respect of a payment period.
Method statement Step 1.

If Benefit Rate Calculator B does not apply to the person, assume that it applies.

Step 2.

Work out the total amount of any CDEP Scheme payments payable to the person in respect of the period.

Step 3.

Assume that the person’s ordinary income worked out on a fortnightly basis is increased by that total amount.

Step 4.

Work out the total amount of any CDEP Scheme payments payable to the person’s partner in respect of the period.

Step 5.
Step 5.

Assume that the person’s partner’s ordinary income worked out on a fortnightly basis is increased by the total amount worked out under Step 4.

368 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A CDEP Scheme Participant Supplement Division 3 Section 1188F Step 6.
Assume that the person’s maximum basic rate is the sum of: (a) (b) the amount specified in column 3B of item 7 of Table B in point 1068-B1; and the amount specified in column 4 of item 2 of the table in section 1070Q.

Step 7.

Work out the person’s provisional payment rate for the period under Benefit Rate Calculator B on the assumptions referred to in Steps 3, 5 and 6.

Step 8.
Step 8.

The person satisfies the CDEP Scheme Participant Supplement income test in respect of the period if the person’s provisional payment rate worked out under Step 7 is greater than zero.

(10) If this section applies to the person in respect of the relevant payment period, then, subject to subsections (11) and (12), a CDEP Scheme Participant Supplement of $20.80 is payable to the person in respect of that period.
(11) A CDEP Scheme Participant Supplement is not payable to a person under subsection (10) if: (a) the Secretary has made a request of the person in respect of the tax file number of the person or of his or her partner; and (b) the person has failed to satisfy the request; and (c) the Secretary has not exempted the person from having to satisfy the request.

Note 1: CDEP Scheme participant see subsection 23(1).

Note 2: For CDEP Scheme payment see subsection 23(1).
(12) A person cannot receive more than one payment of CDEP Scheme Participant Supplement in respect of a fortnightly period.
Social Security Act 1991 369 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 3 CDEP Scheme Participant Supplement Section 1188G 1188G Notification of periods in respect of which a CDEP Scheme payment is not payable If: (a) section 1188F applies to a person; and (b) a CDEP Scheme payment is payable to the person in respect of a payment period beginning on or after 20 March 2000; and (c) a CDEP Scheme payment is not payable to the person in respect of the next following payment period; the person must notify the Secretary, as soon as practicable after section 1188F ceases to apply to the person, that a CDEP Scheme payment is not payable to the person in respect of that following payment period.
1188H Person receiving CDEP Scheme Participant Supplement to be taken to be in receipt of social security benefit or pension A person who receives a CDEP Scheme Participant Supplement in respect of a payment period beginning on or after 20 March 2000 is taken, for the purposes of this Act, to be in receipt of the social security benefit or social security pension for which the person is qualified in respect of that period.
1188J CDEP Scheme participant may accumulate supplement (1) A person who is a CDEP Scheme participant, and is not in receipt of a social security pension, in respect of the whole or a part of a quarter beginning on or after 20 March 2000 may, by written notice given to the Secretary, choose to accumulate the amounts of any supplement that: (a) became or become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant and is not in receipt of a social security pension; and (b) have not already been paid.
370 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A CDEP Scheme Participant Supplement Division 3 Section 1188K (2) A person who is or was a CDEP Scheme participant in respect of the whole or a part of a quarter ending before 20 March 2000 is taken to have chosen under this subsection to accumulate the amounts of any supplement that became payable to the person in respect of that quarter.
(3) If a person makes a choice under subsection (1), the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after: (a) unless paragraph (b) applies—the last day of the quarter or 19 March 2000, whichever is the later; or (b) if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases or 19 March 2000, whichever is the later.
(4) Any accumulated amounts payable to a person to whom subsection (2) applies are to be paid at such times (not later than 19 March 2000) as the Secretary determines.

(5) In this section: quarter means a CDEP Scheme quarter.

Note 1: For CDEP Scheme participant see section 1188B.

Note 2: For CDEP Scheme quarter see subsection 23(1).

1188K Need for a claim (1) A person who wants to be granted a CDEP Scheme Participant Supplement must make a proper claim for the supplement.
(2) To be a proper claim, a claim must be made in such manner, and within such period, as the Secretary determines.
1188KA CDEP Scheme Participant Supplement not payable in certain circumstances A CDEP Scheme Participant Supplement is not payable to a person in respect of a fortnight if a training supplement or a National Social Security Act 1991 371 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.15A Community Development Employment Projects Scheme Division 3 CDEP Scheme Participant Supplement Section 1188KA Green Jobs Corps supplement is payable to the person in respect of the fortnight.
372 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Community Development Employment Projects Scheme Part 3.15A Transitional Division 4 Section 1188L Division 4—Transitional 1188L Existing CDEP Scheme participants to be treated as long-term social security recipients A person who, if this Part had been in force on 19 March 2000, would have been a CDEP Scheme participant in respect of that day for the purposes of this Part is taken, for the purposes of the definition of long-term social security recipient in subsection 23(1), to have had social security recipient status continuously for the period of 52 weeks ending on that day.
1188M Certain people receiving CDEP Scheme Participant Supplement to be taken to have been receiving social security benefit for 9 months A person who receives CDEP Scheme Participant Supplement: (a) in respect of both 19 March 2000 (the first qualifying day) and the following day (the second qualifying day); or (b) in respect of both the payment period in which the first qualifying day occurs and the payment period in which the second qualifying day occurs; is taken, for the purposes of the definition of pensioner in subsection 4(1) of the National Health Act 1953, to have been receiving the social security benefit on the first qualifying day for a continuous period of 9 months.
Social Security Act 1991 373 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1189 Part 3.16—Indexation and adjustment of amounts Division 1—Preliminary 1189 Analysis of Part This Part provides for: (a) the indexation, in line with CPI (Consumer Price Index) increases, of the amounts in column 2 of the CPI Indexation Table at the end of section 1191; and (aa) the indexation of the maximum basic rates for certain social security pensions using the Pensioner and Beneficiary Living Cost Index; and (c) the adjustment of other amounts in line with the increases in the amounts indexed.
1190 Indexed and adjusted amounts The following table sets out: (a) each amount that is to be indexed or adjusted under this Part; and (b) the abbreviation used in this Part for referring to that amount; and (c) the provision or provisions in which that amount is to be found.
374 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 1.

1AAA.

1AA.

1AB.
Description of amount Maximum basic rates Maximum basic rates for a social security pension payable to a person who is partnered or for pension PP (single) (except disability support pension payable to a person who is under 21 and has no dependent children) Maximum basic rates for a social security pension that are to be worked out by reference to the maximum basic rates for a social security pension payable to a person who is partnered Combined couple rate of pension supplement Combined couple rate of minimum pension supplement Abbreviation Provisions in which amount specified pension MBR [Pension Rate Calculator A— point 1064-B1—Table B— item 2—column 3] [Pension Rate Calculator B— point 1065-B1—Table B— item 2—column 3] [Pension PP (Single) Rate Calculator—point 1068A-B1] single pension rate MBR [Pension Rate Calculator A— point 1064-B1—Table B— items 1, 3, 4 and 5—column 3] [Pension Rate Calculator B— point 1065-B1—Table B— items 1, 3, 4 and 5—column 3] PS rate [subsection 20A(1)] PS minimum rate [subsection 20A(2)] Social Security Act 1991 375 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Abbreviation PS basic rate Provisions in which amount specified [each item of the table in subsection 20A(5)] Item 1AC.
1B.

2.

Description of amount Pension supplement basic amount Maximum basic rates for disability support pension payable to person who is under 21 and has no dependent children Maximum basic rates for a social security benefit payable to a person who is over 21, is a member of a couple or has a dependent child DSP (under 21 and no child) MBR benefit MBR (ordinary) 3A.
Maximum basic rate for youth allowance YA MBR [Pension Rate Calculator D— point 1066A-B1—Table B— column 3—all amounts] [Pension Rate Calculator E— point 1066B-B1—Table B— column 3—all amounts] [Benefit Rate Calculator B— point 1068-B1—Table B— column 3A—all amounts] [Benefit Rate Calculator B— point 1068-B1—Table B— column 3B—items 4A, 4B, 5, 7 and 9] [Benefit PP (Partnered) Rate Calculator—point 1068B-C2—Table C— column 3—all amounts] [Youth Allowance Rate Calculator—point 1067G-B2—Table BA— column 3—all amounts] [Youth Allowance Rate Calculator—point 1067G-B3—Table BB— column 3—all amounts] [Youth Allowance Rate Calculator—point 1067G-B4—Table BC— column 3—all amounts] 376 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 3B.
4.

4A.

15.

16.
Description of amount Maximum basic rate for austudy payment Additional child amounts (for dependent children for calculating a person’s international agreement portability rate) Youth disability supplement Youth disability supplement payable to a disability support pensioner who is under 21 or to a recipient of youth allowance who is under 22 Child amounts Rate of carer allowance Rate of double orphan pension calculated under subsection 1010(1) Abbreviation Provisions in which amount specified AP MBR additional child amounts [Austudy Payment Rate Calculator—point 1067L-B2—Table BA— column 3—all amounts] [Austudy Payment Rate Calculator—point 1067L-B3] Section 14A of the Social Security (International Agreements) Act 1999 youth disability supplement [Pension Rate Calculator D— point 1066A-C1—the annual rate] [Pension Rate Calculator E— point 1066B-C1—the annual rate] [Youth Allowance Rate Calculator—point 1067G-D1—the fortnightly rate] CA rate [subsection 974(2)] DOP rate [section 1010] Social Security Act 1991 377 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item Description of amount Abbreviation 17.
Rent assistance MRA Maximum rent assistance for social security payments 18.
Rent threshold amount RTA Provisions in which amount specified [Part 3.7—section 1070L— Table—column 4—items 1, 2, 5, 6, 7, 8, 9 and 10] [Part 3.7—section 1070M— Table—column 3—amount] [Part 3.7—sections 1070N and 1070P—Table—column 4—items 1, 2, 5, 6, 7, 8, 9 and 10] [Part 3.7—section 1070Q— Table—column 4—items 1, 2, 4, 5, 6 and 7] [Part 3.7—section 1070R— Table—column 4—items 1, 3, 4, 5 and 6] [Part 3.7—sections 1070L and 1070N to 1070R— Table—formulas in column 3—all amounts deducted from fortnightly rent] [Part 3.7—section 1070M— Table—formula in column 2—amount deducted from fortnightly rent] [Part 3.7— subsection 1070T(1)— amount] 378 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Abbreviation Provisions in which amount specified Item 20.
Description of amount Income free area Ordinary income free area for social security pension pension free area [Pension Rate Calculator A— point 1064-E4—Table E-1— column 3—all amounts] [Pension Rate Calculator D— point 1066A-F3—Table F-1—column 3—all amounts] [Pension PP (Single) Rate Calculator—point 1068A-E14—Table E— column 2] [Youth Allowance Rate Calculator—paragraphs 1067G-H29(a) and (aa)] [Austudy Payment Rate Calculator—point 1067L-D28] [Youth Allowance Rate Calculator—paragraphs 1067G-H32(a) and (b) and 1067G-H33(a) and (b)] [Austudy Payment Rate Calculator—points 1067L-D31 and 1067L-D32] [Subsection 198A(1)] 20AA.
Ordinary income free area for youth allowance and austudy payment YA and austudy ordinary income free area 20AB.

YA and austudy range reduction boundary Dollar amount of boundary between lower and upper range reduction for ordinary income reduction YA and austudy range reduction boundary 20A.
Income ceiling for care receiver CP income ceiling Student income bank balance limit Social Security Act 1991 379 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 21.
Description of amount Student income bank balance limit Abbreviation Provisions in which amount specified student income bank balance limit [Youth Allowance Rate Calculator—point 1067G-J3—method statement—step 3— paragraph (a)] [Austudy Payment Rate Calculator—point 1067L-E2—method statement—step 3— paragraph (a)] 24.

25.

26.
Assets value limits Assets value limit for social security pension (other than pension PP (single)) for homeowner who is not a member of a couple assets value limit for social security pension (other than pension PP (single)) for non-homeowner who is not a member of a couple assets value limit for social security pension for homeowner who is a member of a couple pension “single” homeowner AVL [Pension Rate Calculator A— point 1064-G3—Table G-1— column 3A—item 1] [Pension Rate Calculator D— point 1066A-H3—Table H-1—column 3A—item 1] pension “single” non-homeowner AVL [Pension Rate Calculator A— point 1064-G3—Table G-1— column 3B—item 1] [Pension Rate Calculator D— point 1066A-H3—Table H-1—column 3B—item 1] pension “partnered” homeowner AVL [Pension Rate Calculator A— point 1064-G3—Table G-1— column 3A—items 2 and 3] [Pension Rate Calculator D— point 1066A-H3—Table H-1—column 3A—items 2 and 3] 380 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 27.
27A.

27B.

28.

29.
Abbreviation pension “partnered” non-homeowner AVL CP AVL CP HAVL benefit “single” homeowner AVL benefit “single” non-homeowner AVL Description of amount assets value limit for social security pension for non-homeowner who is a member of a couple Assets value limit for care receiver Assets value hardship limits for care receiver Assets value limit for pension PP (single) and social security benefit for homeowner who is not a member of a couple Assets value limit for pension PP (single) and social security benefit for non-homeowner who is not a member of a couple Provisions in which amount specified [Pension Rate Calculator A— point 1064-G3—Table G-1— column 3B—items 2 and 3] [Pension Rate Calculator D— point 1066A-H3—Table H-1—column 3B—items 2 and 3] [Subsections 198D(1), (1A), (1C), (1DA) and (1E)] [Subsections 198N(2), (3) and (4)—all amounts] [subsection 408CE(2)— Table—column 3—item 1] [paragraph 547C(b)] [paragraph 573B(a)] [subsection 611(2)—Table— column 3A—item 1] [subsection 733(3)—Table— column 3A—item 1] [subsection 500Q(2)—table— column 3—item 1] [subsection 408CE(2)— Table—column 3—item 2] [paragraph 547C(c)] [paragraph 573B(b)] [subsection 611(2)—Table— column 3B—item 1] [subsection 733(3)—Table— column 3B—item 1] subsection 500Q(2)—table— column 3—item 2] Social Security Act 1991 381 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary
 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 30.
31.

32.

33.
Description of amount Assets value limit for social security benefit for homeowner who is partnered (partner getting neither pension nor benefit) Assets value limit for social security benefit for non-homeowner who is partnered (partner getting neither pension nor benefit) Assets value limit for social security benefit for homeowner who is partnered (partner getting pension or benefit) Assets value limit for social security benefit for non-homeowner who is partnered (partner getting pension or benefit) Abbreviation benefit “partnered” (item 2) homeowner AVL benefit “partnered” (item 2) non-homeowner AVL benefit “partnered” (item 3) homeowner AVL benefit “partnered” (item 3) non-homeowner AVL Provisions in which amount specified [paragraph 547C(d)] [paragraph 573B(c)] [subsection 611(2)—Table— column 3A—item 2] [subsection 733(3)—Table— column 3A—item 2] [subsection 500Q(3)— Table—Column 3A—item 1] [paragraph 547C(e)] [paragraph 573B(d)] [subsection 611(2)—Table— column 3B—item 2] [subsection 733(3)—Table— column 3B—item 2] [subsection 500Q(3)— Table—Column 3B—item 1] [subsection 611(2)—Table— column 3A—item 3] [subsection 733(3)—Table— column 3A—item 3] [subsection 771HF(2)— Table—column 3—item 1] [subsection 500Q(3)— Table—Column 3A—item 2] [subsection 611(2)—Table— column 3B—item 3] [subsection 733(3)—Table— column 3B—item 3] [subsection 771HF(2)— Table—column 3—item 2] [subsection 500Q(3)— Table—Column 3B—item 2] 382 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive //
 Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 34.
35.

36.

36A.

37.

40.
Abbreviation Provisions in which amount specified special illness separated special resident AVL [paragraph 1152(5)(g)] [paragraph 1153(3)(e)] [paragraph 1154(2)(f)] special disability trust AVL [subsection 1209Y(3)] exempt funeral investment threshold [paragraph 19E(1)(b)] seniors health card income limit [Point 1071-12—table— column 3—all amounts] [subsection 93H(4)—all amounts] [paragraph 5(3)(c)] Pension supplement component for pension bonus permissible child earnings limit (child aged under 16 years) Description of amount Assets value limit for some illness separated special residents Assets value limit of special disability trust (see section 1209Y) exempt funeral investment threshold Income limits seniors health card income limit Pension bonus Pension supplement component for pension bonus Permissible child earnings Amount that child who is not in full-time education and under 16 can earn from employment without ceasing to be a dependent child Social Security Act 1991 383 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 40A.
44.

45.

46.
Description of amount Amount that a young person who has turned 16, but not 22, can earn in a financial year without ceasing to be a student child, dependent child or secondary pupil child Pharmaceutical allowance Rate of pharmaceutical allowance for a person who is receiving a social security pension and is not a member of a couple Rate of pharmaceutical allowance for a person who is receiving a social security benefit and is not a member of a couple Rate of pharmaceutical allowance for a person who is receiving a social Abbreviation Permissible child earnings limit (child aged 16 to 21 years) Provisions in which amount specified [paragraphs 5(1A)(b) and (4)(b) and 5F(b)] Pension PA “single” rate [Pension Rate Calculator D— point 1066A-D8—Table— column 3—item 1] [Pension Rate Calculator E— point 1066B-D8—Table— column 3—item 1] [Pension PP (Single) Rate Calculator—point 1068A-C7] Benefit PA “single” rate [Benefit Rate Calculator B— point 1068-D10—Table— column 3—item 1] Pension PA “partnered” (item 2) rate [Pension Rate Calculator D— point 1066A-D8—Table— column 3—item 2] 384 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item Description of amount security pension and has a partner 47.
Rate of 48.
49. pharmaceutical allowance for a person who is receiving a social security benefit and who has a partner Rate of pharmaceutical allowance for a person who is receiving a social security pension and is a member of an illness separated or respite care couple Rate of pharmaceutical allowance for a person who is receiving a social security benefit and is a member of an illness separated or respite care couple Abbreviation Benefit PA “partnered” (item 2) rate Pension PA “illness separated or respite care” rate Provisions in which amount specified [Pension Rate Calculator E— point 1066B-D8—Table— column 3—item 2] [Benefit Rate Calculator B— point 1068-D10—Table— column 3—item 2] [Benefit PP (Partnered) Rate Calculator—point 1068B-E8—Table E— column 3—item 1] [Pension Rate Calculator D— point 1066A-D8—Table— column 3—items 3 and 4] [Pension Rate Calculator E— point 1066B-D8—Table— column 3—items 3 and 4] Benefit PA “illness separated or respite care” rate [Benefit Rate Calculator B— point 1068-D10—Table— column 3—items 4 and 5] [Benefit PP (Partnered) Rate Calculator—point 1068B-E8—Table E— column 3—items 2 and 3] Social Security Act 1991 385 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Abbreviation Pension PA “partnered” (item 5) rate Provisions in which amount
 specified [Pension Rate Calculator D— point 1066A-D8—Table— column 3—item 5] [Pension Rate Calculator E— point 1066B-D8—Table— column 3—item 5] Benefit PA “Partnered (partner getting service pension)” rate [Benefit Rate Calculator B— point 1068-D10—Table— column 3—item 6] [Benefit PP (Partnered) Rate Calculator—point 1068B-E8—Table—column 3—item 4] Pension PA “partnered” (item 6) rate [Pension Rate Calculator D— point 1066A-D8—Table— column 3—item 6] [Pension Rate Calculator E— point 1066B-D8—Table— column 3—item 6] Item 49A.
49B.

49C.
Description of amount Rate of pharmaceutical allowance for a person who is receiving a social security pension and has a partner who is getting a service pension Rate of pharmaceutical allowance for a person who is receiving a social security benefit and has a partner who is getting a service pension Rate of pharmaceutical allowance for a person: (a) who is receiving a social security pension; and (b) is a member of a couple; and (c) whose partner is in gaol 386 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item Description of amount 49D.
Rate of 49E.

49F.
pharmaceutical allowance for a person who is receiving a social security benefit and has a partner who is in gaol Rate of pharmaceutical allowance for a person who: (a) is receiving a youth allowance or an austudy payment; and (b) is not a member of a couple Rate of pharmaceutical allowance for a person who: (a) is receiving a youth allowance or an austudy payment; and (b) is partnered Abbreviation Benefit PA “partnered” (item 7) rate PA (YA/AP) single rate PA (YA/AP) partnered (item 49F) rate Provisions in which amount specified [Benefit Rate Calculator B— point 1068-D10—Table— column 3—item 7] [Benefit PP (Partnered) Rate Calculator—point 1068B-E8—Table E— column 3—item 5] [Youth Allowance Rate Calculator—point 1067G-C3—Table C— item 1—column 3] [Austudy Payment Rate Calculator—point 1067L-C3—Table C— item 1—column 3] [Youth Allowance Rate Calculator—point 1067G-C3—Table C— item 2—column 3] [Austudy Payment Rate Calculator—point 1067L-C3—Table C— item 2—column 3] Social Security Act 1991 387 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 49G.
49H.
Description of amount Rate of pharmaceutical allowance for a person who: (a) is receiving a youth allowance or an austudy payment; and (b) is a member of an illness separated couple or a respite care couple Rate of pharmaceutical allowance for a person who: (a) is receiving a youth allowance or an austudy payment; and (b) is partnered (partner getting service pension) Abbreviation PA (YA/AP) (item 49G) rate Provisions in which amount specified [Youth Allowance Rate Calculator—point 1067G-C3—Table C— items 3 and 4—column 3] [Austudy Payment Rate Calculator—point 1067L-C3—Table C— items 3 and 4—column 3] PA (YA/AP) (item 49H) rate [Youth Allowance Rate Calculator—point 1067G-C3—Table C— item 5—column 3] [Austudy Payment Rate Calculator—point 1067L-C3—Table C— item 5—column 3] 388 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Abbreviation PA (YA/AP) (item 49J) rate Provisions in which amount specified [Youth Allowance Rate Calculator—point 1067G-C3—Table C— item 6—column 3] [Austudy Payment Rate Calculator—point 1067L-C3—Table C— item 6—column 3] TA “single” rate [section 1061S—Table— column 3—item 1] TA “partnered” (item 3) rate [section 1061S—Table— column 3—item 3] TA “partnered” (item 4) rate [section 1061S—Table— column 3—item 4] Item
 49J.
50.

51.

52.
Description of amount Rate of pharmaceutical allowance for a person who: (a) is receiving a youth allowance or an austudy payment; and (b) is partnered (partner in gaol) Rate of telephone allowance for a person who is not a member of a couple Rate of telephone allowance for a person with a partner where the partner is getting neither pension nor benefit Rate of telephone allowance for a person with a partner where the partner is getting pension or benefit but not getting telephone allowance Social Security Act 1991 389 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Abbreviation Provisions in which amount specified TA “partnered” (item 5) rate [section 1061S—Table— column 3—item 5] TA “partnered” (item 6) rate [section 1061S—Table— column 3—item 6] TA “partnered” (item 7) rate section 1061S—Table— column 3—item 7 TA “partnered” (item 8) rate section 1061S—Table— column 3—item 8 Item 53.
54.

55.

56.
Description of amount Rate of telephone allowance for a person with a partner where the partner is getting pension or benefit and getting telephone allowance Rate of telephone allowance for a member of an illness separated or respite care couple Rate of telephone allowance for a person with a partner where the partner is not getting veterans supplement or MRCA supplement Rate of telephone allowance for a person with a partner where the partner is getting veterans supplement or MRCA supplement 390 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Abbreviation Provisions in which amount specified TA “partnered” (item 9) rate section 1061S—Table— column 3—item 9 TA (internet) “single” rate section 1061SA—Table— column 3—item 1 TA (internet) “partnered” (item 3) rate section 1061SA—Table— column 3—item 3 TA (internet) “partnered” (item 4) rate section 1061SA—Table— column 3—item 4 Item 56AA.
56AB.

56AC.

56AD.
Description of amount Rate of telephone allowance for a person with a partner where the partner is in gaol Increased rate of telephone allowance for a person who is not a member of a couple and has home internet Increased rate of telephone allowance for a person with a partner where the partner is getting neither pension nor benefit and the person has home internet Increased rate of telephone allowance for a person with a partner where the partner is getting pension or benefit but not getting telephone allowance and the person has home internet Social Security Act 1991 391 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Abbreviation TA (internet) “partnered” (item 5) rate Provisions in which amount specified section 1061SA—Table— column 3—item 5 TA (internet) “partnered” (item 6) rate section 1061SA—Table— column 3—item 6 TA (internet) “partnered” (item 7) rate section 1061SA—Table— column 3—item 7 Item 56AE.
56AF.

56AG.
Description of amount Increased rate of telephone allowance for a person with a partner where the partner is getting pension or benefit and getting telephone allowance at the increased rate and the person has home internet Increased rate of telephone allowance for a member of an illness separated or respite care couple and the person has home internet Increased rate of telephone allowance for a person with a partner where the partner is not getting veterans supplement or MRCA supplement and the person has home internet 392 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Abbreviation TA (internet) “partnered” (item 8) rate Provisions in which amount specified section 1061SA—Table— column 3—item 8 TA (internet) “partnered” (item 9) rate section 1061SA—Table— column 3—item 9 TA (internet) “partnered” (item 10) rate section 1061SA—Table— column 3—item 10 Item 56AH.
56AI.

56AJ.
Description of amount Increased rate of telephone allowance for a person with a partner where the partner is getting veterans supplement or MRCA supplement and the person has home internet Increased rate of telephone allowance for a person with a partner where the partner is in gaol and the person has home internet Increased rate of telephone allowance for a person with a partner where the partner is getting pension or benefit and getting telephone allowance at the standard rate and the person has home internet Social Security Act 1991 393 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 56A.
56B.

56C.

56D.

57.

58.
Description of amount Rate of utilities allowance for a person who is not a member of a couple Rate of utilities allowance for a member of an illness separated couple Rate of utilities allowance for a member of a respite care couple Rate of utilities allowance for a member of a temporarily separated couple Mobility allowance mobility allowance for a person qualified under section 1035 mobility allowance for a person qualified under section 1035A Abbreviation UA “single” rate Provisions in which amount specified [section 1061TB—Table— column 3—item 1] UA “partnered” (item 2) rate [section 1061TB—Table— column 3—item 2] UA “partnered” (item 3) rate [section 1061TB—Table— column 3—item 3] UA “partnered” (item 4) rate [section 1061TB—Table— column 3—item 4] MA rate (standard) MA rate (increased) [subsection 1044(1)] [subsection 1044(1A)] 394 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Preliminary Division 1 Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item Description of amount Deeming thresholds Abbreviation Provisions in which amount specified 63.
64.

65.

66.

67.

69.

69A.
Deeming threshold for a person who is not a member of a couple Deeming threshold individual Deeming threshold for a pensioner couple Deeming threshold pensioner couple Subsection 1081(1) Subsection 1081(2) Attribution threshold Primary production attribution threshold Maximum transitional pension rates Section 1208U Primary production attribution threshold Maximum transitional pension rates Maximum transitional pension rates Subparagraph 146(4)(a)(i) of Schedule 1A Amounts related to scholarships threshold amount relocation scholarship payment amount Student start-up loans student start-up loan amount scholarship threshold amount relocation scholarship payment amount subsection 8(8AB) subsections 592L(1), (3) and (4) student start-up loan amount section 1061ZVBD Social Security Act 1991 395 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 1 Preliminary Section 1190 Indexed and adjusted amounts table Column 1 Column 2 Column 3 Column 4 Item 70.
Description of amount Essential medical equipment payment essential medical equipment payment Abbreviation Provisions in which amount specified EMEP section 917G Note: Indexing the PS minimum rate will also result in the indexation of the rate of quarterly pension supplement (see section 1061VB).
396 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1191 Division 2—CPI indexation 1191 CPI Indexation Table (1) An amount referred to in the following CPI Indexation Table below is to be indexed under this Division on each indexation day for the amount, using the reference quarter and base quarter for the amount and indexation day and rounding off to the nearest multiple of the rounding amount: CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) Maximum basic rates 1. pension MBR (a) 20 March (a) December (b) 20 September (b) June 1A.
PS rate (a) 20 March (a) December (b) 20 September (b) June $2.60 $5.20 highest June or December quarter before reference quarter (but not earlier than June quarter 1979) highest June or December quarter before reference quarter (but not earlier than June quarter 2009) Social Security Act 1991 397 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 1B.
PS minimum rate (a) 20 March (a) December (b) 20 September (b) June 1C.
PS basic rate (a) 20 March (b) 20 September (a) December (b) June 2. benefit MBR (ordinary) (a) 20 March (b) 20 September (a) December (b) June $5.20 $2.60 $0.10 highest June or December quarter before reference quarter (but not earlier than June quarter 2009) highest June or December quarter before reference quarter (but not earlier than December quarter 2008) highest June or December quarter before reference quarter (but not earlier than June quarter 1979) 398 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 3. benefit MBR (junior or intermediate) 1 January June 3A.
YA MBR 1 January June 3B.
AP MBR 1 January June $0.10 $0.10 $0.10 highest June quarter before reference quarter (but not earlier than June quarter 1986) highest June quarter before reference quarter (but not earlier than June quarter 1997) highest June quarter before reference quarter (but not earlier than June quarter 1997) Social Security Act 1991 399 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 4.
Child amounts additional child amounts 1 January June 9.

CA rate 1 January June 10.
DOP rate 1 January June $2.60 $0.10 $0.10 highest June quarter before reference quarter (but not earlier than June quarter 1999) highest June quarter before reference quarter (but not earlier than June quarter 1988) highest June quarter before reference quarter (but not earlier than June quarter 1988) 400 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 11.
Rent assistance MRA (a) 20 March (a) December (b) 20 September (b) June 12.

RTA (a) 20 March (b) 20 September (a) December (b) June 14.
Income free areas pension free area 1 July March $0.20 $0.20 $52.00 highest June or December quarter before reference quarter (but not earlier than June quarter 1979) highest June or December quarter before reference quarter (but not earlier than June quarter 1979) most recent March quarter before reference quarter Social Security Act 1991 401 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 14AA.
14AB.

YA and austudy ordinary income free area YA and austudy range reduction boundary YA and austudy range reduction boundary 1 January June 1 January June 14A.
CP income ceiling 1 January June $1.00 highest June quarter before reference quarter (but not earlier than June quarter 2011) highest June quarter before reference quarter (but not earlier than June quarter 2011) most recent June quarter before reference quarter $1.00 not applicable —see subsection 1194(3A) 402 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 15.
18.

19.

20.
1 January June student income bank balance limit Assets value limits pension “single” homeowner AVL pension “partnered” homeowner AVL pension “partnered” non- homeowner AVL 1 July December 1 July December 1 July December $100.00 $250.00 $250.00 $250.00 highest June quarter before reference quarter (but not earlier than June quarter 2011) most recent December quarter before reference quarter most recent December quarter before reference quarter most recent December quarter before reference quarter Social Security Act 1991 403 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 20A.
CP AVL 1 January June 20B.

CP HAVL 1 January June 21.

22.

23.
1 July December 1 July December 1 July December benefit “single” homeowner AVL benefit “partnered” (item 3) homeowner AVL benefit “partnered” (item 3) non- homeowner AVL $250.00 $250.00 $250.00 $250.00 $250.00 most recent June quarter before reference quarter most recent June quarter before reference quarter most recent December quarter before reference quarter most recent December quarter before reference quarter most recent December quarter before reference quarter 404 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 4 Reference quarter (most recent before indexation day) December 25.
26.

26A.
1 July special disability trust AVL 1 July December 20 September June exempt funeral investment threshold Income limits seniors health card income limit Section 1191 Column 5 Base quarter Column 6 Rounding base $250.00 $250.00 $1.00 most recent December quarter before reference quarter most recent December quarter before reference quarter highest June quarter before reference quarter (but not earlier than June quarter 2013) Social Security Act 1991 405 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 27.
28.

28A.
Pension bonus Pension supplement component for pension bonus Permissible child earnings permissible child earnings limit (child aged under 16 years) Permissible child earnings limit (child aged 16 to 21 years) (a) 20 March (b) 20 September (a) December (b) June 1 January June 1 January June $2.60 $0.05 $0.05 highest June or December quarter before reference quarter (but not earlier than June quarter 2008) highest June quarter before reference quarter (but not earlier than June quarter 1986) highest June quarter before reference quarter (but not earlier than June quarter 1986) 406 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 31.
32.

Pharmaceutical allowance 1 January September Benefit PA “partnered” (item 2) rate 1 January September Benefit PA “Partnered (partner getting service pension)” rate 33.
TA “single” rate 20 September June $0.10 $0.10 $0.80 highest September quarter before reference quarter (but not earlier than September quarter 1991) highest September quarter before reference quarter (but not earlier than September quarter 1991) most recent June quarter before reference quarter Social Security Act 1991 407 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 33AAA.
TA (internet) “single” rate 20 September June 33AAB.

TA (internet) “partnered” (item 10) rate 20 September June 33AA.

UA “single” rate (a) 20 March (a) December (b) 20 September (b) June 33AB.
UA “partnered” (item 2) rate (a) 20 March (a) December (b) 20 September (b) June $0.80 $0.80 $0.40 $0.40 most recent June quarter before reference quarter most recent June quarter before reference quarter highest June or December quarter before reference quarter (but not earlier than June quarter 1991) highest June or December quarter before reference quarter (but not earlier than June quarter 1991) 408 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 33AC.
UA “partnered” (item 3) rate (a) 20 March (a) December (b) 20 September (b) June 33AD.

UA “partnered” (item 4) rate (a) 20 March (b) 20 September (a) December (b) June 1 January September 33A.
PA (YA/AP) partnered (item 49F) rate PA (YA/AP) (item 49H) rate $0.40 $0.40 $0.10 highest June or December quarter before reference quarter (but not earlier than June quarter 1991) highest June or December quarter before reference quarter (but not earlier than June quarter 1991) highest September quarter before reference quarter (but not earlier than Sept quarter 1997) Social Security Act 1991 409 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 34.
Mobility allowance MA rate (standard) 1 January June 34A.

MA rate (increased) 1 January June 35.
Deeming thresholds Deeming threshold individual 1 July March $0.10 $0.10 $200.00 highest June quarter before the reference quarter (but not earlier than June 1991 quarter) highest June quarter before the reference quarter (but not earlier than June 2006 quarter) highest March quarter before reference quarter (but not earlier than March 1994 quarter) 410 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 36.
37.

38.
Deeming threshold pensioner couple Primary production attribution threshold Primary production attribution threshold Maximum transitional pension rates Maximum transitional pension rates 1 July March 1 July December (a) 20 March (b) 20 September (a) December (b) June $200.00 $250.00 $2.60 highest March quarter before reference quarter (but not earlier than March 1994 quarter) Most recent December quarter before reference quarter highest June or December quarter before reference quarter (but not earlier than June quarter 2008) Social Security Act 1991 411 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1191 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) 39.
41.

41A.
Amounts related to scholarships scholarship threshold amount relocation scholarship payment amount Student start-up loans student start-up loan amount 1 January June 1 January June 1 January June 412 Social Security Act 1991 Future compilation prepared on 8 June 2021 $1.00 $1.00 $1.00 highest June quarter before reference quarter (but not earlier than June quarter 2009) highest June quarter before reference quarter (but not earlier than June quarter 2009) highest June quarter before reference quarter (but not earlier than June quarter 2016) OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1192 CPI Indexation Table Column 1 Item Column 2 Amount Column 3 Indexation day(s) Column 5 Base quarter Column 6 Rounding base Column 4 Reference quarter (most recent before indexation day) Essential medical equipment payment 42.
EMEP 1 July December $1.00 highest December quarter before reference quarter (but not earlier than the December quarter of 2011) Highest quarter (2) A reference in the CPI Indexation Table to the highest of a group of quarters is a reference to the quarter in that group that has the highest index number.

1192 Indexation of amounts (1) If an amount is to be indexed under this Division on an indexation day, this Act has effect as if the indexed amount were substituted for that amount on that day.
(2) This is how to work out the indexed amount for an amount that is to be indexed under this Division on an indexation day: Social Security Act 1991 413 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1192 Method statement Step 1.

Use section 1193 to work out the indexation factor for the amount on the indexation day.

Step 2.
Step 2.

Work out the current figure for the amount immediately before the indexation day.

Step 3.

Multiply the current figure by the indexation factor: the result is the provisional indexed amount.

Step 4.

Use section 1194 to round off the provisional indexed amount: subject to Division 3, the result is the indexed amount.

(The indexed amount (including one replaced under Division 3) may be increased under section 1195 in certain cases.)

Note: For current figure see subsection 20(1).


(4AB) The first indexation of the amounts to which item 14AAA of the CPI Indexation Table in subsection 1191(1) relates is to take place on 1 July 2015.

(4AC) Amounts under item 14AAA of the CPI Indexation Table in subsection 1191(1) are not to be indexed on 1 July of the first financial year beginning on or after the day this subsection commences and on 1 July of the next 2 financial years.
(5) The first indexation of rent assistance under items 11 and 12 of the CPI Indexation Table in subsection 1191(1) (being those items as substituted by the Social Security Amendment (Further Simplification) Act 2004) is to take place on 20 September 2004.
(5AAA) The amount under item 14 of the CPI Indexation Table in subsection 1191(1), to the extent to which that item relates to the amount in column 2 of Table E in point 1068A-E14 of the Pension PP (Single) Rate Calculator, is not to be indexed on 1 July of the first financial year beginning on or after the day this subsection commences and on 1 July of the next 2 financial years.
414 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1192 (5AAB) Amounts under items 14AA, 14AB and 15 of the CPI Indexation Table in subsection 1191(1) are not to be indexed on 1 January of the first calendar year beginning on or after the day this subsection commences and on 1 January of the next 2 calendar years.
(5AB) Amounts under items 21, 22 and 23 of the CPI Indexation Table in subsection 1191(1) are not to be indexed on 1 July 2015 and 1 July 2016.

(5A) The first indexation of an amount under item 25 of the CPI Indexation Table in subsection 1191(1) is to take place on 1 July 2007.

(5B) The first indexation of amounts under item 26A of the CPI Indexation Table in subsection 1191(1) is to take place on 20 September 2014.
(5C) For the purposes of working out the indexed amount for pension “single” homeowner AVL on 1 July 2017, the current figure for pension “single” homeowner AVL immediately before that day is taken to be $250,000.

(5D) For the purposes of working out the indexed amount for pension “partnered” homeowner AVL on 1 July 2017, the current figure for pension “partnered” homeowner AVL immediately before that day is taken to be $187,500.
(5E) For the purposes of working out the indexed amount for pension “partnered” non-homeowner AVL on 1 July 2017, the current figure for pension “partnered” non-homeowner AVL immediately before that day is taken to be $287,500.

(5F) For the purposes of working out the indexed amount for benefit “single” homeowner AVL on 1 July 2017, the current figure for benefit “single” homeowner AVL immediately before that day is taken to be $250,000.
(5G) For the purposes of working out the indexed amount for benefit “partnered” (item 3) homeowner AVL on 1 July 2017, the current Social Security Act 1991 415 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1193 figure for benefit “partnered” (item 3) homeowner AVL immediately before that day is taken to be $187,500.
(5H) For the purposes of working out the indexed amount for benefit “partnered” (item 3) non-homeowner AVL on 1 July 2017, the current figure for benefit “partnered” (item 3) non-homeowner AVL immediately before that day is taken to be $287,500.

(7) The first indexation of amounts under items 35 and 36 of the CPI Indexation Table in subsection 1191(1) is to take place on 1 July 1997.
(8B) The student start-up loan amount (see item 41A of the CPI Indexation Table in subsection 1191(1)) is not to be indexed on 1 January 2016.

1193 Indexation factor (1) Subject to subsections (2) and (3), the indexation factor for an amount that is to be indexed under this Division on an indexation day is: index number for most recent reference quarter index number for base quarter worked out to 3 decimal places.

Note: For reference quarter and base quarter see the CPI Indexation Table in section 1191.
(2) If an indexation factor worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the indexation factor is to be increased by 0.001.

(3) If an indexation factor worked out under subsections (1) and (2) would be less than 1, the indexation factor is to be increased to 1.

1194 Rounding off indexed amounts (1) If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount.
416 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1195 Note 1: For provisional indexed amount see Step 3 in subsection 1192(2).

Note 2: For rounding base see the CPI Indexation Table in section 1191.
(2) Subject to subsections (3), (6) and (7) if a provisional indexed amount is not a multiple of the rounding base, the indexed amount is the provisional indexed amount rounded up or down to the nearest multiple of the rounding base.

(3) Subject to subsections (3A), (6) and (7), if a provisional indexed amount is not a multiple of the rounding base but is a multiple of half the rounding base, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of the rounding base.
(3A) If a provisional indexed amount for CP income ceiling is not a multiple of $1.00, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of $1.00.

(6) If a provisional indexed amount for a pharmaceutical allowance rate is not a multiple of 10 cents, the indexed amount is the provisional indexed amount rounded down to the nearest multiple of 10 cents.
(7) If a provisional indexed amount for a telephone allowance rate is not a multiple of 80 cents, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of 80 cents.
1195 Certain indexed amounts to be increased in line with increases in Male Total Average Weekly Earnings (1) For the purposes of this section: (a) a category A amount is the annual rate specified in point 1068A-B1; and (b) a category B amount is an amount specified as set out below: (i) point 1064-B1—Table B—item 2—column 3; (ii) point 1065-B1—Table B—item 2—column 3.
Social Security Act 1991 417 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1195 (2) If: (a) a category A amount is to be indexed under this Division on an indexation day; and (b) 25% of the annualised MTAWE figure for whichever of the following quarters is applicable: (i) if the indexation day is a 20 March—the most recent December quarter; (ii) if the indexation day is a 20 September—the most recent June quarter; exceeds the indexed amount for the category A amount; then: (c) the indexed amount for the category A amount is to be increased by an amount equal to the excess; and (d) if the indexed amount for the category A amount (as increased under paragraph (c)) is not a multiple of $2.60, the indexed amount (as increased under paragraph (c)) is to be further increased by rounding up to the next highest multiple of $2.60.
(2A) If: (a) a category B amount is to be indexed under this Division on an indexation day; and (b) 50% of the combined couple benchmark for that indexation day exceeds the indexed amount for the category B amount; then: (c) the indexed amount for the category B amount is to be increased by an amount equal to the excess; and (d) if the indexed amount for the category B amount (as increased under paragraph (c)) is not a multiple of $2.60, the indexed amount (as increased under paragraph (c)) is to be further increased by rounding up to the next highest multiple of $2.60.
(2B) For the purposes of this section, the combined couple benchmark, for an indexation day, is 41.76% of the annualised MTAWE figure for whichever of the following quarters is applicable: 418 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 CPI indexation Division 2 Section 1195 (a) if the indexation day is a 20 March—the most recent December quarter; (b) if the indexation day is a 20 September—the most recent June quarter.
(3) For the purposes of this section, the annualised MTAWE figure for a quarter is 52 times the amount set out for the reference period in the quarter under the headings “Average Weekly Earnings of Employees, Australia—Males—All males—Total earnings— ORIGINAL” in a document published by the Australian Statistician entitled “Average Weekly Earnings, States and Australia”.
(4) If at any time (whether before or after the commencement of this section), the Australian Statistician publishes the amount referred to in subsection (3): (a) under differently described headings (the new headings); or (b) in a document entitled otherwise than as described in subsection (3) (the new document); then the annualised MTAWE figure is to be calculated in accordance with subsection (3) as if the references to: (c) “Average Weekly Earnings of Employees, Australia— Males—All males—Total earnings—ORIGINAL”; or (d) “Average Weekly Earnings, States and Australia”; were references to the new headings and/or the new document, as the case requires.
(5) For the purposes of this section, the reference period in a particular quarter is the period described by the Australian Statistician as the pay period ending on or before a specified day that is the third Friday of the middle month of that quarter.
(6) If at any time (whether before or after the commencement of this section), the Australian Statistician publishes an amount in substitution for a particular amount previously published by the Australian Statistician, the publication of the later amount is to be disregarded for the purposes of this section.
Social Security Act 1991 419 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 2 CPI indexation Section 1195 (7) In this section: December quarter means a quarter ending on 31 December.

June quarter means a quarter ending on 30 June.
420 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Social security pension indexation using Pensioner and Beneficiary Living Cost Index Division 3 Section 1196 Division 3—Social security pension indexation using Pensioner and Beneficiary Living Cost Index 1196 Social security pension indexation using Pensioner and Beneficiary Living Cost Index (1) This section applies to the amount (the starting amount) referred to in column 2 of item 1 of the table in subsection 1191(1), except to the extent that it covers the maximum basic rate for pension PP (single).
(2) If the indexed amount for the starting amount, worked out under section 1192 on an indexation day and disregarding section 1195 and this Division, is less than the living cost amount worked out on that indexation day using the following method statement, then that indexed amount is taken to be an amount equal to that living cost amount: Method statement Step 1.

Use section 1197 to work out the living cost indexation factor on that indexation day.

Step 2.
Step 2.

Work out the current figure for the starting amount immediately before that indexation day.

Note: For current figure see subsection 20(1).

Step 3.

Multiply the current figure by the living cost indexation factor: the result is the provisional living cost amount.

Step 4.

Use section 1198 to round off the provisional living cost amount: the result is the living cost amount.
Note 1: If the indexed amount for the starting amount, worked out under section 1192, is taken to be an amount equal to that living cost amount, there may be a further increase of that replaced indexed amount under section 1195.
Social Security Act 1991 421 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 3 Social security pension indexation using Pensioner and Beneficiary Living Cost Index Section 1197 Note 2: On and after 20 March 2013, the indexation of certain amounts may be affected by Division 8.
1197 Living cost indexation factor (1) Subject to subsections (5) and (6), the living cost indexation factor on an indexation day is: Living cost index number for reference quarter Living cost index number for base quarter worked out to 3 decimal places.
Definitions (2) For the purposes of this section, the living cost index number, in relation to a quarter, is the All Groups Pensioner and Beneficiary Living Cost Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.
(3) For the purposes of this section, the reference quarter is: (a) if the indexation day is a 20 March—the most recent December quarter before the indexation day; and (b) if the indexation day is a 20 September—the most recent June quarter before the indexation day.

(4) For the purposes of this section, the base quarter is the June or December quarter that: (a) is a quarter before the reference quarter; and (b) has the highest living cost index number.
Rounding (5) If a living cost indexation factor worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, that indexation factor is to be increased by 0.001.
422 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Social security pension indexation using Pensioner and Beneficiary Living Cost Index Division 3 Section 1198 (6) If a living cost indexation factor worked out under subsections (1) and (5) would be less than 1, that indexation factor is to be increased to 1.
Publication of substituted living cost index numbers (7) Subject to subsection (8), if at any time (whether before or after the commencement of this section) the Australian Statistician publishes a living cost index number for a quarter in substitution for a living cost index number previously published by the Australian Statistician for that quarter, the publication of the later living cost index number is to be disregarded for the purposes of this section.
Change to index reference period (8) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Pensioner and Beneficiary Living Cost Index, regard is to be had, for the purposes of applying this section after the change takes place, only to living cost index numbers published in terms of the new index reference period.
1198 Rounding off amounts (1) If a provisional living cost amount is a multiple of $2.60, the provisional living cost amount becomes the living cost amount.

(2) Subject to subsection (3), if a provisional living cost amount is not a multiple of $2.60, the living cost amount is the provisional living cost amount rounded up or down to the nearest multiple of $2.60.
(3) If a provisional living cost amount is not a multiple of $2.60 but is a multiple of $1.30, the living cost amount is the provisional living cost amount rounded up to the nearest multiple of $2.60.
Social Security Act 1991 423 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 4 Adjustment of other rates Section 1198A Division 4—Adjustment of other rates 1198A Adjustment of single pension rate MBR amounts (1) This Act has effect as if, on 20 March (an indexation day) and 20 September (an indexation day) each year, the adjusted single pension amount were substituted for each single pension rate MBR amount (see item 1AAA of the table in section 1190).
(2) For the purposes of this section, the adjusted single pension amount is worked out as follows: Method statement Step 1.

Work out the amount substituted for the amount specified in column 3 of item 2 of Table B in point 1064-B1 on that indexation day under section 1192.

Step 2.

Multiply the amount worked out at step 1 by 2.

Step 3.

Work out 66.33% of the amount worked out at step 2.

Step 4.
Step 4.

Round the amount worked out at step 3 to the nearest multiple of $2.60 (rounding up if necessary): the result is the adjusted single pension amount.

