Social Security (1994 Budget and White Paper) Amendment Act 1994 (Cth)
The Parliament of Australia enacts:
[
(a) Items 5 to 9 of Schedule 7 are taken to have commenced on that day; and
(b) section 9 is taken to have commenced on that day to the extent necessary in order to enable those items to be taken to have commenced on that day.
AMENDMENTS RELATING TO LIQUID ASSETS TEST WAITING PERIODS
Omit "subsections (5)", substitute "subsections (4A), (5)".
Insert:
"(4A) Subsection (1) does not apply to a person if, at any time during the 12 months preceding:
(a) the day on which the person becomes unemployed; or
(b) the day on which the person claims a job search allowance;
the person or their partner was serving a liquid assets test waiting period that started during that 12 months.".
Omit "subsections (5)", substitute "subsections (4A), (5)".
Insert:
"(4A) Subsection (1) does not apply to a person if, at any time during the 12 months preceding:
(a) the day on which the person becomes unemployed; or
(b) the day on which the person claims a newstart allowance;
the person or their partner was serving a liquid assets test waiting period that started during that 12 months.".
Omit "If", substitute "Subject to subsections (2) and (6), if".
Add at the end:
"(6) Subsection (1) does not apply to a person if, at any time during the 12 months preceding:
(a) the day on which the person becomes incapacitated for work; or
(b) the day on which the person claims sickness allowance;
the person or their partner was serving a liquid assets test waiting period that started during that 12 months.".
Add at the end:
"(4) If:
(a) a person sells the person's principal home; and
(b) the person is likely, within 12 months, to apply the whole or part of the proceeds of the sale in acquiring another residence that is to be the person's principal home;
so much of the proceeds of the sale as the person is likely to apply in acquiring the other residence is to be disregarded during that period for the purposes of determining the amount of the person's liquid assets.
"(5) If:
(a) a person has or had a debt not related to the person's principal home or to any other residential property in which the person holds or held, solely or jointly, any right or interest; and
(b) since becoming unemployed or incapacitated for work (as the case requires), the person has, in order to discharge the debt in whole or in part, made a payment that the person was not obliged to make; and
(c) since becoming unemployed or incapacitated for work (as the case requires), the person had not already made such a payment in order to discharge that debt in part;
the amount of the payment referred to in paragraph (b) is to be disregarded for the purposes of determining the amount of the person's liquid assets.
"(6) For the purpose of determining whether a liquid assets test waiting period applies in relation to a claim for a social security benefit, subsection (5) can apply to a payment made after the claim if the payment is made before such a liquid assets test waiting period would end under section 519, 598 or 676 (whichever is applicable).
Omit the subsection, substitute:
"(3) Subject to subsection (4), if the person is not a member of a couple, the liquid assets test waiting period in relation to the claim starts on the day on which the person became unemployed.
"(3A) Subject to subsection (4), if the person is a member of a couple, the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:
(a) the day on which the person became unemployed;
(b) if, when the claim is made, the person's partner is unemployed—the day on which the person's partner became unemployed;
(c) if, when the claim is made, the person's partner is incapacitated for work—the day on which the person's partner became incapacitated for work.".
Omit the subsection, substitute:
"(3) Subject to subsection (4), if the person is not a member of a couple, the liquid assets test waiting period in relation to the claim starts on the day on which the person became unemployed.
"(3A) Subject to subsection (4), if the person is a member of a couple, the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:
(a) the day on which the person became unemployed;
(b) if, when the claim is made, the person's partner is unemployed—the day on which the person's partner became unemployed;
(c) if, when the claim is made, the person's partner is incapacitated for work—the day on which the person's partner became incapacitated for work.".
Omit the subsection, substitute:
''(4) Subject to subsection (5), if the person is not a member of a couple, the liquid assets test waiting period in relation to the claim starts on the day on which the person became incapacitated for work.
