Document ID: chunk:federal_register_of_legislation:C2004A04837:front:0:p8
Version: federal_register_of_legislation:C2004A04837
Segment Type: other
Provision Reference: 
Character Range: 19806–22705

end the following word and paragraph:

    "or (g) the person or the person's partner is entitled to receive compensation (see Division 3 of Part IIIC)".

Application of income and assets test reductions for income tax purposes

8. Section 40C of the Principal Act is amended:

    (a) by inserting after subsection (1) the following subsections:

    "(1A) If:

         (a) the rate of a service pension applicable to a person who has no dependent children is increased under the rent assistance Module of a Rate Calculator or the pharmaceutical allowance Module of a Rate Calculator; and

         (b) an amount of that pension is to be reduced under section 59T (compensation recovery);

the reduction is to be applied:

         (c) first, to that part of the amount that does not include any increase under the rent assistance Module or the pharmaceutical allowance Module; and

         (d) then, to the amount of any increase under the rent assistance Module; and

         (e) finally, to the amount of any increase under the pharmaceutical allowance Module.

    "(1B) If:

         (a) the rate of a service pension applicable to a person who has dependent children is increased under the pharmaceutical allowance Module of a Rate Calculator; and

         (b) an amount of that pension or the compensation affected component of such an amount is to be reduced under section 59T (compensation recovery);

the reduction is to be applied:

         (c) first, to that part of the amount or of the compensation affected component that does not include the increase under the pharmaceutical allowance Module; and

         (d) then, to the amount of the increase under the pharmaceutical allowance Module.";

    (b) by omitting from subsection (2) "subsection (1)" and substituting "subsections (1), (1A) and (IB)".

Rate of age, invalidity, partner and carer service pension (no dependent children)

9. The Rate Calculator in section 41 of the Principal Act is amended by inserting after point 41-D2A the following point:

Payment of arrears of periodic compensation payments

"41-D2B. 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 pension; and

    (b) in relation to the entitlement, the person receives a payment ('arrears 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 of the arrears payment by the number of days in the periodic payments period.

    Note: For 'event that gives rise to an entitlement to compensation' and 'periodic payments period' see section 5NB.".

Rate of age, invalidity, partner and carer service pension (dependent child or children)

10. The Rate Calculator in section 42 of the Principal Act is amended by inserting after point 42-E2A