1198B Adjustment of disability support pension (under 21) MBRs This Act (and any other Act that refers to this Act) has effect as if, on 1 January each year, the amount worked out by applying the formula: YA MBR 26 to an amount identified in column 2 of an item in the following table were substituted for the amount identified in column 3 of the item.
424 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Adjustment of other rates Division 4 Section 1198C Adjustment of DSP (under 21) MBR table Column 1 Column 2 Item YA MBR amount Youth Allowance Rate Calculator—point 1067G-B3— Table BB 3 4 5 column 3—item 1 column 3—item 5 column 3—item 2 Column 3 corresponding DSP (under 21) MBR amount Pension Rate Calculator D— point 1066A-B1—Table B and Pension Rate Calculator E— Point 1066B-B1—Table B column 3—item 1 column 3—items 2, 4, 5 and 6 column 3—item 3 1198C Adjustment of youth disability supplement (1) This Act (and any other Act that refers to this Act) has effect as if, on 1 January each year, the amount worked out using the following formula was substituted for the amount of the rate of the youth disability supplement under Module C of Pension Rate Calculator D or Module C of Pension Rate Calculator E: 26 CA rate where: CA rate is the current figure, as at that 1 January, for the CA rate.
Note: For current figure see subsection 20(1).

(2) This Act (and any other Act that refers to this Act) has effect as if, on 1 January each year, the current figure, as at that 1 January, was substituted for the amount of the rate of the youth disability supplement under Module D of the Youth Allowance Rate Calculator.

Note: For current figure see subsection 20(1).
Social Security Act 1991 425 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 4 Adjustment of other rates Section 1203 1203 Adjustment of pension “single non-homeowner” AVL This Act has effect as if, on 1 July each year, the amount worked out in accordance with the following formula were substituted for the pension “single” non-homeowner AVL: “single” homeowner AVL  2       “partnered” “partnered” non-homeowner – homeowner AVL AVL      where: “partnered” homeowner AVL is the current figure, as at that 1 July, for the pension “partnered” homeowner AVL.
“partnered” non-homeowner AVL is the current figure, as at that 1 July, for the pension “partnered” non-homeowner AVL.

“single” homeowner AVL is the current figure, as at that 1 July, for the pension “single” homeowner AVL.
1204 Adjustment of benefit AVLs (1) This Act has effect as if, on 1 July each year, the amount worked out in accordance with the following formula were substituted for the benefit “single” non-homeowner AVL: Benefit “single” homeowner AVL  2  where: Benefit “partnered” (item 3) non-homeowner AVL        Benefit “partnered” (item 3) homeowner AVL       benefit “partnered” (item 3) homeowner AVL is the current figure, as at that 1 July, for the benefit “partnered” (item 3) homeowner AVL.
benefit “partnered” (item 3) non-homeowner AVL is the current figure, as at that 1 July, for the benefit “partnered” (item 3) non-homeowner AVL.
426 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Adjustment of other rates Division 4 Section 1205 benefit “single” homeowner AVL is the current figure, as at that 1 July, for the benefit “single” homeowner AVL.
(2) This Act has effect as if, on 1 July each year, the amount worked out in accordance with the following formula were substituted for the benefit “partnered” (item 2) homeowner AVL: 2  Benefit “partnered” (item 3) homeowner AVL where: benefit “partnered” (item 3) homeowner AVL is the current figure, as at that 1 July, for the benefit “partnered” (item 3) homeowner AVL.
(3) This Act has effect as if, on 1 July each year, the amount worked out in accordance with the following formula were substituted for the benefit “partnered” (item 2) non-homeowner AVL: 2  Benefit “partnered” (item 3) non-homeowner AVL where: benefit “partnered” (item 3) non-homeowner AVL is the current figure, as at that 1 July, for the benefit “partnered” (item 3) non-homeowner AVL.
1205 Adjustment of special illness separated special resident AVL This Act has effect as if, on 1 July each year, the amount worked out in accordance with the following formula were substituted for each special illness separated special resident AVL: pension “partnered” homeowner AVL  pension “partnered” non-homeowner AVL 2 where: pension “partnered” homeowner AVL is the current figure, as at that 1 July, for the pension “partnered” homeowner AVL.
Social Security Act 1991 427 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 4 Adjustment of other rates Section 1206A pension “partnered” non-homeowner AVL is the current figure, as at that 1 July, for the pension “partnered” non-homeowner AVL.
1206A Adjustment of certain pharmaceutical allowance rates (1) This Act has effect as if, on 1 January each year, there were substituted for: (a) the Pension PA “partnered” (item 2) rate; and (b) the Pension PA “partnered” (item 5) rate; the amount worked out by using the formula: Benefit PA “partnered” item 2 rate 26   where: Benefit PA “partnered” (item 2) rate is the current figure, as at that 1 January, for the Benefit PA “partnered” (item 2) rate.

Note 1: For current figure see subsection 20(1).


Note 2: The Benefit PA “partnered” (item 2) rate is indexed on each 1 January (see the CPI Indexation Table in section 1191—item 31).
(2) This Act has effect as if, on 1 January each year, there were substituted for: (a) the Pension PA “single” rate; and (b) the Pension PA “illness separated or respite care” rate; and (c) the Pension PA “partnered” (item 6) rate; the amount worked out by using the formula: Benefit PA “partnered” item 2 rate 52   where: Benefit PA “partnered” (item 2) rate is the current figure, as at that 1 January, for the Benefit PA “partnered” (item 2) rate.
Note 1: The formula reflects the Benefit PA “partnered” (item 2) rate being multiplied by 26 to convert to a yearly amount and then being multiplied by 2 to convert from “partnered” to “single rate”.

Note 2: For current figure see subsection 20(1).


428 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Adjustment of other rates Division 4 Section 1206A Note 3: The Benefit PA “partnered” (item 2) rate is indexed on each 1 January (see the CPI Indexation Table in section 1191—item 31).
(3) This Act has effect as if, on 1 January each year, there were substituted for: (a) the Benefit PA “single” rate; and (b) the Benefit PA “partnered” (item 7) rate; and (c) the Benefit PA “illness separated or respite care” rate; the amount worked out by using the formula: Benefit PA “partnered” item 2 rate 2   where: Benefit PA “partnered” (item 2) rate is the current figure, as at that 1 January, for the Benefit PA “partnered” (item 2) rate.

Note 1: For current figure see subsection 20(1).


Note 2: The Benefit PA “partnered” (item 2) rate is indexed on each 1 January (see the CPI Indexation Table in section 1191—item 31).
(4) This Act has effect as if, on 1 January each year, there were substituted for: (a) the PA (YA/AP) single rate; and (b) the PA (YA/AP) (item 49G) rate; and (c) the PA (YA/AP) (item 49J) rate; the amount worked out by using the formula: PA YA/AP partnered item 49F rate 2     where: PA (YA/AP) partnered (item 49F) rate means the current figure, as at that 1 January, for the PA (YA/AP) partnered (item 49F) rate.

Note 1: For current figure see subsection 20(1).


Note 2: The PA (YA/AP) partnered (item 49F) rate is indexed on each 1 January (see the CPI Indexation Table in section 1191—item 33A).
Social Security Act 1991 429 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 4 Adjustment of other rates Section 1206B 1206B Adjustment of certain telephone allowance rates (1) This Act has effect as if, on 20 September each year, there were substituted for: (a) the TA “partnered” (item 4) rate; and (b) the TA “partnered” (item 6) rate; and (c) the TA “partnered” (item 7) rate; and (d) TA “partnered” (item 9) rate; the amount of the current figure, as at 20 September, for the TA “single rate”.
Note 1: For TA “partnered” (item 4) rate, TA “partnered” (item 6) rate, TA “partnered” (item 7) rate and TA “partnered” (item 9) rate see items 52, 54, 55 and 56AA of the Indexed and Adjusted Amounts Table in section 1190.

Note 2: For current figure see subsection 20(1).

Note 3: For TA “single” rate see item 50 of the Indexed and Adjusted Amounts Table in section 1190.
(2) This Act has effect as if, on 20 September each year, there were substituted for: (a) the TA “partnered” (item 3) rate; and (b) the TA “partnered” (item 5) rate; and (c) the TA “partnered” (item 8) rate; the amount worked out using the following formula: TA “single” rate 2 where: TA “single” rate is the current figure, as at 20 September, for the TA “single” rate.
Note 1: For TA “partnered” (item 4) rate, TA “partnered” (item 6) rate and TA “partnered” (item 7) rate see items 52, 54 and 55 of the Indexed and Adjusted Amounts Table in section 1190.

Note 2: For TA “single” rate see item 50 of the Indexed and Adjusted Amounts Table in section 1190.
430 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Indexation and adjustment of amounts Part 3.16 Adjustment of other rates Division 4 Section 1206B Note 3: For current figure see subsection 20(1).
(3) This Act has effect as if, on 20 September each year, there were substituted for: (a) the TA (internet) “partnered” (item 4) rate; and (b) the TA (internet) “partnered” (item 6) rate; and (c) the TA (internet) “partnered” (item 7) rate; and (d) the TA (internet) “partnered” (item 9) rate; and the amount of the current figure, as at 20 September, for the TA (internet) “single” rate.
Note 1: For TA (internet) “partnered” (item 4) rate, TA (internet) “partnered” (item 6) rate, TA (internet) “partnered” (item 7) rate and TA (internet) “partnered” (item 9) rate see items 56AD, 56AF, 56AG and 56AI of the Indexed and Adjusted Amounts Table in section 1190.

Note 2: For current figure see subsection 20(1).

Note 3: For TA (internet) “single” rate see item 56AB of the Indexed and Adjusted Amounts Table in section 1190.
(4) This Act has effect as if, on 20 September each year, there were substituted for: (a) the TA (internet) “partnered” (item 3) rate; and (b) the TA (internet) “partnered” (item 5) rate; and (c) the TA (internet) “partnered” (item 8) rate; the amount worked out using the following formula: “ TA (internet) single rate ” 2 where: TA (internet) “single” rate is the current figure, as at 20 September, for the TA (internet) “single” rate.
Note 1: For TA (internet) “partnered” (item 3) rate, TA (internet) “partnered” (item 5) rate and TA (internet) “partnered” (item 8) rate see items 56AC, 56AE and 56AH of the Indexed and Adjusted Amounts Table in section 1190.

Note 2: For TA (internet) “single” rate see item 56AB of the Indexed and Adjusted Amounts Table in section 1190.
Social Security Act 1991 431 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16 Indexation and adjustment of amounts Division 4 Adjustment of other rates Section 1206B Note 3: For current figure see subsection 20(1).
432 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Advance payment deductions Part 3.16A Section 1206H Part 3.16A—Advance payment deductions 1206H Advance payment deduction (1) Subject to subsection (2) and section 1206L, an advance payment deduction is to be made from the rate of a social security entitlement that is payable to a person if: (a) the person has received an advance payment, or an instalment of an advance payment, of that social security entitlement or of another social security entitlement that was previously payable to the person; and (b) the person has not yet repaid the whole of the advance payment or instalment; and (c) the amount of the advance payment or instalment that has not been repaid is not a debt under subsection 1224E(1).
Note: For social security entitlement see subsection 23(1).

(2) An advance payment deduction is not to be made from a person’s rate on: (a) the payday on which the advance payment is paid; or (b) the payday on which the first instalment of the advance payment is paid; as the case requires.
1206J Amount of advance payment deduction—basic calculation Subject to sections 1206K, 1206L, 1206M and 1206N, the advance payment deduction for an advance payment of a social security entitlement is worked out by dividing the full amount of the advance payment by 13.
Social Security Act 1991 433 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16A Advance payment deductions Section 1206K 1206K Person may request larger advance payment deduction (1) Subject to subsection (2) and sections 1206L, 1206M and 1206N, a person’s advance payment deduction is increased to a larger amount if the person asks the Secretary in writing for the advance payment deduction to be the larger amount.
(2) Subsection (1) does not apply if the Secretary is satisfied that the person would suffer severe financial hardship if the advance payment deduction were the larger amount.
1206L Reduction of advance payment deduction in cases of severe financial hardship Reduction (1) Subject to subsection (2) and sections 1206M and 1206N, if: (a) the person applies in writing to the Secretary for an advance payment deduction to be decreased, or to be stopped, because of severe financial hardship; and (b) the Secretary is satisfied that: (i) the person’s circumstances are exceptional and could not reasonably have been foreseen at the time of the person’s application for the advance payment; and (ii) the person would suffer severe financial hardship if the advance payment deduction that would otherwise apply were to continue; the Secretary may determine in writing that, for the period specified in the determination, the advance payment deduction is to be a lesser amount (which may be a nil amount) specified in the determination.
Review of reduction (2) At any time while the determination is in force, the Secretary may: (a) vary the determination so as to require to be deducted from the person’s rate an advance payment deduction larger than the deduction (if any) previously applying under the 434 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Advance payment deductions Part 3.16A Section 1206M determination, but smaller than the deduction applying immediately prior to the determination; or (b) revoke the determination; but only if the Secretary is satisfied that the person would not suffer severe financial hardship because of the variation or revocation.
Variation or revocation in writing (3) A variation or revocation of a determination must be in writing.
1206M The final advance payment deduction Final advance payment deduction not to exceed unpaid amount (1) If an advance payment deduction that would otherwise be deducted from a person’s rate exceeds the part of the advance payment that the person has not yet repaid (by previous deductions under this Part or otherwise), the amount of that advance payment deduction equals the part that the person has not yet repaid.
Example: Facts: Assume that, in the example at the end of section 1206J, Anne has requested that the advance payment deduction be the larger amount of $55 (see section 1206K), so that the advance payment of $450 will be repaid sooner.

Application: If $55 is deducted from Anne’s fortnightly rate of benefit, $440 will have been repaid after 8 successive fortnights, leaving $10 unpaid.

Under section 1206M, the final advance payment deduction will be $10.
This section subject to section 1206N (2) This section has effect subject to section 1206N.
1206N Provisional payment rate insufficient to cover advance payment deduction (1) If the provisional payment rate referred to in the relevant Rate Calculator is less than the advance payment deduction would be Social Security Act 1991 435 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16A Advance payment deductions Section 1206N apart from this subsection, the advance payment deduction is taken to be equal to the provisional payment rate.
(2) If: (a) a person’s rate of pension is the notional income/assets tested rate referred to in the Method statement in point 1065-A1 in Pension Rate Calculator B; and (b) the provisional payment rate worked out for the person using Pension Rate Calculator A in accordance with Step 1 of the Method statement in point 1065-A1 in Pension Rate Calculator B is less than the advance payment deduction would be apart from this subsection; the advance payment deduction is taken to be equal to the provisional payment rate referred to in paragraph (b).
(3) If: (a) a person’s rate of pension is the non-income/assets tested rate referred to in the Method statement in point 1065-A1 in Pension Rate Calculator B; and (b) the maximum payment rate for the person worked out in Step 4 of that Method statement is less than the advance payment deduction would be apart from this subsection; the advance payment deduction is taken to be equal to the maximum payment rate referred to in paragraph (b).
(4) If: (a) a person’s rate of pension is the notional income/assets tested rate referred to in the Method statement in point 1066B-A1 in Pension Rate Calculator E; and (b) the provisional payment rate worked out for the person using Pension Rate Calculator D in accordance with Step 1 of the Method statement in point 1066B-A1 in Pension Rate Calculator E is less than the advance payment deduction would be apart from this subsection; the advance payment deduction is taken to be equal to the provisional payment rate referred to in paragraph (b).
436 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Advance payment deductions Part 3.16A Section 1206P (5) If: (a) a person’s rate of pension is the non-income/assets tested rate referred to in the Method statement in point 1066B-A1 in Pension Rate Calculator E; and (b) the maximum payment rate for the person worked out in Step 5 of that Method statement is less than the advance payment deduction would be apart from this subsection; the advance payment deduction is taken to be equal to the maximum payment rate referred to in paragraph (b).
1206P Rounding of amounts Amounts worked out under this Part must be rounded to the nearest cent (rounding 0.5 cents upwards).
Social Security Act 1991 437 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16B Special employment advance deductions Section 1206Q Part 3.16B—Special employment advance deductions 1206Q Special employment advance deduction (1) Subject to subsection (2) and section 1206T, a special employment advance deduction is to be made from the rate of a social security entitlement that is payable to a person if: (a) the person has received a special employment advance or an instalment of a special employment advance; and (b) the person has not yet repaid the whole of the special employment advance or instalment; and (c) the amount of the special employment advance or instalment that has not been repaid is not a debt under section 1224EA.
Note: For social security entitlement see subsection 23(1).

(2) A special employment advance deduction may be made from a person’s rate on: (a) if the special employment advance is paid as a lump sum— the payday next following the day on which the lump sum is paid; or (b) if the special employment advance is paid by instalments— the payday next following the day on which the last instalment of the special employment advance is paid; or on any later payday.
1206R Amount of special employment advance deduction—basic calculation Subject to sections 1206S, 1206T, 1206U and 1206V, a special employment advance deduction is such amount as the Secretary determines.
438 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Special employment advance deductions Part 3.16B Section 1206S 1206S Person may request larger special employment advance deduction (1) Subject to subsection (2) and sections 1206T, 1206U and 1206V, a person’s special employment advance deduction is increased to a larger amount if the person asks the Secretary in writing for the special employment advance deduction to be the larger amount.
(2) Subsection (1) does not apply if the Secretary is satisfied that the person would suffer severe financial hardship if the special employment advance deduction were the larger amount.
1206T Reduction of special employment advance deduction in cases of severe financial hardship (1) Subject to subsection (2) and sections 1206U and 1206V, if: (a) a person applies in writing to the Secretary for a special employment advance deduction to be decreased, or to be stopped, because of severe financial hardship; and (b) the Secretary is satisfied that: (i) the person’s circumstances are exceptional and could not reasonably have been foreseen at the time of the person’s claim for the special employment advance; and (ii) the person would suffer severe financial hardship if the special employment advance deduction that would otherwise apply were to continue; the Secretary may determine in writing that, for the period stated in the determination, the special employment advance deduction is to be a lesser amount (which may be a nil amount) stated in the determination.
(2) At any time while the determination is in force, the Secretary may: (a) vary the determination so as to require to be deducted from the person’s rate a special employment advance deduction larger than the deduction (if any) previously applying under the determination, but smaller than the deduction applying immediately before the determination; or (b) revoke the determination; Social Security Act 1991 439 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.16B Special employment advance deductions Section 1206U but only if the Secretary is satisfied that the person would not suffer severe financial hardship because of the variation or revocation.
(3) A variation or revocation of a determination must be in writing.

1206U The final special employment advance deduction (1) If a special employment advance deduction that would otherwise be deducted from a person’s rate exceeds the part of the special employment advance that the person has not yet repaid (by previous deductions under this Part or otherwise), the amount of that special employment advance deduction is to be equal to the part that the person has not yet repaid.
(2) This section has effect subject to section 1206V.

1206V Provisional payment rate insufficient to cover special employment advance deduction (1) If the provisional payment rate referred to in the relevant Rate Calculator is less than the special employment advance deduction would be apart from this subsection, the special employment advance deduction is taken to be equal to the provisional payment rate.
(2) If: (a) a person’s rate of pension is the notional income/assets tested rate referred to in the Method statement in point 1065-A1 in Pension Rate Calculator B; and (b) the provisional payment rate worked out for the person using Pension Rate Calculator A in accordance with Step 1 of the Method statement in point 1065-A1 in Pension Rate Calculator B is less than the special employment advance deduction would be apart from this subsection; the special employment advance deduction is taken to be equal to the provisional payment rate referred to in paragraph (b).
(3) If: 440 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Special employment advance deductions Part 3.16B Section 1206W (a) a person’s rate of pension is the non-income/assets tested rate referred to in the Method statement in point 1065-A1 in Pension Rate Calculator B; and (b) the maximum payment rate for the person worked out in Step 4 of that Method statement is less than the special employment advance deduction would be apart from this subsection; the special employment advance deduction is taken to be equal to the maximum payment rate referred to in paragraph (b).
(4) If: (a) a person’s rate of pension is the notional income/assets tested rate referred to in the Method statement in point 1066B-A1 in Pension Rate Calculator E; and (b) the provisional payment rate worked out for the person using Pension Rate Calculator D in accordance with Step 1 in the Method statement in point 1066B-A1 in Pension Rate Calculator E is less than the special employment advance deduction would be apart from this subsection; the special employment advance deduction is taken to be equal to the provisional payment rate referred to in paragraph (b).
(5) If: (a) a person’s rate of pension is the non-income/assets tested rate referred to in the Method statement in point 1066B-A1 in Pension Rate Calculator E; and (b) the maximum payment rate for the person worked out in Step 5 of that Method statement is less than the special employment advance deduction would be apart from this subsection; the special employment advance deduction is taken to be equal to the maximum payment rate referred to in paragraph (b).
1206W Rounding of amounts Amounts worked out under this Part must be rounded to the nearest cent (rounding 0.5 cent upwards).
Social Security Act 1991 441 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 1 Introduction Section 1207 Part 3.18—Means test treatment of private companies and private trusts Division 1—Introduction 1207 Simplified outline The following is a simplified outline of this Part: • • • • This Part sets up a system for the attribution to individuals of the assets and income of private companies and private trusts (sections 1207Y and 1208E).
Attribution starts on 1 January 2002.
For an asset or income to be attributed to an individual: (a) (b) the company must be a designated private company or the trust must be a designated private trust (sections 1207N and 1207P); and the company must be a controlled private company in relation to the individual or the trust must be a controlled private trust in relation to the individual (sections 1207Q and 1207V); and (c) the individual must be an attributable stakeholder of the company or trust (section 1207X).
A company or trust will be a controlled private trust or a controlled private company if the individual passes a control test or a source test.
442 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Introduction Division 1 Section 1207A • • An individual will not be an attributable stakeholder of a trust if the trust is a concessional primary production trust in relation to the individual.
The asset deprivation rules and the income deprivation rules are modified if attribution happens.

1207A Definitions In this Part, unless the contrary intention appears: actively involved with a primary production enterprise has the meaning given by section 1207J.

actual transfer, in relation to property or services, means a transfer of the property or services other than a transfer that is taken to have been made because of subsection 1207H(1), (3) or (4).
adjusted net primary production income (in Division 11) has the meaning given by section 1209. adjusted net value (in Division 11) has the meaning given by section 1208Z.
arm’s length amount, in relation to an actual transfer of property or services to a company or a trust, means the amount that the company or trust could reasonably be expected to have been required to pay to obtain the property or the services concerned from the transferor under a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction.

asset attribution percentage has the meaning given by section 1207X.
associate has the meaning given by section 1207C.

attributable stakeholder has the meaning given by section 1207X.

attribution period has the meaning given by section 1208D.
Social Security Act 1991 443 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 1 Introduction Section 1207A business partnership means a partnership within the meaning of the Income Tax Assessment Act 1997. child: without limiting who is a child of a person for the purposes of this Part, each of the following is the child of a person: (a) an adopted child, step-child or foster-child of the person; (b) someone who is a child of the person within the meaning of the Family Law Act 1975. company has the same meaning as in the Income Tax Assessment Act 1997. concessional primary production trust has the meaning given by section 1208U.
constituent document, in relation to a company, means: (a) the memorandum and articles of association of the company; or (b) any rules or other documents constituting the company or governing its activities.

control includes control as a result of, or by means of, trusts, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights.

controlled private company has the meaning given by section 1207Q.
controlled private trust has the meaning given by section 1207V.

decision-making principles means decision-making principles under section 1209E.

derivation period has the meaning given by section 1208C.

designated private company has the meaning given by section 1207N.

designated private trust has the meaning given by section 1207P.
444 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Introduction Division 1 director includes any person (by whatever name called) occupying the position of a director of a company.
Section 1207A entity means any of the following: (a) an individual; (b) a company; (c) a trust; (d) a business partnership; (e) a corporation sole; (f) a body politic.

group includes: (a) one entity alone; or (b) a number of entities, even if they are not in any way associated with each other or acting together.

income attribution percentage has the meaning given by section 1207X.

interest in a share has the meaning given by section 1207U.
majority voting interest, in relation to a company, has the meaning given by section 1207E.

primary production enterprise means a business in Australia that consists of primary production.

property includes money.

relative, in relation to a person, has the meaning given by section 1207B.
scheme means: (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; or Social Security Act 1991 445 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 1 Introduction Section 1207A (b) any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.
services includes any benefit, right (including a right in relation to, and an interest in, real or personal property), privilege or facility and, without limiting the generality of the foregoing, includes a benefit, right, privilege, service or facility that is, or is to be, provided under: (a) an arrangement for or in relation to: (i) the performance of work (including work of a professional nature), whether with or without the provision of property; or (ii) the provision of, or of the use of facilities for, entertainment, recreation or instruction; or (iii) the conferring of benefits, rights or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; or (b) a contract of insurance; or (c) an arrangement for or in relation to the lending of money.
share includes stock.

spouse includes, in relation to a person who is a member of a couple (as defined by section 4), the other member of the couple.

subsidiary has the same meaning as in the Corporations Act 2001. sufficiently influenced, in relation to a company, has the meaning given by section 1207D.
transfer: (a) in relation to property—includes dispose of (whether by assignment, declaration of trust or otherwise) or provide; and (b) in relation to services—includes allow, confer, give, grant, perform or provide.

trust means a person in the capacity of trustee or, as the case requires, a trust estate.
446 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Introduction Division 1 Section 1207B trustee has the same meaning as in the Income Tax Assessment Act 1997. underlying transfer, in relation to a transfer of property or services to an entity, means: (a) if that transfer was an actual transfer—the actual transfer; or (b) if that transfer was taken to have been made because of subsection 1207H(1)—the actual transfer referred to in that subsection; or (c) if that transfer was taken to have been made because of subsection 1207H(3)—the actual transfer referred to in paragraph 1207H(3)(b); or (d) if that transfer was taken to have been made because of subsection 1207H(4)—the actual transfer referred to in paragraph 1207H(4)(c).
voting power has the meaning given by section 1207S.
1207B Relatives (1) For the purposes of this Part, a relative, in relation to a person (the first person), means any of the following: (a) the spouse of the first person; (b) a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, first cousin, second cousin or lineal descendant of the first person; (c) the spouse of a person covered by paragraph (b); (d) a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, first cousin, second cousin or lineal descendant of the spouse of the first person; (e) the spouse of a person covered by paragraph (d); (f) a child of a person covered by any of the preceding paragraphs.
(2) For the purposes of this section, if one person is the child of another person because of the definition of child in section 1207A, Social Security Act 1991 447 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 1 Introduction Section 1207C relationships traced to or through the person are to be determined on the basis that the person is the child of the other person.
1207C Associates (1) For the purposes of this Part, in determining: (a) whether a trust is a designated private trust; or (b) whether a company is a controlled private company in relation to an individual; or (c) whether a trust is a controlled private trust in relation to an individual; or (d) whether a trust is a concessional primary production trust in relation to an individual; the following are associates of an individual: (e) a relative of the individual; (f) an entity who, in matters relating to the trust or company: (i) acts, or is accustomed to act; or (ii) under a contract or an arrangement or understanding (whether formal or informal), is intended or expected to act; in accordance with the directions, instructions or wishes of: (iii) the individual; or (iv) the individual and another entity who is an associate of the individual because of another paragraph of this subsection; (g) an entity that is a declared associate of the individual (see subsection (2)); (h) a business partner of the individual or a business partnership in which the individual is a business partner; (i) if a business partner of the individual is an individual—the spouse or a child of that business partner; (j) a trustee of a trust, where: (i) the individual; or (ii) another entity that is an associate of the individual because of another paragraph of this subsection; 448 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Introduction Division 1 Section 1207D benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, business partnerships or trusts; (k) a company, where the company is sufficiently influenced by: (i) the individual; or (ii) another entity that is an associate of the individual because of another paragraph of this
 subsection; or (iii) another company that is an associate of the individual because of another application of this paragraph; or (iv) 2 or more entities covered by the preceding subparagraphs; (l) a company, where a majority voting interest in the company is held by: (i) the individual; or (ii) the entities that are associates of the individual because of any of the preceding paragraphs of this subsection; or (iii) the individual and the entities that are associates of the individual because of any of the preceding paragraphs of this subsection.
Declared associate (2) The Secretary may, by legislative instrument, determine that each entity included in a specified class of entities is taken to be a declared associate of an individual for the purposes of this section.

(3) A determination under subsection (2) has effect accordingly.
1207D When a company is sufficiently influenced by an entity For the purposes of this Part, a company is sufficiently influenced by an entity or entities if the company, or its directors: (a) are accustomed or under an obligation (whether formal or informal); or (b) might reasonably be expected; Social Security Act 1991 449 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 1 Introduction Section 1207E to act in accordance with the directions, instructions or wishes of the entity or entities.
1207E Majority voting interest in a company For the purposes of this Part, an entity or entities hold a majority voting interest in a company if the entity or entities are in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company.
1207F Entitled to acquire For the purposes of this Part, an entity is entitled to acquire anything that the entity is absolutely or contingently entitled to acquire, whether because of any constituent document of a company, the exercise of any right or option or for any other reason.

1207G Transfer of property or services (1) A reference in this Part to the transfer of property or services to a trust includes a reference to the transfer of such property or services by way of the creation of the trust.
(2) For the purposes of this Part, if an entity acquires property that did not previously exist, the property is taken to have existed immediately before the acquisition and to have been transferred by the entity who created the property.

(3) For the purposes of this Part, property or services are taken to have been transferred to an entity if the property or services have been applied for the benefit of, or in accordance with the directions of, the entity.
(4) Without limiting the generality of subsection (3), a reference in that subsection to the application of property or services for the benefit of an entity includes a reference to the application of 450 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Introduction Division 1 Section 1207H property or services in the discharge, in whole or in part, of a debt due by the entity.
1207H Constructive transfers of property or services to an entity (1) For the purposes of this Part, if an entity (the prime entity) causes another entity to actually transfer property or services to a third entity, the prime entity is taken to have transferred the property or services (instead of the other entity).

(2) Subsection (1) does not limit the operation of subsection (3).
(3) If, under a scheme: (a) an entity (the scheme entity) actually transfers property or services to another entity; and (b) property or services are actually transferred to a third entity at a particular time otherwise than by the scheme entity; the Secretary may, for the purposes of this Part, treat the property or services mentioned in paragraph (b) as having been transferred by the scheme entity to the third entity (instead of by any other entity) at that time to such extent as the Secretary considers reasonable.
(4) If: (a) an individual transfers property or services to an entity (the interposed entity), being a company, a business partnership or a trust; and (b) a winding-up event occurs in relation to the interposed entity; and (c) an actual transfer of property or services is made to another entity (the ultimate transferee) at a particular time as a consequence of the interposed entity being wound-up or ceasing to exist; the Secretary may, for the purposes of this Part, treat the property or services mentioned in paragraph (c) as having been transferred by the individual to the ultimate transferee (instead of by any other entity) at that time to such extent as the Secretary considers reasonable.
Social Security Act 1991 451 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 1 Introduction Section 1207J (5) For the purposes of this section, each of the following events is a winding-up event in relation to a company: (a) the company passes a resolution for its winding-up; (b) an order is made for the winding-up of the company; (c) any similar event.
(6) For the purposes of this section, a winding-up event occurs in relation to a business partnership if the business partnership ceases to exist for the purposes of the Income Tax Assessment Act 1997.

(7) For the purposes of this section, a winding-up event occurs in relation to a trust if: (a) the trust commences to be wound-up; or (b) the trust ceases to exist for the purposes of the Income Tax Assessment Act 1997.
1207J Active involvement with a primary production enterprise For the purposes of this Part, an individual is taken to have been actively involved with a primary production enterprise if, and only if, the individual: (a) has contributed a significant part of his or her labour to the development of the enterprise; or (b) has undertaken educational studies or training in a field that, in the opinion of the Secretary, is relevant to the development or management of the enterprise.
1207K Power to veto decisions of a trustee For the purposes of this Part, if the decisions of a trustee are subject to the consent of an entity, the entity is taken to be able to veto the decisions of the trustee.

1207L Extra-territorial operation (1) This Part extends to acts, omissions, matters and things outside Australia.
452 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Introduction Division 1 Section 1207M (2) Disregard subsection (1) in determining whether a provision of this Act (other than this Part) extends to acts, omissions, matters and things outside Australia.
1207M Application to things happening before commencement The use of the present tense in a provision of this Part does not imply that the provision does not apply to things happening before the commencement of this Part.
Social Security Act 1991 453 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 2 Designated private companies Section 1207N Division 2—Designated private companies 1207N Designated private companies (1) For the purposes of this Part, a company is a designated private company at a particular time if: (a) the company satisfies at least 2 of the following conditions in relation to the last financial year that ended before that time: (i) the consolidated revenue for the financial year of the company and its subsidiaries is less than $25 million, or any other amount prescribed by regulations made for the purposes of paragraph 45A(2)(a) of the Corporations Act 2001; (ii) the value of the consolidated gross assets at the end of the financial year of the company and its subsidiaries is less than $12.5 million, or any other amount prescribed by regulations made for the purposes of paragraph 45A(2)(b) of the Corporations Act 2001; (iii) the company and its subsidiaries have fewer than 50, or any other number prescribed by regulations made for the purposes of paragraph 45A(2)(c) of the Corporations Act 2001, employees at the end of the financial year; or (b) the company came into existence after the end of the last financial year that ended before that time; or (c) the company is a declared private company (see subsection (2)); and the company is not an excluded company (see subsection (5)).
Declared private company (2) The Secretary may, by legislative instrument, determine that each company included in a specified class of companies is a declared private company for the purposes of this section.

(3) A determination under subsection (2) has effect accordingly.
454 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Designated private companies Division 2 Section 1207N Excluded companies (5) The Secretary may, by legislative instrument, declare that each company included in a specified class of companies is an excluded company for the purposes of this section.
(6) A declaration under subsection (5) has effect accordingly.

Definitions (8) In this section: consolidated revenue has the same meaning as in section 45A of the Corporations Act 2001. financial year, in relation to a company, means: (a) a period of 12 months beginning on 1 July; or (b) if some other period is the company’s tax year—that other period.

value of consolidated gross assets has the same meaning as in section 45A of the Corporations Act 2001.
Social Security Act 1991 455 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 3 Designated private trusts Section 1207P Division 3—Designated private trusts 1207P Designated private trusts (1) For the purposes of this Part, a trust is a designated private trust unless: (a) all of the following conditions are satisfied: (i) the trust is a fixed trust; (ii) the units in the trust are held by 50 or more persons; (iii) the trust was not created, continued in existence or operated under a scheme that was entered into or carried out for the sole or dominant purpose of enabling any individual or individuals to avoid the application of this Part and/or Division 11A of Part IIIB of the Veterans’ Entitlements Act; or (b) the trust is a complying superannuation fund (see subsection (3)); or (c) the trust is an excluded trust (see subsection (4)).
(2) For the purposes of subparagraph (1)(a)(ii), an individual and his or her associates are taken to be one person.
Complying superannuation funds (3) For the purposes of this section, a fund is a complying superannuation fund at a particular time if: (a) that time occurs during a particular tax year of the fund; and (b) under section 45 of the Superannuation Industry (Supervision) Act 1993, the fund is a complying superannuation fund for the purposes of the Income Tax Assessment Act 1997 in relation to that tax year.
Excluded trusts (4) The Secretary may, by legislative instrument, declare that each trust included in a specified class of trusts is an excluded trust for the purposes of this section.
456 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Designated private trusts Division 3 Section 1207P (5) The declaration has effect accordingly.

Definitions (7) In this section: fixed trust means a trust where persons have fixed entitlements to all of the income and corpus of the trust.
income means income within the ordinary meaning of that expression.

unit, in relation to a trust, includes a beneficial interest, however described, in the property or income of the trust.
Social Security Act 1991 457 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 4 Controlled private companies Section 1207Q Division 4—Controlled private companies 1207Q Controlled private companies (1) For the purposes of this Part, a company is a controlled private company in relation to an individual if the company is a designated private company and: (a) the individual passes the control test set out in subsection (2); or (b) the individual passes the source test set out in subsection (3).
Control test (2) For the purposes of this section, an individual passes the control test in relation to a company if: (a) the aggregate of: (i) the direct voting interests in the company that the individual holds; and (ii) the direct voting interests in the company held by associates of the individual; is 50% or more; or (b) the aggregate of: (i) the direct control interests in the company that the individual holds; and (ii) the direct control interests in the company held by associates of the individual; is 15% or more; or (c) the company is sufficiently influenced by: (i) the individual; or (ii) an associate of the individual; or (iii) 2 or more entities covered by the preceding subparagraphs; or (d) the individual (either alone or together with associates) is in a position to exercise control over the company.
458 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Controlled private companies Division 4 Section 1207R Source test (3) For the purposes of this section, an individual passes the source test in relation to a company if: (a) the individual has transferred property or services to the company after 7.30 pm, by standard time in the Australian Capital Territory, on 9 May 2000; and (b) the underlying transfer was made for no consideration or for a consideration less than the arm’s length amount in relation to the underlying transfer.
No double counting (4) In calculating the aggregate referred to in paragraph (2)(a), a direct voting interest held because of subsection 1207R(2) is not to be counted under subparagraph (2)(a)(i) to the extent to which it is calculated by reference to a direct voting interest in the company that is taken into account under subparagraph (2)(a)(ii).
(5) In calculating the aggregate referred to in paragraph (2)(b), a direct control interest held because of subsection 1207T(4) is not to be counted under subparagraph (2)(b)(i) to the extent to which it is calculated by reference to a direct control interest in the company that is taken into account under subparagraph (2)(b)(ii).
1207R Direct voting interest in a company (1) An entity holds a direct voting interest in a company at a particular time equal to the percentage of the voting power in the company that the entity is in a position to control at that time.
(2) If: (a) an entity holds a direct voting interest (including a direct voting interest that is taken to be held because of one or more previous applications of this subsection) in a company (the first level company); and (b) the first level company holds a direct voting interest in another company (the second level company); Social Security Act 1991 459 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 4 Controlled private companies Section 1207S the entity is taken to hold a direct voting interest in the second level company equal to the percentage worked out using the formula: First level percentage where:  Second level percentage first level percentage means the percentage of the direct voting interest held by the entity in the first level company.
second level percentage means the percentage of the direct voting interest held by the first level company in the second level company.
1207S Voting power (1) A reference in this Division to the voting power in a company is a reference to the total rights of shareholders to vote, or participate in any decision-making, concerning any of the following: (a) the making of distributions of capital or profits of the company to its shareholders; (b) the constituent document of the company; (c) any variation of the share capital of the company; (d) any appointment of a director of the company.
(2) A reference in this Division to control of the voting power in a company is a reference to control that is direct or indirect, including control that is exercisable as a result of or by means of arrangements or practices: (a) whether or not having legal or equitable force; and (b) whether or not based on legal or equitable rights.
(3) If the percentage of total rights to vote or participate in decision-making differs as between different types of voting or decision-making, the highest of those percentages applies for the purposes of this section.
(4) If a company: (a) is limited both by shares and by guarantee; or 460 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Controlled private companies Division 4 Section 1207T (b) does not have a share capital; this section has effect as if the members or policy holders of the company were shareholders in the company.
1207T Direct control interest in a company (1) An entity holds a direct control interest in a company at a particular time equal to the percentage of the total paid-up share capital of the company in which the entity holds an interest at that time.
(2) An entity also holds a direct control interest in a company at a particular time equal to the percentage that the entity holds, or is entitled to acquire, at that time of the total rights to distributions of capital or profits of the company to its shareholders on winding-up.
(3) An entity also holds a direct control interest in a company at a particular time equal to the percentage that the entity holds, or is entitled to acquire, at that time of the total rights to distributions of capital or profits of the company to its shareholders, otherwise than on winding-up.
(4) If: (a) an entity holds a particular type of direct control interest (including a direct control interest that is taken to be held because of one or more previous applications of this subsection) in a company (the first level company); and (b) the first level company holds the same type of direct control interest in another company (the second level company); the entity is taken to hold that type of direct control interest in the second level company equal to the percentage worked out using the formula: First level percentage where:  Second level percentage first level percentage means the percentage of the direct control interest held by the entity in the first level company.
Social Security Act 1991 461 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 4 Controlled private companies Section 1207U second level percentage means the percentage of the direct control interest held by the first level company in the second level company.
1207U Interest in a share (1) This section applies for the purpose of working out the percentage of a company’s total paid-up share capital in which an entity holds an interest.

(2) Subject to this section, for the purposes of this Division, an entity holds an interest in a share if the entity has any legal or equitable interest in the share.
(3) For the purposes of this Division, an entity is taken to hold an interest in a share if: (a) the entity has entered into a contract to purchase the share; or (b) the entity has a right (otherwise than because of having an interest under a trust) to have the share transferred to the entity or to the entity’s order (whether the right is exercisable presently or in the future and whether or not on the fulfilment of a condition); or (c) the entity has a right to acquire the share, or an interest in the share, under an option (whether the right is exercisable presently or in the future and whether or not on the fulfilment of a condition); or (d) the entity is otherwise entitled to acquire the share or an interest in the share; or (e) the entity is entitled (otherwise than because of having been appointed as a proxy or representative to vote at a meeting of members of the company or of a class of its members) to exercise or control the exercise of a right attached to the share.
(4) Subsection (3) does not, by implication, limit subsection (2).

(5) An entity is taken to hold an interest in a share even if the entity holds the interest in the share jointly with another entity.
462 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Controlled private companies Division 4 Section 1207U (6) For the purpose of determining whether an entity holds an interest in a share, it is immaterial that the interest cannot be related to a particular share.
(7) An interest in a share is not to be disregarded only because of: (a) its remoteness; or (b) the manner in which it arose; or (c) the fact that the exercise of a right conferred by the interest is, or is capable of being made, subject to restraint or restriction.
Social Security Act 1991 463 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 5 Controlled private trusts Section 1207V Division 5—Controlled private trusts 1207V Controlled private trusts (1) For the purposes of this Part, a trust is a controlled private trust in relation to an individual if the trust is a designated private trust and: (a) the individual passes the control test set out in subsection (2); or (b) the individual passes the source test set out in subsection (3).
Control test (2) For the purposes of this section, the individual passes the control test in relation to a trust if: (a) the individual, or an associate of the individual (other than an associate covered by paragraph 1207C(1)(j)), is the trustee, or any of the trustees, of the trust; or (b) a group in relation to the individual was able to remove or appoint the trustee, or any of the trustees, of the trust; or (c) a group in relation to the individual was able to vary the trust deed or to veto the decisions of the trustee; or (ca) it could reasonably be expected that the trustee of the trust would make an application of the corpus or income of the trust to the individual if the individual could not meet his or her reasonable costs of living (within the meaning of subsection 19C(5)); or (d) the aggregate of: (i) the beneficial interests in the corpus or income of the trust held by the individual (whether directly or indirectly); and (ii) the beneficial interests in the corpus or income of the trust held by associates of the individual (whether directly or indirectly); is 50% or more; or (da) either or both of the following apply: 464 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Controlled private trusts Division 5 Section 1207V (i) the individual is eligible to receive an application of the corpus or income of the trust; (ii) one or more of the individual’s associates are eligible to receive an application of the corpus or income of the trust; and the aggregate number of entities covered by subparagraphs (i) and (ii) is 50% or more of the total number of entities eligible to receive an application of the corpus or income of the trust; or (e) a group in relation to the individual had the power (by means of the exercise by the group of any power of appointment or revocation or otherwise) to obtain, with or without the
 consent of any other entity, the beneficial enjoyment of the corpus or income of the trust; or (f) a group in relation to the individual was able in any manner whatsoever, whether directly or indirectly, to control the application of the corpus or income of the trust; or (g) a group in relation to the individual was capable under a scheme of gaining the enjoyment or the control referred to in paragraph (e) or (f); or (h) a trustee of the trust was accustomed or under an obligation (whether formally or informally) or might reasonably be expected to act in accordance with the directions, instructions or wishes of a group in relation to the individual.
(2A) For the purposes of paragraph (2)(da), an entity is eligible to receive an application of the corpus or income of the trust if the trustee of the trust has a discretion to make an application of the corpus or income of the trust to the entity.
(2B) For the purposes of applying paragraph (2)(da) at a particular time, subparagraph (2)(da)(i) is taken to apply at that particular time to the individual if the individual was eligible to receive an application of the corpus or income of the trust at any time during: (a) the period beginning at the start of the financial year in which that particular time occurs and ending at that particular time; or Social Security Act 1991 465 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 5 Controlled private trusts Section 1207V (b) the preceding financial year.
(2C) For the purposes of applying paragraph (2)(da) at a particular time, subparagraph (2)(da)(ii) is taken to apply at that particular time to an entity that is an associate of the individual at that particular time if: (a) the entity was eligible to receive an application of the corpus or income of the trust at any time during: (i) the period beginning at the start of the financial year in which that particular time occurs and ending at that particular time; or (ii) the preceding financial year; and (b) the entity was an associate of the individual at the time the entity was so eligible.
(2D) For the purposes of applying paragraph (2)(da) at a particular time, in working out the total number of entities eligible to receive an application of the corpus or income of the trust, take into account an entity that was eligible to receive an application of the corpus or income of the trust at any time during: (a) the period beginning at the start of the financial year in which that particular time occurs and ending at that particular time; or (b) the preceding financial year.
(2E) No paragraph of subsection (2) limits any other paragraph of that subsection.

Source test (3) For the purposes of this section, an individual passes the source test in relation to a trust if: (a) the individual has transferred property or services to the trust after 7.30 pm, by standard time in the Australian Capital Territory, on 9 May 2000; and (b) the underlying transfer was made for no consideration or for a consideration less than the arm’s length amount in relation to the underlying transfer.
466 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Controlled private trusts Division 5 Section 1207W Group (4) A reference in this section to a group in relation to an individual is a reference to: (a) the individual acting alone; or (b) an associate of the individual acting alone; or (c) the individual and one or more associates of the individual acting together; or (d) 2 or more associates of the individual acting together.
Income (5) In this section: income means income within the ordinary meaning of that expression.
1207W Interest in a trust (1) For the purposes of this Division, if an entity: (a) has entered into a contract to purchase a beneficial interest in the corpus or income of a trust; or (b) has a right, otherwise than by reason of holding an interest in a trust, to have such an interest transferred to the entity or to the entity’s order (whether the right is exercisable presently or in the future) and whether on the fulfilment of a condition or not; or (c) has the right to acquire such an interest under an option (whether the right is exercisable presently or in the future) and whether on the fulfilment of a condition or not; or (d) is otherwise entitled to acquire such an interest; the entity is taken to hold that interest in the trust.
(2) An entity is taken to hold an interest in the corpus or income of a trust even if the entity holds the interest jointly with another entity.
(3) An interest in the corpus or income of a trust is not to be disregarded only because of: Social Security Act 1991 467 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 5 Controlled private trusts Section 1207W (a) its remoteness; or (b) the manner in which it arose; or (c) the fact that the exercise of a right conferred by the interest is, or is capable of being made, subject to restraint or restriction.
(4) In this section: income means income within the ordinary meaning of that expression.
468 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Attributable stakeholders and attribution percentages Division 6 Section 1207X Division 6—Attributable stakeholders and attribution percentages 1207X Attributable stakeholder, asset attribution percentage and income attribution percentage Company (1) For the purposes of this Part, if a company is a controlled private company in relation to an individual: (a) the individual is an attributable stakeholder of the company unless the Secretary otherwise determines; and (b) if the individual is an attributable stakeholder of the company—the individual’s asset attribution percentage in relation to the company is: (i) 100%; or (ii) if the Secretary determines a lower percentage in relation to the individual and the company—that lower percentage; and (c) if the individual is an attributable stakeholder of the company—the individual’s income attribution percentage in relation to the company is: (i) 100%; or (ii) if the Secretary determines a lower percentage in relation to the individual and the company—that lower percentage.
Trust (2) For the purposes of this Part, if: (a) a trust is a controlled private trust in relation to an individual; and (b) the trust is not a concessional primary production trust in relation to the individual (see section 1208U); then: Social Security Act 1991 469 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 6 Attributable stakeholders and attribution percentages Section 1207X (c) the individual is an attributable stakeholder of the trust unless the Secretary otherwise determines; and (d) if the individual is an attributable stakeholder of the trust— the individual’s asset attribution percentage in relation to the trust is: (i) 100%; or (ii) if the Secretary determines a lower percentage in relation to the individual and the trust—that lower percentage; and (e) if the individual is an attributable stakeholder of the trust— the individual’s income attribution percentage in relation to the trust is: (i) 100%; or (ii) if the Secretary determines a lower percentage in relation to the individual and the trust—that lower percentage.
(2A) The only attributable stakeholder of a special disability trust is the principal beneficiary of the trust.

Note 1: For special disability trust, see section 1209L.

Note 2: For principal beneficiary of a special disability trust, see subsection 1209M(1).

Determinations (3) A determination under this section is to be in writing.