"(4A) Subject to subsection (5), if the person is a member of a couple, the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:
(a) the day on which the person became incapacitated for work;
(b) if, when the claim is made, the person's partner is unemployed—the day on which the person's partner became unemployed;
(c) if, when the claim is made, the person's partner is incapacitated for work—the day on which the person's partner became incapacitated for work.".
Add at the end:
"72. In relation to liquid assets test waiting periods that arose due to the operation of subsections 519(1), 598(1) and 676(1) before 20 March 1994:
(a) subsections 519(3) and (3A), 598(3) and (3A) and 676(4) and (4A) do not apply; and
(b) subsections 519(3), 598(3) and 676(4), as in force immediately before the commencement of Schedule 1 to the
Social Security (1994 Budget and White Paper) Amendment Act 1994 , continue to apply.".
AMENDMENTS RELATING TO QUALIFYING AUSTRALIAN
RESIDENCE
Insert in its appropriate alphabetical position (determined on a letter-by-letter basis):
"qualifying residence exemption 7(6)".
Insert:
"
Insert:
"(6) A person has a
(a) resides in Australia; and
(b) holds a visa declared by the Minister under section 25 to be an approved visa for the social security payment.".
Insert:
"25.(1) The Minister may determine in writing that specified visas are approved visas for specified social security payments.
"(2) When declaring a visa to be an approved visa, the Minister may only identify the visa by reference to a class of visas prescribed by regulations made under the
"(3) The declaration is a disallowable instrument.".
Add at the end ", or has a qualifying residence exemption for an age pension".
Omit the Note, substitute:
"Note: For 'qualifying Australian residence' and 'qualifying residence exemption' see section 7.".
After "residence" insert ", or has a qualifying residence exemption for a disability support pension".
Omit the Note, substitute:
"Note 1: For 'Australian resident', 'qualifying Australian residence' and 'qualifying residence exemption' see section 7.".
Repeal the section (except Note 2), substitute:
"155. A claim by a woman is not a proper claim unless the woman:
(a) is an Australian resident, or has a qualifying residence exemption for a wife pension; and
(b) is in Australia;
on the day on which the claim is lodged.
Note 1: For 'Australian resident' and 'qualifying residence exemption' see section 7.".
Repeal the section (except Note 2), substitute:
"206. A claim by a person is not a proper claim unless the person:
(a) is an Australian resident, or has a qualifying residence exemption for a carer pension; and
(b) is in Australia;
on the day on which the claim is lodged.
Note 1: For 'Australian resident' and 'qualifying residence exemption" see section 7.".
Add at the end:
"(vi) the person has a qualifying residence exemption for a sole parent pension.".
Omit the Note, substitute:
"Note: For 'Australian resident' and 'qualifying residence exemption' see section 7.".
Insert:
"(iiia) the person has a qualifying residence exemption for a widowed person allowance;".
Omit the Note, substitute:
"Note: For 'Australian resident' and 'qualifying residence exemption' see section 7.".
Insert:
"(iia) the woman has a qualifying residence exemption for a widow B pension; or".
Omit the Note, substitute:
"Note 2: For 'Australian resident' and 'qualifying residence exemption' see section 7.".
Insert:
"(iia) has a qualifying residence exemption for disability wage supplement; or".
Omit the Note, substitute:
"Note 1: For 'Australian resident', 'qualifying Australian residence' and 'qualifying residence exemption' see section 7.".
Omit the subsection, substitute:
"(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a job search allowance.
Note: For 'qualifying residence exemption' see subsection 7(6).".
Omit the subsection.
Omit the subsection, substitute:
"(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a newstart allowance.
Note: For 'qualifying residence exemption' see subsection 7(6).".
Omit the subsection.
After "residence" insert ", or has a qualifying residence exemption for a mature age allowance".
Omit the Note, substitute:
"Note 5: For 'qualifying Australian residence' and 'qualifying residence exemption' see section 7.".
