Document ID: chunk:federal_register_of_legislation:C2004A04954:body:0:p29
Version: federal_register_of_legislation:C2004A04954
Segment Type: other
Provision Reference: 
Character Range: 76440–79309

Section 1166 (Lump sum recoverable amount and preclusion period examples—Example 2):

Omit "item 3 in the Table", substitute "subsection 1166(4A)".

35. Section 1167:

Repeal the section, substitute:

Lump sum compensation not counted as ordinary income

"1167. If an amount per fortnight of a compensation affected payment is not payable to a person under section 1165 because of 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 for the purposes of this Act (apart from Module D of the Family Payment Rate Calculator and section 710, and section 5B of the Health Insurance Act 1973).

Note 1: For 'ordinary income' see section 8.
     Note 2: Module D of the Family Payment Rate Calculator deals with additional family payment.
     Note 3: Section 710 deals with limitations on the amount of sickness allowance payable.
     Note 4: Section 5B of the Health Insurance Act 1973 deals with the Disadvantaged Persons Health Scheme.".

36. Paragraph 1168(1) (b):

Omit "is qualified for", substitute "receives or claims".

   Note: The heading to section 1168 is altered by omitting "pensions, benefits and allowances" and substituting "compensation affected payments".

SCHEDULE 16—continued

37. Subsection 1168(1):

Omit "pension, benefit or allowance is to be reduced, under subsection (3)", substitute "compensation affected payment is to be reduced, in accordance with this section".

38. Subsection 1168(3):

Omit the subsection (but not the Rate Reduction Examples), substitute:

"(2) If the rate of a person's compensation affected payment is to be reduced under subsection (1), subsections (3), (3A) and (3B) are to be used to work out the person's reduced rate.

    Note 1: If the fortnightly rate of periodic compensation is higher than the fortnightly rate of the compensation affected payment, the compensation affected payment will be reduced to nil for the periodic payments period.

    Note 2: If a person's rate is reduced under subsection (1), the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1207 (maximum basic rate first, then rent assistance).

"(3) If the person is not a member of a couple, the person's fortnightly rate of the compensation affected payment is reduced by the fortnightly rate of periodic compensation.

"(3A) If:

(a) the person is a member of a couple; and

   (b) the person's partner does not receive or claim a compensation affected payment or a youth training allowance;

the person's fortnightly rate of the compensation affected payment is reduced by the fortnightly rate of periodic compensation.

"(3B) If:

   (a) the person is a member of a couple; and

   (b) the person's partner receives or claims a compensation affected payment or a