(4) A determination under this section has effect accordingly.
(5) In making a determination under this section, the Secretary must comply with any relevant decision-making principles.
470 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Attribution of income of controlled private companies and controlled private trusts Division 7 Division 7—Attribution of income of controlled private companies and controlled private trusts Section 1207Y 1207Y Attribution of income (1) For the purposes of this Act, if: (a) during a particular derivation period of a company or trust, the company or trust derives an amount that is ordinary income; and (b) an individual is an attributable stakeholder of the company or a trust throughout the attribution period that relates to the derivation period of the company or trust; and (c) the attribution period begins on or after 1 January 2002; and (d) if that amount: (i) had been derived by the individual instead of by the company or trust; and (ii) in the case of income accounted for on an accrual basis as mentioned in subsection (5)—had been so derived by the individual on a cash basis; that amount would have been ordinary income of the individual; and (e) that amount is not excluded income (see subsection (2)); then, in addition to any other ordinary income of the individual, the individual is taken to receive, during that attribution period, ordinary income at an annual rate equal to the individual’s income attribution percentage of the amount worked out using the formula: Amount referred to in paragraph (a) Number of days in the derivation period  365 Note: For attribution of the income of a special disability trust, see section 1209V.
Social Security Act 1991 471 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 7 Attribution of income of controlled private companies and controlled private trusts Section 1207Z Excluded income (2) The Secretary may, by writing, determine that, for the purposes of the application of subsection (1) to a specified individual and a specified company or trust, a specified amount is excluded income.
(3) A determination under subsection (2) has effect accordingly.

(4) In making a determination under subsection (2), the Secretary must comply with any relevant decision-making principles.

Accrual v. cash accounting (5) If the income of a company or trust is accounted for on an accrual basis for the purposes of section 6-5 of the Income Tax Assessment Act 1997, the ordinary income of the company or trust is accounted for on an accrual basis for the purposes of this section.
(6) If the income of a company or trust is accounted for on a cash basis for the purposes of section 6-5 of the Income Tax Assessment Act 1997, the ordinary income of the company or trust is accounted for on a cash basis for the purposes of this section.
1207Z No double counting of attributed income (1) If: (a) a company makes a distribution of capital or profits of the company to a particular shareholder of the company; and (b) the shareholder is an individual; and (c) the individual is an attributable stakeholder of the company; the Secretary may, by writing: (d) determine that, for the purposes of this Act, the ordinary income of the individual does not include the amount or value distributed to the individual; or (e) determine that, for the purposes of this Act, the ordinary income of the individual does not include so much of the amount or value distributed to the individual as is specified in the determination.
472 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Attribution of income of controlled private companies and controlled private trusts Division 7 Section 1208 (2) If: (a) a trust: (i) makes a distribution (whether in money or in other property) to a particular beneficiary of the trust; or (ii) credits an amount to a particular beneficiary of the trust; and (b) the beneficiary is an individual; and (c) the individual is an attributable stakeholder of the trust; the Secretary may, by writing: (d) determine that, for the purposes of this Act, the ordinary income of the individual does not include the amount distributed or credited to the individual; or (e) determine that, for the purposes of this Act, the ordinary income of the individual does not include so much of the amount distributed or credited to the individual as is specified in the determination.
(3) In making a determination under this section, the Secretary must comply with any relevant decision-making principles.

(4) This section is to be disregarded for the purposes of paragraph 1207Y(1)(d).
1208 Ordinary income of a company or trust (1) For the purposes of this Division, the ordinary income of a company or trust is to be worked out as if: (a) exempt lump sums were not excluded from the definition of ordinary income in subsection 8(1); and (b) each reference in section 8 to a person included a reference to a company or trust; and (c) the following provisions had not been enacted: (i) subsection 8(7A); (ii) subsection 8(8); (iii) subsection 8(11); (iv) Part 3.10.
Social Security Act 1991 473 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 7 Attribution of income of controlled private companies and controlled private trusts Section 1208A (2) Paragraphs (1)(a) and (c) have effect subject to paragraph 1207Y(1)(d).
(3) A reference in this Division to the ordinary income of a company or trust is a reference to the company’s or trust’s gross ordinary income from all sources calculated without any reduction, other than a reduction under section 1208A or 1208B.
1208A Ordinary income from a business—treatment of trading stock (1) For the purposes of this Division, if: (a) a company or trust carries on a business; and (b) the value of all the trading stock on hand at the end of a derivation period is greater than the value of all the trading stock on hand at the beginning of that derivation period; the company’s or trust’s ordinary income for that derivation period in the form of profits from the business is to include the amount of the difference in values.
(2) For the purposes of this Division, if: (a) a company or trust carries on a business; and (b) the value of all the trading stock on hand at the end of a derivation period is less than the value of all the trading stock on hand at the beginning of that derivation period; the company’s or trust’s ordinary income for that derivation period in the form of profits from the business is to be reduced by the amount of the difference in values.
1208B Permissible reductions of business and investment income (1) For the purposes of this Division, if a company or trust carries on a business or holds an investment, the company’s or trust’s ordinary income from the business or investment is to be reduced by: (a) losses and outgoings that relate to the business or investment and are allowable deductions for the purposes of section 8-1 of the Income Tax Assessment Act 1997; and 474 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Attribution of income of controlled private companies and controlled private trusts Division 7 Section 1208C (b) amounts that relate to the business or investment and can be deducted in respect of plant (within the meaning of the Income Tax Assessment Act 1997) under Division 40 of that Act; and (c) amounts that relate to the business or investment and are allowable deductions under any other provision of the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
(2) However, the rule in subsection (1) does not apply to: (a) an ineligible deduction (see subsection (3)); or (b) an ineligible amount (see subsection (4)); or (c) an ineligible part of a deduction (see subsection (5)).

(3) The Secretary may, by legislative instrument, determine that a specified deduction is an ineligible deduction for the purposes of this section.
(4) The Secretary may, by legislative instrument, determine that a specified amount is an ineligible amount for the purposes of this section.

(5) The Secretary may, by legislative instrument, determine that a specified part of a specified deduction is an ineligible part of the deduction for the purposes of this section.

(6) A determination under subsection (3), (4) or (5) has effect accordingly.
1208C Derivation periods (1) For the purposes of this Part: (a) if a company or trust was in existence throughout a tax year of the company or trust—the tax year is a derivation period of the company or trust; and (b) if a company or trust was in existence during a part of a tax year of the company or trust—that part of the tax year is a derivation period of the company or trust.
Social Security Act 1991 475 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 7 Attribution of income of controlled private companies and controlled private trusts Section 1208D (2) Subsection (1) has effect subject to subsection (3).
(3) The Secretary may, by writing, determine that, for the purposes of the application of this Division to a specified individual and a specified company or trust, a specified period is a derivation period of the company or trust.

(4) A determination under subsection (3) has effect accordingly.

(5) In making a determination under subsection (3), the Secretary must comply with any relevant decision-making principles.
(6) To avoid doubt, for the purposes of the application of this Division to a particular individual and a particular company or trust, it is not necessary that the individual be an attributable stakeholder of the company or trust throughout a derivation period of the company or trust.

(7) A derivation period may begin or end before the commencement of this Part.
1208D Attribution periods (1) The Secretary may, by writing, determine that, in the event that a specified individual is an attributable stakeholder of a specified company or trust at a specified time (the start time): (a) a period beginning at the start time and ending at whichever is the earlier of the following times: (i) the later time specified in the determination; (ii) the time when the individual ceases to be an attributable stakeholder of the company or trust; is an attribution period for the purposes of the application of this Part to the individual and the company or trust; and (b) that attribution period relates to a specified derivation period of the company or trust.
(2) A determination under subsection (1) has effect accordingly.
476 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Attribution of income of controlled private companies and controlled private trusts Division 7 Section 1208D (3) The Secretary must ensure that, if an individual is an attributable stakeholder of a company or of a trust at a particular time on or after 1 January 2002, that time is included in an attribution period.
(4) An attribution period may, but is not required to, overlap (in whole or in part) the derivation period to which it relates.

(5) An attribution period does not have to be of the same length as the derivation period to which it relates.

(6) Attribution periods do not have to be of the same length.

(7) In making a determination under this section, the Secretary must comply with any relevant decision-making principles.
Social Security Act 1991 477 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 8 Attribution of assets of controlled private companies and controlled private trusts Section 1208E Division 8—Attribution of assets of controlled private companies and controlled private trusts 1208E Attribution of assets (1) For the purposes of this Act, if: (a) an individual is an attributable stakeholder of a company or trust at a particular time on or after 1 January 2002; and (b) at that time, the company or trust owns a particular asset (whether alone or jointly or in common with another entity or entities); and (c) if, at that time, that asset had been owned by the individual instead of by the company or trust, the value of the asset would not be required to be disregarded by any express provision of this Act; and (d) at that time, the asset is not an excluded asset (see subsection (2)); there is to be included in the value of the individual’s assets an amount equal to the individual’s asset attribution percentage of the value of the asset referred to in paragraph (b).
Note: For attribution of the assets of a special disability trust, see section 1209Y.

Excluded assets (2) The Secretary may, by writing, determine that, for the purposes of the application of subsection (1) to a specified individual and a particular company or trust, a specified asset is an excluded asset.

(3) A determination under subsection (2) has effect accordingly.

(4) In making a determination under subsection (2), the Secretary must comply with any relevant decision-making principles.
1208F When attributed asset is unrealisable (1) For the purposes of this Act, if: 478 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Attribution of assets of controlled private companies and controlled private trusts Division 8 Section 1208G (a) an individual is an attributable stakeholder of a company or trust at a particular time on or after 1 January 2002; and (b) at that time, the company or trust owns a particular asset (whether alone or jointly or in common with another entity or entities); and (c) under section 1208E, there is included in the value of the individual’s assets an amount equal to the individual’s asset attribution percentage of the value of the asset held by the company or trust; the amount referred to in paragraph (c) is taken not to be an unrealisable asset of the individual unless the asset referred to in paragraph (b) is an unrealisable asset of the company or trust.
(2) For the purposes of this section, in determining whether an asset is an unrealisable asset of a company or trust, ignore any limitation or restriction: (a) in the constituent document of the company or the trust deed of the trust, as the case requires; or (b) under a scheme that was entered into or carried out for the sole or dominant purpose of enabling any individual or individuals to avoid the application of this section and/or section 52ZZS of the Veterans’ Entitlements Act.
(3) For the purposes of this section, in determining whether an asset is an unrealisable asset of a company or trust, subsections 11(12) and (13) have effect as if each reference in those subsections to a person included a reference to a company or trust.
1208G Effect of charge or encumbrance on value of assets Charge or encumbrance relating to a single asset (1) For the purposes of the application of this Division (other than this section) to a particular individual and a particular company or trust, if: (a) there is a charge or encumbrance over a particular asset of the company or trust; and Social Security Act 1991 479 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 8 Attribution of assets of controlled private companies and controlled private trusts Section 1208G (b) the charge or encumbrance relates exclusively to that asset; the value of the asset is to be reduced by the value of the charge or encumbrance.
(2) Subsection (1) does not apply to a charge or encumbrance over an asset of a company or trust to the extent that: (a) the charge or encumbrance is a collateral security; or (b) the charge or encumbrance was given for the benefit of an entity other than the company or trust; or (c) the value of the charge or encumbrance is excluded under subsection (6).
Charge or encumbrance relating to 2 or more assets (3) For the purposes of the application of this Division (other than this section) to a particular individual and a particular company or trust, if: (a) there is a charge or encumbrance over a particular asset (the first asset) of the company or trust; and (b) the charge or encumbrance relates to the first asset and one or more other assets of the company or trust; the value of the first asset is to be reduced by the amount worked out using the formula: Value of the charge or encumbrance  Value of the first asset Total value of the first asset and the other assets  Total value of attributable assets subject to the charge or encumbrance Total value of assets ect to the charge subj or encumbrance (4) Subsection (3) does not apply to a charge or encumbrance over an asset of the company or trust to the extent that: (a) the charge or encumbrance was given for the benefit of an entity other than the company or trust; or (b) the value of the charge or encumbrance is excluded under subsection (6).
480 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Attribution of assets of controlled private companies and controlled private trusts Division 8 Section 1208H (5) If (apart from this section), under section 1208E, there is included in the value of the individual’s assets an amount equal to the individual’s asset attribution percentage of the value of an asset held by the company or trust, the asset held by the company or trust is an attributable asset for the purposes of subsection (3).
Exclusion (6) The Secretary may, by writing, determine that, for the purposes of the application of this section to a specified individual and a specified company or trust, the whole or a specified part of a specified charge or encumbrance over one or more of the assets of the company or trust is excluded for the purposes of paragraphs (2)(c) and (4)(b).

(7) A determination under subsection (6) has effect accordingly.
(8) In making a determination under subsection (6), the Secretary must comply with any relevant decision-making principles.
1208H Effect of unsecured loan on value of assets (1) For the purposes of the application of this Division to a particular individual and a particular company or trust, if: (a) the company or trust is the borrower under a loan; and (b) the loan is not secured by a charge or encumbrance over one or more of the assets of the company or trust; the Secretary may, by writing, determine that the value of a specified asset of the company or trust is to be reduced by the whole, or a specified part, of the amount of the loan.
(2) A determination under subsection (1) has effect accordingly.

(3) In making a determination under subsection (1), the Secretary must comply with any relevant decision-making principles.
Social Security Act 1991 481 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 8 Attribution of assets of controlled private companies and controlled private trusts Section 1208J 1208J Value of company’s or trust’s assets etc.
(1) For the purposes of this Division, the value of a company’s or trust’s assets, or of a charge or encumbrance on such assets, is to be worked out as if: (a) each reference in sections 11 and 11A to a person included a reference to a company or trust; and (b) Division 1 of Part 3.12 (other than section 1122) had not been enacted.

(2) Paragraph (1)(b) has effect subject to paragraph 1208E(1)(c).
482 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Modification of asset deprivation rules Division 9 Section 1208K Division 9—Modification of asset deprivation rules 1208K Individual disposes of asset to company or trust (1) If: (a) an individual transfers property to a company or trust on or after 1 January 2002; and (b) either: (i) as a result of the transfer, the individual became an attributable stakeholder of the company or trust; or (ii) at the time of the transfer, the individual was an attributable stakeholder of the company or trust; and (c) the transfer amounts to a disposal by the individual of an asset of the individual; the Secretary may, by writing, determine that Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) apply to that disposal as if: (d) the amount of the disposition were nil; or (e) the amount of the disposition were reduced by the amount specified in the determination.
(2) In making a decision under this section, the Secretary must comply with any relevant decision-making principles.
1208L Disposal of asset by company or trust (1) If: (a) an individual is an attributable stakeholder of a company or trust; and (b) the company or trust disposes of an asset of the company or trust; Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) apply, and are taken to have applied, as if: (c) the individual had disposed of an asset of the individual; and Social Security Act 1991 483 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 9 Modification of asset deprivation rules Section 1208L (d) the amount of the disposition referred to in paragraph (c) were equal to the individual’s asset attribution percentage of the amount of the disposition referred to in paragraph (b).
(2) Subsection (1) has effect subject to subsection (3).

Secretarial determinations (3) The Secretary may, by writing: (a) determine that the disposal of a specified asset is exempt from subsection (1); or (b) determine that subsection (1) has effect, in relation to the disposal of a specified asset, as if the reference in paragraph (1)(d) to the individual’s asset attribution percentage were a reference to such lower percentage as is specified in the determination.
(4) A determination under subsection (3) has effect accordingly.

(5) In making a determination under subsection (3), the Secretary must comply with any relevant decision-making principles.
General disposal (6) For the purposes of subsection (1), a company or trust disposes of assets of the company or trust if: (a) on or after 1 January 2002, the company or trust, or an attributable stakeholder of the company or trust, engages in a course of conduct that directly or indirectly: (i) destroys all or some of the company’s or trust’s assets; or (ii) disposes of all or some of the company’s or trust’s assets; or (iii) diminishes the value of all or some of the company’s or trust’s assets; and (b) one of the following subparagraphs is satisfied: 484 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Modification of asset deprivation rules Division 9 Section 1208L (i) the company or trust receives no consideration in money or money’s worth for the destruction, disposal or diminution; (ii) the company or trust receives inadequate consideration in money or money’s worth for the destruction, disposal or diminution; (iii) the Secretary is satisfied that the purpose, or the dominant purpose, of the company, trust or stakeholder in engaging in that course of conduct was to obtain a social security advantage for an attributable stakeholder of the company or trust (who may be the first-mentioned stakeholder) or for a relative of an attributable stakeholder of the company or trust; and (c) in the case of a company—the disposal is not by way of making a distribution of capital or profits of the company to a shareholder of the company; and (d) in the case of a trust—the disposal is not by way of: (i) making a distribution (whether in money or in other property) to a beneficiary of the trust; or (ii) crediting an amount to a beneficiary of the trust.
(7) If a company or trust disposes of assets as mentioned in subsection (6), the amount of the disposition is: (a) if the company or trust receives no consideration for the destruction, disposal or diminution—an amount equal to: (i) the value of the assets that are destroyed; or (ii) the value of the assets that are disposed of; or (iii) the amount of the diminution in the value of the assets whose value is diminished; or (b) if the company or trust receives consideration for the destruction, disposal or diminution—an amount equal to: (i) the value of the assets that are destroyed; or (ii) the value of the assets that are disposed of; or Social Security Act 1991 485 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 9 Modification of asset deprivation rules Section 1208L (iii) the amount of the diminution in the value of the assets whose value is diminished; less the amount of the consideration received by the company or trust in respect of the destruction, disposal or diminution.
Disposal by way of distribution (8) For the purposes of subsection (1), if a company makes a distribution of capital or profits of the company to a shareholder of the company on or after 1 July 2000: (a) the company is taken to have disposed of an asset of the company; and (b) the amount of the disposition is equal to the amount or value distributed to the shareholder.
(9) For the purposes of subsection (1), if a trust: (a) makes a distribution (whether in money or in other property) to a beneficiary of the trust on or after 1 July 2000; or (b) credits an amount to a beneficiary of the trust on or after 1 July 2000; then: (c) the trust is taken to have disposed of an asset of the trust; and (d) the amount of the disposition is equal to the amount or value distributed or credited to the beneficiary.
Obtaining a social security advantage (10) For the purposes of this section, an entity has a purpose of obtaining a social security advantage for an individual (who may be the entity) if the entity has a purpose of: (a) enabling the individual to obtain any of the following: (i) a social security pension; (ii) a social security benefit; (iii) a service pension; (iv) income support supplement; (v) a veteran payment; or 486 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Modification of asset deprivation rules Division 9 (b) enabling the individual to obtain any of the following at a higher rate than would otherwise have been payable: Section 1208M (i) a social security pension; (ii) a social security benefit; (iii) a service pension; (iv) income support supplement; (v) a veteran payment; or (c) ensuring that the individual would be qualified for fringe benefits for the purposes of this Act or the Veterans’ Entitlements Act.
1208M Individual ceases to be an attributable stakeholder of a company or trust If: (a) an individual ceases to be an attributable stakeholder of a company or trust on or after 1 January 2002; and (b) immediately before the cessation, the company or trust owned a particular asset (whether alone or jointly or in common with another entity or entities); Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) have effect as if: (c) the individual had disposed of an asset of the individual; and (d) the amount of the disposition referred to in paragraph (c) were equal to the individual’s asset attribution percentage of the value of the asset referred to in paragraph (b), worked out immediately before the cessation.
1208N Individual disposes of asset to company or trust before 1 January 2002—individual is attributable stakeholder (1) If: (a) an individual has transferred property to a company or trust before 1 January 2002; and (b) the transfer amounts to a disposal by the individual of an asset of the individual; and Social Security Act 1991 487 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 9 Modification of asset deprivation rules Section 1208N (c) apart from this section: (i) under Division 2 of Part 3.12 or sections 198F to 198MA (inclusive), as a result of the disposition, a particular amount is included in the value of the individual’s assets for the period of 5 years that starts on the day on which the disposition took place; and (ii) that 5-year period ends after 1 January 2002; and (d) the individual is an attributable stakeholder of the company or trust on 1 January 2002; the Secretary may, by writing, determine that: (e) in a case where the individual’s asset attribution percentage is 100%—Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) have effect, in relation to the disposal of the asset referred to in paragraph (b), as if a reference in that Division or those sections to the period of 5 years that starts on the day on which the disposition took place were a reference to the period: (i) beginning on the day
 on which the disposition took place; and (ii) ending immediately before 1 January 2002; or (f) in a case where the individual’s asset attribution percentage is less than 100%—Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) have effect on and after 1 January 2002, in relation to the disposal of the asset referred to in paragraph (b), as if the amount of the disposition were reduced by: (i) the individual’s asset attribution percentage as at 1 January 2002; or (ii) if a higher percentage is specified in the determination—that higher percentage.
(2) A determination under subsection (1) has effect accordingly.

(3) In making a determination under subsection (1), the Secretary must comply with any relevant decision-making principles.
488 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Modification of asset deprivation rules Division 9 Section 1208P 1208P Individual disposes of asset to company or trust before 1 January 2002—individual’s spouse is attributable stakeholder (1) If: (a) an individual has transferred property to a company or trust before 1 January 2002; and (b) the transfer amounts to a disposal by the individual of an asset of the individual; and (c) apart from this section: (i) under Division 2 of Part 3.12 or sections 198F to 198MA (inclusive), as a result of the disposition, a particular amount is included in the value of the individual’s assets for the period of 5 years that starts on the day on which the disposition took place; and (ii) that 5-year period ends after 1 January 2002; and (d) the individual’s spouse is an attributable stakeholder of the company or trust on 1 January 2002; the Secretary may, by writing, determine that: (e) in a case where the spouse’s asset attribution percentage is 100%—Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) have effect, in relation to the disposal of the asset referred to in paragraph (b), as if a reference in that Division or those sections to the period of 5 years that starts on the day on which the disposition took place were a reference to the period: (i)
 beginning on the day on which the disposition took place; and (ii) ending immediately before 1 January 2002; or (f) in a case where the spouse’s asset attribution percentage is less than 100%—Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) have effect on and after 1 January 2002, in relation to the disposal of the asset referred to in paragraph (b), as if the amount of the disposition were reduced by the spouse’s asset attribution percentage as at 1 January 2002.
Social Security Act 1991 489 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 9 Modification of asset deprivation rules Section 1208P (2) A determination under subsection (1) has effect accordingly.

(3) In making a determination under subsection (1), the Secretary must comply with any relevant decision-making principles.
490 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Modification of income deprivation rules Division 10 Section 1208Q Division 10—Modification of income deprivation rules 1208Q Individual disposes of ordinary income to company or trust (1) If: (a) an individual transfers property to a company or trust on or after 1 January 2002; and (b) either: (i) as a result of the transfer, the individual became an attributable stakeholder of the company or trust; or (ii) at the time of the transfer, the individual was an attributable stakeholder of the company or trust; and (c) the transfer amounts to a disposal by the individual of ordinary income of the individual; and (d) if the ordinary income is income from an asset—the course of conduct that constituted the disposition of the income did not also constitute a disposition of the asset; the Secretary may, by writing, determine that Division 3 of Part 3.10 applies, and is taken to have applied, to the disposal referred to in paragraph (c) as if: (e) the amount of the disposition were nil; or (f) the amount of the disposition were reduced by the amount specified in the determination.
(2) In making a decision under this section, the Secretary must comply with any relevant decision-making principles.
1208R Disposal of income by company or trust (1) If: (a) an individual is an attributable stakeholder of a company or trust; and (b) the company or trust disposes of ordinary income of the company or trust; and Social Security Act 1991 491 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 10 Modification of income deprivation rules Section 1208R (c) if that income had been income of the individual instead of the company or trust, the income would have been ordinary income of the individual; and (d) if the ordinary income is income from an asset—the course of conduct that constituted the disposition of the income did not also constitute a disposition of the asset; Division 3 of Part 3.10 applies, and is taken to have applied, as if: (e) the individual had disposed of ordinary income of the individual; and (f) the amount of the disposition referred to in paragraph (e) were equal to the individual’s income attribution percentage of the amount of the disposition referred to in paragraph (b).
(2) Subsection (1) has effect subject to subsection (3).

Secretarial determinations (3) The Secretary may, by writing: (a) determine that the disposal of specified ordinary income is exempt from subsection (1); or (b) determine that subsection (1) has effect, in relation to the disposal of specified ordinary income, as if the reference in paragraph (1)(f) to the individual’s income attribution percentage were a reference to such lower percentage as is specified in the determination.
(4) A determination under subsection (3) has effect accordingly.

(5) In making a determination under subsection (3), the Secretary must comply with any relevant decision-making principles.
General disposal (6) For the purposes of subsection (1), a company or trust disposes of ordinary income of the company or trust if: (a) on or after 1 January 2002, the company or trust, or an attributable stakeholder of the company or trust, engages in a course of conduct that directly or indirectly: 492 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Modification of income deprivation rules Division 10 Section 1208R (i) destroys the source of the income; or (ii) disposes of the income or the source of the income; or (iii) diminishes the income; and (b) one of the following subparagraphs is satisfied: (i) the company or trust receives no consideration in money or money’s worth for the destruction, disposal or diminution; (ii) the company or trust receives inadequate consideration in money or money’s worth for the destruction, disposal or diminution; (iii) the Secretary is satisfied that the purpose, or the dominant purpose, of the company, trust or stakeholder in engaging in that course of conduct was to obtain a social security advantage for an attributable stakeholder of the company or trust (who may be the first-mentioned stakeholder) or for a relative of an attributable stakeholder of the company or trust; and (c) in the case of a company—the disposal is not by way of making a distribution of capital or profits of the company to a shareholder of the company; and (d) in the case of a trust—the disposal is not by way of: (i) making a distribution (whether in money or in other property) to a beneficiary of the trust; or (ii) crediting an amount to a beneficiary of the trust.
(7) If a company or trust disposes of ordinary income as mentioned in subsection (6), the amount of the disposition is: (a) if the company or trust receives no consideration for the destruction, disposal or diminution—the annual rate of the diminution of the income because of the destruction, disposal or diminution; or (b) if the company or trust receives consideration for the destruction, disposal or diminution—the annual rate of the diminution of the income because of the destruction, disposal or diminution less the part (if any) of the consideration that Social Security Act 1991 493 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 10 Modification of income deprivation rules Section 1208S the Secretary considers to be fair and reasonable in all the circumstances of the case.
Obtaining a social security advantage (8) For the purposes of this section, an entity has a purpose of obtaining a social security advantage for an individual (who may be the entity) if the entity has a purpose of: (a) enabling the individual to obtain any of the following: (i) a social security pension; (ii) a social security benefit; (iii) a service pension; (iv) income support supplement; (v) a veteran payment; or (b) enabling the individual to obtain any of the following at a higher rate than would otherwise have been payable: (i) a social security pension; (ii) a social security benefit; (iii) a service pension; (iv) income support supplement; (v) a veteran payment; or (c) ensuring that the individual would be qualified for fringe benefits for the purposes of this Act or the Veterans’ Entitlements Act.
Ordinary income (9) In this section: ordinary income, in relation to a company or trust, has the same meaning as in Division 7.
1208S Individual disposes of income to company or trust before 1 January 2002—individual is attributable stakeholder (1) If: 494 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Modification of income deprivation rules Division 10 Section 1208T (a) an individual has transferred property to a company or trust before 1 January 2002; and (b) the transfer amounts to a disposal by the individual of ordinary income of the individual; and (c) apart from this section, under Division 3 of Part 3.10, as a result of the disposition referred to in paragraph (b), a particular amount is included in the individual’s ordinary income; and (d) the individual is an attributable stakeholder of the company or trust on 1 January 2002; the Secretary may, by writing, determine that: (e) in a case where the individual’s income attribution percentage is 100%—Division 3 of Part 3.10 has effect on or after 1 January 2002, in relation to the disposal of the income referred to in paragraph (b), as if the amount of the disposition were nil; or (f) in a case where the individual’s income attribution percentage is less than 100%—Division 3 of Part 3.10 has effect on and after 1 January 2002, in relation to the disposal of the income referred to in paragraph (b), as if the amount of the disposition were reduced by: (i) the individual’s income attribution percentage as at 1 January 2002; or (ii) if a higher percentage is specified in the determination—that higher percentage.
(2) A determination under subsection (1) has effect accordingly.

(3) In making a determination under subsection (1), the Secretary must comply with any relevant decision-making principles.
1208T Individual disposes of income to company or trust before 1 January 2002—individual’s spouse is attributable stakeholder (1) If: Social Security Act 1991 495 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 10 Modification of income deprivation rules Section 1208T (a) an individual has transferred property to a company or trust before 1 January 2002; and (b) the transfer amounts to a disposal by the individual of ordinary income of the individual; and (c) apart from this section, under Division 3 of Part 3.10, as a result of the disposition referred to in paragraph (b), a particular amount is included in the individual’s ordinary income; and (d) the individual’s spouse is an attributable stakeholder of the company or trust on 1 January 2002; the Secretary may, by writing, determine that: (e) in a case where the spouse’s income attribution percentage is 100%—Division 3 of Part 3.10 has effect on or after 1 January 2002, in relation to the disposal of the income referred to in paragraph (b), as if the amount of the disposition were nil; or (f) in a case where the spouse’s income attribution percentage is less than 100%—Division 3 of Part 3.10 has effect on and after 1 January 2002, in relation to the disposal of the income referred to in paragraph (b), as if the amount of the disposition were reduced by the spouse’s income attribution percentage as at 1 January 2002.
(2) A determination under subsection (1) has effect accordingly.

(3) In making a determination under subsection (1), the Secretary must comply with any relevant decision-making principles.
496 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Concessional primary production trusts Division 11 Section 1208U Division 11—Concessional primary production trusts 1208U Concessional primary production trusts (1) For the purposes of this Part, a trust is a concessional primary production trust in relation to an individual at a particular time (the test time), if: (a) at the test time, the trust is a controlled private trust in relation to the individual; and (b) at the test time, either: (i) the trust carries on a primary production enterprise (the first primary production enterprise); or (ii) the trust makes an asset available to another entity, the other entity carries on a primary production enterprise (the first primary production enterprise), and the asset is used by the other entity wholly or principally for the purposes of carrying on the first primary production enterprise; and (c) at the test time, more than 70% of the net value of the assets of the trust (excluding the net value of the principal home of the individual if that principal home is owned by the trust) relates to assets used wholly or principally for the purposes of carrying on a primary production enterprise; and (d) at the test time, the sum of: (i) the total adjusted net value of assets that are owned or controlled by the individual and used wholly or principally for the purposes of carrying on a primary production enterprise; and (ii) the total adjusted net value of assets that are owned or controlled by the individual’s spouse and used wholly or principally for the purposes of carrying on a primary production enterprise; is less than the primary production attribution threshold (as defined by subsection (6)); and (e) if: Social Security Act 1991 497 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3
 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 11 Concessional primary production trusts Section 1208U (i) the individual or the individual’s spouse had adjusted net primary production income for the last tax year that ended before the test time; and (ii) the individual or the individual’s spouse had adjusted net primary production income for the tax year that preceded the tax year first referred to in subparagraph (i); and (iii) the individual or the individual’s spouse had adjusted net primary production income for the tax year that preceded the tax year first referred to in subparagraph (ii); the average of the following amounts is less than the amount specified in clause 38N of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 (subject to any indexation under Schedule 4 to that Act): (iv) the total adjusted net primary production income of the individual and the individual’s spouse for the tax year referred to in subparagraph (i); (v) the total adjusted net primary production income of the individual and the individual’s spouse for the tax year first referred to in subparagraph (ii); (vi) the total adjusted net primary production income of the individual and the individual’s spouse for the tax year first referred to in subparagraph (iii); and (f) if: (i) neither the individual nor the individual’s spouse had adjusted net primary production income for the last tax year that ended before the test time; or (ii) neither the individual nor the individual’s spouse had adjusted net primary production income for the tax year that preceded the tax year referred to in subparagraph (i); or (iii) neither the individual nor the individual’s spouse had adjusted net primary production income for the tax year that preceded the tax year referred to in subparagraph (ii); 498 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege
 General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Concessional primary production trusts Division 11 Section 1208U the Secretary, by writing, determines that this paragraph applies to the individual and the trust; and (g) at the test time, the individual is not actively involved with the first primary production enterprise; and (h) at the test time, an eligible descendant of the individual is actively involved with the first primary production enterprise; and (i) if, at the test time, the individual is able to appoint the trustee, or any of the trustees, of the trust—there is a provision of the trust deed to the effect that that ability may only be exercised: (i) if the trustee concerned dies, resigns or becomes subject to a legal disability; or (ii) in accordance with a statutory law relating to the appointment of trustees; and (j) if, at the test time, the individual is able to veto or direct the decisions of the trustee—there is a provision of the trust deed to the effect that that ability may only be exercised: (i) in relation to the sale of land used for the purposes of carrying on the first primary production enterprise; or (ii) in relation to the sale of fishing rights or timber rights used for the purposes of carrying on the first primary production enterprise; or (iii) in accordance with a statutory law relating to the appointment of trustees; and (k) at the test time, there is a provision of the trust deed to the effect that neither the individual, nor the individual’s spouse, is, or is capable of becoming, the trustee, or any of the trustees, of the trust; and (l) at the test time, a group in relation to the individual is not able to vary a provision covered by paragraph (i), (j) or (k); and (m) at the test time, neither the individual, nor the individual’s spouse, is able to vary the trust deed; and (n) at the test time, neither the individual, nor the individual’s
 spouse: Social Security Act 1991 499 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 11 Concessional primary production trusts Section 1208U (i) benefits or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust, either directly or through any interposed companies, business partnerships or trusts; or (ii) receives any remuneration or other benefits from the trust otherwise than in the capacity of beneficiary of the trust.
(2) For the purposes of the application of paragraphs (1)(e) and (f) to a particular tax year, a person is the individual’s spouse if, and only if: (a) the person was the spouse of the individual at any time during the tax year; and (b) the person is the spouse of the individual at the test time.

(3) In making a determination under paragraph (1)(f), the Secretary must comply with any relevant decision-making principles.
(3A) For the purposes of paragraph (1)(h), an eligible descendant, in relation to a person, is: (a) a child, step-child or adopted child of the person or of a partner of the person; or (b) a descendant in direct line of a child described in paragraph (a); or (c) any other person who, in the opinion of the Secretary, should be treated for the purposes of this definition as a person described in paragraph (a) or (b).
(4) Paragraph (1)(n) does not apply to any of the following benefits: (a) food that: (i) is derived from the first primary production enterprise; and (ii) is for the personal consumption of the individual or the individual’s spouse; (b) residential accommodation for the individual or the individual’s spouse, where that accommodation is the principal home of the individual; 500 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Concessional primary production trusts Division 11 Section 1208V (c) if paragraph (b) applies—water, fuel, gas or electricity for use in that residential accommodation; (d) any other non-cash benefit that is minor and provided on a basis that is infrequent and irregular.
(5) Subparagraph (1)(n)(ii) has effect subject to section 1208V.

(6) For the purposes of this section, the primary production attribution threshold is $750,000.

(7) A reference in this section to a group in relation to an individual is a reference to: (a) the individual acting alone; or (b) an associate of the individual acting alone; or (c) the individual and one or more associates of the individual acting together; or (d) 2 or more associates of the individual acting together.
1208V Individual ceases to be an attributable stakeholder of trust— receipt of remuneration or other benefits from trust during asset deprivation period (1) For the purposes of this section, if: (a) an individual ceases to be an attributable stakeholder of a trust on or after 1 January 2002; and (b) immediately after the cessation, the trust was a concessional primary production trust in relation to the individual; and (c) under section 1208M, as a result of the cessation, Division 2 of Part 3.12 and sections 198F to 198MA (inclusive) have effect as if the individual had disposed of an asset of the individual; and (d) under Division 2 of Part 3.12 or sections 198F to 198MA (inclusive), as a result of the disposition, a particular amount is included in the value of the individual’s assets for the period of 5 years that starts on the day on which the disposition took place; then: Social Security Act 1991 501 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 11 Concessional primary production trusts Section 1208V (e) the period referred to in paragraph (d) is the asset deprivation period in relation to the individual and the trust; and (f) throughout the asset deprivation period, the trust is a special primary production trust in relation to the individual; and (g) each one of the 5 years that constitutes the asset deprivation period is an asset deprivation year in relation to the individual and the trust.
(2) If: (a) a trust (the first trust) is a special primary production trust in relation to an individual; and (b) the individual and/or the individual’s spouse received one or more benefits (the first benefits) from the trust during a period that is an asset deprivation year (the first asset deprivation year) in relation to the individual and the trust; subparagraph 1208U(1)(n)(ii) does not apply to the first benefits, so long as the sum of the following amounts is less than the amount specified in clause 38N of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 (subject to any indexation under Schedule 4 to that Act): (c) the total of the amount or value of the first benefits; (d) if: (i) another trust is a special primary production trust in relation to the individual; and (ii) the asset deprivation period in relation to the individual and that other trust overlaps, in whole or in part, the first asset deprivation year; and (iii) the individual and/or the individual’s spouse received one or more benefits (the second benefits) from that other trust during the period of the overlap; the total of the amount or value of the second benefits; (e) if: (i) another trust is a special primary production trust in relation to the individual’s spouse; and 502 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Concessional primary production trusts Division 11 Section 1208W (ii) the asset deprivation period in relation to the individual’s spouse and that other trust overlaps, in whole or in part, the first asset deprivation year; and (iii) the individual’s spouse and/or the individual received one or more benefits (the third benefits) from that other trust during the period of the overlap; the total of the amount or value of the third benefits.
(3) Subsection (2) does not apply to any of the following benefits: (a) food that: (i) is derived from the first primary production enterprise referred to in section 1208U; and (ii) is for the personal consumption of the individual or the individual’s spouse; (b) residential accommodation for the individual or the individual’s spouse, where that accommodation is the principal home of the individual; (c) if paragraph (b) applies—water, fuel, gas or electricity for use in that residential accommodation; (d) any other non-cash benefit that is minor and provided on a basis that is infrequent and irregular.
(4) In this section: benefit, in relation to a trust, means any remuneration or other benefit received from the trust otherwise than in the capacity of beneficiary of the trust.

1208W Net value of asset (1) For the purposes of this Division, the net value of an asset is the value of the asset, without any reduction other than a reduction under subsection (2).
(2) The Secretary may, by writing, determine that the value of a specified asset is to be reduced by the whole or a specified part of a specified liability.
Social Security Act 1991 503 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 11 Concessional primary production trusts Section 1208X (3) A determination under this section has effect accordingly.

(4) In making a determination under this section, the Secretary must comply with any relevant decision-making principles.
1208X Value of entity’s assets For the purposes of this Division, the value of an entity’s assets is to be worked out as if: (a) each reference in sections 11 and 11A to a person included a reference to an entity; and (b) Division 1 of Part 3.12 (other than section 1122) had not been enacted.
1208Y When asset is controlled by an individual (1) For the purposes of this Division, an asset is controlled by an individual if, and only if: (a) all of the following conditions are satisfied: (i) the asset is owned by a company; (ii) the company is a controlled private company in relation to the individual; (iii) no determination is in force under subsection (2) in relation to the asset and the individual; or (b) all of the following conditions are satisfied: (i) the asset is owned by a trust; (ii) the trust is a controlled private trust in relation to the individual; (iii) no determination is in force under subsection (2) in relation to the asset and the individual; or (c) both: (i) the asset is owned by a business partnership; and (ii) the individual is a partner in the partnership.
(2) If the asset is owned by a company or trust, the Secretary may, by writing, determine that, for the purposes of this Division, the asset is taken not to be controlled by the individual.
504 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Concessional primary production trusts Division 11 Section 1208Z (3) In making a determination under subsection (2), the Secretary must comply with any relevant decision-making principles.
1208Z Adjusted net value of asset (1) For the purposes of this Division, the adjusted net value of an asset owned by an individual is 100% of the net value of the asset.
(2) For the purposes of this Division, the adjusted net value of an asset controlled by an individual is: (a) if the entity that owns the asset is a company and the company is a controlled private company in relation to the individual: (i) 100% of the net value of the asset; or (ii) if the Secretary, by writing, determines a lower percentage in relation to the individual and the asset— that lower percentage of the net value of the asset; or (b) if the entity that owns the asset is a trust and the trust is a controlled private trust in relation to the individual: (i) 100% of the net value of the asset; or (ii) if the Secretary, by writing, determines a lower percentage in relation to the individual and the asset— that lower percentage of the net value of the asset; or (c) if the entity that owns the asset is a business partnership—the individual’s share of the net value of the asset.
(3) In making a determination under this section, the Secretary must comply with any relevant decision-making principles.
1209 Adjusted net primary production income (1) For the purposes of this Division, the adjusted net primary production income of an individual for a particular tax year is the sum of: (a) if the individual carried on a primary production enterprise throughout that tax year—100% of the net income of that primary production enterprise for that tax year; and Social Security Act 1991 505 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 11 Concessional primary production trusts Section 1209A (b) if a company carried on a primary production enterprise throughout that tax year and the company was a controlled private company in relation to the individual throughout that tax year: (i) 100% of the net income of that primary production enterprise for that tax year; or (ii) if the Secretary, by writing, determines a lower percentage in relation to the individual and the enterprise—that lower percentage of the net income of that primary production enterprise for that tax year; and (c) if a trust carried on a primary production enterprise throughout that tax year and the trust was a controlled private trust in relation to the individual throughout that tax year: (i) 100% of the net income of that primary production enterprise for that tax year; or (ii) if the Secretary, by writing, determines a lower percentage in relation to the individual and the enterprise—that lower percentage of the net income of that primary production enterprise for that tax year; and (d) if: (i) a business partnership carried on a primary production enterprise throughout that tax year; and (ii) the individual was a partner in the partnership throughout that tax year; the individual’s share of the net income of that primary production enterprise for that tax year.
(2) In making a determination under this section, the Secretary must comply with any relevant decision-making principles.
1209A Net income of a primary production enterprise (1) For the purposes of this Division, if an entity carries on a primary production enterprise during a tax year of the entity, the net income of that primary production enterprise for that tax year is the entity’s gross ordinary income from the carrying on of that 506 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Concessional primary production trusts Division 11 Section 1209B enterprise calculated without any reduction, other than a reduction under section 1209B or 1209C.
(2) For the purposes of this Division, the net income of a primary production enterprise is to be worked out as if: (a) exempt lump sums were not excluded from the definition of ordinary income in subsection 8(1); and (b) each reference in section 8 to a person included a reference to an entity; and (c) the following provisions had not been enacted: (i) subsection 8(7A); (ii) subsection 8(8); (iii) subsection 8(11); (iv) Part 3.10.
1209B Net income from a primary production enterprise— treatment of trading stock (1) For the purposes of this Division, if: (a) an entity carries on a primary production enterprise; and (b) the value of all the trading stock on hand at the end of a tax year is greater than the value of all the trading stock on hand at the beginning of that tax year; the entity’s income for that tax year in the form of profits from the enterprise is to include the amount of the difference in values.
(2) For the purposes of this Division, if: (a) an entity carries on a primary production enterprise; and (b) the value of all the trading stock on hand at the end of a tax year is less than the value of all the trading stock on hand at the beginning of that tax year; the entity’s income for that tax year in the form of profits from the enterprise is to be reduced by the amount of the difference in values.
Social Security Act 1991 507 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 11 Concessional primary production trusts Section 1209C 1209C Permissible reductions of income from carrying on a primary production enterprise (1) For the purposes of this Division, if an entity carries on a primary production enterprise, the entity’s income from the primary production enterprise is to be reduced by: (a) losses and outgoings that relate to the primary production enterprise and are allowable deductions for the purposes of section 8-1 of the Income Tax Assessment Act 1997; and (b) amounts that relate to the primary production enterprise and can be deducted in respect of plant (within the meaning of the Income Tax Assessment Act 1997) under Division 40 of that Act; and (c) amounts that relate to the primary production enterprise and are allowable deductions under any other provision of the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
(2) However, the rule in subsection (1) does not apply to: (a) an ineligible deduction (see subsection (3)); or (b) an ineligible amount (see subsection (4)); or (c) an ineligible part of a deduction (see subsection (5)).

(3) The Secretary may, by legislative instrument, determine a specified deduction is an ineligible deduction for the purposes of this section.

(4) The Secretary may, by legislative instrument, determine that a specified amount is an ineligible amount for the purposes of this section.
(5) The Secretary may, by legislative instrument, determine that a specified part of a specified deduction is an ineligible part of the deduction for the purposes of this section.

(6) A determination under subsection (3), (4) or (5) has effect accordingly.
508 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Anti-avoidance Division 12 Section 1209D Division 12—Anti-avoidance 1209D Anti-avoidance (1) If: (a) one or more entities enter into, commence to carry out, or carry out, a scheme; and (b) it would be concluded that the entity, or any of the entities, who entered into, commenced to carry out, or carried out, the scheme did so for the sole or dominant purpose of obtaining a social security advantage for an individual (who may be the entity or one of the entities); the Secretary may, by writing, make any or all of the following determinations: (c) a determination that this Part has, and is taken always to have had, effect as if the individual were an attributable stakeholder of a specified company or trust at a specified time or during a specified period; (d) a determination that this Part has, and is taken always to have had, effect as if a specified asset were owned by a specified company or trust at a specified time or during a specified period; (e) a determination that this Part has, and is taken always to have had, effect as if specified income had been derived by a specified company or trust at a specified time or during a specified period.
(2) A determination under subsection (1) has effect accordingly.
Obtaining a social security advantage (3) For the purposes of this section, an entity has a purpose of obtaining a social security advantage for an individual (who may be the entity) if the entity has a purpose of: (a) enabling the individual to obtain any of the following: (i) a social security pension; (ii) a social security benefit; Social Security Act 1991 509 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 12 Anti-avoidance Section 1209D (iii) a service pension; (iv) income support supplement; (v) a veteran payment; or (b) enabling the individual to obtain any of the following at a higher rate than would otherwise have been payable: (i) a social security pension; (ii) a social security benefit; (iii) a service pension; (iv) income support supplement; (v) a veteran payment; or (c) ensuring that the individual would be qualified for fringe benefits for the purposes of this Act or the Veterans’ Entitlements Act.
510 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Decision-making principles Division 13 Section 1209E Division 13—Decision-making principles 1209E Decision-making principles The Secretary may, by legislative instrument, formulate principles (decision-making principles) to be complied with by him or her in making decisions under: (a) section 1207X; or (b) subsection 1207Y(2); or (c) section 1207Z, 1208C or 1208D; or (d) subsection 1208E(2); or (e) subsection 1208G(6) or 1208H(1); or (f) section 1208K; or (g) subsection 1208L(3), 1208N(1) or 1208P(1); or (h) section 1208Q; or (i) subsection 1208R(3), 1208S(1) or 1208T(1); or (j) paragraph 1208U(1)(f); or (k) section 1208W; or (l) subsection 1208Y(2); or (m) section 1208Z or 1209.
Social Security Act 1991 511 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 14 Information management Section 1209F Division 14—Information management 1209F Transitional period For the purposes of this Division, the transitional period is the period: (a) beginning on the commencement of this Part; and (b) ending immediately before 1 January 2002.
1209G Information-gathering powers In determining the scope of the power conferred on the Secretary during the transitional period by section 192 of the Social Security (Administration) Act 1999 to require the giving of information, or the production of a document, it is to be assumed that: (a) section 1207 (simplified outline) had effect as if the reference in that section to 1 January 2002 were a reference to the first day of the transitional period; and (b) section 1207Y (attribution of income) had effect, in relation to a particular individual and a particular company or trust, as if: (i) a tax year of the company or trust, being a tax year specified in the notice imposing the requirement, were a derivation period of the company or trust; and (ii) a period specified in the notice imposing the requirement were an attribution period of the company or trust, and that attribution period related to a specified derivation period of the company or trust; and (iii) the reference in paragraph 1207Y(1)(c) to 1 January 2002 were a reference to the first day of the transitional period; and (iv) sections 1208C and 1208D had not been enacted; and (c) section 1208E (attribution of assets) had effect as if the reference in paragraph 1208E(1)(a) to 1 January 2002 were a reference to the first day of the transitional period.
512 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Information management Division 14 Section 1209H 1209H Secretary may obtain tax information (1) If the Secretary has reason to believe that the Commissioner of Taxation has information (other than a tax file number) that may be relevant to the operation of this Part, the Secretary may, by written notice given to the Commissioner of Taxation, require the Commissioner of Taxation to give to the Secretary any such information.
(2) If the Secretary has reason to believe that the relationship (whether direct or indirect) between: (a) a particular trust; and (b) a particular individual or an associate of a particular individual; may be relevant to the operation of this Part, the Secretary may, by written notice given to the Commissioner of Taxation, require the Commissioner of Taxation to give to the Secretary the tax file number of the trust.
(3) The Commissioner of Taxation must comply with a requirement under subsection (1) or (2).