Repeal the section, substitute:
"660XDD. A claim by a person is not a proper claim unless the person:
(a) is an Australian resident, or has a qualifying residence exemption for a mature age allowance or a mature age partner allowance; and
(b) is in Australia;
on the day on which the claim is lodged.
Note: For 'Australian resident' and 'qualifying residence exemption' see section 7.".
Omit the subsection, substitute:
"(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a sickness allowance.
Note: For "qualifying residence exemption' see subsection 7(6).".
Omit the subsection.
Omit the paragraph, substitute:
"(f) the person is an Australian resident, or has a qualifying residence exemption for a special benefit; and".
Omit the Note, substitute:
"Note 2: For "qualifying residence exemption' see subsection 7(6).".
Add at the end:
"(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.".
_______________
SCHEDULE 3 Section 5
AMENDMENTS RELATING TO QUALIFICATION FOR
FAMILY PAYMENT AND ADDITIONAL FAMILY PAYMENT
Repeal the section, substitute:
"837.(1) Subject to subsection (2), if:
(a) a person who is qualified for family payment for a dependent child leaves Australia; and
(b) the child remains in Australia;
the child continues to be an FP child of the person.
"(2) The child ceases to be an FP child of the person if:
(a) the person continues to be absent from Australia for more than 13 weeks; and
(b) another person claims, and is qualified for, family payment for the child.".
Omit "1069-D6, ".
Omit the paragraphs, substitute:
"(a) the person is present in Australia or point 1069-D5 applies to the person; and
(b) the person is receiving family payment in respect of the child; and (ba) the child is present in Australia; and".
Omit the Note.
Renumber as Notes 1, 2, 3 and 4 respectively.
Omit the points, substitute:
"1069-D5. This point applies to a person if:
(a) the person is temporarily outside Australia; and
(b) subject to point 1069-D6, the person was in Australia at any time during the preceding 13 weeks.
Amanda temporarily left Australia 6 months ago and has not returned to Australia during that time.
Point 1069-D5 does not apply to Amanda because paragraph (b) requires her presence in Australia during the last 13 weeks. It does not matter how long she had continuously been in Australia before her departure.
"1069-D6. A person is not taken for the purposes of paragraph 1069-D5(b) to have been in Australia at a particular time if, within the 13 weeks preceding that time, he or she had on any occasion been outside Australia.
Stephen temporarily left Australia 10 weeks ago. He had not been outside Australia during the preceding 2 years. 5 weeks ago he returned to Australia for 3 days before leaving Australia again.
Point 1069-D5 applies to Stephen because he was in Australia during the preceding 13 week period (paragraph (b)). His 3 day visit is taken not to count as presence in Australia, because of point 1069-D6. However, this does not stop point 1069-D5 applying to his presence in Australia before his first departure (10 weeks ago), because he was in Australia for the 13 weeks before that departure. If Stephen stays outside Australia, point 1069-D5 will continue to apply to him until the end of 13 weeks after his first departure.".
AMENDMENTS RELATING TO ACTIVITY AGREEMENTS
Insert:
"(ea) subject to section 525D, development of self-employment;
(eb) subject to section 525E, development of and/or participation in group enterprises or co-operative enterprises;".
Omit the subsection.
Insert in Subdivision BA:
"525D.(1) A Job Search Activity Agreement must not require a person to undertake as an activity any development of self-employment unless:
(a) at all times during the 6 months immediately preceding the undertaking of the activity the person has been, or will have been, receiving any of the following:
(i) a job search allowance;
(ii) a newstart allowance;
(iii) a youth training allowance; and
(b) the Employment Secretary is satisfied that the activity:
(i) will be commercially viable 12 months after the person begins the activity; and
(ii) is likely to provide the person with sustainable full-time employment that will provide the person with a level of income at least equivalent to the person's maximum basic rate.
"(2) For the purposes of subparagraph (1)(b)(ii), the person's maximum basic rate is:
(a) if the person has not turned 18—the person's maximum basic rate worked out under Module B of Benefit Rate Calculator A; or
(b) if the person has turned 18—the person's maximum basic rate worked out under Module B of Benefit Rate Calculator B.
