Document ID: chunk:federal_register_of_legislation:C2004A04993:body:0:p66
Version: federal_register_of_legislation:C2004A04993
Segment Type: other
Provision Reference: 
Character Range: 167376–170170

(paragraph (b) of Step 11 of Method statement):

Omit "MODULE J below", substitute "Part 3.12B".

52. Section 1067 (Benefit Rate Calculator A):

Omit Module J.

53. Point 1068-A1 (paragraph (b) of Step 9 of Method statement):

Omit "MODULE H below", substitute "Part 3.12B".

SCHEDULE 12—continued

54. Section 1068 (Benefit Rate Calculator B):

Omit Module H.

55. After Part 3.12A:

Insert:

"PART 3.12B—ADVANCE PAYMENT DEDUCTIONS

Advance payment deduction

"1206H.(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.

Amount of advance payment deduction—basic calculation

"1206J. Subject to sections 1206K, 1206L, 1206M and 1206N, the advance payment deduction for an advance payment of a social security entitlement is worked out as follows:

    (a) if the full amount of the advance payment did not exceed, or (in the case of an advance payment being paid in instalments) will not when fully paid exceed, $500—by dividing the full amount of the advance payment by 13;

    (b) if the full amount of the advance payment exceeded, or (in the case of an advance payment being paid in instalments) will when fully paid exceed, $500—by dividing the full amount of the advance payment by 26.

SCHEDULE 12—continued

Example:

Facts:

Anne has been paid an advance payment of $450. The maximum amount of advance payment payable to her was $514.51.

Application:

Because the advance payment was less than $500. Anne's advance payment deduction is worked out under paragraph 1206J(a) as follows: $450 ÷ 13 = $34.62.

Person may request larger advance payment deduction

"1206K.(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