(4) Subsections (1) and (2) do not, by implication, limit a power conferred by: (a) paragraph 16(4)(e) or (eb) of the Income Tax Assessment Act 1936; or (b) section 192 or 195 of the Social Security (Administration) Act 1999.
(5) A tax file number provided to the Secretary under subsection (2) may only be used for the following purposes: (a) to detect cases in which amounts of social security payments have been paid when they should not have been paid; (b) to verify, in respect of persons who have made claims for social security payments, the qualification of those persons for those payments; (c) to establish whether the rates at which social security payments are being, or have been, paid are, or were, correct.
Social Security Act 1991 513 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 14 Information management Section 1209J (6) In determining the scope of a power conferred during the transitional period by subsection (1), (2) or (5), it is to be assumed that: (a) section 1207 (simplified outline) had effect as if the reference in that section to 1 January 2002 were a reference to the first day of the transitional period; and (b) section 1207Y (attribution of income) had effect, in relation to a particular individual and a particular company or trust, as if: (i) a tax year of the company or trust, being a tax year specified in a written notice given to the Commissioner of Taxation by the Secretary, were a derivation period of the company or trust; and (ii) a period specified in a written notice given to the Commissioner of Taxation by the Secretary were an attribution period of the company or trust, and that attribution period related to a specified derivation period of the company or trust; and (iii) the reference in paragraph 1207Y(1)(c) to 1 January 2002 were a reference to the first day of the transitional period; and (iv) sections 1208C and 1208D had not been enacted; and (c) section 1208E (attribution of assets) had effect as if the reference in paragraph 1208E(1)(a) to 1 January 2002 were a reference to the first day of the transitional period.
1209J Disclosure of tax information In determining the scope of the power conferred on a person (the tax official) during the transitional period by paragraph 16(4)(e) or (eb) of the Income Tax Assessment Act 1936 to communicate information for the purpose of the administration of any law of the Commonwealth relating to pensions, allowances or benefits, it is to be assumed that: (a) section 1207 (simplified outline) had effect as if the reference in that section to 1 January 2002 were a reference to the first day of the transitional period; and 514 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Means test treatment of private companies and private trusts Part 3.18 Information management Division 14 Section 1209K (b) section 1207Y (attribution of income) had effect, in relation to a particular individual and a particular company or trust, as if: (i) a tax year of the company or trust, being a tax year specified in a written notice given to the tax official by the Secretary, were a derivation period of the company or trust; and (ii) a period specified in a written notice given to the tax official by the Secretary were an attribution period of the company or trust, and that attribution period related to a specified derivation period of the company or trust; and (iii) the reference in paragraph 1207Y(1)(c) to 1 January 2002 were a reference to the first day of the transitional period; and (iv) sections 1208C and 1208D had not been enacted; and (c) section 1208E (attribution of assets) had effect as if the reference in paragraph 1208E(1)(a) to 1 January 2002 were a reference to the first day of the transitional period.
1209K Disclosure of tax file number information In determining the scope of paragraph 202(hb) of the Income Tax Assessment Act 1936, and sections 8WA and 8WB of the Taxation Administration Act 1953, during the transitional period, it is to be assumed that: (a) section 1207 (simplified outline) had effect as if the reference in that section to 1 January 2002 were a reference to the first day of the transitional period; and (b) section 1207Y (attribution of income) had effect, in relation to a particular individual and a particular company or trust, as if: (i) a tax year of the company or trust, being a tax year specified in a written notice given to the Commissioner of Taxation by the Secretary, were a derivation period of the company or trust; and Social Security Act 1991 515 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18 Means test treatment of private companies and private trusts Division 14 Information management Section 1209K (ii) a period specified in a written notice given to the Commissioner of Taxation by the Secretary were an attribution period of the company or trust, and that attribution period related to a specified derivation period of the company or trust; and (iii) the reference in paragraph 1207Y(1)(c) to 1 January 2002 were a reference to the first day of the transitional period; and (iv) sections 1208C and 1208D had not been enacted; and (c) section 1208E (attribution of assets) had effect as if the reference in paragraph 1208E(1)(a) to 1 January 2002 were a reference to the first day of the transitional period.
516 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Special disability trusts Division 1 Section 1209L Part 3.18A—Private financial provision for certain people with disabilities Division 1—Special disability trusts 1209L What is a special disability trust?
A trust is a special disability trust if the following requirements of this Division are complied with: (a) the beneficiary requirements (see section 1209M); (b) the trust purpose requirements (see section 1209N); (c) the trust deed requirements (see section 1209P); (d) the trustee requirements (see section 1209Q); (e) the trust property requirements (see section 1209R); (ea) the trust expenditure requirements, if any (see section 1209RA); (f) the reporting requirements (see section 1209S); (g) the audit requirements (see section 1209T).
Note: The Secretary may waive one or more requirements in certain circumstances (see section 1209U).

1209M Beneficiary requirements Single beneficiary rule (1) The trust must have no more than one beneficiary (the principal beneficiary), not including any residuary beneficiary.
Impairment or disability conditions (2) If the principal beneficiary has reached 16 years of age: (a) the beneficiary must: (i) have an impairment that would qualify the person for disability support pension; or Social Security Act 1991 517 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 1 Special disability trusts Section 1209M (ii) be receiving invalidity service pension under Part III of the Veterans’ Entitlements Act; or (iii) be receiving income support supplement under the Veterans’ Entitlements Act on the grounds of permanent incapacity; and (b) the beneficiary must: (i) have a disability that would, if the person had a sole carer, qualify the carer for carer payment or carer allowance; or (ii) be living in an institution, hostel or group home in which care is provided for people with disabilities, and for which funding is provided (wholly or partly) under an agreement, between the Commonwealth, the States and the Territories, nominated by the Secretary under subsection (3); and (c) the beneficiary must have a disability as a result of which either: (i) he or she is not working, and has no likelihood of working, for more than 7 hours a week for a wage that is at or above the relevant minimum wage; or (ii) he or she is working for wages set in accordance with the program administered by the Commonwealth known as the supported wage system.
Note: For relevant minimum wage, see subsection 23(1).

(3) The Secretary may, by legislative instrument, nominate an agreement for the purpose of subparagraph (2)(b)(ii).

(4) If the principal beneficiary is under 16 years of age, subsection (4A) must apply to him or her.
(4A) This subsection applies if: (a) the principal beneficiary is a person with a severe disability or a severe medical condition; and (b) another person (the carer) has been given a qualifying rating of intense under the Disability Care Load Assessment (Child) Determination for caring for the principal beneficiary; and 518 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Special disability trusts Division 1 Section 1209N (c) a treating health professional has certified in writing that, because of that disability or condition: (i) the principal beneficiary will need personal care for 6 months or more; and (ii) the personal care is required to be provided by a specified number of persons; and (d) the carer has certified in writing that the principal beneficiary will require the same care, or an increased level of care, to be provided to him or her in the future.
Living beneficiary rule (5) A trust stops being a special disability trust when the principal beneficiary dies.

Single trust rule (6) A trust is not a special disability trust for a particular principal beneficiary if, at the time of its creation, there is already another trust in existence for that person that is: (a) a special disability trust; or (b) a special disability trust within the meaning of the Veterans’ Entitlements Act.
1209N Trust purpose requirements Primary purpose—care and accommodation for principal beneficiary (1) Subject to this section, the primary purpose of the trust during the lifetime of the principal beneficiary, as provided by the trust deed for the trust, must be to meet reasonable care and accommodation needs of the beneficiary.

Note: The provision of care and accommodation for the principal beneficiary is also dealt with at section 1209R.
Social Security Act 1991 519 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 1 Special disability trusts Section 1209N Other purposes (2) The trust may have other purposes that are: (a) both ancillary to the primary purpose and necessary or desirable to facilitate the achievement of that purpose; or (b) primarily for the benefit of the principal beneficiary.
Note 1: Note 2: A particular purpose may be covered by both of paragraphs (2)(a) and (b).

The application of the income and assets of the trust for purposes (other than the primary purpose) that are primarily for the benefit of the principal beneficiary is dealt with by section 1209RA.
Guidelines relating to purposes (3) If guidelines are made under subsection (4) then, for the purposes of this section: (a) the reasonable care and accommodation needs of a principal beneficiary of a special disability trust must be decided in accordance with the guidelines if they deal with those needs; and (b) purposes, other than the primary purpose of a special disability trust, that are primarily for the benefit of the principal beneficiary of a trust must be decided in accordance with the guidelines if they deal with those other purposes.
(4) The Secretary may, by legislative instrument, make guidelines for deciding either or both of the following for the purposes of this section: (a) what are, and what are not, reasonable care and accommodation needs for beneficiaries of trusts; (b) what are, and what are not, trusts’ purposes, other than the primary purpose described in subsection (1), that are primarily for the benefit of beneficiaries of the trusts.
520 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Special disability trusts Division 1 Section 1209P 1209P Trust deed requirements Compliance with determination (1) If a determination is made under subsection (2), the trust deed for the trust must comply with the determination.
(2) The Secretary may, by legislative instrument, determine one or more of the following: (a) the form of the trust deed required for a special disability trust; (b) provisions which must be included in the trust deed; (c) the form of those provisions; (d) provisions which cannot be included in the trust deed.
Contravention of trust deed (3) A person must not contravene a provision of the trust deed that is required by this section to be included in the deed (whether or not the provision is required to be included in any particular form).
1209Q Trustee requirements (1) A trustee of the trust who is an individual must: (a) be an Australian resident; and (b) not have been convicted at any time (including a time before the commencement of this section) of any of the following offences: (i) an offence of dishonest conduct against, or arising out of, a law of the Commonwealth, a State, a Territory or a foreign country; (ii) an offence against, or arising out of, this Act, the Administration Act or the Veterans’ Entitlements Act; and (c) not have been disqualified at any time (including a time before the commencement of this section) from managing corporations under the Corporations Act 2001.
Social Security Act 1991 521 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 1 Special disability trusts Section 1209R (2) In addition, if a trustee of the trust is a corporation, subsection (1) applies to each director of the trustee.
1209R Trust property requirements (1) The assets of the trust must not include any asset transferred to the trust by the principal beneficiary of the trust, or the principal beneficiary’s partner, unless: (a) the transferred asset is all or part of a bequest, or of a superannuation death benefit; and (b) the transferor received the bequest or superannuation death benefit not more than 3 years before transferring the transferred asset.
(2) The assets of the trust must not include any compensation received by or on behalf of the principal beneficiary.

(3) The trust must not be used to pay an immediate family member, or a child, of the principal beneficiary for the provision to the beneficiary of: (a) care services; or (b) services for the repair or maintenance of the beneficiary’s accommodation.

Note: For immediate family member, see subsection 23(1).
(4) The trust must not be used to purchase or lease property from an immediate family member, or a child, of the principal beneficiary, even if the property is to be used for the beneficiary’s accommodation.

Note: For immediate family member, see subsection 23(1).

(5) In this section: child of a principal beneficiary means: (a) a natural child, adopted child or step-child of the beneficiary; or (b) someone who is a child of the beneficiary within the meaning of the Family Law Act 1975.
522 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Special disability trusts Division 1 Section 1209RA property includes: (a) a right to accommodation for life in a residence; and (b) a life interest in a residence.
1209RA Trust expenditure requirements Limit on expenditure for purposes other than primary purpose (1) If: (a) a determination has been made under subsection (3); and (b) the trust has one or more purposes, other than its primary purpose described in subsection 1209N(1), that are primarily for the benefit of the principal beneficiary; the total value of the income and assets of the trust applied for those other purposes in a financial year must not exceed the value specified in the determination for that year.
Instruments fixing limits and purposes to be taken into account (2) If guidelines are made under paragraph 1209N(4)(b), the question whether a purpose for which income and assets of a trust have been applied is one of the other purposes described in subsection (1) must be decided in accordance with the guidelines.
Note: Paragraph 1209N(4)(b) provides for guidelines for deciding what are, and what are not, trusts’ purposes, other than the primary purpose described in subsection 1209N(1), that are primarily for the benefit of beneficiaries of the trusts.
(3) The Secretary may, by legislative instrument, determine the total value of income and assets of a special disability trust that may be applied in a specified financial year for purposes, other than the primary purpose described in subsection 1209N(1), that are primarily for the benefit of the principal beneficiary of the trust.
1209S Reporting requirements (1) The trustees of the trust must, on or before 31 March each year, give the Secretary written financial statements about the trust in Social Security Act 1991 523 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 1 Special disability trusts Section 1209T relation to the financial year ending on 30 June in the previous year.
(2) The financial statements must be prepared by: (a) if a determination is made under subsection (4) that requires such financial statements to be prepared by a person with stated qualifications—such a person; or (b) whether or not such a determination is made—a person approved by the Secretary for the purpose.

(3) If a determination is made under subsection (4) that requires financial statements to include information of a stated kind, the financial statements must include information of that kind.
(4) The Secretary may, by legislative instrument, make determinations for the purposes of this section.
1209T Audit requirements Trustee duties (1) The trustees of the trust must, within a reasonable time after receiving a request under subsection (3): (a) cause an audit of the trust to be carried out in relation to the period mentioned in subsection (2); or (b) if, at the time of the request for the audit, an audit (the earlier requested audit) of the trust had already been carried out, or was being carried out, for the purpose of this section in relation to that period—give a copy of the report of the earlier requested audit to the person making the request.
Audit period (2) The audit must relate to: (a) the financial year ending on the 30 June last preceding the request; or (b) if a determination is made under subsection (7) that provides for a different period—that period.
524 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Special disability trusts Division 1 Section 1209T Who may request audit (3) The following persons may request an audit of the trust for the purposes of this section: (a) the principal beneficiary; (b) an immediate family member of the principal beneficiary; (c) a person who is, under the law of the Commonwealth, a State or a Territory, the legal guardian or financial administrator of the principal beneficiary; (d) a person who is otherwise acting as the principal beneficiary’s guardian on a long-term basis; (e) the Secretary.
Note: For immediate family member, see subsection 23(1).

Copies of audit report (4) If an audit report for a trust is given to the trustees for the purpose of subsection (1), the trustees must, within a reasonable time, give a copy of the report to: (a) the person requesting the audit; and (b) if the guardian or administrator mentioned in paragraph (3)(c) did not request the audit—the guardian or administrator; and (c) if the Secretary did not request the audit—the Secretary.
Auditor qualifications and required information (5) The audit must be prepared by: (a) if a determination is made under subsection (7) that requires such audits to be prepared by a person with stated qualifications—such a person; or (b) whether or not such a determination is made—a person approved by the Secretary for the purpose.
(6) If a determination is made under subsection (7) that requires audits requested under this section to include information of a stated kind, the audit must include information of that kind.
Social Security Act 1991 525 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 1 Special disability trusts Section 1209U (7) The Secretary may, by legislative instrument, make determinations for the purposes of this section.
1209U Waiver of contravention of this Division (1) A contravention of a requirement of this Division concerning a particular matter, in relation to a trust that would be a special disability trust if it were not for the contravention, does not prevent the trust being a special disability trust if: (a) the Secretary, by written notice (a waiver notice) to the trustees, waives the requirement as it concerns that matter; and (b) in a case where the waiver notice requires the trustees to comply with any conditions relating to the matter—the trustees comply with those conditions within the time or times (if any) stated in the waiver notice.
(2) A waiver notice has effect, subject to any conditions mentioned in paragraph (1)(b): (a) from: (i) the time of the contravention; or (ii) if the waiver notice states a time for the start of its period of effect that is after the time of the contravention—the stated time; and (b) if the waiver notice states a time for the end of its period of effect—until the stated time.
(3) If guidelines are made under subsection (4), a decision in relation to giving a waiver notice to the trustees of the trust must be made in accordance with the guidelines.

(4) The Secretary may, by legislative instrument, make guidelines for deciding any or all of the following: (a) whether or not to give waiver notices to trustees of trusts; (b) what conditions to include in waiver notices; (c) the periods during which waiver notices are to have effect.
526 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Income of special disability trusts Division 2 Section 1209V Division 2—Income of special disability trusts 1209V Attribution of income (1) For the purposes of this Act, an amount of income that a special disability trust derives is taken not to be income received by any individual.
Note: For special disability trust, see section 1209L.

(2) This section has effect despite Division 7 of Part 3.18 and any other provisions of this Act.

1209X Income amounts from special disability trusts An income amount that the principal beneficiary of a special disability trust receives is not income of the beneficiary for the purposes of this Act to the extent that consideration for the income amount was provided by a distribution from the trust.

Note 1: For income amount, see section 8.


Note 2: For special disability trust, see section 1209L.
Social Security Act 1991 527 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 3 Assets of special disability trusts Section 1209Y Division 3—Assets of special disability trusts 1209Y Attribution of assets (1) For the purposes of this Act, the assets of a special disability trust are not to be included in the assets of the principal beneficiary of the trust.
Note: For special disability trust, see section 1209L.

(2) However, this section does not apply to the extent that the value of the assets owned by the trust exceeds the trust’s asset value limit.

(3) The asset value limit of a special disability trust is $500,000.

Note: This amount is indexed annually on 1 July (see sections 1191 to 1194).

(4) For the purposes of subsection (2), disregard the value of any right or interest of the trust in the principal home of the principal beneficiary of the trust.
Note: For principal home, see subsections 11(5) to (7).

(5) This section has effect despite Division 8 of Part 3.18 and any other provisions of this Act.
528 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Transfers to special disability trusts Division 4 Section 1209Z Division 4—Transfers to special disability trusts 1209Z Effect of certain transfers to special disability trusts (1) If a person transfers an asset (the transferred asset) to a special disability trust, the transfer is taken not to be a disposal of the asset (within the meaning of section 1123) if: (a) the person is an immediate family member of the principal beneficiary of the trust; and (b) the person, or the person’s partner: (i) is receiving a social security pension and has reached pension age; or (ii) is receiving a service pension and has reached pension age within the meaning of the Veterans’ Entitlements Act; or (iii) is receiving income support supplement and has reached qualifying age within the meaning of section 5Q of the Veterans’ Entitlements Act; or (iv) is receiving a veteran payment and has reached pension age; and (c) the person receives no consideration, and is not entitled to any consideration, for the transfer; and (d) the transfer is unconditional; and (e) the value of the transferred asset does not exceed $500,000; and (f) in a case where there has already been a transfer to which this section has applied (an exempt transfer), by that person or any other person, to the trust or any other special disability trust that had the same principal beneficiary—the sum of: (i) the values of all of the assets transferred, by exempt transfers that have already been made, to the trust or any other special disability trust that had the same principal beneficiary; and (ii) the value of the transferred asset; does not exceed $500,000.
Social Security Act 1991 529 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 4 Transfers to special disability trusts Section 1209ZA Note 1: For special disability trust, see section 1209L.

Note 2: For immediate family member, see subsection 23(1).
Note 3: Note 4: For pension age (except for the purposes of subparagraph (1)(b)(ii) of this section), see subsections 23(5A) to (5D).

For social security pension, service pension and income support supplement, see subsection 23(1).

(2) This section has effect subject to sections 1209ZA and 1209ZD.

(3) In this section: other special disability trust includes a special disability trust within the meaning of the Veterans’ Entitlements Act.
value, of an asset transferred to a special disability trust, means the market value of the asset at the time of the transfer.

1209ZA The effect of exceeding the $500,000 limit (1) If section 1209Z would apply to a transfer of an asset except for the fact that the value of the transferred asset exceeds $500,000, that section does not prevent the transfer from being a disposal or disposition of the asset, but the amount of the disposal or disposition is taken to be the amount of the excess.
(2) If: (a) section 1209Z would apply to a transfer of an asset but for the fact that the sum of: (i) the values of all of the exempt transfers that have already been made to the trust or any other special disability trust that had the same principal beneficiary; and (ii) the value of the transferred asset; exceeds $500,000; and (b) that sum would not exceed $500,000 if the value of the transferred asset were disregarded; 530 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Transfers to special disability trusts Division 4 Section 1209ZB that section does not prevent the transfer from being a disposal of the asset, but the amount of the disposal or disposition is taken to be the amount of the excess referred to in paragraph (a).
(3) This section has effect subject to section 1209ZD.

(4) In this section: other special disability trust includes a special disability trust within the meaning of the Veterans’ Entitlements Act.

value, of an asset transferred to a special disability trust, means the market value of the asset at the time of the transfer.

1209ZB Transfers by the immediate family members prior to reaching pension age etc.
(1) If: (a) an immediate family member of the principal beneficiary of a special disability trust transfers an asset to the trust; and (b) at the time of the transfer, neither the immediate family member nor the partner of the immediate family member is a person who: (i) is receiving a social security pension and has reached pension age; or (ii) is receiving a service pension and has reached pension age within the meaning of the Veterans’ Entitlements Act; or (iii) is receiving income support supplement and has reached qualifying age within the meaning of section 5Q of the Veterans’ Entitlements Act; or (iv) is receiving a veteran payment and has reached pension age; the immediate family member is taken for the purposes of this Division only to transfer the asset to the trust at the earliest time at which subparagraph (b)(i), (ii), (iii) or (iv) applies to the immediate family member or partner.
Note 1: For immediate family member, see subsection 23(1).

Social Security Act 1991 531 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 4 Transfers to special disability trusts Section 1209ZC Note 2: For special disability trust, see section 1209L.
Note 3: Note 4: For pension age (except for the purposes of subparagraph (1)(b)(ii) of this section), see subsections 23(5A) to (5D).

For social security pension, service pension and income support supplement, see subsection 23(1).
(2) However, if under subsection (1) transfers of assets to the trust by different immediate family members are taken to have been made on the same day, the transfers are taken to have been made on that day in the order in which they would have been taken to be made but for this Division.

Note: For immediate family member, see subsection 23(1).

(3) This section does not affect the operation of Part 3.12 or any other provision of this Act outside of this Division.
1209ZC Transfers by principal beneficiaries or partners (1) If a person transfers an asset to a special disability trust, the transfer is taken not to be a disposal of the asset (within the meaning of section 1123) if: (a) the person is the principal beneficiary of the trust, or the principal beneficiary’s partner; and (b) the person receives no consideration, and is not entitled to any consideration, for the transfer; and (c) the transfer is unconditional.
Note 1: For special disability trust see section 1209L.

Note 2: Section 1209R limits the circumstances in which the principal beneficiary or the principal beneficiary’s partner can transfer assets to the trust.

(2) This section has effect subject to section 1209ZD.
1209ZD Cessation of special disability trusts (1) If: (a) a special disability trust ceases to exist or ceases to be a special disability trust; and 532 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Private financial provision for certain people with disabilities Part 3.18A Transfers to special disability trusts Division 4 Section 1209ZD (b) a person had transferred an asset to the trust during the period of 5 years immediately preceding the cessation; and (c) section 1209Z, 1209ZA or 1209ZC applied to the transfer; then the transfer is taken, after the cessation, to be a disposal or disposition of the asset that occurred at the time of the transfer.
(2) The amount of the disposal or disposition is taken to be the amount worked out using the formula: Asset value      where:  Final value of trust assets Initial value of trust assets      asset value means:  Subsection 1209ZA(2) amount (a) if section 1209Z or 1209ZC applied to the transfer—the value of the asset at the time of the transfer; or (b) if subsection 1209ZA(1) applied to the transfer—$500,000; or (c) if subsection 1209ZA(2) applied to the transfer—the difference between the value of the asset at the time of the transfer and the amount that was taken under that subsection to be the amount of the disposal or disposition of the asset.
final value of trust assets means the value of all of the assets of the trust at the time of the cessation.

initial value of trust assets means the value of all of the assets of the trust at the time of the transfer.

subsection 1209ZA(2) amount means the amount (if any) that was taken under subsection 1209ZA(2) to be the amount of the disposal or disposition of the asset.
(3) If the special disability trust ceases to exist, or ceases to be a special disability trust, because the principal beneficiary dies, the value of the asset at the time of the transfer is taken for the purposes of this section to be the value of so much (if any) of the Social Security Act 1991 533 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.18A Private financial provision for certain people with disabilities Division 4 Transfers to special disability trusts Section 1209ZE asset as has not been returned to the person who had transferred the asset to the trust.
(4) This section does not affect the application of section 1209Z, 1209ZA or 1209ZC to the transfer prior to the cessation.

1209ZE Effect of this Division This Division (other than section 1209ZB) has effect despite Division 2 of Part 3.12 and any other provisions of this Act.
534 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Miscellaneous Part 3.19 Section 1210 Part 3.19—Miscellaneous 1210 Application of income and assets test reductions and of compensation reductions for income tax purposes (1) If: (a) the rate of a person’s social security payment is increased under Part 3.7 (rent assistance) and/or one or more of the following Modules of the Rate Calculator: (i) the pension supplement Module (the PS Module) (if any); (ia) the energy supplement Module (the ES Module); (ii) the pharmaceutical allowance Module (the PA Module) (if any); and (b) that rate is to be reduced under: (i) the income test Module or the assets test Module of the Rate Calculator; or (ii) section 1173 (compensation reductions); the reduction is to be applied as follows (in descending order): Item Component of the rate 1 2 3 all of the rate apart from any increase mentioned in paragraph (a) the portion of the person’s pension supplement amount (if any) equal to: (a) if the Rate Calculator produces an annual rate—the person’s pension supplement basic amount; and (b) if the Rate Calculator produces a fortnightly rate—1/26 of the person’s pension supplement basic amount (a) if an election by the person under subsection 1061VA(1) is in force—any remaining portion of the person’s pension supplement amount; or (b) otherwise—any remaining portion of the person’s pension supplement amount to the
 extent to which it exceeds the person’s minimum pension supplement amount 4 4A the amount of any increase under Part 3.7 the amount of any increase under the ES Module Social Security Act 1991 535 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.19 Miscellaneous Section 1210 Item Component of the rate 5 6 the person’s minimum pension supplement amount the amount of any increase under the PA Module Note 1: Note 2: For table item 4A, the amount will be nil if quarterly energy supplement is payable to the person (for example, see point 1064-C2).
See also subsection (2A).

Table item 5 will not apply if an election by the person under subsection 1061VA(1) is in force, as the rate would have already been reduced to nil.

(2) For the purposes of subsection (1): (a) disregard table items 2, 3 and 5 if the person’s rate is increased under the PA Module (if any) of the Rate Calculator; and (b) disregard table item 6 if the person’s rate is increased under the PS Module (if any) of the Rate Calculator.
(2A) If: (a) quarterly energy supplement is payable to a person; and (b) if quarterly energy supplement were not payable to the person: (i) the rate (the main rate) of the person’s social security payment would be increased under the ES Module of the Rate Calculator; and (ii) the main rate would be reduced as described in paragraph (1)(b); and (c) the social security payment: (i) is not a social security pension; or (ii) is a disability support pension to which subsection 1066A(1) or 1066B(1) applies; or (iii) if the person has not reached pension age—is a pension PP (single); the reduction is to be applied to the components mentioned in items 5 and 6 of the table in subsection (1) only to the extent that the amount of the reduction (after it is applied to the components 536 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Miscellaneous Part 3.19 Section 1210 mentioned in items 1 to 4) exceeds the amount of the increase mentioned in subparagraph (b)(i) of this subsection.
(3) If: (a) the rate (the main rate) of a person’s social security payment is increased under the PS Module of the Rate Calculator; and (b) that rate is to be reduced as described in paragraph (1)(b); and (c) an election by the person under subsection 1061VA(1) is in force; the person’s quarterly pension supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person’s minimum pension supplement amount would be reduced under subsection (1) were the election not in force.
Note: The reduction will be disregarded unless the person’s quarterly pension supplement is reduced to nil (see subsection 43(5A) of the Administration Act).
(3A) If: (a) quarterly energy supplement is payable to a person; and (b) if quarterly energy supplement were not payable to the person: (i) the rate (the main rate) of the person’s social security payment would be increased under the ES Module of the Rate Calculator; and (ii) the main rate would be reduced as described in paragraph (1)(b); the person’s quarterly energy supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person’s energy supplement would be reduced under subsection (1) were quarterly energy supplement not payable to the person.
Note: The reduction may be disregarded unless the main rate would be reduced to nil (see subsection 43(5B) of the Administration Act).
Social Security Act 1991 537 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 3 General provisions relating to payability and rates Part 3.19 Miscellaneous Section 1210A (4) The following table sets out details of the Modules relevant to subsection (1): Relevant Modules Pension Rate Calculator PS Module PA Module ES Module Income test Module Assets test Module 1 Pension Rate Calculator A, section 1064 Pension Rate Calculator D, section 1066A Youth Allowance Rate Calculator, section 1067G Austudy Payment Rate Calculator, section 1067L Benefit Rate Calculator B, section 1068 Pension PP (Single) Rate Calculator, section 1068A Benefit PP (partnered) Rate Calculator, section 1068B BA none C none none BA BA BA DA D C C D C E BA BA BB C BB DB E F H D G E D G H none none none none none 1210A Effect of nil rate of pension etc.
(1) If, in relation to a day: (a) a person is qualified for a social security pension or benefit; and 538 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege General provisions relating to payability and rates Chapter 3 Miscellaneous Part 3.19 Section 1210A (b) the pension or benefit rate in relation to that day would be nil; then, for the purposes of Part 2A.1, the person is not to be taken to be receiving the pension or benefit on that day.
(2) The circumstance that a person is qualified for a social security pension or benefit in relation to a day is not to be taken into account for the purpose of determining the qualification of the person for a concession card if the pension or benefit is not payable to the person in relation to that day.
Social Security Act 1991 539 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 1 Preliminary Section 1211 Chapter 4—International agreements and portability Part 4.2—Overseas portability Division 1—Preliminary 1211 Social Security (International Agreements) Act overrides Part If the Social Security (International Agreements) Act 1999 applies to the payment of a social security payment to a person, this Part does not apply to the payment to the person.
1212 Meaning of terms used in this Part In this Part: allegation authority means: (a) the Greek Australian Workers’ Welfare Association of NSW; or (b) the Commission of Enquiry established by Letters Patent of 9 February 1984 and 16 August 1984 to investigate matters known as the Greek conspiracy.

Australian resident disability support pensioner means a person who qualifies for disability support pension only because he or she is an Australian resident.
claim, in relation to a social security payment, includes a claim that is taken to have been made under a provision of the Social Security (Administration) Act 1999. eligible medical treatment, in relation to a person, means medical treatment of a kind that is not available to the person in Australia.
Reserve service means attending a training camp as a member of any of the following: 540 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Preliminary Division 1 Section 1212A (a) the Naval Reserve; or (b) the Army Reserve; or (c) the Air Force Reserve.
severely impaired disability support pensioner means a person in respect of whom the Secretary has made a determination under subsection 1218AAA(1).

terminally ill overseas disability support pensioner means a person who qualifies for disability support pension because all the circumstances described in paragraphs 1218AA(1)(a), (b), (c), (d) and (e) exist in relation to the person.
1212A Meaning of acute family crisis For the purposes of this Part, a person’s absence is for the purpose of attending to an acute family crisis at a particular time if the Secretary is satisfied that the absence is, at that time: (a) for the purpose of visiting a family member who is critically ill; or (b) for the purpose of visiting a family member who is hospitalised with a serious illness; or (c) for a purpose relating to the death of a family member; or (d) for a purpose relating to a life-threatening situation (other than an illness referred to in paragraph (a) or (b)) that: (i) is facing a family member; and (ii) is beyond the control of the family member.
1212B Meaning of humanitarian purpose For the purposes of this Part, a person’s absence is for a humanitarian purpose at a particular time if the Secretary is satisfied that the absence is, at that time: (a) for the purpose of involvement in custody proceedings, criminal proceedings (other than criminal proceedings in respect of a crime alleged to have been committed by the person) or other legal proceedings; or Social Security Act 1991 541 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 1 Preliminary Section 1212C (b) for purposes relating to the adoption of a child by the person; or (c) for a purpose specified in the regulations for the purposes of this paragraph.
1212C Meaning of temporary absence For the purposes of this Part, a person’s absence from Australia is temporary if, throughout the absence, the person does not cease to reside in Australia (within the meaning of subsection 7(3)).
1212D Part does not affect need for qualification For the avoidance of doubt, nothing in this Part confers a right on a person to continue to be paid a social security payment if the person is not qualified for the payment (even if the person’s failure to qualify is related to the absence).
542 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Portability of social security payments Division 2 Section 1213 Division 2—Portability of social security payments Subdivision A—Basic portability provisions 1213 Persons to whom Division applies This Division applies to a person during a period (the period of absence) throughout which the person is continuously absent from Australia, if: (a) immediately before the period of absence commenced, the person was receiving a social security payment (the payment) mentioned in column 2 of the table at the end of section 1217; or (b) during the period of absence, the person’s claim for such a payment is granted under the Social Security (Administration) Act 1999.
1214 Some payments generally portable with no time limit (1) If the person’s maximum portability period for the payment is an unlimited period, the person’s right to continue to be paid the payment throughout the period of absence is not affected merely by the absence.

Note 1: Note 2: Section 1217 defines the person’s maximum portability period for the payment.

However, the person’s rate of payment may be affected after 26 weeks—see Division 3.

(2) This section is subject to section 1220.
1215 Some payments generally portable with time limit (1) If the person’s maximum portability period for the payment is not an unlimited period, the following rules apply: (a) throughout the person’s portability period for the payment, the person’s right to continue to be paid the payment is not affected merely by the absence; Social Security Act 1991 543 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 2 Portability of social security payments Section 1216 (b) throughout so much (if any) of the period of absence as occurs after the end of the person’s portability period for the payment, the payment is not payable to the person.
Note: Section 1217 defines the person’s maximum portability period and portability period for the payment.

(2) This section is subject to Subdivision B of this Division (which contains exceptions) and section 1220.
1216 Amounts added to rate (1) During the period of absence, rent assistance, incentive allowance and pharmaceutical allowance are not to be added to the person’s rate under Chapter 3 after whichever of the following times applies: (a) if the person’s maximum portability period for the payment is an unlimited period—26 weeks after the period of absence commenced; (b) otherwise—the end of the person’s portability period for the payment.
(2) If: (a) the 26 weeks mentioned in paragraph (1)(a) ends on or after 11 March 2020; and (b) the Secretary is satisfied that the person’s absence from Australia is temporary; and (c) the Secretary is satisfied that the person is unable to return to Australia before the end of that 26-week period because of the impact of the coronavirus known as COVID-19; the Secretary may, in relation to the person, determine that a reference to 26 weeks in paragraph (1)(a) is taken to be a reference to another number of weeks.
However, the Secretary must ensure that the determination does not result in a period referred to in that paragraph that ends after 30 June 2021.
(3) Despite Subdivision B of Division 9 of Part 3 of the Administration Act, a favourable determination (within the meaning of section 108 of that Act) that is made as a result of a 544 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Portability of social security payments Division 2 Section 1217 determination referred to in subsection (2) of this section may be expressed to take effect on a day earlier than otherwise permitted by that Subdivision.
1217 Meaning of maximum portability period, allowable absence and portability period Meaning of maximum portability period (1) The person’s maximum portability period for the payment is the period referred to in column 5 of the table at the end of this section (the table) that is applicable to: (a) the payment (as specified in column 2 of the table); and (b) the class of persons to which the person belongs (as specified in column 3 of the table).
Meaning of allowable absence (2) The person’s absence is an allowable absence in relation to the payment at a particular time if, at that time: (a) it is an absence specified in column 4 of the item in the table at the end of this section that is applicable to the payment and the person; and (b) except where an unlimited absence is specified in column 5 of the item or a provision of Subdivision B applies, the absence does not: (i) exceed the period specified in column 5 of that item; or (ii) in the case of item 2—cause the total number of days (whether consecutive or not) of the person’s temporary absence from Australia in the last 12 months to exceed 28, ignoring days in accordance with that item.
Meaning of portability period if unlimited maximum portability period (3) If the person’s maximum portability period for the payment is an unlimited period, the person’s portability period for the payment, Social Security Act 1991 545 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 2 Portability of social security payments Section 1217 in relation to the period of absence, is an unlimited period beginning at the commencement of the period of absence.
Meaning of portability period if maximum portability period limited (4) If the person’s maximum portability period for the payment is not an unlimited period, the person’s portability period for the payment, in relation to the period of absence, is the period: (a) beginning at the commencement of the period of absence; and (b) ending at the earlier of the following times: (i) the first time during the period of absence at which the absence is not an allowable absence in relation to the payment; (ii) the end of the period that is the person’s maximum portability period for the payment.
Note: People will be required (under the Social Security (Administration) Act 1999) to notify changes in circumstance.
Portability of social security payments Column 1 Column 2 Column 3 Column 4 Column 5 Item Payment Person Absence Maximum portability period 1 Age pension All persons Any absence Unlimited period 546 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Portability of social security payments Division 2 Section 1217 Portability of social security payments Column 1 Column 2 Column 3 Column 4 Column 5 Item Payment Person Absence 2 Disability support pension Australian resident disability support pensioner 2AA Disability support pension Australian resident disability support pensioner Any temporary absence, except for any of the following purposes: (a) to seek eligible medical treatment; (b) to attend to an acute family crisis; (c) for a humanitarian purpose Temporary absence for any of the following purposes: (a) to seek eligible medical treatment; (b) to attend to an acute family crisis; (c) for a humanitarian purpose Maximum portability period A total of 28 days (whether consecutive or not) of temporary absence from Australia for any purpose in the last 12 months, ignoring days on which the person was not receiving disability support pension (but see also sections 1218AAA, 1218AA, 1218AB, 1218, 1218C and 1218D) 4 weeks (but see also sections 1218AAA, 1218AA, 1218AB, 1218, 1218C and 1218D) Social Security Act 1991 547 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive
 // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 2 Portability of social security payments Section 1217 Portability of social security payments Column 1 Column 2 Column 3 Column 4 Column 5 Item Payment Person Absence Maximum portability period 2A 3 6 10 11 12 Disability support pension Disability support pension Carer payment Widow allowance Parenting payment Youth allowance Any absence Unlimited period Any absence Unlimited period Severely impaired disability support pensioner Terminally ill overseas disability support pensioner 6 weeks (but see also section 1218) 6 weeks (but see also section 1218) 6 weeks (but see also sections 1218 and 1218B) 6 weeks (but see also section 1218BA) All persons Any temporary All persons absence Any temporary absence All persons Any temporary absence Person other than person undertaking full-time study A temporary absence for any of the following purposes: (a) to seek eligible medical treatment; (b) to attend to an acute family crisis; (c) for a humanitarian purpose.
548 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Portability of social security payments Division 2 Section 1217 Portability of social security payments Column 1 Column 2 Column 3 Column 4 Column 5 Item Payment Person Absence Maximum portability period 13 14 15 Youth allowance Person undertaking full-time study A temporary absence for either of the following purposes: (a) to seek eligible 6 weeks (but see also section 1218) medical treatment; (b) to attend to an acute family crisis Austudy payment All persons A temporary absence for either of the following purposes: (a) to seek eligible 6 weeks (but see also sections 1218 and 1218BA) Jobseeker payment All persons 6 weeks medical treatment; (b) to attend to an acute family crisis A temporary absence for any of the following purposes: (a) to seek eligible medical treatment; (b) to attend to an acute family crisis; (c) for a humanitarian purpose.
Social Security Act 1991 549 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 2 Portability of social security payments Section 1218AAA Portability of social security payments Column 1 Column 2 Column 3 Column 4 Column 5 Maximum portability period 6 weeks Item Payment Person Absence 19 Special benefit All persons A temporary absence for any of the following purposes: (a) to seek eligible medical treatment; (b) to attend to an acute family crisis; (c) for a humanitarian purpose.
20 21 22 23 Partner allowance Carer allowance Mobility allowance Telephone allowance All persons Any temporary All persons All persons All persons absence Any temporary absence Any temporary absence Any temporary absence 6 weeks (but see also section 1218) 6 weeks 6 weeks 6 weeks Subdivision B—Exceptions to Subdivision A rules 1218AAA Unlimited portability period for disability support pension—severely impaired disability support pensioner (1) The Secretary may make a written determination that a particular person’s maximum portability period for disability support pension is an unlimited period, if all of the following circumstances (the qualifying circumstances) exist: (a) the person is receiving disability support pension; 550 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Portability of social security payments Division 2 Section 1218AAA (b) the Secretary is satisfied that the person’s impairment is a severe impairment (within the meaning of subsection 94(3B)); (c) the Secretary is satisfied that the person will have that severe impairment for at least the next 5 years; (d) the Secretary is satisfied that, if the person were in Australia, the severe impairment would prevent the person from performing any work independently of a program of support (within the meaning of subsection 94(4)) within the next 5 years.
(2) The Secretary must not make a determination under subsection (1) in relation to a person who is outside Australia unless the Secretary is satisfied that: (a) the person is unable to return to Australia because of either of the following events: (i) a serious accident involving the person; (ii) the hospitalisation of the person; and (b) the person’s portability period for disability support pension had not ended at the time the event occurred.
(3) The Secretary may revoke the determination if any of the qualifying circumstances ceases to exist.

(4) A determination under subsection (1) is not a legislative instrument.

(5) In this section: work means work: (a) that is on wages that are at or above the relevant minimum wage; and (b) that exists in Australia, even if not within the person’s locally accessible labour market.
Social Security Act 1991 551 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 2 Portability of social security payments Section 1218AA 1218AA Unlimited portability period for disability support pension—terminally ill overseas disability support pensioner (1) The Secretary may determine that a particular person’s maximum portability period for disability support pension is an unlimited period, if all of the following circumstances (the qualifying circumstances) exist: (a) the person is severely disabled (see subsection 23(4B)); and (b) the person is receiving disability support pension; and (c) the person is terminally ill; and (d) the person’s absence from Australia is or will be permanent; and (e) the purpose of the person’s absence is: (i) to be with or near a family member of the person (see subsection 23(14)); or (ii) to return to the person’s country of origin.
(2) The Secretary may revoke the determination if any of the qualifying circumstances ceases to exist.
(3) If the Secretary revokes the determination, this Part has effect after the revocation as if: (a) the person’s maximum portability period for the pension were worked out under whichever one of items 2, 2AA and 2A of the table in section 1217 applies; and (b) if the person was absent from Australia at the time of the revocation—the person’s absence started on the revocation; and (c) if item 2 of the table in section 1217 applies—the person had not been absent from Australia at any time in the 12 months before the revocation.
552 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Portability of social security payments Division 2 Section 1218AB 1218AB Extended portability period for disability support pension (1) The Secretary may, by written determination, extend the person’s portability period for disability support pension if all of the following circumstances (the qualifying circumstances) exist: (a) the person is severely disabled (see subsection 23(4B)); (b) the person is receiving disability support pension; (c) the person is wholly or substantially dependent on a family member of the person (see subsection 23(14)); (d) the Secretary is satisfied that the person will be living with the family member of the person throughout the period of absence; (e) the family member of the person is engaged in employment in Australia for an employer immediately before the start of the period of absence; (f) the Secretary is satisfied that the family member of the person will be engaged in employment outside Australia for that employer throughout the period of absence.
(2) If the Secretary extends a person’s portability period under subsection (1), the person’s portability period for disability support pension, for the purposes of this Part, is the extended period.

(3) The Secretary may revoke the determination if any of the qualifying circumstances ceases to exist.

(4) A determination under subsection (1) is not a legislative instrument.
1218 Exception—full-time students outside Australia for purposes of Australian course (1) This section applies if, immediately before the period of absence commenced: (a) the person was undertaking full-time study as part of a course of education at an educational institution; and Social Security Act 1991 553 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 2 Portability of social security payments Section 1218A (b) the person was receiving disability support pension, carer payment, widow allowance, parenting payment, youth allowance, austudy payment or partner allowance.
(2) The person’s right to continue to be paid disability support pension, carer payment, widow allowance, parenting payment, youth allowance, austudy payment or partner allowance is not affected merely by the person’s absence throughout so much of the period of absence as is for the purpose of undertaking studies that form part of the course of education.

(3) If the person returns to Australia for a period of 6 weeks or less, the return is taken not to affect the continuity of the period of absence.
(4) The Secretary may, by legislative instrument, make principles that must be complied with when deciding how much of a period of absence is for the purpose of undertaking studies that form part of a course of education.

1218A Exception—Reserve service (1) This section applies if, immediately before the period of absence commenced, the person was receiving parenting payment, youth allowance, austudy payment or jobseeker payment.
(2) The person’s right to continue to be paid the payment is not affected merely by the person’s absence throughout so much of the period of absence as is for the purpose of undertaking Reserve service.
1218B Exception—waiting period in Australia before parenting payment is portable (1) If: (a) immediately before the period of absence commenced, the person was receiving parenting payment; and 554 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Portability of social security payments Division 2 Section 1218BA (b) at a time not more than 6 weeks before the period of absence commenced, parenting payment had ceased to be payable to the person because: (i) the person’s portability period for parenting payment in relation to another period of absence ended; or (ii) another absence had ceased to be an allowable absence for parenting payment; parenting payment is not payable to the person during the period of absence.
(2) This section is subject to section 1218.

1218BA Exception—new apprentices (1) This section applies if, immediately before the period of absence commenced, the person was receiving youth allowance on the basis of section 540AA applying (about new apprentices) or austudy payment on the basis of section 568AA applying (about new apprentices).
(2) The person’s right to continue to be paid youth allowance or austudy payment is not affected merely by the person’s absence throughout so much of the period of absence as is for the purpose of undertaking the person’s full-time apprenticeship, traineeship or trainee apprenticeship.
(3) The Secretary may, by legislative instrument, make principles that must be complied with when deciding how much of a period of absence is for the purpose of undertaking a full-time apprenticeship, traineeship or trainee apprenticeship.
1218C Extension of person’s portability period—general (1) The Secretary may extend the person’s portability period for the payment if the Secretary is satisfied that the person is unable to return to Australia because of any of the following events: (a) a serious accident involving the person or a family member of the person; Social Security Act 1991 555 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 2 Portability of social security payments Section 1218D (b) a serious illness of the person or a family member of the person; (c) the hospitalisation of the person or a family member of the person; (d) the death of a family member of the person; (e) the person’s involvement in custody proceedings in the country in which the person is located; (f) a legal requirement for the person to remain outside Australia in connection with criminal proceedings (other than criminal proceedings in respect of a crime alleged to have been committed by the person); (g) robbery or serious crime committed against the person or a family member of the person; (h) a natural disaster in the country in which the person is located; (i) political or social unrest in the country in which the person is located; (j) industrial action in the country in which the person is located; (k) a war in the country in which the person is located.
(2) The Secretary must not extend the person’s portability period under subsection (1) unless: (a) the event occurred or began during the period of absence; and (b) if the event is political or social unrest, industrial action or war—the person is not willingly involved in, or willingly participating in the event.

(3) If the Secretary extends a person’s portability period under subsection (1), the person’s portability period for the payment, for the purposes of this Part, is the extended period.
1218D Extension of person’s portability period—life-saving medical treatment overseas (1) The Secretary may extend the person’s portability period for the payment if the Secretary is satisfied that, under the Medical Treatment Overseas Program administered by the Minister who 556 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Portability of social security payments Division 2 Section 1220 administers the National Health Act 1953, financial assistance is payable in respect of the person’s absence from Australia.
(2) If the Secretary extends a person’s portability period under subsection (1), the person’s portability period for the payment, for the purposes of this Part, is the extended period.
1220 No portability where claim based on short residence (1) If: (a) a person is an Australian resident; and (b) the person ceases to be an Australian resident; and (c) the person again becomes an Australian resident; and (d) within the period of 2 years after the person again becomes an Australian resident, the person is granted, or is transferred to: (i) an age pension; or (ii) a disability support pension; and (e) after the pension is granted, or the person is transferred to the pension, but before the end of that period of 2 years, the person leaves Australia; and (f) financial assistance is not payable in respect of the person’s absence from Australia under the Medical Treatment Overseas Program administered by the Minister who administers the National Health Act 1953; a pension based on that claim is not payable to the person during any period during which the person is outside Australia.
(2) If: (a) a person resides in an area that is, at the time of residence, an external Territory; and (b) the person has never before resided in Australia; and (c) the person then arrives in Australia; and (d) within the period of 2 years after the person arrives in Australia, the person is granted, or is transferred to: (i) an age pension; or Social Security Act 1991 557 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 2 Portability of social security payments Section 1220 (ii) a disability support pension; and (e) after the pension is granted, or the person is transferred to the pension, but before the end of that period of 2 years, the person leaves Australia; and (f) financial assistance is not payable in respect of the person’s absence from Australia under the Medical Treatment Overseas Program administered by the Minister who administers the National Health Act 1953; a pension based on that claim is not payable to the person during any period during which the person is outside Australia.
(4) For the purposes of the application of this section in relation to a particular social security payment, a person who has a qualifying residence exemption for that payment is taken: (a) to be an Australian resident; or (b) to reside in an area that is, at the time of residence, an external Territory; as the context requires.
558 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Rate of portable pensions Division 3 Section 1220A Division 3—Rate of portable pensions 1220A Proportionality—age pension rate (1) A person’s rate of age pension is to be calculated using the Pension Portability Rate Calculator at the end of section 1221 if: (a) the person has been continuously absent from Australia, throughout a period (the period of absence) of more than 26 weeks; and (b) either: (i) immediately before the period of absence commenced, the person was receiving the age pension; or (ii) during the period of absence, the person’s claim for the age pension is granted under the Social Security (Administration) Act 1999.
(2) Subsection (1) does not apply to a woman if, immediately before 20 March 2020, subsection 1221(1) did not apply to the woman because of subsection 1221(2).