"(3) A Job Search Activity Agreement must not require a person to undertake as an activity any development of self-employment if:
(a) the person is to undertake the activity for more than 12 months; or
(b) subject to subsection (4), the person has previously been subject to a requirement under that or any other Job Search Activity Agreement to undertake the same activity or a similar activity; or
(c) at any time during the 6 months immediately preceding the time at which the activity is to start, the person has been subject to a requirement under that or any other Job Search Activity Agreement to undertake as an activity other development of self-employment.
"(4) Paragraph (3)(b) does not apply if the Secretary determines in writing that there are special circumstances that justify inclusion of the activity in the Job Search Activity Agreement.
"(5) This section does not apply to an activity to which a paragraph of subsection 525B(1), other than paragraph 525B(1)(ea) or (eb), applies.
"525E.(1) A Job Search Activity Agreement must not require a person to undertake as an activity any development of a group enterprise or co-operative enterprise unless:
(a) at all times during the 6 months immediately preceding the undertaking of the activity the person has been, or will have been, receiving any of the following:
(i) a job search allowance;
(ii) a newstart allowance;
(iii) a youth training allowance; and
(b) the Employment Secretary is satisfied that the activity:
(i) will be viable 12 months after the person begins the activity; and
(ii) is likely to provide the person with skills, training or work experience that will help the person to obtain paid employment providing a level of income at least equivalent to the person's maximum basic rate.
"(2) A Job Search Activity Agreement must not require a person to undertake as an activity any participation in a group enterprise or co-operative enterprise unless:
(a) at all times during the 6 months immediately preceding the undertaking of the activity the person has been, or will have been, receiving any of the following:
(i) a job search allowance;
(ii) a newstart allowance;
(iii) a youth training allowance; and
(b) the Secretary is satisfied that the activity is likely to provide the person with skills, training or work experience that will help the person to obtain paid employment providing a level of income at least equivalent to the person's maximum basic rate.
"(3) For the purposes of subparagraph (1)(b)(ii) and paragraph (2)(b), the person's maximum basic rate is:
(a) if the person has not turned 18—the person's maximum basic rate worked out under Module B of Benefit Rate Calculator A; or
(b) if the person has turned 18—the person's maximum basic rate worked out under Module B of Benefit Rate Calculator B.
"(4) A Job Search Activity Agreement must not require a person to undertake as an activity any development of, or participation in, a group enterprise or co-operative enterprise if:
(a) the person is to undertake the activity for more than 12 months; or
(b) the person has previously been subject to a requirement under that or any other Job Search Activity Agreement to undertake the same activity or a similar activity; or
(c) at any time during the 6 months immediately preceding the time at which the activity is to start, the person has been subject to a requirement under that or any other Job Search Activity Agreement to undertake as an activity other development of, or participation in, a group enterprise or co-operative enterprise.
"(5) This section does not apply to an activity to which a paragraph of subsection 525B(1), other than paragraph 525B(1)(ea) or (eb), applies.".
Insert:
"(ea) subject to section 607A, development of self-employment;
(eb) subject to section 607B, development of and/or participation in group enterprises or co-operative enterprises;".
Insert in Subdivision C:
"607A.(1) A Newstart Activity Agreement must not require a person to undertake as an activity any development of self-employment unless:
(a) at all times during the 6 months immediately preceding the undertaking of the activity the person has been, or will have been, receiving any of the following:
(i) a job search allowance;
(ii) a newstart allowance;
(iii) a youth training allowance; and
(b) the Employment Secretary is satisfied that the activity:
(i) will be commercially viable 12 months after the person begins the activity; and
(ii) is likely to provide the person with sustainable full-time employment that will provide the person with a level of income at least equivalent to the person's maximum basic rate.