(3) Subsection (1) does not apply to a woman if, immediately before 20 March 2020, subsection 796(2) did not apply to the woman because of subsection 796(4).
(4) Subsection (1) does not apply to a woman if: (a) immediately before 20 March 2020, the woman was receiving a widow B pension mentioned in subclause 128A(2) of Schedule 1A; and (b) immediately before 20 March 2020, subclause 128A(5) of Schedule 1A applied to the woman in relation to that pension.
(5) Subsection (1) does not apply to a woman if: (a) immediately before 20 March 2020, the woman was receiving a wife pension under Part 2.4; and (b) immediately before 20 March 2020, clause 128 of Schedule 1A applied to the woman in relation to that pension.
Social Security Act 1991 559 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 3 Rate of portable pensions Section 1220B (6) If: (a) the 26 weeks mentioned in paragraph (1)(a) ends on or after 11 March 2020; and (b) the Secretary is satisfied that the person’s absence from Australia is temporary; and (c) the Secretary is satisfied that the person is unable to return to Australia before the end of that 26-week period because of the impact of the coronavirus known as COVID-19; the Secretary may, in relation to the person, determine that a reference to 26 weeks in paragraph (1)(a) is taken to be a reference to another number of weeks.
However, the Secretary must ensure that the determination does not result in a period referred to in that paragraph that ends after 30 June 2021.

(7) Despite Subdivision B of Division 9 of Part 3 of the Administration Act, a favourable determination (within the meaning of section 108 of that Act) that is made as a result of a determination referred to in subsection (6) of this section may be expressed to take effect on a day earlier than otherwise permitted by that Subdivision.
1220B Proportionality—disability support pension rate for a severely disabled person (1) The rate of disability support pension for a person for whom an unlimited maximum portability period for the pension has been determined under section 1218AAA or 1218AA is to be calculated using the Pension Portability Rate Calculator at the end of section 1221 if: (a) the person has been continuously absent from Australia, throughout a period (the period of absence) of more than 26 weeks; and (b) either: (i) immediately before the period of absence commenced, the person was receiving the disability support pension; or 560 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Rate of portable pensions Division 3 Section 1221 (ii) during the period of absence, the person’s claim for the disability support pension is granted under the Social Security (Administration) Act 1999.
(2) Subsection (1) does not apply to a person if the person became qualified to receive the disability support pension because the person became unable to work or permanently blind while the person was an Australian resident.
(3) If: (a) the 26 weeks mentioned in paragraph (1)(a) ends on or after 11 March 2020; and (b) the Secretary is satisfied that the person’s absence from Australia is temporary; and (c) the Secretary is satisfied that the person is unable to return to Australia before the end of that 26-week period because of the impact of the coronavirus known as COVID-19; the Secretary may, in relation to the person, determine that a reference to 26 weeks in paragraph (1)(a) is taken to be a reference to another number of weeks.
However, the Secretary must ensure that the determination does not result in a period referred to in that paragraph that ends after 30 June 2021.

(4) Despite Subdivision B of Division 9 of Part 3 of the Administration Act, a favourable determination (within the meaning of section 108 of that Act) that is made as a result of a determination referred to in subsection (3) of this section may be expressed to take effect on a day earlier than otherwise permitted by that Subdivision.
1221 Pension Portability Rate Calculator This section sets out the Pension Portability Rate Calculator for the purposes of this Part.
Pension Portability Rate Calculator Social Security Act 1991 561 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 3 Rate of portable pensions Section 1221 Module A—Overall rate calculation process Overall rate calculation process 1221-A1 This is how to calculate a person’s portability rate: Method statement Step 1.
Work out the period of the person’s Australian working life residence using Module B: the result is called the residence period.

Step 2.

Use the person’s residence period to work out the person’s residence factor using Module C below.

Step 3.

Work out the rate that would be the person’s pension or allowance rate if this Rate Calculator did not apply to the person: the result is called the person’s notional domestic rate.

Step 4.
Step 4.

Multiply the person’s notional domestic rate by the person’s residence factor: the result is the person’s portability rate.

Limit in portability rate 1221-A2 If a person’s portability rate as calculated under point 1221-A1 would exceed the rate (the notional rate) that would be the person’s notional domestic rate under that point if the person had a residence factor of 1, the person’s portability rate is the rate that equals the notional rate.
Former recipients of widow B pension 1221-A3 If: (a) immediately before 20 March 2020, a woman was receiving a widow B pension under Part 2.8; and 562 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Rate of portable pensions Division 3 Section 1221 (b) the woman had become qualified for the widow B pension because of the woman’s partner’s death; and (c) on a day on or after 20 March 2020, the woman’s rate of age pension is worked out as mentioned in section 1220A; and (d) on that day, that partner’s period of Australian working life residence (immediately before that partner’s death) exceeds the woman’s period of Australian working life residence on that day; and (e) on that day, the woman is not a member of a couple; then, for the purposes of working out that rate of age pension, the woman’s period of Australian working life residence is taken to be equal to that partner’s period of Australian working life residence (immediately before that partner’s death).
Former recipients of wife pension 1221-A4 If immediately before 20 March 2020: (a) either: (i) a woman was receiving a wife pension under Part 2.4; or (ii) a woman was receiving a wife pension under a scheduled international social security agreement; and (b) the woman was a member of a couple; and (c) the rate of the woman’s wife pension was required to be worked out having regard to the woman’s period of Australian working life residence; and (d) the woman’s period of Australian working life residence was taken to be equal to the period of Australian working life residence of the woman’s partner; then, for a day on or after 20 March 2020, the woman’s period of Australian working life residence is taken to be equal to the period of Australian working life residence of the woman’s partner if the following apply on that day: (e) the woman is a member of that same couple; (f) the woman’s rate of age pension is worked out as mentioned in section 1220A.
Social Security Act 1991 563 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 3 Rate of portable pensions Section 1221 Module B—Australian working life residence Working life 1221-B1 For the purposes of this Module, a person’s working life is the period beginning when the person turns 16 and ending when the person reaches pension age.
Note: For pension age see subsections 23(5A), (5B), (5C) and (5D).

Australian working life residence (general) 1221-B2 Subject to points 1221-B3 and 1221-B4, a person’s period of Australian working life residence as at a particular time is the number of months in the period, or the aggregate of the periods, during the person’s working life during which the person has, up to that time, been an Australian resident.
Note: For the method of calculating the number of months in the period see points 1221-B3 and 1221-B4 below.

Calculation of number of months 1221-B3 If a person’s period of Australian working life residence would, apart from this point, be a number of whole months, the period is to be increased by one month.
1221-B4 If a person’s period of Australian working life residence would, apart from this point, be a number of whole months and a day or days, the period is to be increased so that it is equal to the number of months plus one month.

Module C—Residence factor Residence factor (period of Australian working life residence 35 years or more) 1221-C1 If a person’s period of Australian working life residence is 420 months (35 years) or more, the person’s residence factor is 1.
Note: If a person’s residence factor is 1, the person’s pension will be payable outside Australia at the full domestic rate.
564 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege International agreements and portability Chapter 4 Overseas portability Part 4.2 Rate of portable pensions Division 3 Section 1221 Residence factor (period of Australian working life residence under 35 years) 1221-C2 If a person’s period of Australian working life residence is less than 420 months (35 years), the person’s residence factor is: Person’s period of Australian working life residence 420 Social Security Act 1991 565 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 4 International agreements and portability Part 4.2 Overseas portability Division 4 Other portability rules Section 1221A Division 4—Other portability rules 1221A Other portability rules (1) If: (a) the 26 weeks mentioned in paragraph 6(3)(d) or (4)(d) or 14(3)(d) or (4)(d) of Schedule 4 to the Social Services and Other Legislation Amendment Act 2014 ends on or after 11 March 2020; and (b) the Secretary is satisfied that the person’s return to Australia is temporary; and (c) the Secretary is satisfied that the person is unable to leave Australia before the end of that 26-week period because of the impact of the coronavirus known as COVID-19; the Secretary may, in relation to the person, determine that a reference to 26 weeks in paragraph 6(3)(d) or (4)(d) or 14(3)(d) or (4)(d) of Schedule 4 to the Social Services and Other Legislation Amendment Act 2014 is taken to be a reference to another number of weeks.
However, the Secretary must ensure that the determination does not result in a period referred to in that paragraph that ends after 30 June 2021.

(2) Despite Subdivision B of Division 9 of Part 3 of the Administration Act, a favourable determination (within the meaning of section 108 of that Act) that is made as a result of a determination referred to in subsection (1) of this section may be expressed to take effect on a day earlier than otherwise permitted by that Subdivision.
566 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Effect of Chapter Part 5.1 Section 1222 Chapter 5—Overpayments and debt recovery Part 5.1—Effect of Chapter 1222 General effect of Chapter (1) This Chapter provides the methods for recovery by the Commonwealth of: (a) debts owed to the Commonwealth under Part 5.2; and (b) debts owed to the Commonwealth under section 1135; and (ba) debts owed to the Commonwealth under Parts 3B and 3D of the Administration Act; and (c) overpayments under certain other Acts or schemes; and (ca) debts incurred under other Acts for failing to repay part or all of overpayments referred to in paragraph (c); and (d) debts under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990.
(2) The methods of recovery available for the various types of debt are set out in the following table: Recovery methods table Column 1 Column 2 Item Debt 1 2 1135 (pension loan debt) 1223 (debt arising under this Act) Column 3 Means deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments Column 4 Provision 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 Social Security Act 1991 567 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.1 Effect of Chapter Section 1222 Recovery methods table Column 1 Column 2 Item Debt 3 4 4A 4B 4C 4D 4E 4F 1223AA (debt arising from prepayment) 1223AB (debt arising from AAT stay order) 1223ABB (debts in respect of child disability assistance) 1223ABC (debts in respect of carer supplement for 2009) Column 3 Means deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments 1223ABD (debts in respect of carer supplement for 2010 and later years) deductions legal proceedings garnishee notice repayment by instalments 1223ABE (debts in respect of relocation scholarship payments) 1223ABF (debts in respect of student start-up loans) deductions legal proceedings garnishee notice repayment by instalments
 deductions legal proceedings garnishee notice repayment by instalments 1223ABG (debts in respect of one-off energy assistance payments) deductions legal proceedings garnishee notice repayment by instalments Column 4 Provision 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 568 Social Security Act 1991 Future compilation prepared on 8 June
 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Effect of Chapter Part 5.1 Section 1222 Recovery methods table Column 1 Column 2 Debt Column 3 Means Item 4G 4H 4J 4K 4L 5 6 7 1223ABH (debts in respect of 2019 one-off energy assistance payments) deductions legal proceedings garnishee notice repayment by instalments 1223ABI (debts in respect of first 2020 economic support payments) 1223ABJ (debts in respect of second 2020 economic support payments) 1223ABK (debts in respect of additional economic support payment 2020) 1223ABL (debts in respect of additional economic support payment 2021) 1224AA deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments 1224AB (conviction of person for involvement in offence by debtor) deductions legal proceedings garnishee notice repayment by instalments 1224B (education entry payment) deductions legal proceedings garnishee notice repayment by instalments Column 4 Provision 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 Social Security Act
 1991 569 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.1 Effect of Chapter Section 1222 Recovery methods table Column 1 Column 2 Item Debt 1224C (Data-matching program debts) 1224D (mobility allowance advance debt) 1224E (debt arising from advance payments of social security entitlements) 1225 (compensation debt) 1226 (compensation payer and insurer debts) 1226A (compensation arrears debt) 1227
 (assurance of support debt) 1227B (youth training allowance debts) Column 3 Means deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments Column 4 Provision 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 deductions legal proceedings garnishee notice repayment by instalments 1231, 1234A 1232 1233 1234 legal proceedings 1232 deductions legal proceedings garnishee notice repayment by instalments enforcement of security deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments 1231, 1234A 1232 1233 1234 1230C 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 570 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Effect of Chapter Part 5.1 Section 1222 Column 3 Means deductions legal proceedings garnishee notice repayment by instalments deductions legal proceedings garnishee notice repayment by instalments legal proceedings garnishee notice legal proceedings garnishee notice Column 4 Provision 1231, 1234A 1232 1233 1234 1231, 1234A 1232 1233 1234 1232 1233 1232 1233 deductions legal proceedings garnishee notice repayment by instalments 1231, 1234A 1232 1233 1234 Recovery methods table Column 1 Column 2
 Item 15A Debt 1228A (comparable foreign payment debts) 16 18 19 20 1229C (interest on debt) 1230 (garnishee notice debt) 1230A (garnishee notice debt under 1947 Act) Parts 3B and 3D of the Administration Act Note: An additional 10% penalty is payable in some cases: see section 1228B.
(3) If a person: (a) has received an overpayment under certain other Acts or schemes; or (b) has incurred a debt under another Act (whether before or after the commencement of this paragraph) for failing to repay part or all of such an overpayment; the amount of the overpayment or debt may be recoverable by means of deductions from the person’s social security payment.

Note: For deductions see section 1231.
Social Security Act 1991 571 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1222A Part 5.2—Amounts recoverable under this Act 1222A Debts due to the Commonwealth If an amount has been paid by way of social security payment, or by way of fares allowance under the Social Security (Fares Allowance) Rules 1998, the amount is a debt due to the Commonwealth if, and only if: (a) a provision of this Act, the 1947 Act, the Social Security (Fares Allowance) Rules 1998 or the Data-matching Program (Assistance and Tax) Act 1990 expressly provided that it was or expressly provides that it is, as the case may be; or; or (b) the amount: (i) should not have been paid; and (ii) was paid before 1 January 1991; and (iii) was not an amount to which subsection 245B(2) of the 1947 Act applied.
1223 Debts arising from lack of qualification, overpayment etc.

(1) Subject to this section, if: (a) a social security payment is made; and (b) a person who obtains the benefit of the payment was not entitled for any reason to obtain that benefit; the amount of the payment is a debt due to the Commonwealth by the person and the debt is taken to arise when the person obtains the benefit of the payment.
(1AA) If a social security payment is made to, or as directed or authorised by, the person who is entitled to obtain the benefit of the payment, subsection (1) does not apply to any other person who afterwards obtains the benefit of the payment unless the other person obtained the benefit because of a mistake made by the first person in connection with the giving of the direction or authorisation.
572 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223 (1AB) Without limiting by implication the circumstances to which paragraph (1)(b) applies apart from this subsection, a person who obtained the benefit of a social security payment is taken not to have been entitled to obtain the benefit if the payment should not have been made for any one or more of the following reasons: (a) the payment was made to the person by mistake as a result of a computer error or an administrative error; (b) the person for whose benefit the payment was intended to be made was not qualified to receive the payment; (c) the payment was not payable; (d) the payment was made as a result of a contravention of the social security law, a false statement or a misrepresentation; (e) the payment was made in purported compliance with a direction or authority given by the person who was entitled to obtain the benefit of the payment but the direction or authority had been revoked or withdrawn before the payment was made; (f) the payment was intended to be made for the benefit of someone else who died before the payment was made.
(1AC) If a social security payment was made by mistake as a result of a computer error or an administrative error, subsection (1) applies: (a) whether or not the payment was made under a determination that had effect at the time when the payment was made; and (b) whether or not a determination in relation to the payment could be made after that time with effect from and including that time.
(1AD) Subsection (1AC) does not apply if the social security payment was made when it should not have been made because of the occurrence of an event or a change in circumstances where the event or change had not been notified to the Secretary but no valid requirement for notification had been made under the social security law.
(1AE) If subsection (1AC) applies in respect of a social security payment: Social Security Act 1991 573 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223 (a) Divisions 8, 9 and 10 of Part 3 of the Social Security (Administration) Act 1999 are to be disregarded; and (b) any determination made under section 79 or 80 of that Act to correct the error in the payment takes effect from the date stated in the determination; and (c) the date so stated may be a date earlier than the date on which the determination is made.
(1AF) Except in the circumstances referred to in subsection (1AG), subsection (1) does not apply to a payment made under subsection 47(2) or 51(2) of the Administration Act.

(1AG) Subsection (1) applies to a payment made to a person under subsection 47(2) or 51(2) of the Administration Act if the person is released from gaol or psychiatric confinement on a day after the day that is the person’s expected release day for the purposes of section 35 of the Administration Act.
Some carer payment overpayments are not debts (1B) If: (a) an amount has been paid to a person (the carer) by way of carer payment because the carer was providing care for a care receiver or care receivers (as defined in subsection 197(1)); and (b) the amount was paid on the basis that the carer was qualified for carer payment when the carer was not qualified: (i) because an estimate of the income of the care receiver or any of the care receivers was an underestimate; or (ii) because an assessment or amended assessment of the income of the care receiver or any of the care receivers had been amended as described in paragraph 198B(2)(b), (c) or (d); or (iii) because of the occurrence, or the likelihood of the occurrence, of an event in respect of which the Department had not been informed in accordance with a requirement in a notice under section 70 of the Administration Act; 574 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223 the amount is not a debt due to the Commonwealth.
Some carer payment overpayments are debts if carer knew about care receiver’s affairs (1C) Despite subsection (1B), an amount described in subsection (1B) is a debt due to the Commonwealth if it was reasonable for the carer to know that: (a) the estimate of the income was incorrect; or (b) the assessment or amended assessment had been amended; or (c) the Department should have been informed in respect of the event in accordance with the requirement in the notice; as the case requires.
Some parenting payment overpayments are not debts (2) If: (a) an amount has been paid to a person by way of parenting payment; and (b) the person is someone to whom paragraph 500(1)(ca) applies; and (c) the amount was paid on the basis that the person was qualified for parenting payment when the person was not qualified only because the person failed to meet one or more participation requirements that applied to the person under section 500Asatisfy the employment pathway plan requirements that applied to the person; the amount is not a debt due to the Commonwealth.
Amount calculated using non-income/assets tested add-on amount—no add-on amount payable (7) If: (a) an amount has been paid to a person by way of social security payment; and (b) when the amount was calculated: Social Security Act 1991 575 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223 (i) an amount of remote area allowance was added to the rate of the person’s social security payment when no such amount should have been added; or (ia) the rate of the person’s social security benefit payment was increased by an amount of language, literacy and numeracy supplement when that rate should not have been so increased; or (ii) if the person was receiving a job search allowance—the rate of the person’s job search allowance was increased by an amount of job search training supplement when that rate should not have been so increased; or (iii) if the person was receiving a parenting payment or the rate of the person’s parenting newstart allowance payment or newstart allowance was increased by an amount of training supplement when that rate should not have been so increased; or (iv) if the person was receiving disability support pension, parenting payment, youth allowance or jobseeker payment—the rate of the person’s disability support pension, parenting payment, youth allowance or jobseeker payment was increased by an approved program of work supplement when that rate should not have been so increased; or (v) if the person was receiving a parenting payment, youth allowance or newstart allowance the rate of the person’s parenting payment, youth allowance or newstart allowance was increased by an amount of National Green Jobs Corps supplement when that rate should not have been so increased; each of the following amounts is a debt due to the Commonwealth: (c) the amount of remote area allowance; (ca) the amount of language, literacy and numeracy supplement; (e) the amount of training supplement; (f) the amount of approved program of work supplement;supplement.
(g) the amount of National Green Jobs Corps supplement.
576 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223 Some parenting payment supplements are not debts (7A) Despite subsection (7), if: (a) an amount has been paid to a person by way of parenting payment; and (b) the person is someone to whom paragraph 500(1)(ca) applies; and (c) when the amount was calculated, the rate of the person’s parenting payment was increased by an amount (a supplement amount) of any of the following: (i) approved program of work supplement; (ii) training supplement; (iii) National Green Jobs Corps supplement; and (c) when the amount was calculated, the rate of the person’s parenting payment was increased by an amount (a supplement amount) of approved program of work supplement; and (d) the amount of parenting payment was paid on the basis that the person was qualified for parenting payment when the person was not qualified only because the person failed to meet one or more participation requirements that applied to the person under section 500Asatisfy the employment pathway plan requirements that applied to the person; the supplement amount is not a debt due to the Commonwealth.
Amount calculated using incorrect non-income/assets tested add-on amount—add-on amount payable (8) If: (a) an amount (the received amount) has been paid to a person by way of social security payment; and (b) when the received amount was calculated: (i) an amount of remote area allowance was added to the rate of the person’s social security payment that was greater than the amount that should have been added; or (ii) if the person was receiving a job search allowance—the rate of the person’s job search allowance was increased Social Security Act 1991 577 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223A by an amount of job search training supplement that was greater than the amount by which it should have been so increased; or (iii) if the person was receiving a newstart allowance—the rate of the person’s newstart allowance was increased by an amount of newstart training allowance that was greater than the amount by which it should have been so increased; the difference between the received amount and the amount of social security payment that would have been paid to the person if the amount had been calculated by using the correct amount of remote area allowance, job search training supplement or newstart training supplement (as the case may be) is a debt due to the Commonwealth.
(9) In this section, unless the contrary intention appears, a reference to a social security payment includes a reference to a part of a social security payment.
1223A Debt resulting from commutation of asset-test exempt income stream contrary to subsection 9A(2), 9B(2) or 9BA(2) (1) If: (a) a person is provided with an asset-test exempt income stream for a period beginning on the first day in respect of which an income stream payment was made to the person and ending on the last day in respect of which an income stream payment was made to the person; and (b) during the whole or any part of that period an amount has been paid to the person by way of an income support payment; and (c) the whole or any part of the income stream is commuted contrary to the contract or governing rules under which the income stream was provided on the commencement day of the income stream; and (d) the amount that has been paid to the person by way of a social security income support payment for that period is 578 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223A more than the amount that would have been payable to the person for that period had the income stream not been an asset-test exempt income stream for the purposes of this Act for that period; an amount worked out under subsection (2) is a debt due to the Commonwealth.
(2) The amount for the purposes of subsection (1) is an amount equal to the difference between the amount that has been paid to the person by way of a social security income support payment during the period worked out under subsection (3) and the amount that would have been paid to the person by way of social security income support payment had the income stream not been an asset-test exempt income stream for the purposes of this Act for that period.
(3) The period for the purposes of subsection (2) is the period that: (a) began on: (i) the day 5 years before the income stream was commuted; or (ii) the commencement day of the income stream; or (iii) 20 September 2001; whichever is the latest; and (b) ended when the income stream was commuted.
(4) For the purpose of working out the asset value of the income stream had the income stream not been an asset-test exempt income stream for the period referred to in subsection (2), it is to be assumed that the income stream was asset tested from the commencement day and the asset value of the income stream is depleted in accordance with the formula specified in subsection 1119(4).
(5) This section does not apply to an income stream in relation to which a determination under subsection 9A(5), 9B(4) or 9BA(11) is in force.
(6) Subject to subsection (7), if: Social Security Act 1991 579 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223A (a) an asset-test exempt income stream (the old income stream) is commuted, in whole or in part; and (b) part, but not the whole, of the payment resulting from the commutation of the old income stream (the commutation payment) is transferred directly to the purchase of another asset-test exempt income stream (the new income stream); the following paragraphs have effect for the purposes of this section: (c) the new income stream is taken to have the same commencement day as: (i) the old income stream; or (ii) if the old income stream was one of a succession of asset-test exempt income streams—the first income stream in that succession; (d) if the old income stream was not one of a succession of asset-test exempt income streams, income stream payments made under the old income stream are taken to have been made under the new income stream; (e) if the old income stream was one of a succession of asset-test exempt income streams, income stream payments made under any of the income streams in that succession are taken to have been, at the time when they were made, payments under the new income stream.
(7) Subsection (6) does not apply if the amount used in the purchase of the new income stream represents the whole of the commutation payment remaining after the use of part of the commutation payment in the payment of: (a) a hardship amount; or (b) superannuation contributions surcharge that the person is liable to pay in his or her capacity as purchaser of the old income stream.
(8) Subject to subsection (9), if: (a) the whole of an asset-test exempt income stream is commuted; and 580 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223A (b) no part of the payment resulting from the commutation of the income stream is transferred directly to the purchase of another asset-test exempt income stream; and (c) the commuted income stream was one of a succession of asset-test exempt income streams; the following paragraphs have effect for the purposes of this section: (d) the commuted income stream is taken to have had the same commencement day as the first income stream in that succession; (e) income stream payments made under any of the income streams in that succession (other than the commuted income stream) are taken to have been, at the time when they were made, payments under the commuted income stream.
(9) Subsection (8) does not apply if the whole of the payment resulting from the commutation of the income stream referred to in paragraph (8)(a) is used in the payment of: (a) a hardship amount; or (b) superannuation contributions surcharge that the person is liable to pay in his or her capacity as purchaser of that income stream.
(10) For the purposes of this section: (a) 2 or more asset-test exempt income streams constitute a succession of asset-test exempt income streams if each income stream (other than the first of those income streams to be provided) has been funded by means of the payment, or part of the payment, resulting from the commutation of another of those income streams; and (b) an income stream is the first income stream in a succession of income streams if it is the first of those income streams to be provided.
(11) In this section: hardship amount has the same meaning as in section 9A.
Social Security Act 1991 581 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223AA 1223AA Debts arising from prepayments and certain other payments (1) If: (a) a person has received a prepayment of a social security payment (other than partner allowance) for a period; and (b) the person fails to provide a statement under section 67 of the Administration Act in respect of the period; the amount of the prepayment is a debt due to the Commonwealth.
(1AA) If: (a) a person has received a prepayment of partner allowance in respect of a period; and (b) the person or the person’s partner fails to provide a statement under section 67 of the Administration Act in respect of the period; the amount of the prepayment is a debt due to the Commonwealth.

(1A) If the Secretary is satisfied that, in the special circumstances of the case, it is appropriate to do so, the Secretary may determine in writing that subsection (1) or (1AA) does not apply to the prepayment.
(1B) If: (a) a person has received a prepayment of a social security payment for a period; and (b) the amount of prepayment is more than the amount (if any) (the correct amount) of social security payment that was payable to the person for the period; and (c) subsection (1) or (1AA) does not apply to the prepayment; the difference between the prepayment and the correct amount is a debt due to the Commonwealth.
(1BA) If: (a) a person has, whether before or after the commencement of this subsection, received a payment (the received amount) of a social security payment (other than parenting allowance) in respect of a period; and 582 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223AA (b) the received amount was calculated having regard to estimated income or anticipated changes of circumstances set out in a statement made in response to a notice under section 67, 68 or 69 of the Administration Act in respect of the period; and (c) the person’s actual income or the circumstances that actually occur are different from those estimated or anticipated; and (d) the received amount is more than the amount (if any) of the social security payment (the correct amount) that would have been paid to the person in respect of the period if the income or circumstances set out in the statement had been the person’s actual income or the circumstances that actually occurred; the difference between the received amount and the correct amount is a debt due to the Commonwealth.
Note: For recipient statement notice see subsection 23(1).

(1C) If: (a) a payment has been made to a person under subsection 47(2) of the Administration Act; and (b) immediately after the release of the person from gaol or psychiatric confinement: (i) the person was not qualified for a crisis payment; or (ii) although the person was qualified for a crisis payment, the payment was not payable to the person; the amount of the payment is a debt due to the Commonwealth.
(1D) If: (a) a payment has been made to a person under subsection 51(2) of the Administration Act; and (b) immediately after the release of the person from gaol or psychiatric confinement: (i) the person was not qualified for the social security pension or benefit claimed; or Social Security Act 1991 583 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223AB (ii) although the person was qualified for the pension or benefit, the pension or benefit was not payable to the person; the amount of the payment is a debt due to the Commonwealth.
(2) In this section: prepayment means: (a) a payment under section 408GG, 652, 722, 755 or 771KL of this Act as in force immediately before 20 March 2000; or (b) a payment made in accordance with section 57 of the Administration Act.
1223AB Debts arising from AAT stay orders If: (a) a person applies for AAT second review of a decision; and (b) the AAT makes an order under subsection 41(2) of the AAT Act; and (c) as a result of the order, the amount that has in fact been paid to the person by way of social security payment is greater than the amount that was payable to the person; the difference between the amount that was in fact paid to the person and the amount that was payable to the person is a debt due to the Commonwealth.
1223ABAA Debts arising in respect of one-off payments to older Australians (1) This section applies in relation to an individual who has been paid a payment (the relevant payment) of: (a) 2006 one-off payment to older Australians under Division 2 of Part 2.2B; or (b) 2007 one-off payment to older Australians under Division 3 of Part 2.2B; or (c) 2008 one-off payment to older Australians under Division 4 of Part 2.2B.
584 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABAA (2) If the individual qualified for the relevant payment because of subsection 93Y(2), 93ZA(2) or 93ZC(2), a relevant determination is a determination made under Part 3 of the Administration Act because of which the individual was receiving the payment referred to in paragraph 93Y(2)(b), 93ZA(2)(b) or 93ZC(2)(b).
(3) If the individual qualified for the relevant payment because of subsection 93Y(3), 93ZA(3) or 93ZC(3) and because of holding or having held a seniors health card, a relevant determination is a determination made under Part 3 of the Administration Act because of which the person was granted the seniors health card.
(4) If the individual qualified for the relevant payment because of subsection 93Y(4), 93ZA(4) or 93ZC(4), a relevant determination is a determination made under Part 3 of the Administration Act because of which the individual was receiving the allowance referred to in paragraph 93Y(4)(a), 93ZA(4)(a) or 93ZC(4)(a).
(4A) For the purposes of this section, the relevant day in respect of a relevant payment is: (a) for a payment of 2006 one-off payment to older Australians—9 May 2006; or (b) for a payment of 2007 one-off payment to older Australians—8 May 2007; or (c) for a payment of 2008 one-off payment to older Australians—13 May 2008.
(5) If: (a) after the relevant payment was made to the individual, a relevant determination in relation to the individual, at least so far as it relates to the relevant day or to a period that includes that day, is or was (however described) changed, revoked, set aside, or superseded by another determination; and (b) the decision to change, revoke, set aside or supersede the relevant determination is or was made for the reason, or for reasons including the reason, that the individual knowingly made a false or misleading statement, or knowingly provided false information; and Social Security Act 1991 585 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABA (c) had the change, revocation, setting aside or superseding occurred on or before the relevant day, the relevant payment would not have been made; the amount of the relevant payment is a debt due to the Commonwealth by the individual.
(6) If: (a) an individual qualified for the relevant payment because of subsection 93Y(3), 93ZA(3) or 93ZC(3) and because of having claimed a seniors health card; and (b) the individual knowingly made a false or misleading statement, or knowingly provided false information, in relation to the claim; and (c) but for that statement or information, the relevant payment would not have been paid to the individual; the amount of the relevant payment is a debt due to the Commonwealth by the individual.
(7) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to payments to which this section applies.
1223ABA Debts arising in respect of one-off payments to carers (1) This section applies in relation to an individual (the recipient) who has been paid a payment (the relevant payment) of: (a) one-off payment to carers (carer payment related); or (b) one-off payment to carers (carer allowance related); or (c) 2005 one-off payment to carers (carer payment related); or (d) 2005 one-off payment to carers (carer service pension related); or (e) 2005 one-off payment to carers (carer allowance related); or (f) 2006 one-off payment to carers (carer payment related); or (g) 2006 one-off payment to carers (wife pension related); or (h) 2006 one-off payment to carers (partner service pension related); or 586 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABA (i) 2006 one-off payment to carers (carer service pension related); or (j) 2006 one-off payment to carers (carer allowance related); or (k) 2007 one-off payment to carers (carer payment related); or (l) 2007 one-off payment to carers (wife pension related); or (m) 2007 one-off payment to carers (partner service pension related); or (n) 2007 one-off payment to carers (carer service pension related); or (o) 2007 one-off payment to carers (carer allowance related); or (p) 2008 one-off payment to carers (carer payment related); or (q) 2008 one-off payment to carers (wife pension related); or (r) 2008 one-off payment
 to carers (partner service pension related); or (s) 2008 one-off payment to carers (carer service pension related); or (t) 2008 one-off payment to carers (carer allowance related).
What determinations are relevant?

(2) If the relevant payment is a payment of one-off payment to carers (carer payment related), a relevant determination is a determination made under Part 3 of the Social Security (Administration) Act 1999 because of which the instalment referred to in section 247 was paid.
(3) If the relevant payment is a payment of one-off payment to carers (carer allowance related), a relevant determination is a determination made under Part 3 of the Social Security (Administration) Act 1999 because of which the, or an, instalment that satisfied paragraphs 992N(1)(a) and (b) was paid.
(3A) If the relevant payment is a payment of 2005 one-off payment to carers (carer payment related), a relevant determination is a determination made under Part 3 of the Social Security (Administration) Act 1999 because of which the instalment referred to in section 249 of this Act was paid.
Social Security Act 1991 587 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABA (3B) If the relevant payment is a payment of 2005 one-off payment to carers (carer service pension related), a relevant determination is a determination made under the Veterans’ Entitlements Act 1986 because of which the instalment referred to in section 251 of this Act was paid.
(3C) If the relevant payment is a payment of 2005 one-off payment to carers (carer allowance related), a relevant determination is a determination made under Part 3 of the Social Security (Administration) Act 1999 because of which the, or an, instalment that satisfied paragraphs 992Q(1)(a) and (b) of this Act was paid.
(3CA) If the relevant payment is a payment of 2006 one-off payment to carers (carer payment related), a relevant determination is a determination made under Part 3 of the Administration Act because of which the instalment of carer payment referred to in section 253 of this Act was paid.
(3CB) If the relevant payment is a payment of 2006 one-off payment to carers (wife pension related), a relevant determination is: (a) a determination made under Part 3 of the Administration Act because of which the instalment of wife pension referred to in section 255 of this Act was paid; or (b) a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 255 of this Act was paid.
(3CC) If the relevant payment is a payment of 2006 one-off payment to carers (partner service pension related), a relevant determination is: (a) a determination made under the Veterans’ Entitlements Act because of which the instalment of partner service pension referred to in section 257 of this Act was paid; or (b) a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 257 of this Act was paid.
(3CD) If the relevant payment is a payment of 2006 one-off payment to carers (carer service pension related), a relevant determination is a 588 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABA determination made under the Veterans’ Entitlements Act because of which the instalment of carer service pension referred to in section 259 of this Act was paid.
(3CE) If the relevant payment is a payment of 2006 one-off payment to carers (carer allowance related), a relevant determination is a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 992T of this Act was paid.
(3CF) If the relevant payment is a payment of 2007 one-off payment to carers (carer payment related), a relevant determination is a determination made under Part 3 of the Administration Act because of which the instalment of carer payment referred to in section 261 of this Act was paid.
(3CG) If the relevant payment is a payment of 2007 one-off payment to carers (wife pension related), a relevant determination is: (a) a determination made under Part 3 of the Administration Act because of which the instalment of wife pension referred to in section 263 of this Act was paid; or (b) a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 263 of this Act was paid.
(3CH) If the relevant payment is a payment of 2007 one-off payment to carers (partner service pension related), a relevant determination is: (a) a determination made under the Veterans’ Entitlements Act because of which the instalment of partner service pension referred to in section 265 of this Act was paid; or (b) a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 265 of this Act was paid.
(3CI) If the relevant payment is a payment of 2007 one-off payment to carers (carer service pension related), a relevant determination is a determination made under the Veterans’ Entitlements Act because Social Security Act 1991 589 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABA of which the instalment of carer service pension referred to in section 267 of this Act was paid.
(3CJ) If the relevant payment is a payment of 2007 one-off payment to carers (carer allowance related), a relevant determination is a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 992WA of this Act was paid.
(3CK) If the relevant payment is a payment of 2008 one-off payment to carers (carer payment related), a relevant determination is a determination made under Part 3 of the Administration Act because of which the instalment of carer payment referred to in section 269 of this Act was paid.
(3CL) If the relevant payment is a payment of 2008 one-off payment to carers (wife pension related), a relevant determination is: (a) a determination made under Part 3 of the Administration Act because of which the instalment of wife pension referred to in section 271 of this Act was paid; or (b) a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 271 of this Act was paid.
(3CM) If the relevant payment is a payment of 2008 one-off payment to carers (partner service pension related), a relevant determination is: (a) a determination made under the Veterans’ Entitlements Act because of which the instalment of partner service pension referred to in section 273 of this Act was paid; or (b) a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 273 of this Act was paid.
(3CN) If the relevant payment is a payment of 2008 one-off payment to carers (carer service pension related), a relevant determination is a determination made under the Veterans’ Entitlements Act because of which the instalment of carer service pension referred to in section 275 of this Act was paid.
590 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABA (3CO) If the relevant payment is a payment of 2008 one-off payment to carers (carer allowance related), a relevant determination is a determination made under Part 3 of the Administration Act because of which the, or an, instalment of carer allowance referred to in section 992WD of this Act was paid.
What is the relevant date?
(3D) The relevant date is: (a) 11 May 2004, if the relevant payment is a payment of: (i) one-off payment to carers (carer payment related); or (ii) one-off payment to carers (carer allowance related); or (b) 10 May 2005, if the relevant payment is a payment of: (i) 2005 one-off payment to carers (carer payment related); or (ii) 2005 one-off payment to carers (carer service pension related); or (iii) 2005 one-off payment to carers (carer allowance related); or (c) 9 May 2006, if the relevant payment is a payment of: (i) 2006 one-off payment to carers (carer payment related); or (ii) 2006 one-off payment to carers (wife pension related); or (iii) 2006 one-off payment to carers (partner service pension related); or (iv) 2006 one-off payment to carers (carer service pension related); or (v) 2006 one-off payment to carers (carer allowance related); or (d) 8 May 2007, if the relevant payment is a payment of: (i) 2007 one-off payment to carers (carer payment related); or (ii) 2007 one-off payment to carers (wife pension related); or Social Security Act 1991 591 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABA (iii) 2007 one-off payment to carers (partner service pension related); or (iv) 2007 one-off payment to carers (carer service pension related); or (v) 2007 one-off payment to carers (carer allowance related); or (e) 13 May 2008, if the relevant payment is a payment of: (i) 2008
 one-off payment to carers (carer payment related); or (ii) 2008 one-off payment to carers (wife pension related); or (iii) 2008 one-off payment to carers (partner service pension related); or (iv) 2008 one-off payment to carers (carer service pension related); or (v) 2008 one-off payment to carers (carer allowance related).
Situation in which whole amount is a debt (4) If: (a) after the relevant payment was made to the recipient, a relevant determination in relation to the recipient, at least so far as it relates to the relevant date or a period that includes the relevant date, is or was (however described) changed, revoked, set aside, or superseded by another determination; and (b) the decision to change, revoke, set aside or supersede the relevant determination is or was made for the reason, or for reasons including the reason, that the recipient knowingly made a false or misleading statement, or knowingly provided false information; and (c) had the change, revocation, setting aside or superseding occurred on or before the relevant date, the relevant payment would not have been made; 592 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABAAA the amount of the relevant payment is a debt due to the Commonwealth by the recipient.
Situation in which part of amount is a debt (5) If: (a) after the relevant payment was made to the recipient, a relevant determination in relation to the recipient, at least so far as it relates to the relevant date or a period that includes the relevant date, is or was (however described) changed, revoked, set aside, or superseded by another determination; and (b) the decision to change, revoke, set aside or supersede the relevant determination is or was made for the reason, or for reasons including the reason, that the recipient knowingly made a false or misleading statement, or knowingly provided false information; and (c) had the change, revocation, setting aside or superseding occurred on or before the relevant date, the amount of the relevant payment would have been reduced; the amount by which the relevant payment would have been reduced is a debt due to the Commonwealth by the recipient.
Other provisions under which debts arise generally do not apply in relation to one-off payment to carers (6) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to payments to which this section applies.
1223ABAAA Debts arising in respect of economic security strategy payments (1) If: (a) an individual has been paid an economic security strategy payment; and (b) after the payment was made to the individual, a determination in relation to the individual, at least so far as it Social Security Act 1991 593 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABAAA relates to 14 October 2008 or to a period that includes that day, is or was (however described) changed, revoked, set aside, or superseded by another determination; and (c) the determination is one to which subsection (3) applies in relation to the payment; and (d) the decision to change, revoke, set aside or supersede the determination is or was made for the reason, or for reasons including the reason, that the individual knowingly made a false or misleading statement, or knowingly provided false information; and (e) had the change, revocation, setting aside or superseding occurred on or before 14 October 2008, the payment would not have been made; the amount of the payment is a debt due to the Commonwealth by the individual.
(2) If: (a) an individual has been paid an economic security strategy payment; and (b) after the payment was made to the individual, a determination in relation to the individual, at least so far as it relates to 14 October 2008 or to a period that includes that day, is or was (however described) changed, revoked, set aside, or superseded by another determination; and (c) the determination is one to which subsection (3) applies in relation to the payment; and (d) the decision to change, revoke, set aside or supersede the determination is or was made for the reason, or for reasons including the reason, that the individual knowingly made a false or misleading statement, or knowingly provided false information; and (e) had the change, revocation, setting aside or superseding occurred on or before 14 October 2008, the payment would have been reduced; the amount by which the payment would have been reduced is a debt due to the Commonwealth by the individual.
594 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABAAB (3) This subsection applies to: (a) if the individual qualified for the payment because of subsection 900(2)—a determination made under Part 3 of the Administration Act because of which the individual was receiving a payment of a kind referred to in paragraph 900(2)(a); and (b) if the individual qualified for the payment because of subsection 900(3)—a determination made under Part 3 of the Administration Act because of which the individual was receiving a payment of a kind referred to in paragraph 900(3)(b).
(4) If: (a) an individual has been paid an economic security strategy payment; and (b) the individual qualified for the payment because of subsection 900(4) in relation to having claimed a seniors health card; and (c) the individual knowingly made a false or misleading statement, or knowingly provided false information, in relation to the claim; and (d) but for that statement or information, the payment would not have been paid to the individual; the amount of the relevant payment is a debt due to the Commonwealth by the individual.
(5) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to payments to which this section applies.

1223ABAAB Debts arising in respect of training and learning bonuses etc.
(1) If: (a) an individual has been paid a training and learning bonus or an education entry payment supplement; and Social Security Act 1991 595 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABAAB (b) after the payment was made to the individual, a determination in relation to the individual, at least so far as it relates to 3 February 2009 or to a period that includes that day, is or was (however described) changed, revoked, set aside, or superseded by another determination; and (c) the determination is one to which subsection (2) applies in relation to the payment; and (d) the decision to change, revoke, set aside or supersede the determination is or was made for the reason, or for reasons including the reason, that the individual knowingly made a false or misleading statement, or knowingly provided false information; and (e) had the change, revocation, setting aside or superseding occurred on or before 3 February 2009, the payment would not have been made; the amount of the payment is a debt due to the Commonwealth by the individual.
(2) This subsection applies to: (a) if the individual qualified for the payment because of paragraph 910(2)(a), (b), (c) or (d) of this Act—a determination made under Part 3 of the Administration Act because of which the individual was receiving a payment of a kind referred to in that paragraph; and (b) if the individual qualified for the payment because of paragraph 910(2)(e) of this Act—a determination (however described) made under the ABSTUDY Scheme because of which the individual was receiving a payment of a kind referred to in that paragraph; and (c) if the individual qualified for the payment because of paragraph 910(2)(f) of this Act—a determination (however described) made under the Veterans’ Children Education Scheme because of which the individual was receiving a payment of a kind referred to in that paragraph; and (d) if the individual qualified for the payment because of paragraph 910(2)(g) of this Act—a determination (however described) made under the Military Rehabilitation and 596 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABAAB Compensation Act Education and Training Scheme because of which the individual was receiving a payment of a kind referred to in that paragraph; and (e) if the individual qualified for the payment because of subsection 910(4) of this Act—a determination made under Part 3 of the Family Assistance Administration Act because of which the individual was entitled to family tax benefit; and (h) if the individual qualified for the payment because of section 665ZZA of this Act—a determination made under Part 3 of the Administration Act because of which the individual was qualified for an education entry payment.
(3) If: (a) the Secretary has paid a person’s training and learning bonus to another person (the recipient) under subsection 47C(3) or (4) of the Administration Act; and (b) the reason why, or one of the reasons why, the Secretary decided to pay the bonus to the recipient was that the recipient made a particular statement or provided particular information; and (c) after the payment is made, the Secretary becomes satisfied that: (i) the statement or information is false or misleading; and (ii) the recipient made the statement, or provided the information, knowing that it was false or misleading; and (iii) the bonus should have been paid to a person other than the recipient; the amount of the payment is a debt due to the Commonwealth by the recipient.
(4) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to payments to which this section applies.
Social Security Act 1991 597 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABB 1223ABB Debts in respect of child disability assistance (1) If: (a) child disability assistance is paid to a person; and (b) the assistance is paid because the person was paid an instalment of carer allowance in respect of a period that included a particular 1 July; and (c) the 1 July component of the instalment, or any part of the 1 July component, becomes a debt due to the Commonwealth; then: (d) the amount of child disability assistance determined under subsection (2) or (3) is a debt due to the Commonwealth; and (e) the debt is taken to have arisen when the amount was paid to the person.
(2) If all of the 1 July component of the instalment becomes a debt due to the Commonwealth, the amount of child disability assistance that is a debt due to the Commonwealth is the amount of assistance that was paid in respect of the eligible care receiver to whose care the instalment relates.
(3) If only part of the 1 July component of the instalment becomes a debt due to the Commonwealth, the amount of child disability assistance that is a debt due to the Commonwealth is the difference between: (a) the amount paid in respect of the eligible care receiver to whose care the instalment relates; and (b) the amount applicable under subsection 992MD(2) for the eligible care receiver to whose care the instalment relates, based on the determination under subsection 981(1) that had effect in respect of the 1 July at the time the part of the 1 July component became a debt.
(4) In this section: 1 July component, of an instalment of carer allowance in respect of a period that includes a particular 1 July, means the amount of 598 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABC carer allowance in respect of that period that is applicable to the 1 July.
1223ABC Debts in respect of carer supplement for 2009 (1) This section applies if: (a) carer supplement for 2009 is paid to a person; and (b) after it is paid, a determination under Part 3 of the Administration Act or under the Veterans’ Entitlements Act because of which any of the following instalments was paid is or was (however described) changed, revoked, set aside, or superseded by another determination: (i) a qualifying instalment (see section 992X); (iii) an instalment of partner service pension under the Veterans’ Entitlements Act affecting the amount of the carer supplement paid; and (c) the decision to change, revoke, set aside or supersede the earlier determination is or was made for the reason, or for reasons including the reason, that the person knowingly made a false or misleading statement, or knowingly provided false information.
When the whole payment is a debt (2) The amount of the carer supplement paid to the person is a debt due to the Commonwealth by the person if carer supplement for 2009 would not have been paid to the person had the change, revocation, setting aside or superseding occurred on or before 12 May 2009.
When part of the payment is a debt (3) If the amount of carer supplement for 2009 paid to the person would have been reduced had the change, revocation, setting aside or superseding occurred on or before 12 May 2009, the amount by which the carer supplement paid to the person would have been reduced is a debt due to the Commonwealth by the person.
Social Security Act 1991 599 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABD Limit on debts under this section (4) The total of debts arising under this section in relation to the carer supplement paid to the person cannot exceed the amount of the carer supplement.
Most other provisions under which debts arise do not apply (5) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to payments of carer supplement for 2009.
1223ABD Debts in respect of carer supplement for 2010 and later years (1) This section applies if: (a) carer supplement for 2010 or a later year is paid to a person; and (b) a debt (the primary debt) due to the Commonwealth by the person arises (under this Act or the Veterans’ Entitlements Act) in connection with any of the following instalments that is equal to all of the instalment or, if the instalment is of carer allowance, all or part of the instalment: (i) a qualifying instalment (see section 992X); (iii) an instalment of partner service pension under the Veterans’ Entitlements Act affecting the amount of the carer supplement paid; and (c) the carer supplement would not have been paid, or less carer supplement would have been paid, had the circumstances that gave rise to the primary debt not occurred.
(2) If the primary debt is equal to all of the instalment, an amount, equal to so much of the carer supplement as would not have been paid if the instalment had not been paid, is a debt due to the Commonwealth by the person.

Note: If the instalment is the only qualifying instalment, the debt will equal the amount of the carer supplement, because none of it would have been paid if the qualifying instalment had not been paid.
600 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABE (3) If: (a) the primary debt arises in connection with an instalment of carer allowance because of a failure to take account, or an error in taking account, of a determination under subsection 981(1); and (b) the primary debt is equal to part of the instalment; an amount, equal to so much of the carer supplement as would not have been paid if the failure or error had not occurred, is a debt due to the Commonwealth by the person.
Consolidation of debts under this section (4) If, apart from this subsection, 2 or more debts would arise under either or both of subsections (2) and (3) in relation to the carer supplement, then, instead of those debts arising, there is a single debt that: (a) is due to the Commonwealth by the person; and (b) is equal to the lesser of: (i) the sum of the debts that would arise apart from this subsection; and (ii) the amount of the carer supplement.
When debt is taken to arise under this section (5) A debt is taken to have arisen under this section when the carer supplement was paid to the person.
1223ABE Debts in respect of relocation scholarship payments Person does not start to undertake a course (1) If a person: (a) has received a relocation scholarship payment because the person is proposing to undertake an approved scholarship course; and (b) does not start to undertake full-time study in an approved scholarship course; Social Security Act 1991 601 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABE then: (c) the amount of the payment is a debt due to the Commonwealth; and (d) the debt is taken to have arisen when the person received the payment.
However, this subsection does not apply if, in the Secretary’s opinion, the person does not start to undertake full-time study in an approved scholarship course because of exceptional circumstances beyond the person’s control.

Note: For approved scholarship course, see section 592M.
Person not continuing to undertake a course (2) If a person: (a) has received a relocation scholarship payment because the person is proposing to undertake an approved scholarship course (the qualifying course); and (b) starts to undertake an approved scholarship course; and (c) is not undertaking full-time study in an approved scholarship course at the end of 35 days after the qualifying course commences; then: (d) the amount of the payment is a debt due to the Commonwealth; and (e) the debt is taken to have arisen when the person received the payment.
Note: For approved scholarship course, see section 592M.
(3) If a person: (a) has received a relocation scholarship payment because the person is undertaking an approved scholarship course; and (b) is not undertaking full-time study in an approved scholarship course at the end of 35 days after qualifying for the payment; then: (c) the amount of the payment is a debt due to the Commonwealth; and 602 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABF (d) the debt is taken to have arisen when the person received the payment.
Note: For approved scholarship course, see section 592M.

(4) Subsections (2) and (3) do not apply if, in the Secretary’s opinion, the person is not undertaking full-time study in an approved scholarship course because of exceptional circumstances beyond the person’s control.
1223ABF Debts in respect of student start-up loans (1) If: (a) a person is paid a student start-up loan for a qualification period; and (b) the circumstances determined under subsection (2) apply to the person; then: (c) the amount of the loan is a debt due to the Commonwealth; and (d) the debt is taken to have arisen when the person was paid the loan.
(2) The Minister may, by legislative instrument, determine circumstances in which subsection (1) applies to a person who has not met, or who has ceased to meet, the condition in subparagraph 1061ZVBB(1)(a)(iii) or (2)(a)(iii).

(3) Subsection (1) does not apply to a person if, in the Secretary’s opinion, the person did not meet, or ceased to meet, the condition in subparagraph 1061ZVBB(1)(a)(iii) or (2)(a)(iii) because of exceptional circumstances beyond the person’s control.
1223ABG Debts in respect of one-off energy assistance payments (1) If: (a) after a one-off energy assistance payment under Part 2.6 is paid to a person, an underlying determination in relation to the person, at least so far as it relates to 20 June 2017 or to a Social Security Act 1991 603 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABH period that includes that day, is or was (however described) changed, revoked, set aside, or superseded by another determination; and (b) the decision to change, revoke, set aside or supersede the underlying determination is or was made for the reason, or for reasons including the reason, that the person knowingly made a false or misleading statement, or knowingly provided false information; and (c) had the change, revocation, setting aside or superseding occurred on or before 20 June 2017, the one-off energy assistance payment would not have been paid; the amount of the one-off energy assistance payment is a debt due to the Commonwealth by the person.
(2) For the purposes of this section, an underlying determination in relation to a person is a determination made under Part 3 of the Administration Act because of which age pension, disability support pension or pension PP (single) was payable to the person.

(3) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to one-off energy assistance payments under Part 2.6.
1223ABH Debts in respect of 2019 one-off energy assistance payments (1) If: (a) after a one-off energy assistance payment under Part 2.6A is paid to a person, an underlying determination in relation to the person, at least so far as it relates to 2 April 2019 or to a period that includes that day, is or was (however described) changed, revoked, set aside, or superseded by another determination; and (b) the decision to change, revoke, set aside or supersede the underlying determination is or was made for the reason, or for reasons including the reason, that the person knowingly made a false or misleading statement, or knowingly provided false information; and 604 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABI (c) had the change, revocation, setting aside or superseding occurred on or before 2 April 2019, the one-off energy assistance payment would not have been paid; the amount of the one-off energy assistance payment is a debt due to the Commonwealth by the person.
(2) For the purposes of this section, an underlying determination in relation to a person is a determination made under Part 3 of the Administration Act because of which a benefit mentioned in subsection 302(2) of this Act was payable to the person.

(3) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to one-off energy assistance payments under Part 2.6A.
1223ABI Debts in respect of first 2020 economic support payments (1) If: (a) a first 2020 economic support payment under Division 1 of Part 2.6B is paid to a person; and (b) after the first 2020 economic support payment is paid to the person, an underlying determination in relation to the person, at least so far as it relates to: (i) a day included in the period mentioned in subsection 304(1); or (ii) a period that includes such a day; is or was (however described) changed, revoked, set aside, or superseded by another determination; and (c) the decision to change, revoke, set aside or supersede the underlying determination is or was made for the reason, or for reasons including the reason, that the person knowingly made a false or misleading statement, or knowingly provided false information; and (d) had the change, revocation, setting aside or superseding occurred on or before that day, the first 2020 economic support payment would not have been paid; Social Security Act 1991 605 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABJ the amount of the first 2020 economic support payment is a debt due to the Commonwealth by the person.
(2) For the purposes of this section, an underlying determination in relation to a person is a determination made under Part 3 of the Administration Act because of which a benefit mentioned in subsection 308(2) of this Act was payable to the person.
(3) If: (a) a first 2020 economic support payment under Division 1 of Part 2.6B is paid to a person; and (b) the person qualified for the payment because of subsection 308(3) applying to the person in relation to having made a claim for a seniors health card; and (c) the person knowingly made a false or misleading statement, or knowingly provided false information, in relation to the claim; and (d) the first 2020 economic support payment would not have been paid to the person but for that statement or information; the amount of the first 2020 economic support payment is a debt due to the Commonwealth by the person.
(4) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to first 2020 economic support payments under Division 1 of Part 2.6B.
1223ABJ Debts in respect of second 2020 economic support payments (1) If: (a) a second 2020 economic support payment under Division 2 of Part 2.6B is paid to a person; and (b) after the second 2020 economic support payment is paid to the person, an underlying determination in relation to the person, at least so far as it relates to: (i) 10 July 2020; or (ii) a period that includes 10 July 2020; 606 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABJ is or was (however described) changed, revoked, set aside, or superseded by another determination; and (c) the decision to change, revoke, set aside or supersede the underlying determination is or was made for the reason, or for reasons including the reason, that the person knowingly made a false or misleading statement, or knowingly provided false information; and (d) had the change, revocation, setting aside or superseding occurred on or before 10 July 2020, the second 2020 economic support payment would not have been paid; the amount of the second 2020 economic support payment is a debt due to the Commonwealth by the person.
(2) For the purposes of this section, an underlying determination in relation to a person is a determination made under Part 3 of the Administration Act because of which a benefit mentioned in subsection 308(2) of this Act was payable to the person.
(3) If: (a) a second 2020 economic support payment under Division 2 of Part 2.6B is paid to a person; and (b) the person qualified for the payment because of subsection 308(3) applying to the person in relation to having made a claim for a seniors health card; and (c) the person knowingly made a false or misleading statement, or knowingly provided false information, in relation to the claim; and (d) the second 2020 economic support payment would not have been paid to the person but for that statement or information; the amount of the second 2020 economic support payment is a debt due to the Commonwealth by the person.
(4) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to second 2020 economic support payments under Division 2 of Part 2.6B.
Social Security Act 1991 607 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1223ABK 1223ABK Debts in respect of additional economic support payment 2020 (1) If: (a) an additional economic support payment 2020 under Division 1 of Part 2.6C is paid to a person; and (b) after the payment is paid to the person, an underlying determination in relation to the person, at least so far as it relates to: (i) 27 November 2020; or (ii) a period that includes 27 November 2020; is or was (however described) changed, revoked, set aside or superseded by another determination; and (c) the decision to change, revoke, set aside or supersede the underlying determination is or was made for the reason, or for reasons including the reason, that the person knowingly made a false or misleading statement, or knowingly provided false information; and (d) had the change, revocation, setting aside or superseding occurred on or before 27 November 2020, the additional economic support payment 2020 would not have been paid; the amount of the additional economic support payment 2020 is a debt due to the Commonwealth by the person.
(2) For the purposes of this section, an underlying determination in relation to a person is a determination made under Part 3 of the Administration Act because of which a payment mentioned in subsection 313(2) of this Act was payable to the person.
(3) If: (a) an additional economic support payment 2020 under Division 1 of Part 2.6C is paid to a person; and (b) the person qualified for the payment because of subsection 313(3) applying to the person in relation to having made a claim for a seniors health card; and 608 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1223ABL (c) the person knowingly made a false or misleading statement, or knowingly provided false information, in relation to the claim; and (d) the additional economic support payment 2020 would not have been paid to the person but for that statement or information; the amount of the additional economic support payment 2020 is a debt due to the Commonwealth by the person.
(4) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to an additional economic support payment 2020 under Division 1 of Part 2.6C.
1223ABL Debts in respect of additional economic support payment 2021 (1) If: (a) an additional economic support payment 2021 under Division 2 of Part 2.6C is paid to a person; and (b) after the payment is paid to the person, an underlying determination in relation to the person, at least so far as it relates to: (i) 26 February 2021; or (ii) a period that includes 26 February 2021; is or was (however described) changed, revoked, set aside or superseded by another determination; and (c) the decision to change, revoke, set aside or supersede the underlying determination is or was made for the reason, or for reasons including the reason, that the person knowingly made a false or misleading statement, or knowingly provided false information; and (d) had the change, revocation, setting aside or superseding occurred on or before 26 February 2021, the additional economic support payment 2021 would not have been paid; the amount of the additional economic support payment 2021 is a debt due to the Commonwealth by the person.
Social Security Act 1991 609 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1224 (2) For the purposes of this section, an underlying determination in relation to a person is a determination made under Part 3 of the Administration Act because of which a payment mentioned in subsection 313(2) of this Act was payable to the person.
(3) If: (a) an additional economic support payment 2021 under Division 2 of Part 2.6C is paid to a person; and (b) the person qualified for the payment because of subsection 313(3) applying to the person in relation to having made a claim for a seniors health card; and (c) the person knowingly made a false or misleading statement, or knowingly provided false information, in relation to the claim; and (d) the additional economic support payment 2021 would not have been paid to the person but for that statement or information; the amount of the additional economic support payment 2021 is a debt due to the Commonwealth by the person.
(4) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to an additional economic support payment 2021 under Division 2 of Part 2.6C.
1224 Debts relating to clean energy advances (1) This section applies if: (a) an individual is paid a clean energy advance; and (b) after the advance is paid, one of the following events happens to a determination that directly or indirectly affects the payability or amount of the advance paid to the individual: (i) the determination is changed, revoked or set aside; (ii) the determination is superseded by another determination; and (c) the event happens wholly or partly because the individual knowingly made a false or misleading statement or knowingly provided false information; and 610 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1224A (d) had the event happened on or before the day the advance was paid: (i) the advance would not have been paid; or (ii) the advance would have been reduced.
Note 1: Examples of determinations directly affecting the payability or amount of the clean energy advance are as follows: (a) a determination relating to the person’s qualification for the clean energy qualifying payment to which the advance related; the determination of the person’s qualification for the clean energy advance.
(b) Note 2: An example of a determination indirectly affecting the amount of the advance is a determination relating to a change in circumstances that results in the person qualifying for a further payment of the advance under an instrument made under section 914G.

Creation and amount of debt (2) The advance is a debt due to the Commonwealth by the individual if subparagraph (1)(d)(i) applies.
(3) The amount by which the advance would have been reduced is a debt due to the Commonwealth by the individual if subparagraph (1)(d)(ii) applies.

Relationship with other sections (4) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to clean energy advances.
1224A Debts relating to essential medical equipment payments (1) This section applies if: (a) an individual has been paid an essential medical equipment payment because of a determination made under Part 3 of the Administration Act; and (b) after the payment was made to the individual, the determination is or was (however described) changed, revoked, set aside, or superseded by another determination; and Social Security Act 1991 611 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1224AA (c) the decision to change, revoke, set aside or supersede the determination is or was made wholly or partly because the individual knowingly made a false or misleading statement, or knowingly provided false information; and (d) apart from that statement or information, the payment would not have been paid.
(2) An amount equal to the payment is a debt due to the Commonwealth by the individual.

(3) Apart from section 1224AA, the other provisions of this Part under which debts arise do not apply in relation to payments to which this section applies.
1224AA Person other than payee obtaining payment of a cheque If: (a) an amount of a social security payment or an amount of fares allowance is paid by cheque; and (b) a person other than the payee obtains possession of the cheque from the payee; and (c) the cheque is not endorsed by the payee to the person; and (d) the person obtains value for the cheque; the amount of the cheque is a debt due by the person to the Commonwealth.
1224AB Joint and several liability for persons involved in contravention of Act If: (a) a person is liable to pay a debt because the person contravened a provision of this Act as in force immediately before 20 March 2000, or a provision of the social security law; and (b) another person is convicted of an offence under section 11.2, 11.2A, 11.4 or 11.5 of the Criminal Code in relation to the contravention; 612 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1224B the persons referred to in paragraphs (a) and (b) are jointly and severally liable to pay the debt.
1224B Education entry payment debt (1) If: (a) an education entry payment is made to a person; and (b) the person does not pay the enrolment fees for the course in relation to which the education entry payment was made in the calendar year in respect of which the education entry payment was made; the amount of the education entry payment so made is a debt due to the Commonwealth.

(2) Subsection (1) does not apply to a person who is not required to pay the enrolment fees mentioned in paragraph (1)(b).
1224C Data-matching Program (Assistance and Tax) Acts debts If: (a) an amount has been paid to a person by way of a social security payment; and (b) the amount is a debt due to the Commonwealth under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990; the amount so paid is recoverable by the Commonwealth.
1224D Mobility allowance advance debts (1) If: (a) a person (the recipient) has received mobility allowance advance; and (b) the advance was paid because the recipient or another person: (i) made a false statement or a false representation; or (ii) failed or omitted to comply with a provision of the social security law or this Act as in force immediately before 20 March 2000; and Social Security Act 1991 613 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1224E (c) the Secretary determines that the recipient’s qualification for mobility allowance ceased on a particular day during the recipient’s advance payment period; the amount worked out under subsection (2) is a debt due to the Commonwealth.
(2) For the purposes of subsection (1), the amount of the recipient’s debt is: amount of advance 13 where:  number of paydays amount of advance means the amount of mobility allowance advance paid to the recipient under section 1045. number of paydays means the number of whole paydays in the period that starts on the day determined by the Secretary under paragraph (1)(c) and ends at the end of the recipient’s advance payment period.
(3) In this section: advance payment period for mobility allowance advance is the period of 26 weeks starting on the first payday for which it is practicable to pay the advance and adjust the mobility allowance payments of the recipient.

Note: Any reduction in the advance payment period under section 1044A is not taken into account for the purposes of this definition.
1224E Debts arising from advance payments of social security entitlements (1) If: (a) a person has received an advance payment of a social security entitlement (the first entitlement) or an instalment of such an advance payment; and (b) the first entitlement ceases to be payable to the person; and 614 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1224EA (c) when the first entitlement ceases to be payable, the person has not repaid the whole of the advance payment or instalment; and (d) the person does not receive another social security entitlement immediately after the first entitlement ceases to be payable; the amount that has not been repaid is a debt due to the Commonwealth.
Note: For social security entitlement see subsection 23(1).
1224EA Debts arising from special employment advances of special employment advance qualifying entitlements If: (a) a person has received a special employment advance of a special employment advance qualifying entitlement (the first entitlement) or an instalment of such an advance; and (b) the first entitlement ceases to be payable to the person; and (c) when the first entitlement ceases to be payable, the person has not repaid the whole of the advance or instalment; and (d) the person does not receive another special employment advance qualifying entitlement or benefit PP (partnered) immediately after the first entitlement ceases to be payable; the amount that has not been repaid is a debt due to the Commonwealth.
1227 Assurance of support debt (1) If a person is liable to pay an assurance of support debt, the debt is a debt due to the Commonwealth.
(2) In this Chapter: assurance of support debt means: (a) a debt due and payable by a person to the Commonwealth, or a liability of a person to the Commonwealth, because of the operation of: Social Security Act 1991 615 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1227B (i) subregulation 165(1) of the Migration (1989) Regulations as in force on or before 19 December 1991; or (ii) regulation 164C of the Migration (1989) Regulations as in force after 19 December 1991 and before 1 February 1993; or (iii) Part 5 of the Migration (1993) Regulations as in force on or after 1 February 1993; or (iv) Division 2.7 of the Migration Regulations 1994 as in force on or after 1 September 1994; in respect of the payment to another person of a social security payment of a kind mentioned in subregulation 2.38(1) of the Migration Regulations 1994; or (b) a liability of a person to the Commonwealth because of the operation of section 1061ZZGG.
1227B Debts arising under Part 8 of the Student Assistance Act 1973 as in force before 1 July 1998 If an amount that was a debt due to the Commonwealth under Part 8 of the Student Assistance Act 1973 (as in force immediately before 1 July 1998) remained still due immediately before that day, that amount is a debt that is due to the Commonwealth under this Act.
1228 Overpayments arising under other Acts and schemes (1) If: (a) an amount has been paid to a person by way of a payment or payments to which subsection (2) applies; and (b) the amount should not have been paid; and (c) the person to whom the amount was paid is receiving a social security payment; and 616 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1228 (d) the person is qualified for the social security payment under this Act and the social security payment is payable to the person; the amount is an overpayment that is recoverable by the Commonwealth by means of deductions.
Note: For deductions see section 1231.
(2) This subsection applies to: (a) a payment of pension, veteran payment or allowance under the Veterans’ Entitlements Act; or (aa) a payment of family assistance within the meaning of the A New Tax System (Family Assistance) Act 1999; or (ab) a payment of compensation (within the meaning of the Military Rehabilitation and Compensation Act) under that Act; or (b) a payment of pension or allowance under the Seamen’s War Pensions and Allowances Act 1940; or (c) a payment under: (i) the AUSTUDY Scheme, being the scheme under Part 2 of the Student Assistance Act 1973 as previously in force; or (ii) the ABSTUDY Schooling Scheme; or (iii) the ABSTUDY Tertiary Scheme (to the extent that it applies to full-time students); or (iv) the Assistance for Isolated Children Scheme; or (v) the Veterans’ Children Education Scheme; or (vi) the Post-Graduate Awards Scheme; or (vii) the Adult Migrant Education Program Living Allowance; or (viii) the Maintenance Allowance for Refugees; or (ix) the English as a Second Language Allowance (to the extent that it applies to full-time students); or (ca) an instalment of parental leave pay; or (cb) dad and partner pay; or Social Security Act 1991 617 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1228A (d) if the amount was paid to the person on or after 12 August 1988—a program included in the programs known as Labour Market Programs.
(2A) A debt referred to in paragraph (b) of the definition of student assistance overpayment in subsection 3(1) of the Student Assistance Act 1973 is an overpayment that is recoverable by the Commonwealth by means of deductions.

(2B) A debt referred to in section 79 of the Child Support (Registration and Collection) Act 1988 is an overpayment that is recoverable by the Commonwealth by means of deductions.
(3) If: (a) an amount was paid under the scheme administered by the Commonwealth known as Financial Case Management to, or for the benefit of, a person; and (b) the amount should not have been paid; and (c) the person is receiving a social security payment; and (d) the person is qualified for the social security payment under this Act and the social security payment is payable to him or her; the amount is an overpayment that is recoverable from the person by the Commonwealth by means of deductions.
Note: For deductions see section 1231.
1228A Comparable foreign payment debt recovery (1) This section applies if: (a) an amount (the social security amount) was paid to a person by way of a social security payment in respect of a particular period; and (b) another amount (the lump sum) was paid as a lump sum: (i) to the person; or (ii) to the person’s partner, if the person is a member of a couple; 618 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1228B by way of a payment of arrears of a comparable foreign payment in respect of that period; and (c) assuming that the lump sum had been paid by way of periodical payments of the comparable foreign payment in respect of the period, the social security amount would have been reduced.
(2) The amount by which the social security amount would have been reduced is a debt due to the Commonwealth.

(3) Sections 1072A and 1073 do not apply to the person in respect of the lump sum.

1228B Additional 10% penalty for understatement etc.
of income (1) An amount by way of penalty is added to a debt due to the Commonwealth under this Chapter by a person in relation to a social security payment if: (a) at the time the payment was made, the person: (i) had attained the minimum age for youth allowance as defined by section 543A; and (ii) had not reached pension age; and Note: For pension age see subsections 23(5A), (5B), (5C) and (5D).
(b) the payment was: (i) a social security benefit; or (ii) a disability support pension; or (v) a pension PP (single); and (c) the debt arose wholly or partly because the person had: (i) refused or failed to provide information in relation to the person’s income from personal exertion; or (ii) knowingly or recklessly provided false or misleading information in relation to the person’s income from personal exertion; when required, under a provision of the social security law, to provide information in relation to the person’s income from personal exertion.
Social Security Act 1991 619 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1229 Note: For income from personal exertion see subsection 8(1).

(2) The amount added by way of penalty is an amount equal to 10% of so much of the debt as arose because the person refused or failed to provide the information or provided the false or misleading information.
(2A) To avoid doubt, the amount added by way of penalty is part of the debt.

(3) An amount worked out under subsection (2) must be rounded down to the nearest 5 cents.

(4) This section does not apply if the Secretary is satisfied that the person had a reasonable excuse for refusing or failing to provide the information.

(5) This section does not apply in relation to a debt due to the Commonwealth under section 1229C.
1229 Notices in respect of debt (1) If a debt by a person to the Commonwealth under the social security law has not been wholly paid, the Secretary must give the person a notice specifying: (a) the date on which it was issued (the date of the notice); and (b) the reason the debt was incurred, including a brief explanation of the circumstances that led to the debt being incurred; and (c) the period to which the debt relates; and (d) the outstanding amount of the debt at the date of the notice; and (e) the day on which the outstanding amount is due and payable; and (ea) the effect of sections 1229A and 1229B; and (f) that a range of options is available for repayment of the debt; and (g) the contact details for inquiries concerning the debt.
620 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1229A (2) The outstanding amount of the debt is due and payable on the 28th day after the date of the notice.

(3) The Secretary may give more than one notice under subsection (1) in relation to a person and a debt of the person.
1229A Interest charge—no repayment arrangement in effect (1) If: (a) a notice is given to a person under subsection 1229(1) in relation to a debt; and (b) an amount (the unpaid amount) of the debt remains unpaid at the end of the day (the due day) on which the debt is due to be paid; and (c) at the end of the due day, there is no arrangement in effect under section 1234 in relation to the debt; then the person is liable to pay, by way of penalty, interest charge, worked out under subsection (3), for each day in the period described in subsection (2).
Note: For exemptions, see sections 1229E and 1229F.

(2) The period starts at the beginning of the day after the due day and ends at the end of the earlier of the following days: (a) the last day at the end of which any of the following remains unpaid: (i) the unpaid amount; (ii) interest charge on any of the unpaid amount; (b) the day before the first day, after the due day, on which the person makes a payment under an arrangement under section 1234 in relation to the debt.
(3) The interest charge for a day in the period described in subsection (2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid: (a) the unpaid amount; (b) the interest charge from previous days.
Social Security Act 1991 621 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1229B Note 1: For interest charge rate see section 1229D.

Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 1229C.
1229B Interest charge—failure to comply with or termination of repayment arrangement (1) If: (a) an arrangement is in effect under section 1234 in relation to a person and a debt; and (b) the person fails to make a payment under the arrangement; then the person is liable to pay, by way of penalty, interest charge, worked out under subsection (3), for each day in the period described in subsection (2).

Note: For exemptions, see sections 1229E and 1229F.
(2) The period starts at the beginning of the day after the day (the due day) on which the payment was required to be made under the arrangement and ends at the end of the earliest of the following days: (a) the last day at the end of which any of the following remains unpaid: (i) the outstanding amount of the debt; (ii) interest charge on any of the outstanding amount of the debt; (b) the day before the first day, after the due day, on which the person has paid all the payments that have so far become due and payable under the arrangement; (c) the day before the day the arrangement is terminated under section 1234.
(3) The interest charge for a day in the period described in subsection (2) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid: (a) the outstanding amount of the debt; 622 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1229B (b) the interest charge from previous days.
Note 1: For interest charge rate see section 1229D.

Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 1229C.
Repayment arrangement is terminated (4) If: (a) an arrangement is in effect under section 1234 in relation to a person and a debt; and (b) the arrangement is then terminated under section 1234 on a day (the termination day); then: (c) the following amounts (if any) are due and payable on the 14th day after the termination day: (i) the outstanding amount of the debt; (ii) interest charge on any of the outstanding amount of the debt; and (d) if, at the end of that 14th day, any of those amounts remains unpaid, the person is liable to pay, by way of penalty, interest charge, worked out under subsection (6), for each day in the period described in subsection (5).
Note: For exemptions, see sections 1229E and 1229F.
(5) The period starts at the beginning of the day after that 14th day and ends at the end of the earlier of the following days: (a) the last day at the end of which any of the following remains unpaid: (i) the outstanding amount of the debt; (ii) interest charge on any of the outstanding amount of the debt; (b) the day before the first day, after that 14th day, on which the person makes a payment under another arrangement under section 1234 in relation to the debt.
Social Security Act 1991 623 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1229C (6) The interest charge for a day in the period described in subsection (5) is worked out by multiplying the interest charge rate for that day by the sum of so much of the following amounts as remains unpaid: (a) the outstanding amount of the debt; (b) the interest charge from previous days.
Note 1: For interest charge rate see section 1229D.

Note 2: The interest charge for a day is due and payable to the Commonwealth at the end of that day and is a debt due to the Commonwealth: see section 1229C.

1229C Other rules for interest charge When interest charge is due and payable (1) The interest charge under section 1229A or 1229B for a day is due and payable to the Commonwealth at the end of that day.
Interest charge is a debt (2) The interest charge under section 1229A or 1229B for a day is a debt due to the Commonwealth by the person.

Provisions that do not apply to interest charge debt (3) Subsection 1229(1) does not apply in relation to the debt referred to in subsection (2) of this section.

1229D What is the interest charge rate?


(1) For the purposes of sections 1229A and 1229B, the interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.

(2) The base interest rate for a day depends on which quarter of the year the day is in.
For each day in a quarter in column 1 of the table, it is the monthly average yield of 90-day Bank Accepted 624 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1229E Bills published by the Reserve Bank of Australia for the month in column 2 of the table.
Base interest rate Item Column 1 For days in this quarter: Column 2 the monthly average yield of 90-day Bank Accepted Bills for this month applies: 1 2 3 4 1 January to 31 March the preceding November 1 April to 30 June the preceding February 1 July to 30 September the preceding May 1 October to 31 December the preceding August (3) If the monthly average yield of 90-day Bank Accepted Bills for a particular month in column 2 of the table in subsection (2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank of Australia before that month.
(4) The base interest rate must be rounded to the second decimal place (rounding .005 upwards).
1229E Exemption from interest charge—general (1) A person is not liable to pay interest charge under section 1229A or 1229B if on the day before the start of the period in respect of which the person would otherwise have been liable to pay that charge: (a) the person is receiving a social security payment; or (b) the person is receiving a payment of pension, veteran payment or allowance under the Veterans’ Entitlements Act; or (c) the person is receiving instalments of family tax benefit; or (d) the person is receiving instalments under the ABSTUDY scheme (also known as the Aboriginal Study Assistance Social Security Act 1991 625 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1229F Scheme) that includes an amount identified as living allowance; or (e) the person is receiving instalments under the Assistance for Isolated Children Scheme; or (f) the circumstances determined in an instrument under subsection (2) apply in relation to the person.
(2) The Minister may, by legislative instrument, determine circumstances for the purposes of paragraph (1)(f).

1229F Exemption from interest charge—Secretary’s determination (1) The Secretary may determine that interest charge is not payable, or is not payable in respect of a particular period, by a person on the outstanding amount of a debt.
(2) The Secretary may make a determination under this section in circumstances that include (but are not limited to) the Secretary being satisfied that the person has a reasonable excuse for: (a) failing to enter into an arrangement under section 1234 to pay the outstanding amount of the debt; or (b) having entered an arrangement, failing to make a payment in accordance with that arrangement.
(3) The determination may relate to a period before, or to a period that includes a period before, the making of the determination.

(4) The determination may be expressed to be subject to the person complying with one or more specified conditions.

(5) If the determination is expressed to be subject to the person complying with one or more specified conditions, the Secretary must give written notice of the determination to the person as soon as practicable after the determination is made.
(6) If: (a) the determination is expressed to be subject to the person complying with one or more specified conditions; and 626 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1229G (b) the person contravenes a condition or conditions without reasonable excuse; the determination ceases to have effect from and including the day on which the contravention or the earliest of the contraventions occurred.
(7) The Secretary may cancel or vary the determination by written notice given to the person.

1229G Guidelines on interest charge provisions The Minister may, by legislative instrument, determine guidelines relating to the operation of the provisions of this Part dealing with interest charge.
1230 Debt from failure to comply with garnishee notice (1) If: (a) a person (in this section called the garnishee debtor) is given a notice under section 1233 in respect of a debt due by another person (in this section called the original debtor) under this Act or Part 3B or 3D of the Administration Act; and (b) the garnishee debtor fails to comply with the notice to the extent that he or she is capable of complying with it; then the amount of the debt outstanding (worked out under subsection (2)) is recoverable from the garnishee debtor by the Commonwealth by means of: (c) legal proceedings; or (d) garnishee notice.
Note 1: For legal proceedings see section 1232.

Note 2: For garnishee notice see section 1233.
(2) The amount of the debt outstanding is the amount equal to: (a) as much of the amount required by the notice under section 1233 to be paid by the garnishee debtor as the garnishee debtor was able to pay; or Social Security Act 1991 627 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1230A (b) as much of the debt due by the original debtor at the time when the notice was given as remains due from time to time; whichever is the lesser.
(3) If the Commonwealth recovers: (a) the whole or part of the debt due by the garnishee debtor under subsection (1); or (b) the whole or part of the debt due by the original debtor; then: (c) both debts are reduced by the amount that the Commonwealth has so recovered; and (d) the amount specified in the notice under section 1233 is to be taken to be reduced by the amount so recovered.
(3A) This section applies to an amount in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.

(4) In this section, person includes: (a) the Commonwealth; and (b) a State; and (c) a Territory; and (d) any authority of the Commonwealth or of a State or Territory.
1230A Debt from failure before 1 July 1991 to comply with garnishee notice under the 1947 Act (1) If: (a) a person (in this section called the garnishee debtor) was given a notice under section 162 of the 1947 Act in respect of a debt due by another person (in this section called the original debtor) under the 1947 Act; and 628 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1230A (b) the garnishee debtor failed to comply with the notice before 1 July 1991 to the extent that he or she was capable of complying with it; then the amount of the debt outstanding (worked out under subsection (2)) is recoverable from the garnishee debtor by the Commonwealth by means of: (c) legal proceedings; or (d) garnishee notice.
Note 1: For legal proceedings see section 1232.

Note 2: For garnishee notice see section 1233.

(2) The amount of the debt outstanding is the amount equal to: (a) as much of the amount required by the notice under section 162 of the 1947 Act to be paid by the garnishee debtor as the garnishee debtor was able to pay; or (b) as much of the debt due by the original debtor at the time when the notice was given as remains due from time to time; whichever is the lesser.
(3) If the Commonwealth recovers: (a) the whole or a part of the debt due by the garnishee debtor under subsection (1); or (b) the whole or a part of the debt due by the original debtor; then: (c) both debts are reduced by the amount that the Commonwealth has so recovered; and (d) the amount specified in the notice under section 162 of the 1947 Act is to be taken to be reduced by the amount so recovered.
(4) A reference in subsection (3) to the Commonwealth recovering the whole or a part of a debt includes a reference to the Commonwealth recovering, under the 1947 Act, the whole or a part of the debt.
Social Security Act 1991 629 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.2 Amounts recoverable under this Act Section 1230B (5) In this section: person includes: (a) the Commonwealth; and (b) a State; and (c) a Territory; and (d) any authority of the Commonwealth, a State or Territory.
1230B Overseas application of provisions Sections 1184F, 1184I, 1223, 1224AA, 1224AB, 1224D, 1227, 1227B, 1228 and 1228B extend to: (a) acts, omissions, matters and things outside Australia, whether in a foreign country or not; and (b) all persons irrespective of nationality or citizenship.
1230C Methods of recovery of debt (1) Subject to subsection (2), a debt due to the Commonwealth under this Act or Part 3B or 3D of the Administration Act is recoverable by the Commonwealth by means of one or more of the following methods: (a) if the person who owes the debt is receiving a social security payment—deductions from that person’s social security payment; (b) if, in respect of the debt, section 1234A applies to another person who is receiving a social security payment— deductions from that other person’s social security payment; (c) repayment by instalments under an arrangement entered into under section 1234; (d) legal proceedings; (e) garnishee notice.
(2) Subject to subsection (3), a debt due to the Commonwealth under this Act or Part 3B or 3D of the Administration Act is recoverable by means of a method mentioned in paragraph (1)(d) or (e) only if the Commonwealth: 630 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Amounts recoverable under this Act Part 5.2 Section 1230C (a) has first sought to recover the debt by means of a method mentioned in paragraph (1)(a), (b) or (c); and (b) can establish that the person who owes the debt: (i) has failed to enter into a reasonable arrangement to repay the debt; or (ii) after having entered into such an arrangement, has failed to make a particular payment in accordance with the arrangement.
(3) If the Secretary determines that the recovery of the debt by means of a method mentioned in paragraph (1)(a), (b) or (c) is not appropriate having regard to the circumstances of the case, paragraph (2)(a) does not apply in respect of the recovery of the debt.

(4) A debt due to the Commonwealth under section 1184G is recoverable by the Commonwealth by means of legal proceedings.
(5) This section does not prevent the recovery of an assurance of support debt by the enforcement at any time of a security given in connection with the relevant assurance of support.

It does not matter: (a) whether or not the enforcement involves legal proceedings; or (b) whether the enforcement occurs before or after seeking to recover the debt by means of another method described in this section.
Social Security Act 1991 631 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.3 Methods of recovery Section 1231AA Part 5.3—Methods of recovery 1231AA Application of sections dealing with deductions Sections 1231 and 1234A provide for debt recovery by deductions in the following situations: (a) section 1231—debt recovery from person who incurred the debt; (b) section 1234A—debt recovery by consent from person other than debtor.
1231 Deductions from debtor’s pension, benefit or allowance (1) Subject to subsection (2), each of the following: (a) a debt under this Act as in force immediately before 20 March 2000; (aaa) a debt under the social security law; (b) an overpayment arising under an Act or scheme referred to in subsection 1228(2); (ba) a debt incurred under another Act (whether before or after the commencement of this paragraph) for failing to repay part or all of an overpayment referred to in paragraph (b); (bb) a debt described in subsection 1228(2A) or (2B); (bc) an overpayment described in subsection 1228(3); (c) a debt under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990; (d) a debt or overpayment under the 1947 Act; may be recovered by making deductions of amounts determined under subsection (1A): (e) from any social security payments; or (f) from any payments of arrears of social security payments; or (g) partly from any social security payments and partly from any payments of arrears of social security payments.
632 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Methods of recovery Part 5.3 Section 1231 (1A) The Secretary is to determine the amount of a deduction that is to be made from a particular payment, and may determine an amount that would reduce the payment to nil if: (a) the deduction is to be made from a social security payment that is pension bonus or from a payment of arrears of social security payments; or (b) the deduction is to be made from a social security payment that is not pension bonus and the person to whom the payment would, apart from the deduction, be made has consented to the amount of the deduction being an amount that would reduce the payment to nil.
(1AA) However, the Secretary: (a) must not make a determination that would reduce a payment to nil if the reduction to nil would result in the person being in severe financial hardship; and (b) must not make a determination that would reduce (including reduce to nil) an economic security strategy payment, essential medical equipment payment or training and learning bonus, unless the person to whom the payment or bonus: (i) is to be made; or (ii) would, apart from the deduction, be made; has requested that the Secretary determine under this section the amount of a deduction that is to be made from the payment or bonus; and (c) must not make a determination that would reduce (including reduce to nil) a payment of a student start-up loan.
(1B) If the person concerned elects in writing that this subsection is to apply in relation to him or her, the Secretary may decide under subsection (1A) that the amount by which each payment of the person’s social security payment is to be reduced is such amount as results in reducing the payment to nil.
(2) The debt or overpayment must be deducted unless: (a) the Secretary takes action under Part 5.4 (write off and waiver) in relation to the amount; or Social Security Act 1991 633 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.3 Methods of recovery Section 1232 (b) the amount is recovered by the Commonwealth under: (i) another provision of this Chapter; or (ii) Part 4 of the A New Tax System (Family Assistance) (Administration) Act 1999.
1232 Legal proceedings If a debt is recoverable by the Commonwealth by means of legal proceedings under: (a) Part 5.2 of this Act; or (b) the 1947 Act; or (c) the Social Security (Fares Allowance) Rules 1998; the debt is recoverable by the Commonwealth in a court of competent jurisdiction.
1233 Garnishee notice (1) If a debt is recoverable from a person (in this section called the debtor) by the Commonwealth under section 1230C of this Act, under the 1947 Act or under the Social Security (Fares Allowance) Rules 1998, the Secretary may by written notice given to another person: (a) by whom any money is due or accruing, or may become due, to the debtor; or (b) who holds or may subsequently hold money for or on account of the debtor; or (c) who holds or may subsequently hold money on account of some other person for payment to the debtor; or (d) who has authority from some other person to pay money to the debtor; require the person to whom the notice is given to pay the Commonwealth: (e) an amount specified in the notice, not exceeding the amount of the debt or the amount of the money referred to in the preceding paragraph that is applicable; or 634 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Methods of recovery Part 5.3 Section 1233 (f) such amount as is specified in the notice out of each payment that the person becomes liable from time to time to make to the debtor until that debt is satisfied; or (g) such percentage as is specified in the notice of each payment that the person becomes liable from time to time to make to the debtor until that debt is satisfied.
(2) The time for making a payment in compliance with a notice under subsection (1) is such time as is specified in the notice, not being a time before the money concerned becomes due or is held or before the end of the period of 14 days after the notice is given.

(3) A person who fails to comply with a notice under subsection (1) commits an offence.

Penalty: Imprisonment for 12 months.


Note 1: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment.

The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit.

The amount of a penalty unit is stated in section 4AA of that Act.
Note 1A: If a body corporate is convicted of the offence, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a maximum fine of an amount that is 5 times the maximum fine that could be imposed on an individual convicted of the same offence.

Note 2: See also section 1230 (consequence of failure to comply with notice under this section).

(3A) Subsection (3) applies only to the extent to which the person is capable of complying with the notice.
(3B) Strict liability applies to the element of an offence against subsection (3) that a notice is a notice under subsection (1).

(4) If the Secretary gives a notice to a person under subsection (1), the Secretary must give a copy of the notice to the debtor.
(5) A person who makes a payment to the Commonwealth in compliance with a notice under subsection (1) is to be taken to Social Security Act 1991 635 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.3 Methods of recovery Section 1234 have made the payment under the authority of the debtor and of any other person concerned.
(6) If: (a) a notice is given to a person under subsection (1) in respect of a debt due; and (b) an amount is paid by another person in reduction or in satisfaction of the debt; the Secretary must notify the first-mentioned person accordingly, and the amount specified in the notice is to be taken to be reduced by the amount so paid.
(7) If, apart from this subsection, money is not due or repayable on demand to a person unless a condition is fulfilled, the money is to be taken, for the purposes of this section, to be due or repayable on demand, as the case may be, even though the condition has not been fulfilled.

(7F) This section applies to money in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.
(8) In this section, person includes: (a) the Commonwealth; and (b) a State; and (c) a Territory; and (d) any authority of the Commonwealth or of a State or Territory.

1234 Arrangement for payment of debt (1) The Secretary may, on behalf of the Commonwealth, enter into an arrangement with a person under which the person is to pay a debt, owed by the person to the Commonwealth, or the outstanding amount of such a debt, in a way set out in the arrangement.
636 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Methods of recovery Part 5.3 Section 1234AA (1A) If a person is required to make a payment under an arrangement entered into under subsection (1) before the end of a particular day, the person must make that payment before the end of that day.
(2) An arrangement entered into under subsection (1) has effect, or is taken to have had effect, on and after the day specified in the arrangement as the day on which the arrangement commences (whether that day is the day on which the arrangement is entered into or an earlier or later day).

(3) If an arrangement entered into under subsection (1) does not specify a day as mentioned in subsection (2), it has effect on and after the day on which it is entered into.
(4) The Secretary may terminate or alter an arrangement entered into under subsection (1): (a) at the debtor’s request; or (b) after giving 28 days’ notice to the debtor of the proposed termination or alteration; or (c) without notice, if the Secretary is satisfied that the person has failed to disclose material information about his or her true capacity to repay the debt.

(5) In subsection (1): debt means: (a) a debt recoverable by the Commonwealth under Part 5.2; or (b) a debt under the 1947 Act.
1234AA Recovery of amounts from financial institutions (1) If: (a) a social security payment or social security payments are made to a financial institution for the credit of an account kept with the institution; and (b) the Secretary is satisfied that the payment or payments were intended to be made for the benefit of someone who was not Social Security Act 1991 637 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.3 Methods of recovery Section 1234AA the person or one of the persons in whose name or names the account was kept; the Secretary may give a written notice to the institution setting out the matters mentioned in paragraphs (a) and (b) and requiring the institution to pay to the Commonwealth, within a period (being a reasonable period) stated in the notice, the lesser of the following amounts: (c) an amount specified in the notice, being the amount, or the sum of the amounts, of the social security payment or social security payments; (d) the amount standing to the credit of the account when the notice is received by the institution.
(2) If: (a) a social security payment or social security payments that are intended for the benefit of a person are made to a financial institution for the credit of an account that was kept with the institution by the person or by the person and one or more other persons; and (b) the person died before the payment or payments were made; the Secretary may give a written notice to the institution setting out the matters mentioned in paragraphs (a) and (b) and requiring the institution to pay to the Commonwealth, within a period (being a reasonable period) stated in the notice, the lesser of the following amounts: (c) an amount specified in the notice, being the amount, or the sum of the amounts, of the social security payment or social security payments; (d) the amount standing to the credit of the account when the notice is received by the institution.
(2A) As soon as possible after issuing a notice under subsection (2), the Secretary must inform the deceased estate in writing of: (a) the amount sought to be recovered from the deceased person’s account; and (b) the reasons for the recovery action.
638 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Methods of recovery Part 5.3 Section 1234A (3) A financial institution must comply with a notice given to it under subsection (1) or (2).

Penalty: 300 penalty units.


(4) It is a defence to a prosecution of a financial institution for failing to comply with a notice given to it under subsection (1) or (2) if the financial institution proves that it was incapable of complying with the notice.
(5) If a notice is given to a financial institution under subsection (1) (payment made to wrong account) or under subsection (2) (death of person in whose name the account was kept) in respect of a social security payment or social security payments, any amount recovered by the Commonwealth from the institution in respect of the debt reduces any debt owed to the Commonwealth by any other person in respect of the social security payment or social security payments.
1234A Deductions by consent from social security payment of person who is not a debtor (1) If: (a) a person (in this section called the debtor) incurs a debt under this Act, Part 3B or 3D of the Administration Act, the Student Assistance Act 1973 as in force before 1 July 1998, the Data-matching Program (Assistance and Tax) Act 1990, the 1947 Act, the A New Tax System (Family Assistance) (Administration) Act 1999, the Farm Household Support Act 2014, the Paid Parental Leave Act 2010 or the Social Security (Fares Allowance) Rules 1998 or incurred a debt under Part 8 of the Student Assistance Act 1973 as in force before 1 July 1998; and (b) another person (in this section called the consenting person) is receiving, or is about to receive, a social security payment (other than a student start-up loan) under this Act; and Social Security Act 1991 639 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.3 Methods of recovery Section 1234B (c) for the purpose of the recovery of the debt, the consenting person consents to the deduction of an amount from the consenting person’s social security payment; the Secretary may deduct the amount from the consenting person’s social security payment.
(2) The debtor’s debt is reduced by an amount equal to the amount deducted from the consenting person’s social security payment.

(3) The consenting person may revoke the consent at any time.

1234B No time limit on debt recovery action For the purposes of this Chapter, legal proceedings, or any action under a provision of this Chapter, for the recovery of a debt or overpayment may be commenced or taken at any time.
640 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Non-recovery of debts Part 5.4 Section 1235 Part 5.4—Non-recovery of debts 1235 Meaning of debt In this Part, debt means: (a) a debt recoverable by the Commonwealth under Part 5.2; or (b) a debt under the 1947 Act; or (c) a debt due to the Commonwealth under a scheduled international social security agreement; or (d) a debt under the Social Security (Fares Allowance) Rules 1998.
Note: Overpayments under section 1228 are not debts for the purposes of Part 5.2.

1236 Secretary may write off debt (1) Subject to subsection (1A), the Secretary may, on behalf of the Commonwealth, decide to write off a debt, for a stated period or otherwise.
(1A) The Secretary may decide to write off a debt under subsection (1) if, and only if: (a) the debt is irrecoverable at law; or (b) the debtor has no capacity to repay the debt; or (c) the debtor’s whereabouts are unknown after all reasonable efforts have been made to locate the debtor; or (d) it is not cost effective for the Commonwealth to take action to recover the debt.
(1B) For the purposes of paragraph (1A)(a), a debt is taken to be irrecoverable at law if, and only if: (b) there is no proof of the debt capable of sustaining legal proceedings for its recovery; or (c) the debtor is discharged from bankruptcy and the debt was incurred before the debtor became bankrupt and was not incurred by fraud; or Social Security Act 1991 641 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.4 Non-recovery of debts Section 1236A (d) the debtor has died leaving no estate or insufficient funds in the debtor’s estate to repay the debt.
(1C) For the purposes of paragraph (1A)(b), if a debt is recoverable by means of: (a) deductions from the debtor’s social security payment; or (b) deductions under section 84 of the A New Tax System (Family Assistance) (Administration) Act 1999; or (c) setting off under section 84A of that Act; the debtor is taken to have a capacity to repay the debt unless recovery by those means would result in the debtor being in severe financial hardship.
(2) A decision made under subsection (1) takes effect: (a) if no day is specified in the decision—on the day on which the decision is made; or (b) if a day is specified in the decision—on the day so specified (whether that day is before, after or on the day on which the decision is made).

(3) Nothing in this section prevents anything being done at any time to recover a debt that has been written off under this section.
1236A Application (1) Sections 1237, 1237A, 1237AA, 1237AAA, 1237AAB, 1237AAC, 1237AAD and 1237AAE apply to: (a) debts arising on or after 1 January 1996; and (b) the amounts of debts arising before 1 January 1996 that were outstanding at the start of that day.

(2) Section 1237AB applies to all debts, whenever incurred, owed to the Commonwealth and arising under this Act or under the Social Security Act 1947.
642 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Non-recovery of debts Part 5.4 Section 1237 1237 Power to waive Commonwealth’s right to recover debt Secretary’s limited power to waive (1) On behalf of the Commonwealth, the Secretary may waive the Commonwealth’s right to recover the whole or a part of a debt from a debtor only in the circumstances described in section 1237A, 1237AA, 1237AAA, 1237AAB, 1237AAC, 1237AAD or 1237AB and, if the debt is an assurance of support debt, subject to section 1237AAE.
When waiver takes effect (2) A waiver takes effect: (a) on the day specified in the waiver (whether that day is before, after or on the day on which the decision to waive is made); or (b) if the waiver does not specify when it takes effect—on the day on which the decision to waive is made.