"(2) For the purposes of subparagraph (1)(b)(ii), the person's maximum basic rate is the person's maximum basic rate worked out under Module B of Benefit Rate Calculator B.
"(3) A Newstart Activity Agreement must not require a person to undertake as an activity any development of self-employment if:
(a) the person is to undertake the activity for more than 12 months; or
(b) subject to subsection (4), the person has previously been subject to a requirement under that or any other Newstart Activity Agreement to undertake the same activity or a similar activity; or
(c) at any time during the 6 months immediately preceding the time at which the activity is to start, the person has been subject to a requirement under that or any other Newstart Activity Agreement to undertake as an activity other development of self-employment.
"(4) Paragraph (3)(b) does not apply if the Secretary determines in writing that there are special circumstances that justify inclusion of the activity in the Newstart Activity Agreement.
"(5) This section does not apply to an activity to which a paragraph of subsection 606(1), other than paragraph 606(1)(ea) or (eb), applies.
"607B.(1) A Newstart Activity Agreement must not require a person to undertake as an activity any development of a group enterprise or co-operative enterprise unless:
(a) at all times during the 6 months immediately preceding the undertaking of the activity the person has been, or will have been, receiving any of the following:
(i) a job search allowance;
(ii) a newstart allowance;
(iii) a youth training allowance; and
(b) the Employment Secretary is satisfied that the activity:
(i) will be viable 12 months after the person begins the activity; and
(ii) is likely to provide the person skills, training or work experience that will help the person to obtain paid employment providing a level of income at least equivalent to the person's maximum basic rate.
"(2) A Newstart Activity Agreement must not require a person to undertake as an activity any participation in a group enterprise or co-operative enterprise unless:
(a) at all times during the 6 months immediately preceding the undertaking of the activity the person has been, or will have been, receiving any of the following:
(i) a job search allowance;
(ii) a newstart allowance;
(iii) a youth training allowance; and
(b) the Secretary is satisfied that the activity is likely to provide the person with skills, training or work experience that will help the person to obtain paid employment providing a level of income at least equivalent to the person's maximum basic rate.
"(3) For the purposes of subparagraph (1)(b)(ii) and paragraph (2)(b), the person's maximum basic rate is the person's maximum basic rate worked out under Module B of Benefit Rate Calculator B.
"(4) A Newstart Activity Agreement must not require a person to undertake as an activity any development of, or participation in, a group enterprise or co-operative enterprise if:
(a) the person is to undertake the activity for more than 12 months; or
(b) the person has previously been subject to a requirement under that or any other Newstart Activity Agreement to undertake the same activity or a similar activity; or
(c) at any time during the 6 months immediately preceding the time at which the activity is to start, the person has been subject to a requirement under that or any other Newstart Activity Agreement to undertake as an activity other development of, or participation in, a group enterprise or co-operative enterprise.
"(5) This section does not apply to an activity to which a paragraph of subsection 606(1), other than paragraph 606(1)(ea) or (eb), applies.".
AMENDMENTS RELATING TO ADVANCE PAYMENTS OF JOB SEARCH ALLOWANCE AND NEWSTART ALLOWANCE
Insert:
"
"
"570A.(1) Subject to subsection (4), a person is qualified for an advance payment of a job search allowance only if:
(a) a job search allowance is payable to the person; and
(b) at all times during the qualifying period under subsection (2), the person has been receiving any of the following:
(i) a job search allowance;
(ii) a newstart allowance;
(iii) a youth training allowance; and
(c) the Secretary is satisfied that the advance payment will be used for the permitted purpose under subsection (3); and
(d) the Secretary is satisfied that the person will not suffer financial hardship from reductions in payments of job search allowance or newstart allowance as a result of receiving the advance payment.
"(2) For the purposes of paragraph (1)(b), the qualifying period is:
(a) if the amount of the advance payment sought by the person does not exceed $500—the 3 months immediately preceding the application; or
(b) if the amount of the advance payment sought exceeds $500—the 6 months immediately preceding the application.