Note: If the Secretary waives the Commonwealth’s right to recover all or part of a debt, this is a permanent bar to recovery of the debt or part of the debt—the debt or part of the debt effectively ceases to exist.
1237A Waiver of debt arising from error Administrative error (1) Subject to subsection (1A), the Secretary must waive the right to recover the proportion of a debt that is attributable solely to an administrative error made by the Commonwealth if the debtor received in good faith the payment or payments that gave rise to that proportion of the debt.
Note: Subsection (1) does not allow waiver of a part of a debt that was caused partly by administrative error and partly by one or more other factors (such as error by the debtor).
(1A) Subsection (1) only applies if: (a) the debt is not raised within a period of 6 weeks from the first payment that caused the debt; or Social Security Act 1991 643 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.4 Non-recovery of debts Section 1237AA (b) if the debt arose because a person has complied with a notification obligation, the debt is not raised within a period of 6 weeks from the end of the notification period; whichever is the later.
Underestimating value of property (2) If: (a) a debt arose because the debtor or the debtor’s partner underestimated the value of particular property of the debtor or partner; and (b) the estimate was made in good faith; and (c) the value of the property was not able to be easily determined when the estimate was made; the Secretary must waive the right to recover the proportion of the debt attributable to the underestimate.
Proportion of a debt (3) For the purposes of this section, a proportion of a debt may be 100% of the debt.
1237AA Waiver of debt relating to an offence (1) If: (a) a debtor has been convicted of an offence that gave rise to a proportion of a debt; and (b) the court indicated in sentencing the debtor that it imposed a longer custodial sentence on the debtor because he or she was unable or unwilling to pay the debt; the Secretary must waive the right to recover the proportion of the debt that arose in connection with the offence.
(2) For the purposes of this section, a proportion of a debt may be 100% of the debt.
644 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Non-recovery of debts Part 5.4 Section 1237AAA 1237AAA Waiver of small debt (1) The Secretary must waive the right to recover a debt if: (a) the debt is, or is likely to be, less than $200; and (b) it is not cost effective for the Commonwealth to take action to recover the debt.
(2) Subsection (1) does not apply if the debt is at least $50 and could be recovered by deductions under section 1231 from a social security payment of the debtor.

Note: Section 1237AAE limits the circumstances in which an assurance of support debt may be waived under this section, and the amount of the debt that may be waived.
1237AAB Waiver in relation to settlements Settlement of civil action (1) If the Commonwealth has agreed to settle a civil action against a debtor for recovery of a debt for less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.
Settlement of proceedings before the AAT (2) If the Secretary has agreed to settle proceedings before the AAT relating to recovery of a debt on the basis that the debtor will pay less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.
Waiver where at least 80% of debt recovered and debtor cannot pay more (3) If: (a) the Commonwealth has recovered at least 80% of the original value of a debt from a debtor; and Social Security Act 1991 645 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.4 Non-recovery of debts Section 1237AAB (b) the Commonwealth and the debtor agree that the recovery is in full satisfaction for the whole of the debt; and (c) the debtor cannot repay a greater proportion of the debt; the Secretary must waive the remaining 20% or less of the value of the original debt.
Agreement for part-payment in satisfaction of outstanding debt (4) If the Secretary and a debtor agree that the debtor’s debt will be fully satisfied if the debtor pays the Commonwealth an agreed amount less than the amount of the debt outstanding at the time of the agreement (the unpaid amount), the Secretary must waive the right to recover the difference between the unpaid amount and the agreed amount.
Limits on agreement to accept part-payment in satisfaction of outstanding debt (5) The Secretary must not make an agreement described in subsection (4) unless the Secretary is satisfied that the agreed amount is at least the present value of the unpaid amount if it is repaid in instalments of amounts, and at times, determined by the Secretary.
Formula for working out present value of unpaid amount (6) For the purposes of subsection (5), the present value of the unpaid amount is the amount worked out in accordance with the following formula: annual repayment interest   1 –      1 1  interest  repayment period      where: annual repayment is the amount of the debt that the Secretary believes would be recovered under Part 5.3 in a year if subsection (4) did not apply in relation to the debt.
646 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Non-recovery of debts Part 5.4 Section 1237AAC interest is the annual rate of interest specified by the Minister by legislative instrument.

repayment period is the number of years needed to repay the unpaid amount if repayments equal to the annual repayment were made each year.

Example: Facts: Bill owed a debt of $35,000 to the Commonwealth.
After repaying $5,000 (leaving an unpaid amount of $30,000), he offers to make an immediate payment of a further $20,000 in full satisfaction of the debt.

The Secretary is satisfied that Bill cannot repay a larger amount of the debt than this.

The Secretary believes that $1,500 of the debt would be recovered under Part 5.3 in a year, at which rate it would take 20 years to repay the debt.

The Minister has specified an interest rate of 5% a year for the purposes of subsection (6).
Application: The Secretary can accept Bill’s offer and make an agreement with him as described in subsection (4), because the $20,000 is more than the present value of $30,000 repaid over 20 years at a 5% interest rate (which is $18, 693.33   $1,500  0.05    1   1       20    If the Secretary makes the agreement, the Secretary must waive $10,000 of the debt (the difference between the unpaid amount of $30,000 and the agreed amount of $20,000).
Note: Section 1237AAE limits the circumstances in which an assurance of support debt may be waived under this section, and the amount of the debt that may be waived.
1237AAC Waiver where debtor or debtor’s partner would have been entitled to an allowance Waiver if there was an unclaimed entitlement to family payment or family allowance (1) If: (a) a debt arises from overpayments made to the debtor; and (b) the debtor or the debtor’s partner does not claim family payment or family allowance for the period when the overpayments were made; and Social Security Act 1991 647 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.4 Non-recovery of debts Section 1237AAC (c) an amount of family payment or family allowance would have been payable for the period when the overpayments were made if the debtor or the debtor’s partner had lodged a claim; the Secretary must waive the right to recover the debt to the extent set out in subsection (2).
(1A) If: (a) a debt arises from overpayments to a youth allowance recipient (the debtor); and (b) the debtor would have been an FA child of another person for the period when the overpayments were made if the debtor had not been a youth allowance recipient; and (c) an amount of family allowance would have been payable to the other person in respect of the debtor for the period when the overpayments were made if: (i) the debtor had been an FA child of the other person for that period; and (ii) the other person had lodged a claim; the Secretary must waive the debt to the extent set out in subsection (2A).
Amount of debt Secretary must waive (2) The Secretary must waive under subsection (1) the right to recover the amount of debt equal to the amount of family payment or family allowance that would have been payable to the debtor or the debtor’s partner in the 3-year period ending on the day the overpayment is stopped if: (a) the overpayments had not been made to the debtor; and (b) the debtor or the debtor’s partner had lodged a claim for the payment.
(2A) The Secretary must waive under subsection (1A) the right to recover the amount of debt equal to the amount of family allowance that would have been payable to the other person in the 3-year period ending on the day on which the overpayment is stopped if: 648 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Non-recovery of debts Part 5.4 Section 1237AAC (a) the debtor had been an FA child of the person; and (b) the other person had lodged a claim for family allowance.
Reference to amount of family allowance is a reference to minimum rate plus guardian allowance and large family supplement (3) For the purposes of subsections (2) and (2A): (a) an amount of family allowance is the minimum standard family allowance rate plus any guardian allowance that is payable plus any large family supplement that is payable; and (b) an amount of family allowance does not include multiple birth allowance.
Waiver if there was an unclaimed entitlement to parenting allowance or parenting payment (4) If: (a) a debt arises from overpayments to the debtor; and (b) the Secretary is satisfied that the overpayments did not result wholly or partly from the debtor or another person knowingly: (i) making a false statement or false representation; or (ii) failing or omitting to comply with a provision of this Act or the 1947 Act; and (c) the debtor or the debtor’s partner did not claim parenting allowance or parenting payment for the period (the overpayment period) when the overpayments were made; and (d) an amount of parenting allowance or parenting payment would have been payable for that period if the debtor or the debtor’s partner had lodged a claim; the Secretary must waive the right to recover the debt to the extent set out in subsection (5).
Social Security Act 1991 649 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.4 Non-recovery of debts Section 1237AAD Waiver of amount equal to notional entitlement to parenting allowance or parenting payment (as the case requires) (5) The Secretary must waive under subsection (4) the right to recover the amount of debt equal to the amount of parenting allowance or parenting payment (as the case requires) that would have been payable to the debtor or the debtor’s partner during so much of the overpayment period as was not earlier than 3 years before the day on which the overpayment is stopped if: (a) the overpayments had not been made to the debtor; and (b) the debtor or the debtor’s partner had lodged a claim for the allowance or payment (as the case requires).
Calculating the amount equal to notional entitlement to parenting allowance (6) For the purposes of working out the amount of parenting allowance or parenting payment that would have been payable to the debtor or the debtor’s partner, the rate of parenting allowance or parenting payment for the debtor or the debtor’s partner: (a) if the Secretary is satisfied that the rate would have been greater than the maximum basic component if parenting allowance or parenting payment had been claimed—is taken to have been that greater rate; or (b) in any other case—is taken not to have exceeded the maximum basic component of parenting allowance specified at the relevant time in the Parenting Allowance Rate Calculator or the PP (Partnered) Rate Calculator (as the case requires).
1237AAD Waiver in special circumstances The Secretary may waive the right to recover all or part of a debt if the Secretary is satisfied that: (a) the debt did not result wholly or partly from the debtor or another person knowingly: (i) making a false statement or a false representation; or 650 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Non-recovery of debts Part 5.4 Section 1237AAE (ii) failing or omitting to comply with a provision of this Act, the Administration Act or the 1947 Act; and (b) there are special circumstances (other than financial hardship alone) that make it desirable to waive; and (c) it is more appropriate to waive than to write off the debt or part of the debt.
Note 1: Note 2: Section 1236 allows the Secretary to write off a debt on behalf of the Commonwealth.

This section has effect subject to section 1237AAE in relation to an assurance of support debt.
1237AAE Extra rules for waiver of assurance of support debts (1) This section affects waiver under some other provisions of this Part of an assurance of support debt in connection with an assurance of support given by one or more persons (the assurers), by setting out extra rules limiting the circumstances in which waiver may occur and the extent of waiver.
(2) The Secretary may waive under section 1237AAD the right to recover all or part of the debt only if the Secretary is satisfied that the waiver is justified on grounds other than one or more of the assurers being unaware of the effect of section 1061ZZGG, or of regulations made under the Migration Act 1958, in connection with the assurance.
(3) If the Secretary has been given a security that meets the requirements of subsection 1061ZZGD(3) in connection with the assurance, the Secretary may waive under section 1237AAA, 1237AAB or 1237AAD the right to recover an amount of the debt that is not greater than the difference (if any) between: (a) the debt; and (b) the amount that can be: (i) obtained by enforcing the security; and (ii) applied to reduce the debt.
Note: An amount that can be obtained by enforcing the security cannot be applied to reduce the debt if it is applied to reduce another assurance of support debt connected with the assurance of support.
Social Security Act 1991 651 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.4 Non-recovery of debts Section 1237AB (4) If 2 or more assurers are jointly and severally liable for the debt, the Secretary may waive under section 1237AAD the right to recover an amount of the debt that is not greater than the amount (which may be a nil amount) of the debt that the Secretary is satisfied cannot be recovered from any of the assurers.
(5) If subsections (3) and (4) apply, the Secretary may waive under section 1237AAD the right to recover an amount of the debt that is not greater than the amount (if any) of the debt that may be waived taking into account both of those subsections.
1237AB Secretary may waive debts of a particular class (1) The Secretary may, on behalf of the Commonwealth, decide to waive the Commonwealth’s right to recover debts arising under or as a result of this Act or Part 3B or 3D of the Administration Act that are included in a class of debts specified, by legislative instrument, by the Minister.
(2) A decision under subsection (1) takes effect: (a) if no day is specified in the decision—on the day on which the decision is made; or (b) if a day is specified in the decision—on the day so specified (whether that day is before, after or on the day on which the decision is made).

(3) A legislative instrument under subsection (1) does not commence before the end of the period for disallowing the instrument.
652 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Departure prohibition orders Part 5.5 Secretary may make departure prohibition orders Division 1 Section 1240 Part 5.5—Departure prohibition orders Division 1—Secretary may make departure prohibition orders 1240 Secretary may make departure prohibition orders (1) The Secretary may make an order (a departure prohibition order) prohibiting a person from departing from Australia for a foreign country if: (a) the person has one or more debts to the Commonwealth under the social security law; and (b) there are not arrangements satisfactory to the Secretary for the one or more debts to be wholly paid; and (c) the Secretary believes on reasonable grounds that it is desirable to make the order for the purpose of ensuring that the person does not depart from Australia for a foreign country without: (i) having wholly paid the one or more debts; or (ii) there being arrangements satisfactory to the Secretary for the one or more debts to be wholly paid.
Matters to be taken into account in making order (2) Before making an order under this section, the Secretary must have regard to the following matters: (a) the capacity of the person to pay the one or more debts; (b) whether any action has been taken to recover any such debt, and the outcome of the recovery action; (c) the length of time for which any such debt has remained unpaid after the day on which it became due and payable; (d) such other matters as the Secretary considers appropriate.
Social Security Act 1991 653 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.5 Departure prohibition orders Division 1 Secretary may make departure prohibition orders Section 1240 Form of order (3) A departure prohibition order must be in a form approved by the Secretary.
654 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Departure prohibition orders Part 5.5 Departure from Australia of debtors prohibited Division 2 Section 1241 Division 2—Departure from Australia of debtors prohibited 1241 Departure from Australia of debtors prohibited A person must not depart from Australia for a foreign country if: (a) a departure prohibition order in respect of the person is in force, and the person knows that the order is in force, or is reckless as to whether the order is in force; and (b) the person’s departure is not authorised by a departure authorisation certificate, and the person knows that the departure is not authorised by such a certificate, or is reckless as to whether the departure is authorised by such a certificate.
Penalty: Imprisonment for 12 months.
Social Security Act 1991 655 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.5 Departure prohibition orders Division 3 Other rules for departure prohibition orders Section 1242 Division 3—Other rules for departure prohibition orders 1242 Notification requirements for departure prohibition orders (1) This section applies if the Secretary makes a departure prohibition order in respect of a person.
Notifying person of order (2) The Secretary must notify the person that the order has been made.

(3) The notice must be in a form approved by the Secretary and must be given as soon as practicable after making the order.
Notifying other persons of order (4) Unless the Secretary is satisfied that the person is an Australian citizen, the Secretary must give the Secretary of the Department administered by the Minister administering the Migration Act 1958 a copy of the order, and information likely to facilitate identification of the person, for the purposes of administering that Act.
(5) The Secretary must also give a copy of the order, and information likely to facilitate identification of the person for the purposes of this Part, to such other persons as the Secretary considers appropriate in the circumstances, being persons declared in an instrument under subsection (6).

(6) The Secretary may, by legislative instrument, declare persons for the purposes of subsection (5).
(7) The Secretary must give a copy of the order or information under subsection (4) or (5) as soon as practicable after making the order.

1243 Operation of departure prohibition order (1) A departure prohibition order comes into force when it is made, and continues in force until it is revoked, or until it is set aside by a court.
656 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Departure prohibition orders Part 5.5 Other rules for departure prohibition orders Division 3 Section 1244 Note: Division 5 deals with appeals to the Federal Court of Australia or the Federal Circuit Court of Australia against the making of departure prohibition orders.
(2) However, a departure prohibition order in respect of a person is not in force during any period when a deportation order in respect of the person is in force under the Migration Act 1958.
1244 Revocation and variation of departure prohibition orders (1) The Secretary must revoke a departure prohibition order in respect of a person if: (a) the person no longer has any debts to the Commonwealth under the social security law; or (b) there are arrangements satisfactory to the Secretary for the one or more debts the person has to the Commonwealth under the social security law to be wholly paid; or (c) the Secretary is satisfied that the one or more debts the person has to the Commonwealth under the social security law are completely irrecoverable.
(2) The Secretary may revoke or vary a departure prohibition order in respect of a person if the Secretary considers it desirable to do so.

(3) A revocation or variation, under this section, of a departure prohibition order may be: (a) on application by the person in a form approved by the Secretary; or (b) on the Secretary’s own initiative.
1245 Notification requirements for revocations and variations (1) If the Secretary revokes or varies a departure prohibition order in respect of a person, the Secretary must give notice of the revocation or variation to: (a) the person; and (b) each person to whom a copy of the departure prohibition order was given under subsection 1242(4) or (5).
Social Security Act 1991 657 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.5 Departure prohibition orders Division 3 Other rules for departure prohibition orders Section 1245 (2) If: (a) a person makes an application under paragraph 1244(3)(a) for the revocation or variation of a departure prohibition order; and (b) the Secretary refuses to revoke or vary the order; the Secretary must give notice of the refusal to the person.
(3) A notice under this section must be in a form approved by the Secretary and must be given as soon as practicable after the decision concerned is made.
658 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Departure prohibition orders Part 5.5 Departure authorisation certificates Division 4 Section 1246 Division 4—Departure authorisation certificates 1246 Application for departure authorisation certificate (1) A person in respect of whom a departure prohibition order is in force may apply for a certificate (a departure authorisation certificate) authorising the person to depart from Australia for a foreign country.
(2) The application must be in a form approved by the Secretary.

1247 When Secretary must issue departure authorisation certificate (1) This section applies if a person makes an application under section 1246 for a departure authorisation certificate.
(2) The Secretary must issue the departure authorisation certificate if the Secretary is satisfied: (a) that, if the certificate is issued: (i) it is likely that the person will depart from Australia and return to Australia within a period that the Secretary considers appropriate; and (ii) it is likely that, within a period that the Secretary considers appropriate, the Secretary will be required by subsection 1244(1) to revoke the departure prohibition order in respect of the person; and (b) that it is not necessary for the person to give security under section 1248 for the person’s return to Australia.
(3) If the Secretary is not satisfied as mentioned in subsection (2), the Secretary must issue the departure authorisation certificate if: (a) the person has given security under section 1248 for the person’s return to Australia; or (b) if the person is unable to give such security, the Secretary is satisfied: (i) that the certificate should be issued on humanitarian grounds; or Social Security Act 1991 659 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.5 Departure prohibition orders Division 4 Departure authorisation certificates Section 1248 (ii) that refusing to issue the certificate will be detrimental to Australia’s interests.
1248 Security for person’s return to Australia (1) A person may give such security as the Secretary considers appropriate by bond, deposit or any other means, for the person’s return to Australia by such day as is agreed by the person and the Secretary and is specified in the departure authorisation certificate.

(2) The Secretary may substitute a later day for the day mentioned in subsection (1): (a) on application by the person in a form approved by the Secretary; or (b) on the Secretary’s own initiative.
(3) The Secretary may refuse an application by a person to substitute a later day if: (a) the person refuses to increase the value of the security already given to a level that the Secretary considers appropriate; or (b) the person refuses to give such further security as the Secretary considers appropriate; or (c) the Secretary considers that it would not be appropriate to substitute the later day.
1249 What departure authorisation certificate must authorise (1) A departure authorisation certificate in respect of a person must authorise the departure of the person on or before the seventh day after a day specified in the certificate.

(2) The day specified in the certificate must be a day that is after the day on which the certificate is issued, but not more than 7 days after that day.
660 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Departure prohibition orders Part 5.5 Departure authorisation certificates Division 4 Section 1250 1250 Notification requirements for departure authorisation certificates (1) If the Secretary issues a departure authorisation certificate in respect of a person, the Secretary must, as soon as practicable, give a copy of the certificate to: (a) the person; and (b) each person to whom a copy of the departure prohibition order in respect of the person was given under subsection 1242(4) or (5).
(2) If: (a) a person makes an application under section 1246 for a departure authorisation certificate; and (b) the Secretary refuses to issue the certificate; the Secretary must give notice of the refusal to the person.

(3) The notice must be in a form approved by the Secretary and must be given as soon as practicable after the refusal.
1251 Notification requirements for substituted days (1) If, under section 1248, the Secretary substitutes a later day for a person’s return to Australia, the Secretary must give notice of that decision to: (a) the person; and (b) each person to whom a copy of the departure prohibition order in respect of the person was given under subsection 1242(4) or (5).
(2) If: (a) a person makes an application under paragraph 1248(2)(a) to substitute a later day for the person’s return to Australia; and (b) the Secretary refuses the application; the Secretary must give notice of the refusal to the person.
Social Security Act 1991 661 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.5 Departure prohibition orders Division 4 Departure authorisation certificates Section 1251 (3) A notice under this section must be in a form approved by the Secretary and must be given as soon as practicable after the decision concerned is made.
662 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Departure prohibition orders Part 5.5 Appeals and review in relation to departure prohibition orders and departure authorisation certificates Division 5 Section 1252 Division 5—Appeals and review in relation to departure prohibition orders and departure authorisation certificates 1252 Appeals to courts against making of departure prohibition orders (1) A person aggrieved by the making of a departure prohibition order may appeal to the Federal Court of Australia or the Federal Circuit Court of Australia against the making of the order.
(2) This section has effect subject to Chapter III of the Constitution.

1253 Jurisdiction of courts The jurisdiction of a court under section 1252 must be exercised by a single Judge.

1254 Orders of court on appeal A court hearing an appeal under section 1252 against the making of a departure prohibition order may, in its discretion: (a) make an order setting aside the order; or (b) dismiss the appeal.
1255 Review of decisions (1) Applications may be made to the Administrative Appeals Tribunal for review of a decision of the Secretary under section 1244, 1247 or 1248.

(2) Despite any provision of Parts 4 and 4A of the Administration Act, those Parts do not apply in relation to any decision of the Secretary under this Part.
Social Security Act 1991 663 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.5 Departure prohibition orders Division 6 Enforcement Section 1256 Division 6—Enforcement 1256 Powers of officers of Customs and members of the Australian Federal Police (1) This section applies if an officer (within the meaning of the Customs Act 1901), or a member of the Australian Federal Police, believes on reasonable grounds that: (a) a person is about to depart from Australia for a foreign country; and (b) a departure prohibition order in respect of the person is in force; and (c) the person’s departure is not authorised by a departure authorisation certificate.
(2) The officer or member may: (a) take such steps as are reasonably necessary to prevent the person’s departure, including, but not limited to, steps to prevent the person going on board, or to remove the person from, a vessel or aircraft in which the officer or member believes on reasonable grounds the departure will take place; and (b) require the person to answer questions or produce documents to the officer or member for the purposes of working out whether: (i) a departure prohibition order in respect of the person is in force; and (ii) if such an order in respect of the person is in force— whether the person’s departure is authorised by a departure authorisation certificate.
(3) A person commits an offence if: (a) the person is subject to a requirement under paragraph (2)(b); and (b) the person refuses or fails to comply with the requirement.

Penalty: 30 penalty units.


664 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Departure prohibition orders Part 5.5 Enforcement Division 6 Section 1257 (4) Subsection (3) does not apply if the person answers the question or produces the document to the extent that the person is capable of answering the question or producing the document.
Note: A defendant bears an evidential burden in relation to the matters mentioned in subsection (4): see subsection 13.3(3) of the Criminal Code.

1257 Privilege against self-incrimination (1) An individual is not excused from answering a question, or producing a document, under paragraph 1256(2)(b) on the ground that the answer to the question or the production of the document might tend to incriminate the individual or expose the individual to a penalty.
(2) However: (a) the answer given or document produced; and (b) answering the question or producing the document; and (c) any information, document or thing obtained as a direct or indirect consequence of the answering of the question or producing the document; are not admissible in evidence against the individual in any criminal proceedings, other than proceedings under section 137.1 or 137.2 of the Criminal Code in relation to answering the question or producing the document.
1258 Production of authority to depart (1) If: (a) a departure prohibition order in respect of a person is in force; and (b) the person is about to depart from Australia for a foreign country; and (c) the person’s departure is authorised by a departure authorisation certificate; an officer (within the meaning of the Customs Act 1901), or a member of the Australian Federal Police, may request the person to Social Security Act 1991 665 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Chapter 5 Overpayments and debt recovery Part 5.5 Departure prohibition orders Division 6 Enforcement Section 1258 give a copy of the certificate to the officer or member for inspection.
(2) A person commits an offence of strict liability if: (a) an officer (within the meaning of the Customs Act 1901), or a member of the Australian Federal Police, has made a request of the person under subsection (1); and (b) the person refuses or fails to comply with the request.

Penalty for contravention of this subsection:5 penalty units.
666 Social Security Act 1991 Future compilation prepared on 8 June 2021 OFFICIAL: Sensitive // Legal Privilege Overpayments and debt recovery Chapter 5 Departure prohibition orders Part 5.5 Interpretation Division 7 Section 1259 Division 7—Interpretation 1259 Interpretation—departure from Australia for foreign country A reference in this Part to the departure of a person from Australia for a foreign country is a reference to the departure of the person from Australia for a foreign country, whether or not the person intends to return to Australia.
1260 Meaning of Australia (1) For the purposes of this Part, Australia, when used in a geographical sense, includes the external Territories.

(2) For the purposes of this section: (a) the definition of external Territory in subsection 23(1) does not apply; and (b) external Territory has the meaning given by section 2B of the Acts Interpretation Act 1901.
Social Security Act 1991 667 Future compilation prepared on 8 June 2021 Chapter 6 Modification of social security law Clause 1261 Chapter 6—Modification of social security law 1261 Simplified outline of this Chapter The Minister may determine temporary modifications of the social security law in response to circumstances relating to the coronavirus known as COVID-19.
1262 Minister may determine modifications of social security law (1) For any provision of the social security law covered by subsection (2), the Minister may, by legislative instrument, determine: (a) that the provision is varied as specified in the determination; or (b) that the provision does not apply; or (c) that the provision does not apply and that another provision specified in the determination applies instead.

Note: Section 1263 deals with the period the determination is in force.
Provisions able to be modified (2) For the purposes of subsection (1), the provisions are the following: (a) subsection 23(4A) or (4AA); (b) paragraph 500(1)(d) and subsections 500(3) and (4); (c) section 500WA; (d) section 500WB; (e) section 500X; (f) section 500Y; (g) section 500Z; (h) subsection 540BA(4); 668 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Modification of social security law Chapter 6 Clause 1262 (i) section 549CA; (j) section 549CB; (k) section 549D; (l) section 549E; (m) section 553C; (n) section 575D; (o) section 575E; (p) section 575EA; (q) Part 2.12, in relation to working out whether a person is a member of a couple; (r) subsection 593(8); (s) section 620; (t) section 621; (u) section 623A; (v) section 623B; (w) section 633; (x) subsection 654(3); (y) section 739A; (z) section 745M; (za) section 1046; (zb) Module H of the Youth Allowance Rate Calculator in section 1067G, in relation to working out the rate of youth allowance where neither section 540AA (about new apprentices) nor paragraph 541(1)(a) (about full-time study) applies; (zc) Part 3.6, in relation to working out whether a person is a member of a couple for the purposes of working out the rate of jobseeker payment; (zd) Module G of Benefit Rate Calculator B in section 1068, in relation to working out the rate of jobseeker payment; (ze) section 1216; (zf) Division 3 of Part 4.2; (zg) clause 128 of Schedule 1A.
Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 669 Chapter 6 Modification of social security law Clause 1263 Determination to be in response to COVID-19 (3) The Minister must be satisfied that a determination under subsection (1) is in response to circumstances relating to the coronavirus known as COVID-19.
Application of determination (4) A determination under subsection (1) must be expressed to: (a) apply to all persons; or (b) apply to a specified class or specified classes of persons.

Determination may provide for things to have been done before commencement (5) A determination under subsection (1) may provide that a person is taken to have done a specified thing on a day before the determination commences.
Determination has effect accordingly (6) A determination under subsection (1) has effect accordingly.

Definitions (7) In this section: Minister means the Minister administering the Social Security (International Agreements) Act 1999.

1263 Period that determination is in force and variation and revocation (1) Subject to subsection (5), a determination under subsection 1262(1) is in force for the period specified in the determination.
That period must not end after: (a) 31 March 2021, unless paragraph (b) applies; or (b) if the determination modifies a provision covered by paragraph 1262(2)(a)—16 April 2021.

670 Social Security Act 1991 Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Modification of social security law Chapter 6 Clause 1263 (2) The period specified in a determination under subsection 1262(1) may be a period that starts before the day the determination is made.
Variation of determination (3) The Minister may, by legislative instrument, vary a determination under subsection 1262(1).

(4) A variation may be expressed to commence on a day before the day the variation is made.

Revocation of determination (5) The Minister may, by legislative instrument, revoke a determination under subsection 1262(1).

(6) A revocation takes effect on the day specified in the instrument of revocation, which must not be earlier than the day that instrument is made.
Definitions (7) In this section: Minister means the Minister administering the Social Security (International Agreements) Act 1999.

Compilation No.
Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 671 Schedule 1A Savings and transitional provisions Part 1 General Clause 1 Schedule 1A—Savings and transitional provisions Part 1—General 1 Correspondence of pensions, benefits and allowances (1) Subject to paragraph (2)(k), for the purposes of this Schedule, a pension, benefit or allowance under this Act and a pension, benefit or allowance under the 1947 Act that have the same name correspond to each other.
(2) For the purposes of this Schedule: (a) a wife’s pension under the 1947 Act and a wife pension under this Act correspond to each other; and (b) a carer’s pension under the 1947 Act and a carer pension under this Act correspond to each other; and (c) a sole parent’s pension under the 1947 Act and a sole parent pension under this Act correspond to each other; and (e) a class B widow’s pension under the 1947 Act and a widow B pension under this Act correspond to each other; and (f) an age pension under the 1947 Act payable because of section 26 of that Act and a special needs age pension under this Act correspond to each other; and (g) an invalid pension under the 1947 Act payable because of section 29 of that Act and a special needs invalid pension under this Act correspond to each other; and (h) a wife’s pension under the 1947 Act payable because of subsection 37(2) of that Act and a special needs wife pension under this Act correspond to each other; and (i) a sole parent’s pension under the 1947 Act payable because of subsection 46(1) of that Act and a special needs sole parent pension under this Act correspond to each other; and (j) a class B widow’s pension under the 1947 Act payable because of subclause 4(1) of Schedule 1B to that Act and a 672 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A General Part 1 Clause 2 special needs widow B pension under this Act correspond to each other; and (k) a job search allowance under the 1947 Act and a job search allowance under this Act in respect of a person who has not turned 18 correspond to each other; and (l) an unemployment benefit under the 1947 Act in respect of a person who has not been in receipt of an old benefit or old benefits for longer than 12 months and a job search allowance under this Act correspond to each other; and (m) an unemployment benefit under the 1947 Act in respect of a person who has been in receipt of an old benefit or old benefits for longer than 12 months and a newstart allowance under this Act correspond to each other; and (n) a widowed person allowance under the 1947 Act and a bereavement allowance under this Act correspond to each other.
(3) In paragraphs (2)(l) and (m): old benefit, in relation to a person, means: (a) an unemployment benefit under the 1947 Act; or (b) a job search allowance under the 1947 Act; or (c) in the case of a person who, but for the abolition of the allowance formerly paid by the Department of Employment, Education and Training and known as the Formal Training Allowance, would have paid that allowance on 1 July 1991— that allowance.
2 Correspondence of provisions (1) If one provision of the 1947 Act and one provision of this Act have the same legal effect, the 2 provisions correspond to each other.

(2) If: (a) one provision of the 1947 Act has a particular legal effect in relation to a number of payment types; and Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 673 Schedule 1A Savings and transitional provisions Part 1 General Clause 2A (b) a provision of this Act has that legal effect in relation to only one of those payment types; the provisions correspond to each other for the purposes of applying this Schedule to that payment type.

(3) In this clause: legal effect includes conferring the power to issue an instrument.

payment type means a pension, benefit or allowance.
2A References in other Acts and instruments to provisions of the 1947 Act A reference in: (a) a provision of a law of the Commonwealth or a Territory enacted before 1 July 1991 (whether or not the provision has come into operation); or (b) an instrument or document; to a provision of the 1947 Act is to be construed as a reference to the corresponding provision of the 1991 Act.

674 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Savings and Transitional Provisions Applicable on the Transition from the 1947 Act to this Act Part 2 Continuation of earlier savings provisions Division 4 Clause 28 Part 2—Savings and Transitional Provisions Applicable on the Transition from the 1947 Act to this Act Division 4—Continuation of earlier savings provisions 28 Rent assistance—retirement village residents (changes introduced on 13 June 1989) (1) If: (a) immediately before 3 November 1988: (i) a person was receiving a social security pension, social security benefit or family allowance supplement; and (ii) the person’s pension, benefit or allowance rate included an amount by way of rent assistance under the 1947 Act; and (b) at all times since 3 November 1988: (i) the person has been entitled to a social security pension, social security benefit or family allowance supplement; and (ii) the person’s principal home has been in a retirement village; the person is to be taken not to be an ineligible homeowner or excluded homeowner for the purposes of this Act.
(2) If: (a) immediately after 13 June 1989: (i) a person was receiving a service pension; and (ii) the person’s pension rate included an amount by way of rent assistance because of the operation of subsection 31(1) of the Social Security and Veterans’ Affairs Legislation Amendment Act 1988; and (b) after 13 June 1989, the person began to receive a social security pension, social security benefit or family allowance supplement under the 1947 Act or this Act; and Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 675 Schedule 1A Savings and transitional provisions Part 2 Savings and Transitional Provisions Applicable on the Transition from the 1947 Act to this Act Division 4 Continuation of earlier savings provisions Clause 28 (c) subsection 31(1) of the Social Security and Veterans’ Affairs Legislation Amendment Act 1988 applied to the person at all times between 13 June 1989 and the person’s commencing to receive the social security pension, social security benefit or family allowance supplement or would have applied to the person at all those times if the subsection had not been repealed; and (d) at all times since the person commenced to receive the social security pension, social security benefit or family allowance supplement: (i) the person has continued to receive a social security pension, social security benefit or family allowance supplement; and (ii) the person’s principal home has continued to be in the retirement village; the person is to be taken not to be an ineligible homeowner or excluded homeowner for the purposes of this Act.
(3) If subclause (1) or (2) ceases to apply to the person, that subclause does not apply to the person again.
(4) If a person is entitled to rent assistance because of subclause (1) or (2), any amount that would (apart from this subclause) be payable to the person by way of rent assistance is to be reduced by the sum of the increases in the amount of the maximum fortnightly rate of any of the following payments to the person after 19 March 1996 (whether or not the type or amount of payment payable to the person varies after that day because the person’s circumstances change): (a) a social security benefit; (b) a social security pension; (c) family payment under this Act as previously in force; (ca) family allowance; (d) non-benefit parenting allowance; (e) child disability allowance; (ea) carer allowance; (f) double orphan pension; 676 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Savings and Transitional Provisions Applicable on the Transition from the 1947 Act to this Act Part 2 Continuation of earlier savings provisions Division 4 Clause 28 (g) mobility allowance; (h) youth training allowance.
(5) Subclause (4) does not apply if: (a) the person is entitled to rent assistance because of subclause (1) or (2); and (b) the amount of rent assistance payable is worked out under clause 63.

(6) This clause ceases to apply (and cannot re-apply later) to a person if, as a result of the reduction required by subclause (4), no amount would be payable to the person by way of rent assistance.

Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 677 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 36 Part 3—Saving and Transitional Provisions Applicable after the Commencement of this Act 36 Incentive allowance (changes introduced on 12 November 1991) (1) If: (a) a person is qualified for incentive allowance immediately before 12 November 1991; and (b) the person is receiving disability support pension on 12 November 1991 because of a determination referred to in clause 33; the following provisions as in force immediately before 12 November 1991 continue to apply to the person: (c) points 1064-J1 to 1064-J3 (Pension Rate Calculator A); and (d) points 1065-F1 to 1065-F3 (Pension Rate Calculator B).
(2) If: (a) a person was receiving incentive allowance immediately before 12 November 1991; and (b) on or after 12 November 1991 the person ceases to be qualified for incentive allowance because the person undertakes vocational training or a rehabilitation program or obtains work; and (c) within 2 years after so ceasing to be qualified, the person undertakes an activity that would have qualified him or her for incentive allowance had it been undertaken immediately before 12 November 1991; the following provisions as in force immediately before 12 November 1991 apply to the person: (d) points 1064-J1 to 1064-J3 (Pension Rate Calculator A); and (e) points 1065-F1 to 1065-F3 (Pension Rate Calculator B).
(3) If a person’s rate of disability support pension includes an amount for incentive allowance because of subclause (1) or (2) the person’s 678 Social Security Act 1991 Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 63 rate of disability support pension cannot include an amount for rent assistance.
(4) A person whose rate of disability support pension includes an amount for incentive allowance because of subclause (1) or (2) may elect, by written notice to the Secretary, to have the amount for incentive allowance excluded from the person’s rate.
(4A) If: (a) a person is a member of a couple; and (b) the person’s partner is living with the person in their home; and (c) the person’s partner’s rate of disability support pension includes an amount for incentive allowance because of subclause (1) or (2); the person’s rate of disability support pension cannot include an amount for rent assistance.
(5) If a person referred to in subclause (1) ceases to be qualified for incentive allowance on or after 12 November 1991, subclause (1) ceases to apply to the person and cannot apply to the person again.
63 Rent assistance (changes introduced on 20 March 1993) (1) This clause applies to a person if: (a) immediately before 20 March 1993: (i) the person was receiving a social security pension, a social security benefit or additional family payment; and (ii) the person’s pension, benefit or payment rate included an amount by way of rent assistance; and (b) this subclause has continued to apply to the person.
(2) If: (a) a decision is made on or after 20 March 1993 that a person is entitled to rent assistance in respect of a period; and (b) the period starts before 20 March 1993; and Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 679 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 63 (c) the period continued until at least 19 March 1993; the person is taken, for the purposes of this clause, to have been receiving rent assistance under this Act immediately before 20 March 1993.
(3) This clause applies to a person if: (a) immediately before 20 March 1993, the person was receiving rent assistance under or because of the Veterans’ Entitlements Act; and (b) after that date, the person becomes entitled to be paid a social security pension, a social security benefit or additional family payment; and (c) this subclause has continued to apply to the person.
(3A) Subject to subclauses (7), (8) and (9), if this clause applies to a person, the amount by way of rent assistance to be used to calculate the person’s pension, benefit or payment rate is the amount (the floor amount) worked out using the formula: preserved rent assistance – post-1995 increase where: preserved rent assistance is the amount worked out under subclause (4).
post-1995 increase is the sum of the increases in the amount of the maximum fortnightly rate of any of the following payments to the person after 19 March 1996 or the later day (the application day) this clause first applied to the person (whether or not the type or amount of payment payable to the person varies after 19 March 1996 or the application day because the person’s circumstances change): (a) a social security benefit; (b) a social security pension; (c) family payment under this Act as previously in force; (ca) family allowance; (d) non-benefit parenting allowance; (e) child disability allowance; 680 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 63 (ea) carer allowance; (f) double orphan pension; (g) mobility allowance; (h) youth training allowance.
(4) For the purposes of subclause (3A), the preserved rent assistance is the amount by way of rent assistance that would be included in the person’s pension, benefit or payment rate if: (a) the person’s pension, benefit or payment rate were neither income reduced nor assets reduced; and (b) the amount by way of rent assistance were calculated under this Act as in force immediately before 20 March 1993.
(5) Subject to subclause (6), subclause (1) or (3) ceases to apply to a person if: (a) the person ceases to receive a social security pension, social security benefit or additional family payment; or (b) the person ceases to be qualified for rent assistance; or (c) the Secretary considers that there is a significant change in the person’s circumstances that would affect the amount of rent assistance that is payable to the person apart from this clause; or (d) the amount of rent assistance that would be payable to the person if this clause applied is less than (or equal to) the amount of rent assistance that would otherwise be payable.
(6) If: (a) subclause (1) or (3) ceases to apply to a person; and (b) within 42 days, or such longer period as the Secretary determines, of that subclause ceasing to apply to the person, there is a change in the person’s circumstances; and (c) the Secretary considers that the change in the person’s circumstances is so significant that subclause (1) or (3) should apply to the person; the Secretary may determine that subclause (1) or (3) is to apply to the person from a specified date.

Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 681 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 63 (7) If: (a) subclause (1) or (3) applies to a person; and (b) the person becomes a member of a couple; and (c) the person’s partner is a person to whom subclause (1) or (3) applies; the amount by way of rent assistance to be used to calculate the person’s pension, benefit or payment rate and the amount by way of rent assistance to be used to calculate the person’s partner’s pension, benefit or payment rate is not to fall below one-half of the person’s floor amount or one-half of the person’s partner’s floor amount, whichever is the greater.
(8) If: (a) subclause (1) or (3) applies to a person; and (b) the person becomes a member of a couple; and (c) the person’s partner is a person to whom section 111 of the Veterans’ Affairs Legislation Amendment Act (No.
2) 1992 applies or would apply if it had not been repealed; the amount by way of rent assistance to be used to calculate the person’s pension, benefit or payment rate is not to fall below one-half of the person’s floor amount or one-half of the person’s partner’s floor amount, whichever is the greater.
(9) If: (a) subclause (1) or (3) applies to a person; and (b) the person becomes a member of a couple; and (c) the person’s partner is not a person to whom subclause (1) or (3) applies; and (d) the person’s partner is not a person to whom section 111 of the Veterans’ Affairs Legislation Amendment Act (No.
2) 1992 applies or would apply if it had not been repealed; and (e) the person’s partner is a person who is receiving a pension, benefit or additional family payment or a pension under Part III of the Veterans’ Entitlements Act 1986; the amount by way of rent assistance to be used to calculate the person’s pension, benefit or additional family payment rate and the 682 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 74 amount by way of rent assistance to be used to calculate the rate of the person’s partner’s pension, benefit or additional family payment is not to fall below the person’s floor amount.
(10) If: (a) a person is receiving a social security pension or a social security benefit; and (b) neither subclause (1) nor (3) applies to the person; and (c) the person has become or becomes a member of a couple; and (d) the person’s partner is receiving a pension under the Veterans’ Entitlements Act 1986 and is a person to whom clause 5 of Schedule 5 to that Act applies; the amount by way of rent assistance to be used to calculate the rate of the person’s social security pension or social security benefit is not to fall below one-half of the amount that would be the person’s partner’s floor amount if subclause (1) or (3) applied to the partner.
74 Partner allowance for persons born on or before 1 July 1955 (changes made on 1 July 1995) (1) If: (a) a person was receiving partner allowance immediately before 1 July 1995; and (b) the person was born on or before 1 July 1955; the person need not satisfy paragraph 771HA(1)(h) in order to be qualified for partner allowance.

(2) If partner allowance ceases to be payable to a person referred to in subclause (1): (a) that subclause ceases to apply to the person; and (b) cannot apply to the person again.
Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 683 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 86 86 Transitional and saving provisions applicable to the amendments relating to the pension loans scheme (1) If: (a) a person has made a request to participate in the previous pension loans scheme; and (b) Schedule 7 to the Amending Act commences before the first pension payday after the lodging of the request; for the purposes of this clause, the person is to be treated as a person who is participating in the previous pension loans scheme.
(2) Subject to subclause (3), in relation to a person who is participating in the previous pension loans scheme, subsection 11(1), paragraph 23(11)(b), subsection 1118(1) and Division 4 of Part 3.12 of this Act, as in force immediately before the commencement of Schedule 7 to the Amending Act, continue to have effect as if the Amending Act had not been enacted.
(3) If a person who is participating in the previous pension loans scheme: (a) is qualified to participate in the current pension loans scheme; and (b) makes a request to participate in the current scheme; and the Secretary is satisfied that the amount of any debt that would become payable by the person to the Commonwealth under the current scheme would be readily recoverable, the current scheme applies to the person on and after the first pension payday after the request is lodged.
(4) The debt owed by a person who was participating in the previous pension loans scheme and who is participating in the current pension loans scheme by operation of subclause (3) is, for the purposes of working out the debt owed by the person under the current scheme, to be added to the basic amount of debt accrued under the current scheme.

684 Social Security Act 1991 Compilation No.


188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 (5) In this clause: Clause 88 Amending Act means the Social Security and Veterans’ Affairs Legislation Amendment Act 1995. current pension loans scheme means the pension loans scheme in operation under the provisions of this Act, as amended by the Amending Act.
previous pension loans scheme means the pension loans scheme in operation under the provisions of this Act, as in force immediately before the commencement of Schedule 7 to the Amending Act.
88 Saving: Determinations under repealed sections 1099E and 1099L A determination in force under section 1099E or 1099L immediately before the commencement of this clause continues to have effect after that commencement as if: (a) section 1084 of this Act, as in force immediately after the commencement of this clause, had been in force when the determination was made; and (b) the determination had been made under that section as so in force; and (c) any reference in the determination to section 1099B, 1099J or 1099K were a reference to sections 1076 to 1078 of this Act.
96A Application of revised Schedule 1B (1) Subject to subclause (2), this Act, as amended by items 1, 2 and 4 of Schedule 16 of the amending Act, applies to claims lodged on or after the date of commencement of those items.
(2) Despite section 8 of the Acts Interpretation Act 1901, the amendments made by items 1, 2 and 4 of Schedule 16 to the amending Act, apply in relation to: (a) all medical, psychiatric or psychological examinations attended, or reports required, under subsection 105(1) on or after the date of commencement of those items; and Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 685 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 103 (b) all legal proceedings, applications for review of decisions, or determinations, to the extent that the proceedings, applications or determinations relate to, or involve, a medical, psychiatric or psychological examination referred to in paragraph (a).
(3) In this clause: amending Act means the Social Security and Veterans’ Affairs Legislation Amendment (Family and Other Measures) Act 1997.

103 Application provision: income maintenance periods (1) This Act, as amended by Part 1 of Schedule 7 to the amending Act, applies in relation to leave payments that are received on or after 20 September 1997.
(2) For the purposes of this section, a person (the first person) is taken to receive a leave payment if the payment is made to another person: (a) at the direction of the first person or a court; or (b) on behalf of the first person; or (c) for the benefit of the first person; or the first person waives or assigns the first person’s right to receive the payment.
(3) In this section: amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996. leave payment includes payments in respect of sick leave, annual leave, maternity leave, and long service leave.

686 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 105 Application and saving provisions: debts due to the Commonwealth and their recovery Clause 105 (1) For the avoidance of doubt, and without affecting the operation of section 8 of the Acts Interpretation Act 1901, Part 2 of Schedule 18 to the amending Act does not: (a) affect the operation of Part 5.2 or 5.3 of this Act before 1 October 1997; or (b) extinguish the amount of any debt due to the Commonwealth arising before 1 October 1997 that was outstanding at the start of that day; or (c) prevent the recovery, on or after 1 October 1997, of any such outstanding amount.
(2) Sections 1230C and 1236 of this Act, as amended by the amending Act, apply in relation to: (a) debts arising on or after 1 October 1997; and (b) the amounts of debts arising before that day that were outstanding at the start of that day.