"(3) For the purposes of paragraph (1)(c), the permitted purpose is:
(a) if the amount of the advance payment sought by the person does not exceed $500—to help the person search for work or participate in activities related to finding paid employment; or
(b) if the amount of the advance payment sought exceeds $500—to help the person comply with a Job Search Activity Agreement, or a Case Management Activity Agreement (within the meaning of the
Employment Services Act 1994 ), that the person has entered into.
"(4) A person is not qualified for an advance payment of a job search allowance if:
(a) the maximum amount of advance payment to which the person would be entitled under Subdivision D is less than $250; or
(b) the person is subject to reduction in payments of job search allowance as a result of receiving an advance payment of job search allowance on a previous occasion; or
(c) the person owes a debt to the Commonwealth under Part 5.2.
"
"570B. A person who wants an advance payment of a job search allowance must apply for the advance payment in accordance with this Subdivision.
"570C.(1) The application must be made in writing and must be in accordance with a form approved by the Secretary.
"(2) The application must specify:
(a) the amount of advance payment sought; and
(b) why the person wants the advance payment; and
(c) on what the advance payment would be spent.
"570D.(1) The application must be lodged:
(a) at an office of the Department; or
(b) at a place approved for the purpose by the Secretary; or
(c) with a person approved for the purpose by the Secretary.
"(2) A place or person approved under subsection (1) must be a place or person in Australia.
"570E.(1) An applicant for an advance payment or a person acting on behalf of an applicant may withdraw an application that has not been determined.
"(2) An application that is withdrawn is taken not to have been made.
"(3) A withdrawal may be made orally or in writing.
"
"570F.(1) The Secretary must determine the application in accordance with this Act.
"(2) The Secretary must determine that the application is to be granted if the Secretary is satisfied that the person is qualified for the advance payment.
"570G.(1) Subject to subsection (3), if the application is granted, the advance payment is to be paid on the next day on which the person is paid an instalment of job search allowance.
"(2) Subject to subsection (3), the advance payment is to be paid as a single lump sum.
"(3) The Secretary may determine that:
(a) an advance payment is to be paid on the day specified in the determination; or
(b) an advance payment is to be paid in the instalments specified in the determination on the days specified in the determination.
"570H. The advance payment is to be paid on condition that it, or other money of the person, is spent as specified in the application for the advance payment.
"
"570J.(1) This section applies if the person to whom the advance payment is payable has not, at all times during the 6 months immediately preceding the application for the advance payment, been receiving any of the following:
(a) a job search allowance;
(b) a newstart allowance;
(c) a youth training allowance.
"(2) Subject to section 570L, the amount of the advance payment is the smallest of the following amounts:
(a) the amount of advance payment sought;
(b) the maximum amount of advance payment payable to the person as worked out under subsection (3);
(c) $500.
"(3) For the purposes of paragraph (2)(b), the maximum amount of advance payment payable to the person is the amount worked out using the following formula:
14% ×
where:
(a) Benefit Rate Calculator A, excluding any amount payable by way of remote area allowance under Module K of Benefit Rate Calculator A; or
(b) Benefit Rate Calculator B, excluding any amount payable by way of remote area allowance under Module J of Benefit Rate Calculator B;
whichever is applicable.
"(4) Amounts worked out under subsection (3) must be rounded to the nearest cent (rounding 0.5 cents upwards).
Peter has, at all times during the past 4 months, been receiving a job search allowance. His fortnightly JSA rate is $150. He applies for an advance payment of $285.
The maximum amount of advance payment payable to Peter is worked out under subsection (3) as follows:
14% × $150 × 13 = $273.
This is the smallest of the 3 amounts referred to in subsection (2). Peter can therefore be paid an advance payment of $273.
Anne has, at all times during the past 5 months, been receiving a job search allowance. Her fortnightly JSA rate is $282.70. She applies for an advance payment of $450.
The maximum amount of advance payment payable to Anne is worked out under subsection (3) as follows:
14% × $282.70 × 13 = $514.51.