(3) Section 1237A of this Act, as amended by the amending Act, applies in relation to debts arising before, on or after 1 October 1997.
(4) Despite section 8 of the Acts Interpretation Act 1901, if a legal proceeding or an application for review of a decision: (a) relates to, or otherwise involves, a provision of Part 5.2, 5.3 or 5.4 of this Act; and (b) is not finally determined before 1 October 1997; the proceeding or application must, if continued, be determined as if it had been instituted on that day, and this Act, as amended by Schedule 18 to the amending Act, applies to the proceeding or application accordingly.
(5) In this clause: amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 687 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 105A 105A Parenting payment (changes introduced 20 March 1998) Continuing effect of determinations etc.
in force or effective before 20 March 1998 (1) If a determination, notice, statement or other instrument relating to sole parent pension or to parenting allowance was in force or had effect immediately before 20 March 1998, it continues in force on and after that date as if it had been made or given under this Act in relation to parenting payment.
Pending claims for sole parent pension or parenting allowance (2) If: (a) a person lodged a claim for sole parent pension or parenting allowance under this Act before 20 March 1998; and (b) the claim was not determined before that date; the claim has effect on and after that date as if it were a claim for parenting payment.
Claims made on or after 20 March 1998 in respect of periods before 20 March 1998—sole parent pension and parenting allowance (3) If: (a) a person lodges a claim for sole parent pension or parenting allowance on or after 20 March 1998; and (b) the claim is made in respect of a period commencing before 20 March 1998; the claim has effect as if it had been made immediately before 20 March 1998.
Claims made on or after 20 March 1998 in respect of periods before 20 March 1998—parenting payment (4) If: (a) a person lodges a claim for parenting payment on or after 20 March 1998; and 688 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 (b) the claim is made in respect of a period commencing before Clause 105A 20 March 1998; the claim has effect: (c) as if it had been made immediately before 20 March 1998; and (d) in the case of a person who was not a member of a couple at the beginning of the period in respect of which the claim is made—as if it were a claim for sole parent pension; and (e) in the case of a person who was a member of a couple at the beginning of the period in respect of which the claim is made—as if it were a claim for parenting allowance.
Sole parent pension bereavement payment in respect of death of child (5) If, immediately before 20 March 1998: (a) a person was qualified for a payment under Subdivision A of Division 9 of Part 2.6; and (b) the period for which the person was qualified had not yet ended; then: (c) the person remains qualified for that payment on and after 20 March 1998 as if Parts 2.6 and 3.4 as in force immediately before that date were still in force; and (d) subclause (1) (dealing with continuing effect of determinations) does not apply to the person.
Sole parent pension bereavement payment in respect of death of pensioner partner (6) If, immediately before 20 March 1998: (a) a person was qualified for a payment under Subdivision B of Division 9 of Part 2.6; and (b) the period for which the person was qualified had not yet ended; then: Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 689 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 105A (c) the person remains qualified for that payment on and after 20 March 1998 as if Parts 2.6 and 3.2 as in force immediately before that date were still in force; and (d) subclause (1) (dealing with continuing effect of determinations) does not apply to the person; and (e) on the day after the end of the period referred to in paragraph (b), the person is taken to have made a claim for parenting payment.
Parenting allowance bereavement payment in respect of death of child (7) If, immediately before 20 March 1998: (a) a person was qualified for a payment under Subdivision B of Division 10 of Part 2.18; and (b) the period for which the person was qualified had not yet ended; then: (c) the person remains qualified for that payment on and after 20 March 1998 as if Parts 2.18 and 3.6A as in force immediately before that date were still in force; and (d) subclause (1) (dealing with continuing effect of determinations) does not apply to the person.
Parenting allowance bereavement payment in respect of death of partner (8) If, immediately before 20 March 1998: (a) a person was qualified for a payment under Subdivision D or E of Division 10 of Part 2.18; and (b) the period for which the person was qualified had not yet ended; then: (c) the person remains qualified for that payment on and after 20 March 1998 as if Parts 2.18 and 3.6A as in force immediately before that date were still in force; and 690 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 105A (d) subclause (1) (dealing with the continuing effect of determinations) does not apply to the person; and (e) on the day after the end of the period referred to in paragraph (b), the person is taken to have made a claim for parenting payment.
Pending application for advance payment of sole parent pension (9) If: (a) a person lodged an application for an advance payment of sole parent pension under Part 2.22 before 20 March 1998; and (b) the application was not determined before that date; the application is taken, on and after that date, to be an application for an advance payment of pension PP (single).
Saving of certain SPP children (10) If: (a) sole parent pension was payable to a person who was not in Australia immediately before 20 March 1998 in relation to an SPP child; and (b) parenting payment would, but for the operation of section 500F, 500G or 500H, be payable to the person on that date in relation to that child; those sections do not apply to the person in relation to that child until one of the following events occurs: (c) the child ceases to be a PP child of the person because of the operation of a provision other than section 500F, 500G or 500H; (d) parenting payment ceases to be payable to the person; (e) the person becomes a member of a couple; (f) if the person was not an Australian resident on 20 March 1998—the person becomes an Australian resident; (g) if the person was an Australian resident on 20 March 1998— the person returns to Australia.
Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 691 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 105A Application: income maintenance period rules (11) The following provisions (dealing with income maintenance periods in relation to continuing employment) as in force on 20 March 1998 apply to a person in respect of a leave period commencing on or after 20 March 1998: (a) point 1067-H5G; (b) point 1067E-G6G; (c) point 1068-G7AG.
(12) Subject to subclause (13), point 1068A-E4 (dealing with income maintenance periods in relation to terminated employment) as in force on 20 March 1998 applies to a person in respect of any leave payment received by the person on or after 20 March 1998.
(13) If: (a) a determination applying an income maintenance period in relation to a person’s claim for, or payment of, parenting allowance, a social security benefit or youth training allowance was in force on or after 20 September 1997; and (b) pension PP (single) is payable to the person on or after 20 March 1998; point 1068A-E4 applies to the person in respect of any leave payment received by the person on or after 20 September 1997.
Saving of certain recipients of sole parent pension and parenting allowance (14) If: (a) sole parent pension or parenting allowance was payable to a person immediately before 20 March 1998; and (b) on 20 March 1998 the person would not, apart from this subclause, qualify for parenting payment because the person does not satisfy the requirements of paragraph 500(1)(d); the person is taken, on and after 20 March 1998, to satisfy the requirements of paragraph 500(1)(d) until: (c) parenting payment ceases to be payable to the person; or 692 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 105A (d) the person satisfies the requirements of paragraph 500(1)(d) otherwise than by reason of this subclause.
Saving of certain other recipients of sole parent pension (15) If: (a) sole parent pension was payable to a person who was not in Australia immediately before 20 March 1998; and (b) on or after 20 March 1998, the person would not, apart from this subclause, qualify for parenting payment because the person does not satisfy the requirements of either or both of paragraphs 500(1)(b) and (c); the person is taken, on and after 20 March 1998, to satisfy the requirements of both those paragraphs until: (c) parenting payment ceases to be payable to the person; or (d) the person becomes a member of a couple; or (e) if the person was not an Australian resident on 20 March 1998—the person becomes an Australian resident; or (f) if the person was an Australian resident on 20 March 1998— the person returns to Australia.
(16) In relation to a person who is receiving parenting payment because of the application of subclause (15) and Part 4.2 of this Act, as in force immediately before 20 March 1998, apply to the person on and after 20 March 1998.

These provisions apply to the person as if references to sole parent pension were references to pension PP (single).
Saving of persons receiving sole parent pension under scheduled international social security agreement (17) If: (a) a sole parent pension was payable to a person immediately before 20 March 1998 under a scheduled international social security agreement; and (b) the person is not a member of a couple; and Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 693 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 115 (c) on 20 March 1998, the person would qualify for parenting payment but for the operation of any of the following: (i) paragraph 500(1)(b) or (c); (ii) subparagraph 500(1)(d)(ii) to the extent it requires a person to have been in Australia for the period specified in that subparagraph; (iii) section 500F, 500G or 500H; then, on and after 20 March 1998: (d) the provisions referred to in paragraph (c) do not apply to the person; and (e) if parenting payment is payable to the person, it is taken to be payable to the person under the scheduled international social security agreement.
(18) Subclause (17) applies to a person until: (a) parenting payment ceases to be payable to the person; or (b) the person satisfies the provisions referred to in paragraph (17)(c).
115 Persons under 21 receiving newstart allowance or sickness allowance on 17 June 1997 (1) If: (a) a person was, on 17 June 1997, under 21 years of age and a recipient of newstart allowance or sickness allowance; and (b) the person did not cease to be, and was immediately before 1 July 1998, a recipient of newstart allowance or sickness allowance; and (c) the person was, immediately before 1 July 1998, under 21 years of age; then: (e) the person is to continue to receive the newstart allowance or sickness allowance on and after that day; and (f) subject to subclauses (2) and (3), Part 2.12 or 2.14 (as the case may be) as in force immediately before that day continues to apply to the person.
694 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 126 (2) If, on or after 1 July 1998, the Secretary cancels or suspends: (a) a person’s newstart allowance under section 660I or 660IA; or (b) a person’s sickness allowance under section 728L or 728M; a determination by the Secretary under section 660J or 728P (as the case may be) that the allowance is payable to the person does not have effect unless the determination is made within 6 weeks after the Secretary’s decision to cancel or suspend the allowance.
(3) Newstart allowance or sickness allowance ceases to be payable to a person who has been receiving it because of subclause (1) if the person makes a claim for youth allowance and the claim is granted.

126 Application and transitional provisions relating to fares allowance (1) Part 2.26 applies only in respect of claims for fares allowance made after the commencement of that Part for journeys made after that commencement.
(2) The Social Security (Fares Allowance) Rules 1998 made under section 1061ZAAA as in force immediately before the commencement of Part 2.26 continue in force as if that section were still in force but apply only in respect of claims made, whether before or after that commencement, for journeys made before that commencement.
(3) If: (a) a person has, before the commencement of Part 2.26, made a journey in a study year; and (b) the person is eligible, under the Rules referred to in subclause (2), as they continue in force under that subclause (the continuing Rules) for fares allowance in respect of the journey; and (c) the person makes a claim under Part 2.26 for fares allowance in respect of a journey made, or to be made, after the commencement of that Part in the same study year; Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 695 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 128 the claim is not to be determined until the person has made a claim under the continuing Rules in respect of the journey referred to in paragraph (a) and the claim has been finally dealt with in accordance with those Rules.
128 Saving provision—portability rules relating to rates of pension (1) Despite the amendments of sections 1213A, 1215, 1216, 1220A, 1220B and 1221 of this Act made by the Social Security and Veterans’ Entitlements Legislation Amendment (Miscellaneous Matters) Act 2000, if: (a) a person was absent from Australia immediately before 20 September 2000; and (b) at a time (the post-start time) after 20 September 2000, the person had not returned to Australia for a continuous period of 26 weeks or more since 20 September 2000; those provisions continue to apply to the person at the post-start time as if those amendments had not been made.
(2) However, the following provisions (as in force as if the amendments described in subclause (1) had not been made) do not continue to apply to the person at or after the first time the person is in Australia after the commencement of Schedule 6 to the Family and Community Services and Veterans’ Affairs Legislation Amendment (2003 Budget and Other Measures) Act 2003: (a) section 1213A; (b) section 1215; (c) section 1216; (d) section 1220B, so far as it relates to a pension other than age pension or bereavement allowance.
Note: If those provisions (as in force as if the amendments described in subclause (1) had not been made) do not continue to apply to the person at a particular time, the person is covered at that time by this Act as in force at that time.

(3) To avoid doubt, Schedule 6 to the Family and Community Services and Veterans’ Affairs Legislation Amendment (2003 Budget and Other Measures) Act 2003 does not affect section 1220B (as in 696 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 128A force as if the amendments described in subclause (1) had not been made) so far as that section continues to apply because of that subclause.
(4) If: (a) the 26 weeks mentioned in paragraph (1)(b) ends on or after 11 March 2020; and (b) the Secretary is satisfied that the person’s return to Australia is temporary; and (c) the Secretary is satisfied that the person is unable to leave Australia before the end of that 26-week period because of the impact of the coronavirus known as COVID-19; the Secretary may, in relation to the person, determine that a reference to 26 weeks in paragraph (1)(b) is taken to be a reference to another number of weeks.
However, the Secretary must ensure that the determination does not result in a period referred to in that paragraph that ends after 30 June 2021.

(5) Despite Subdivision B of Division 9 of Part 3 of the Administration Act, a favourable determination (within the meaning of section 108 of that Act) that is made as a result of a determination referred to in subclause (4) of this clause may be expressed to take effect on a day earlier than otherwise permitted by that Subdivision.
128A Saving of certain pensions payable under 1986 Agreement between Australia and Italy (1) In this clause: 1986 Agreement means the agreement made between the Government of Australia and the Government of the Republic of Italy on 23 April 1986.

(2) This subclause applies to a person if: (a) the person has become qualified to receive a disability support pension because of the 1986 Agreement; and Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 697 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 128A (b) the person became qualified to receive the pension because he or she became unable to work or became permanently blind, as the case may be, while he or she was in Australia or was temporarily absent from Australia.
(3) Subject to subclause (4), this subclause applies to a person if: (a) on 8 May 1985, the person was either: (i) an Australian resident; or (ii) an absent resident within the meaning of the 1986 Agreement; and (b) the person left Australia before 1 January 1996; and (c) while absent from Australia, the person became eligible to receive a social security payment by virtue of the 1986 Agreement; and (d) the person commenced to receive that social security payment before 1 January 1996; and (e) immediately before 1 October 2000, the rate at which that social security payment was payable was worked out under subparagraph 1(b) of Article 8 of the 1986 Agreement; and (f) the person has not returned to Australia on or after 1 October 2000 for a continuous period of 26 weeks.
(4) Subclause (3) ceases to apply to a person if the rate at which the social security payment would be payable to the person apart from this clause exceeds the rate at which the social security payment is payable to the person as a person to whom subclause (3) applies.
(5) In spite of any other provision of the social security law relating to the rate at which a disability support pension is payable, the rate at which such a pension is payable to a person to whom subclause (2) applies is the rate at which the pension would be payable to the person if: (a) the person were an Australian resident; and (b) the person were not entitled to have included in the rate of the pension: (i) any amount representing: (A) pharmaceutical allowance; or 698 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 130 (B) remote area allowance; or (C) rent assistance; or (ii) any amount similar to the amounts referred to in subparagraph (i).
(6) In spite of any other provision of the social security law relating to the rate at which a social security payment is payable, the rate at which such a payment is payable to a person to whom subclause (3) applies is the rate worked out according to subparagraph 1(b) of Article 8 of the 1986 Agreement.
130 Saving provision—other portability rules Despite the amendments of this Act made by Part 1 of Schedule 1 to the Social Security and Veterans’ Entitlements Legislation Amendment (Miscellaneous Matters) Act 2000, other than: (a) the amendments mentioned in clause 128 of this Schedule; and (b) the amendments of sections 1216B, 1218, 1218A, 1218B, 1218C and 1219; and (c) the amendment of Module A of the Rate Calculator at the end of section 1221; if: (d) a person was absent from Australia immediately before 20 September 2000; and (e) at a time (the post-start time) after 20 September 2000, the person had not returned to Australia since 20 September 2000; this Act continues to apply to the person at the post-start time as if the amendments (other than those mentioned in paragraphs (a) to (c)) had not been made.
131 Certain payments not recoverable An amount paid to a person under this Act is not recoverable from the person if: Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 699 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 132 (a) the amount was not payable because the person, or the person’s partner, had received a comparable foreign payment; and (b) during the period beginning on 20 September 2000 and ending on 19 January 2001, the person gave notice to the Secretary of any comparable foreign payment which he or she had received or was receiving; and (c) the amount was paid before the person gave notice as mentioned in paragraph (b); and (d) before receiving that notice, the Secretary was unaware that the person, or the person’s partner, had received or was receiving the comparable foreign payment.
132 Saving—ABSTUDY recipients (1) If, immediately before 1 January 2001, a person was receiving: (a) a relevant pension; and (b) a payment under a provision of the ABSTUDY Scheme made on the basis that the person was a full-time student; this clause applies to the person.
(2) In spite of the amendments of this Act made by Schedule 1 to the Family and Community Services (2000 Budget and Related Measures) Act 2000: (a) the person does not cease to be qualified for the relevant pension by reason only of those amendments; and (b) if the person continues, on and after 1 January 2001, to receive the same payment under the ABSTUDY Scheme, that payment (except where it is a payment of a pensioner education supplement) is to be taken, for the purposes of this Act, to be income paid to, or on behalf of, the person.
(3) In this clause: relevant pension means: (a) age pension; or (b) bereavement allowance; or 700 Social Security Act 1991 Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 133 (c) carer payment; or (d) disability support pension; or (e) pension PP (single); or (f) widow B pension; or (g) wife pension.
133 Meaning of Australian resident For the purposes of determining whether a person was an Australian resident at a time, or throughout a period, occurring before the commencement of item 2 of Schedule 1 to the Family and Community Services Legislation Amendment (New Zealand Citizens) Act 2001: (a) the definition of Australian resident at that time, or throughout that period, applies; and (b) that definition, as amended by the Family and Community Services Legislation Amendment (New Zealand Citizens) Act 2001, does not apply.
134 Transitional and saving provisions—substitution of Part 3.14 (1) In this clause: 2001 amending Act means the Family and Community Services Legislation (Simplification and Other Measures) Act 2001. new Act means this Act, as amended by the 2001 amending Act.

old Act means this Act, as in force immediately before 20 September 2001. old lump sum preclusion period has the same meaning as in the old Act.

(2) Part 3.14 of the new Act has effect subject to this clause.
(3) Subject to subclause (9), if: (a) before 20 September 2001, because of the operation of subsection 1165(1A) or (2AA) of the old Act, a social Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 701 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 134 security payment had ceased to be payable to a person for a period; and (b) if the provisions of the old Act had continued in force on and after 20 September 2001, the payment would not have become payable again until a time on or after that date; then, on and after 20 September 2001, the new Act has effect as if: (c) the new Act had been in operation when the social security payment ceased to be payable for the period; and (d) the social security payment had so ceased because of the operation of subsection 1169(1) of the new Act.
(4) Subject to subclause (9), if: (a) before 20 September 2001, because of the operation of a provision of the old Act specified in the table in subclause (8), the rate at which a social security payment was payable to a person was reduced for a period; and (b) if the provisions of the old Act had continued in force on and after 20 September 2001, the payment would have continued to be payable at the reduced rate until a time on or after that date; then, on and after 20 September 2001, the new Act has effect as if: (c) the new Act had been in operation when the social security payment became payable at the reduced rate; and (d) the social security payment had become so payable because of the operation of the corresponding provision of the new Act.
(5) If a notice to which this subclause applies was in effect immediately before 20 September 2001, the new Act has effect, on and after 20 September 2001, as if: (a) the new Act had been in operation when the notice was given; and (b) the notice had been given under the provision of the new Act that corresponds to the provision of the old Act under which the notice was given.

(6) Subclause (5) applies to the following notices: 702 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 134 (a) a notice under subsection 1166(1) of the old Act in relation to a recoverable amount calculated under subsection 1166(3), (4) or (4C) of that Act; (b) a notice under subsection 1170(1) of the old Act in relation to a recoverable amount calculated under subsection 1170(3) or (4) of that Act; (c) a notice under subsection 1172(1) of the old Act; (d) a notice under subsection 1174(1) of the old Act in relation to a recoverable amount calculated under subsection 1174(6) of that Act; (e) a notice under subsection 1177(1) of the old Act; (f) a notice under subsection 1179(1) of the old Act in relation to a recoverable amount calculated under subsection 1179(6) of that Act.
(7) If: (a) before 20 September 2001, a person applied, under section 129, 142 or 179 of the Administration Act, for review of a decision made as a result of the operation of a provision of the old Act specified in column 2 of an item in the table in subclause (8); and (b) the review was not determined before 20 September 2001; then, on and after 20 September 2001, the review is to be determined in accordance with this Act, as in force when the decision was made.
(8) The provision of the new Act that corresponds, for the purposes of this clause, to the provision of the old Act specified in column 2 of an item of the following table is the provision specified in column 3 of the item.

Corresponding provisions Column 1 Column 2 Column 3 Item Old Act provision Corresponding new Act provision 1 Subsection 1165(1A) Subsection 1169(1) Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 703 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 134 Corresponding provisions Column 1 Column 2 Column 3 Item Old Act provision Corresponding new Act provision Subsection 1165(2AA) Subsection 1169(1) Subsection 1166(1) Subsection 1178(1) Subsection 1173(1) Subsection 1168(1) (except to the extent that it operated in relation to a person’s social security payment where the person’s partner, but not the person, had received compensation) Subsection 1170(1) Subsection 1180(1) Subsection 1172(1) Subsection 1182(1) Subsection 1174(1) Subsection 1184(1) Subsection 1177(1) Subsection 1182(2) Subsection 1179(1) Subsection 1184(2) Section 1184 Section 1184K (9) On and after 20 September 2001: (a) the new Act has effect as if: (i) it included provisions in the same terms as subsection 17(1) of the old Act to the extent that it defines average weekly earnings and subsections 1165(1) and (2), 1166(4A), 1174(4) and (5), and 1179(4) and (5) of the old Act; and (ii) section 1169 of the new Act did not apply where the lump sum compensation payment was received before 20 March 1997; and (b) for the purposes of the operation of paragraph (a), old lump sum preclusion period is taken to have the same meaning in the new Act as in the old Act; and 704 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 (c) for the purposes of the operation of paragraph (a), the lump sum preclusion period, for the purposes of the new Act, is the period that corresponds to the old lump sum preclusion period.
Clause 134 (10) If: (a) a person received compensation before 1 January 1993; and (b) the person’s partner (the partner) claimed or received carer pension before that date because the partner was caring for the person; this Act, as it applied in relation to carer payment being received by the partner immediately before 20 September 2001, continues to apply in relation to carer payment received by the partner before, on or after 20 September 2001 because the partner was or is caring for the person.
(11) If: (a) before 20 September 2001, a person was given a notice under Subdivision B of Division 6 of Part 3, or Division 1 of Part 5, of the Administration Act; and (b) the notice required the person: (i) to inform the Department whether a specified event or change of circumstances had occurred; or (ii) to give the Department a statement about a matter; or (iii) to give information or produce a document; and (c) the notice required the information or statement to be given within a specified period; and (d) the person has failed to comply with the requirement of the notice; any determination made under the Administration Act on or after 20 September 2001 as a result of the occurrence of an event or change of circumstances, or in connection with a matter, to which the notice related must be made in accordance with this Act as in force immediately before the end of the period referred to in paragraph (c).
Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 705 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 135 135 Unlimited maximum portability period for disability support pension (1) The Secretary may determine that a person’s maximum portability period for disability support pension is an unlimited period if: (a) at the commencement of this clause, the person is absent from Australia and receiving disability support pension; and (b) under this Act as in force immediately before the commencement, that absence could not affect the person’s right to continue to be paid the disability support pension throughout the period of that absence; and (c) after the commencement, the person enters Australia but does not become an Australian resident again.
Note: The condition in paragraph (1)(b) may be met: (a) because the person was severely disabled (see subsection 1214(1) and item 2 of the table in subsection 1217(5) as those subsections were in force just before the commencement); or (b) because clause 128 (as in force just before the commencement) applied to the person section 1213A as in force before its repeal by the Social Security and Veterans’ Entitlements Legislation Amendment (Miscellaneous Matters) Act 2000.
(2) The determination has effect for the purposes of Part 4.2 of this Act as it applies in relation to an absence after the person’s entry, despite the repeal and substitution of items 2 and 3 of the table in section 1217 of this Act by the Family and Community Services and Veterans’ Affairs Legislation Amendment (2003 Budget and Other Measures) Act 2003.
136 Transitional definition of deductible amount (commencing 1 July 2007) (1) This clause applies if: (a) a person has received at least one payment from a defined benefit income stream before 1 July 2007, and is still receiving payments from the income stream; and (b) the person receives income support payment in respect of a continuous period starting before, and ending on or after, the person’s trigger day (see subsection (5)); and 706 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 136 (c) the amount of the income support payment received before the person’s trigger day was affected by the deduction of a deductible amount (within the meaning of this Act or the Veterans’ Entitlements Act, as the case requires, apart from this clause) from the amount of the payments payable to the person for a year under the income stream; and (d) if the person’s trigger day is after 1 July 2007—the income stream has not been partially commuted on or after 1 July 2007 and before the person’s trigger day.
Note 1: Note 2: If the income stream is wholly commuted, this clause will stop applying because the person will no longer be receiving payments from the income stream (see paragraphs (1)(a) and (d)).

For the deduction of a deductible amount from amounts payable under certain defined benefit income streams, see sections 1099A and 1099D of this Act and sections 46V and 46Y of the Veterans’ Entitlements Act.
(2) Despite the amendment of this Act by Part 2 of Schedule 8 to the Tax Laws Amendment (Simplified Superannuation) Act 2007, for the purposes of working out the amount of any income support payment (other than a service pension or income support supplement) received by the person on or after the trigger day in respect of the remaining part of the period mentioned in paragraph (1)(b), the deductible amount, in relation to the income stream for a year, is the greater of the following amounts: (a) the deductible amount mentioned in paragraph (1)(c); (b) the sum of the amounts that are the tax free components (worked out under subsections 307-125(4) to (7) of the Income Tax (Transitional Provisions) Act 1997) of the payments received from the income stream during the year.
(3) However, this clause stops applying to an income stream immediately after the time (if any) that the deductible amount in relation to the income stream is, under subclause (2), the amount mentioned in paragraph (2)(b).

(3A) If: (a) this clause applies; and Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 707 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 137 (b) an amount (the transitional amount) is worked out under subclause (2) in relation to a defined benefit income stream for a year starting on or after 1 January 2016; and (c) that income stream is not a military defined benefit income stream; and (d) that amount is worked out in relation to the operation of section 1099A or 1099D; then, for the purposes of the operation of paragraph 1099A(2)(b) or 1099D(2)(b), the transitional amount is taken to be the deductible amount under subsection 1099A(1) or 1099D(1) in relation to that income stream for that year.
Note: The effect of this subclause is that the cap on the deductible amount under subsection 1099A(2) or 1099D(2) might apply.

(4) For the purposes of this clause, without limiting paragraph (1)(b), if the form of a person’s income support payment mentioned in paragraph (1)(b) changes during a period, the continuity of the period is not broken by the change.
Example: The form of a person’s income support payment may change from one kind of payment (for instance, a service pension under the Veterans’ Entitlements Act) to another (for instance, a social security pension under this Act).

(5) In this clause: trigger day, for a person, means: (a) if the person is under 60 years at the end of 30 June 2007— the day the person turns 60; or (b) if the person is 60 years or over at the end of 30 June 2007— 1 July 2007.
137 Application—general Subject to clauses 138 and 140, the amendments made by items 1 to 16 of Schedule 1 to the Social Security Legislation Amendment (Improved Support for Carers) Act 2009 apply to claims for a carer payment made on or after the commencement of this clause.

708 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 138 Application—subsections 198AA(1) and (3) Clause 138 Subsections 198AA(1) and (3) of this Act as amended by the Social Security Legislation Amendment (Improved Support for Carers) Act 2009 apply to a person who: (a) is receiving a carer payment immediately before 1 July 2009; or (b) makes a claim for a carer payment on or after 1 July 2009.
139 Application—subsection 955(2) Subsection 955(2) of this Act as amended by the Social Security Legislation Amendment (Improved Support for Carers) Act 2009 applies to a person who: (a) is receiving carer allowance immediately before 1 July 2009; or (b) makes a claim for a carer allowance on or after 1 July 2009.
139A Application—general (1) Subject to clauses 139B and 141, the amendments made by items 1 to 68 and 76 to 77 of Schedule 1 to the Social Security Legislation Amendment (Improved Support for Carers) (Consequential and Transitional) Act 2009 apply to claims for a carer payment made on or after the commencement of this clause.
(2) Subject to clauses 139C and 143, the amendments made by items 69 to 75 of Schedule 1 to the Social Security Legislation Amendment (Improved Support for Carers) (Consequential and Transitional) Act 2009 apply to claims for special benefit made on or after the commencement of this clause.
139B Application—sections 198AAA and 198AB The amendments made by items 9 and 10 of Schedule 1 to the Social Security Legislation Amendment (Improved Support for Carers) (Consequential and Transitional) Act 2009 apply to a person who: Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 709 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 139C (a) is receiving a carer payment immediately before 1 July 2009; or (b) makes a claim for a carer payment on or after 1 July 2009.
139C Application—subsections 731J(2) and (6) (1) Subsection 731J(2) of this Act as amended by Schedule 1 to the Social Security Legislation Amendment (Improved Support for Carers) (Consequential and Transitional) Act 2009 applies to a person who: (a) is taken to satisfy the activity test under subsection 731J(1) of this Act immediately before 1 July 2009; or (b) makes a claim for special benefit on or after 1 July 2009.
(2) Subsection 731J(6) of this Act as amended by Schedule 1 to the Social Security Legislation Amendment (Improved Support for Carers) (Consequential and Transitional) Act 2009 applies to a person who: (a) is taken to satisfy the activity test under subsection 731J(4) of this Act immediately before 1 July 2009; or (b) makes a claim for special benefit on or after 1 July 2009.
139D Saving—principal beneficiary of a special disability trust Despite the amendment made by item 79 of Schedule 1 to the Social Security Legislation Amendment (Improved Support for Carers) (Consequential and Transitional) Act 2009, this Act as in force immediately before the commencement of this clause continues to apply to a person who was a principal beneficiary (within the meaning of section 1209M of this Act) under 16 years of age immediately before that time.
140 Person whose carer payment was cancelled on or after 1 July 2008 and before 1 July 2010 Circumstances in which clause applies (1) This clause applies if: 710 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 141 (a) a person (the carer) received or receives a carer payment on or after 1 July 2008 for caring for one or more persons aged under 16; and (b) the carer was or is qualified for the payment under paragraph 198(2)(b) or (c) of this Act (whether or not because of clause 141); and (c) the payment was cancelled: (i) with effect before the commencement of this clause; or (ii) with effect on or after that commencement and before 1 July 2010; and (d) on or after 1 July 2009 and before 1 July 2010, the carer makes a claim for a carer payment for caring for the same person or persons aged under 16.
Claim may be assessed as if paragraphs 198(2)(b) and (c) had not been repealed (2) In addition to being assessed against this Act as in force after the commencement of this clause, the carer’s claim may be assessed as if paragraphs 198(2)(b) and (c) of this Act had not been repealed.

Note: The effect of subclause (2) is that the person may qualify for a carer payment under paragraph 198(2)(b) or (c) or section 197B, 197C or 197E.
(3) Subject to clause 141, if, because of subclause (2), the person is qualified for a carer payment under paragraph 198(2)(b) or (c) of this Act, this Act (as in force immediately before 1 July 2009) applies in relation to the person.
141 Saving—profoundly disabled child and disabled child Profoundly disabled child and disabled child (1) Subject to this clause, if a person was receiving a carer payment immediately before 1 July 2009 because the person was qualified for that payment under paragraph 198(2)(b) or (c) of this Act, this Act (as in force immediately before that time) continues to apply in relation to the person.

Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 711 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 141 Remaining qualified for up to 3 months after child turns 16 (2) Despite the repeal of paragraphs 198(2)(b) and (c) of this Act by the Social Security Legislation Amendment (Improved Support for Carers) Act 2009, paragraph 197K(1)(a) of this Act applies to a person as if that paragraph included a reference to a person: (a) who was qualified for a carer payment under either of the repealed paragraphs; and (b) who: (i) remains qualified for a carer payment because of subclause (1); or (ii) becomes qualified for a carer payment because of subclause 140(3).
Unlimited hospitalisation (3) Despite the repeal of paragraphs 198(2)(b) and (c) of this Act by the Social Security Legislation Amendment (Improved Support for Carers) Act 2009, subsection 198AA(1) of this Act applies to a person as if that subsection included a reference to a person: (a) who was qualified for a carer payment under either of the repealed paragraphs; and (b) who: (i) remains qualified for a carer payment because of subclause (1); or (ii) becomes qualified for a carer payment because of subclause 140(3).
Automatic qualification for carer allowance (4) Despite the repeal of paragraphs 198(2)(b) and (c) of this Act by the Social Security Legislation Amendment (Improved Support for Carers) Act 2009, section 954B of this Act applies to a person as if paragraph 954B(a) included a reference to a person: (a) who was qualified for a carer payment under either of the repealed paragraphs; and 712 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 142 (b) who: (i) remains qualified for a carer payment because of subclause (1); or (ii) becomes qualified for a carer payment because of subclause 140(3).
142 Person whose special benefit was cancelled on or after 1 July 2008 and before 1 July 2010 Circumstances in which clause applies (1) This clause applies if: (a) a person received or receives special benefit on or after 1 July 2008; and (b) while the person received or receives special benefit, the person was or is taken to satisfy the activity test under subsection 731J(1) of this Act because the person was or is caring for a child or children referred to in paragraph 198(2)(b) or (c) of this Act (whether or not because of clause 143); and (c) the special benefit was cancelled: (i) with effect before the commencement of this clause; or (ii) with effect on or after that commencement and before 1 July 2010; and (d) on or after 1 July 2009 and before 1 July 2010, the carer makes a claim for special benefit; and (e) the person is caring for the same child or children aged under 16.
Claim may be assessed as if paragraphs 198(2)(b) and (c) had not been repealed (2) In addition to being assessed against this Act as in force after the commencement of this clause, the person’s claim may be assessed as if paragraphs 198(2)(b) and (c) of this Act had not been repealed.

Compilation No.
Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 713 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 143 Note: The effect of subclause (2) is that the person may be taken to satisfy the activity test under section 731HA, 731HB or 731J of this Act because the person is caring for the child or children.
(3) Subject to clause 143, if, because of subclause (2), the person is taken to satisfy the activity test under section 731J of this Act because the person is caring for the child or children, this Act (as in force immediately before 1 July 2009) applies in relation to the person.
143 Saving—profoundly disabled child and disabled child Profoundly disabled child and disabled child (1) Subject to this clause, if, immediately before 1 July 2009, a person was taken, under section 731J of this Act, to satisfy the activity test because the person met the qualification conditions for a carer payment for caring for a child or children referred to in paragraph 198(2)(b) or (c) of this Act, this Act (as in force immediately before that time) continues to apply in relation to the person.
Taken to satisfy the activity test for up to 3 months after child turns 16 (2) If: (a) either: (i) a person continues to be taken to satisfy the activity test in section 731J of this Act because of subclause (1) for caring for a child or children; or (ii) a person starts to become taken to satisfy the activity test because of subclause 142(3) for caring for a child or children; and (b) the child, or one of the children, turns 16; and (c) the child has not been assessed and rated and given a score under the Adult Disability Assessment Tool; and (d) apart from the child turning 16, the person would remain taken to satisfy the activity test; 714 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 144 the person continues to be taken to satisfy the activity test for 3 months after the child turns 16.
Unlimited hospitalisation—profoundly disabled child or disabled child (3) Subsection 731J(2) of this Act as amended by Schedule 1 to the Social Security Legislation Amendment (Improved Support for Carers) (Consequential and Transitional) Act 2009 applies to a person who: (a) continues to be taken to satisfy the activity test in section 731J of this Act because of subclause (1) for caring for a child or children; or (b) starts to become taken to satisfy the activity test because of subclause 142(3) for caring for a child or children.
144 Saving and transitional provisions for section 93H Saving provision (1) Section 93H, as in force before 20 September 2009, continues to apply to set a person’s annual pension rate for the purposes of Division 6 of Part 2.2A if the start day for the age pension was before 20 September 2009.
Indexation of subsection 93H(4) amounts on 20 September 2009 (2) Part 3.16, as amended by Part 3 of Schedule 1 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009, applies to the indexation on 20 September 2009, and later indexation days, of the amounts in subsection 93H(4).
145 Saving provision for income test taper rate for disability support pensioners under 21 without dependent children (1) Point 1066A-F9, as in force before 20 September 2009, continues to apply to working out a person’s rate of disability support pension under Pension Rate Calculator D in section 1066A if: Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 715 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 146 (a) the person was receiving disability support pension immediately before that day at a rate worked out under that Calculator; and (b) the rate was worked out taking account of an ordinary income excess under point 1066A-F10 that was more than nil.
Note: This clause is relevant only if Pension Rate Calculator D in section 1066A continues to apply to working out the person’s rate of disability support pension.
(2) Subclause (1) ceases to apply, and does not apply ever again, in relation to the person if: (a) the person’s rate of disability support pension under Pension Rate Calculator D in section 1066A for a day on or after 20 September 2009 is worked out taking account of an ordinary income excess under point 1066A-F10 that is nil or less; or (b) Pension Rate Calculator D in section 1066A ceases to apply for working out the person’s rate of disability support pension for a day on or after 20 September 2009; or (c) the person ceases to receive disability support pension on or after 20 September 2009.
146 Transitional provision for rates of certain social security pensions on and after 20 September 2009 Application (1) This clause applies if: (a) on 19 September 2009 a person was receiving one of the following payments: (i) age pension; (ii) disability support pension; (iv) carer payment; (vii) (viii) service pension (except carer service pension); special needs pension; (ix) income support supplement; and 716 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 146 (b) either: (i) the person continues (without a break) to receive one of those payments (whether or not of the same sort as the one the person received on that day); or (ii) subclause (1A) applies to the person.
(1A) This subclause applies to a person if: (a) a payment by the Thalidomide Australia Fixed Trust: (i) is made to, or applied for the benefit of, the person as a beneficiary of the Trust; or (ii) is made to, or applied for the benefit of, the person’s partner as a beneficiary of the Trust; or (iii) is made to the person or the person’s partner in respect of a beneficiary of the Trust; and (b) subparagraph (1)(b)(i) applies to the person immediately before the payment is made; and (c) the person receives any of the payments mentioned in paragraph (1)(a) at the commencement of item 4 of Schedule 4 to the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Act 2011; and (d) after that commencement, the person continues (without a break) to receive that payment, or any of the other payments referred to in paragraph (1)(a).
Purpose (2) This clause has effect for the purposes of working out the rate of one of the social security pensions described in paragraph (1)(a) for the person for a day (the relevant day) after 19 September 2009 under point 1064-A1 or 1065-A1, or under section 796 so far as one or more of those points are relevant because of that section.

Note: This clause does not make a person entitled to receive a social security pension if the person is not otherwise entitled to receive it.

Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 717 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 146 Provisional annual payment rate (3) The person’s provisional annual payment rate is taken to be the amount worked out under subclause (4) if the total of: (a) 1/364 of that amount; and (b) the amount (if any) of DFISA that would be payable to the person on the relevant day assuming that: (i) the person’s provisional annual payment rate were the amount worked out under subclause (4); and (ii) the amendments made by Schedules 6 and 7 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been made; is greater than the total of: (c) 1/364 of the person’s provisional annual payment rate apart from this clause; and (d) the amount (if any) of DFISA that would be payable to the person on the relevant day apart from this clause.
Note: The provisional annual payment rate is an amount worked out under the method statement in point 1064-A1.

Point 1064-A1 may be relevant of its own force or because of point 1065-A1 or section 796.
(4) The amount is the one that would be the provisional annual payment rate under the relevant point if: (a) the maximum payment rate for the person were the total of: (i) the amount worked out under whichever of subclauses 147(1), (2), (3) and (4) is relevant to the person; and (ia) the person’s energy supplement (if any) (see subclause 149(5)); and (ii) the amount (if any) per year calculated for the person under paragraph 1070A(b) (for rent assistance); reduced, if subclause 147(1) or (2) is relevant to the person and an election by the person under subsection 1061VA(1) is in force, by the minimum pension supplement amount; and (b) the amendments made by Schedules 6 and 7 to the Social Security and Other Legislation Amendment (Pension Reform 718 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 146 and Other 2009 Budget Measures) Act 2009 had not been made.

Note 1: The maximum payment rate is an amount used in point 1064-A1.
Note 2: Note 3: Note 4: Note 5: Subclause 147(1) deals with a person in Australia who is not a member of a couple or is a member of an illness separated couple or respite care couple, or is partnered (partner in gaol).

Subclause 147(2) deals with a person in Australia who is a member of a couple (but not a member of an illness separated couple or respite care couple, and not partnered (partner in gaol)).
Subclause 147(3) deals with a person who has been outside Australia for more than 6 weeks and is not a member of a couple or is a member of an illness separated couple or respite care couple, or is partnered (partner in gaol).

Subclause 147(4) deals with a person who has been outside Australia for more than 6 weeks and is a member of a couple (but not a member of an illness separated couple or respite care couple, and not partnered (partner in gaol)).
Note 6: The amount described in subparagraph (4)(a)(i) is indexed under sections 1191 to 1194 (CPI indexation) on and after 20 March 2010.
Limit on application of subclause (3) (5) Subclause (3) does not apply for working out the rate of a social security pension of the person for the relevant day if the relevant day is after a day for which one of the following conditions was met: (a) the amount worked out for the day under subclause (4) (in a previous application of this clause) was less than or equal to the person’s provisional annual payment rate, apart from this clause, for a social security pension described in paragraph (1)(a); (b) the amount worked out for the day under subclause 30(4) of Schedule 5 to the Veterans’ Entitlements Act was less than or equal to the person’s provisional payment rate for service pension (except carer service pension) apart from clause 30 of that Schedule; (c) the amount worked out for the day under subclause 30(6) of Schedule 5 to the Veterans’ Entitlements Act was less than or Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 719 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 146 equal to the person’s provisional payment rate for income support supplement apart from clause 30 of that Schedule.
(5A) However, subclause (5) does not prevent subclause (3) from applying for working out the rate of a social security pension of the person for the relevant day if: (a) on the relevant day the person is a member of a couple, but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol); and (b) on each day for which a condition in paragraph (5)(a), (b) or (c) was met, the person was a member of a respite care couple; and (c) on a day before all the days described in paragraph (b): (i) the person was a member of a couple, but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol); and (ii) either subclause (3) affected the rate at which a social security pension was payable to the person or clause 30 of Schedule 5 to the Veterans’ Entitlements Act affected the rate at which service pension or income support supplement was payable to the person.
Note: For member of a couple, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Relationship with DFISA provisions (6) This clause does not affect the operation of Part VIIAB (Defence Force Income Support Allowance and related payments) of the Veterans’ Entitlements Act 1986 for the purposes of working out amounts of payments under that Part after working out the provisional annual payment rate for a social security pension taking account of this clause.
720 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 147 Amounts for subparagraph 146(4)(a)(i) Single Australian resident in Australia Clause 147 (1) For the purposes of subparagraph 146(4)(a)(i), work out the amount as follows, if, on the relevant day: (a) the person’s family situation is any of the following: (i) not a member of a couple; (ii) member of an illness separated couple; (iii) member of a respite care couple; (iv) partnered (partner in gaol); and (b) the person is residing in Australia; and (c) the person either: (i) is in Australia; or (ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
Method statement Step 1.
Work out what each of the following amounts (described using the abbreviation used in Part 3.16 for the amount) would be on 20 September 2009, taking account of indexation (if any) under that Part on that day, if the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been enacted: (a) the amount that would be the pension MBR for a person who is not a member of a couple assuming that section 1195 did not apply on 20 September 2009; (b) pension supplement for a person who is not (and was not on 1 July 2000) a member of a couple; (c) pension PA “single” rate; Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 721 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 147 (d) TA (internet) “single” rate; (e) UA “single” rate.

Step 2.

Identify the greater of the amount described in paragraph (e) of step 1 and $525.20 (or either of them if they are the same).

Step 3.
Step 3.

Add up all the amounts worked out under step 1 and the amount identified under step 2.

Step 4.

If the result of step 3 is not a multiple of $2.60, round that result up to the next multiple of $2.60.

Note 1: Note 2: For member of a couple, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Subsection 7(3) is relevant to determining whether a person is residing in Australia.

Note 3: Section 1190 explains the abbreviations used in Part 3.16.
Partnered Australian resident in Australia (2) For the purposes of subparagraph 146(4)(a)(i), work out the amount as follows, if, on the relevant day: (a) the person is a member of a couple, but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol); and (b) the person is residing in Australia; and (c) the person either: (i) is in Australia; or (ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
Method statement Step 1.

Work out what each of the following amounts (described using the abbreviation used in Part 3.16 for the amount) 722 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 147 would be on 20 September 2009, taking account of indexation (if any) under that Part on that day, if the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been enacted: (a) (b) the amount that would be the pension MBR for a person who is a member of a couple (but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol)) assuming that section 1195 did not apply on 20 September 2009; pension supplement for a person who is (and was on 1 July 2000) a member of a couple (but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol)); (c) Pension PA “partnered” (item 2) rate; (d) TA (internet) “partnered” (item 5) rate; (e) half the UA “single” rate.
Step 2.

Identify the greater of the amount described in paragraph (e) of step 1 and $262.60 (or either of them if they are the same).

Step 3.

Add up all the amounts worked out under step 1 and the amount identified under step 2.

Step 4.

If the result of step 3 is not a multiple of $2.60, round that result up to the next multiple of $2.60.

Note 1: Note 2: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Subsection 7(3) is relevant to determining whether a person is residing in Australia.

Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 723 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 147 Note 3: Section 1190 explains the abbreviations used in Part 3.16.
Single person not covered by subclause (1) (3) For the purposes of subparagraph 146(4)(a)(i), work out the amount as follows, if, on the relevant day: (a) the person’s family situation is any of the following: (i) not a member of a couple; (ii) member of an illness separated couple; (iii) member of a respite care couple; (iv) partnered (partner in gaol); and (b) the person either: (i) is not residing in Australia; or (ii) is absent from Australia and has been so for a continuous period exceeding 6 weeks.
Method statement Step 1.
Work out what each of the following amounts (described using the abbreviation used in Part 3.16 for the amount) would be on 20 September 2009, taking account of indexation under that Part on that day, if the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been enacted: (a) the amount that would be the pension MBR for a person who is not a member of a couple assuming that section 1195 did not apply on 20 September 2009; (b) pension supplement for a person who is not (and was not on 1 July 2000) a member of a couple.
Step 2.

Add up the amounts worked out under step 1.

Note 1: For member of a couple, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

724 Social Security Act 1991 Compilation No.


188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Note 2: Clause 147 Subsection 7(3) is relevant to determining whether a person is residing in Australia.

Note 3: Section 1190 explains the abbreviations used in Part 3.16.
Partnered person not covered by subclause (2) (4) For the purposes of subparagraph 146(4)(a)(i), work out the amount as follows, if, on the relevant day: (a) the person is a member of a couple, but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol); and (b) the person either: (i) is not residing in Australia; or (ii) is absent from Australia and has been so for a continuous period exceeding 6 weeks.

Method statement Step 1.
Work out what each of the following amounts (described using the abbreviation used in Part 3.16 for the amount) would be on 20 September 2009, taking account of indexation under that Part on that day, if the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been enacted: (a) (b) the amount that would be the pension MBR for a person who is a member of a couple (but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol)) assuming that section 1195 did not apply on 20 September 2009; pension supplement for a person who is (and was on 1 July 2000) a member of a couple (but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol)).
Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 725 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 148 Step 2.

Add up the amounts worked out under step 1.

Note 1: Note 2: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Subsection 7(3) is relevant to determining whether a person is residing in Australia.

Note 3: Section 1190 explains the abbreviations used in Part 3.16.

148 Rate of social security payments to partners of persons affected by clause 146 (1) This clause applies if clause 146 applies to a person who is a member of a couple and that clause affects the rate at which a social security pension is payable to the person.
(2) In working out the amount of a social security payment payable to a partner of the person, assume that the social security pension payable to the person is payable at the rate at which it would be payable if clause 146 had not been enacted.

149 Payment and income tax consequences of receiving social security pension at rate affected by clause 146 Application (1) This clause applies if clause 146 affects the rate at which a social security pension is payable to a person.
Purpose (2) The purpose of this clause is to ensure that the person is treated appropriately in relation to the payment, and income taxation, of the pension by modifying the operation of the social security law (and thus affecting the related income tax law) in relation to the person and the pension.

Note: This clause does not modify the operation of subsection 20A(4), which provides for working out the person’s minimum pension supplement amount.

726 Social Security Act 1991 Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Savings and transitional provisions Schedule 1A Saving and Transitional Provisions Applicable after the Commencement of this Act Part 3 Clause 149 Pension supplement amount (3) The social security law applies in relation to the person’s pension as if the amount described in subparagraph 146(4)(a)(i), as affected by any indexation and any relevant reduction described in paragraph 146(4)(a), were an amount added under the pension supplement Module of the relevant Pension Rate Calculator (and therefore used to work out the rate of the pension).
Note 1: Note 2: One effect of subclause (3) is that the amount is the person’s pension supplement amount (as defined in subsection 23(1)).
If that amount exceeds the person’s pension supplement basic amount (as affected by subclause (4)), other effects of subclause (3) include the following: (a) the excess being tax-exempt pension supplement under subsection 20A(6) of this Act; (c) (b) Part 2.25C (Quarterly pension supplement) of this Act applying, which may affect timing of payment of some of the pension under the Administration Act; the possibility of the minimum amount of fortnightly instalments of the pension being affected under section 43 of the Administration Act; telephone allowance not being payable because of section 1061R of this Act; (d) (e) utilities allowance not being payable because of section 1061T of this Act.
Note 3: Yet another effect of subclause (3) is that section 1210 will affect the operation of reductions of the maximum payment rate because of the income test and assets test.

Pension supplement basic amount (4) The social security law applies in relation to the person’s pension as if: (a) each reference in the table in subsection 20A(5) to $507 were a reference to $14,814.80; and (b) the reference in the table in subsection 20A(5) to $423.80 were a reference to $12,373.40.
Note 1: This affects the person’s pension supplement basic amount.

Note 2: The provisions for indexing amounts in the table in subsection 20A(5) apply to the higher figures mentioned in this subclause.

Compilation No.
188 Compilation date: 28/05/2021 Registered: 04/06/2021 Social Security Act 1991 727 Schedule 1A Savings and transitional provisions Part 3 Saving and Transitional Provisions Applicable after the Commencement of this Act Clause 150 Energy supplement (5) If subclause 147(1) or (2) is relevant to the person, the social security law applies in relation to the person’s pension as if: (a) the energy supplement Module of the relevant Pension Rate Calculator were the same as Module C of Pension Rate Calculator A; and (b) the person’s energy supplement (if any) resulting from that Module were used to work out the rate of the person’s pension.
Note 1: Note 2: Note 3: This energy supplement is included in the total worked out under paragraph 146(4)(a) (see subparagraph 146(4)(a)(ia)).

This subclause causes Division 2 of Part 2.18A (Quarterly energy supplement) of this Act to apply.

If quarterly energy supplement is payable, then no energy supplement will be available to be included in the total worked out under paragraph 146(4)(a) (see point 1064-C1 of this Act).
Other effects of this subclause include: (a) the possibility of the minimum amount of fortnightly instalments of the pension being affected under section 43 of the Administration Act; and that section 1210 will affect the operation of reductions of the maximum payment rate because of the income test and assets test.
(b) 150 Persons exempt from requirement to be Australian residents to qualify for disability support pension Paragraphs 94(1)(ea), 94A(1)(ja) and 95(1)(d) do not affect the qualification for disability support pension of: (a) a person to whom the provisions mentioned in subclause 128(1) continue to apply as described in that subclause; or (b) a person who is covered by a determination under clause 135.
Note: Those paragraphs are in Subdivision A of Division 1 of Part 2.3, which is about qualification for disability support pension.

728 Social Security Act 1991 Compilation No.

188 Compilation date: 28/05/2021 Registered: 04/06/2021