The smallest of the 3 amounts referred to in subsection (2) is $450. Anne can therefore be paid an advance payment of $450.
"570K.(1) This section applies if the person to whom the advance payment is payable has, at all times during the 6 months immediately preceding the application for the advance payment, been receiving any of the following:
(a) a job search allowance;
(b) a newstart allowance;
(c) a youth training allowance.
"(2) Subject to section 570L, the amount of the advance payment is the smallest of the following amounts:
(a) the amount of advance payment sought;
(b) the maximum amount of advance payment payable to the person as worked out under subsection (3);
(c) $1, 000.
"(3) For the purposes of paragraph (2)(b), the maximum amount of advance payment payable to the person is the amount worked out using the following formula:
14% ×
where:
(a) Benefit Rate Calculator A, excluding any amount payable by way of remote area allowance under Module K of Benefit Rate Calculator A; or
(b) Benefit Rate Calculator B, excluding any amount payable by way of remote area allowance under Module J of Benefit Rate Calculator B;
whichever is applicable.
"(4) Amounts worked out under subsection (3) must be rounded to the nearest cent (rounding 0.5 cents upwards).
Jane has, at all times during the past 11 months, been receiving a job search allowance. Her fortnightly JSA rate is $95. She applies for an advance payment of $310.
The maximum amount of advance payment payable to Jane is worked out under subsection (3) as follows:
14% × $95 × 26 = $345.80.
The smallest of the 3 amounts referred to in subsection (2) is $310. Jane can therefore be paid an advance payment of $310.
Alan has, at all times during the past 7 months, been receiving a job search allowance. His fortnightly JSA rate is $247. He applies for an advance payment of $950.
The maximum amount of advance payment payable to Alan is worked out under subsection (3) as follows:
14% × $247 × 26 = $899.08.
This is the smallest of the 3 amounts referred to in subsection (2). Alan can therefore be paid an advance payment of $899.08.
"570L.(1) The advance payment is not payable if the amount of the advance payment would be less than $250.
"(2) Subsection (1) does not prevent payment of an advance payment in instalments of less than $250.
Robert has, at all times during the past 14 weeks, been receiving a job search allowance. His fortnightly JSA rate is $100. He applies for an advance payment of $400.
The maximum amount of advance payment payable to Robert is worked out under subsection 570J(3) as follows:
14% × $100 × 13 = $182.
This is the smallest of the 3 amounts referred to under subsection 570J(2), but, because it is less than $250, no advance payment is payable.".
Insert:
"
"
"653A.(1) Subject to subsection (4), a person is qualified for an advance payment of a newstart allowance only if:
(a) a newstart allowance is payable to the person; and
(b) at all times during the qualifying period under subsection (2), the person has been receiving any of the following:
(i) a job search allowance;
(ii) a newstart allowance;
(iii) a youth training allowance; and
(c) the Secretary is satisfied that the advance payment will be used for the permitted purpose under subsection (3); and
(d) the Secretary is satisfied that the person will not suffer financial hardship from reductions in payments of job search allowance or newstart allowance as a result of receiving the advance payment.
"(2) For the purposes of paragraph (1)(b), the qualifying period is:
(a) if the amount of the advance payment sought by the person does not exceed $500—the 3 months immediately preceding the application; or
(b) if the amount of the advance payment sought exceeds $500—the 6 months immediately preceding the application.
"(3) For the purposes of paragraph (1)(c), the permitted purpose is:
(a) if the amount of the advance payment sought by the person does not exceed $500—to help the person search for work or participate in activities related to finding paid employment; or
(b) if the amount of the advance payment sought exceeds $500—to help the person comply with a Newstart Activity Agreement, or a Case Management Activity Agreement (within the meaning of the
Employment Services Act 1994 ), that the person has entered into.
"(4) A person is not qualified for an advance payment of a newstart allowance if:
(a) the maximum amount of advance payment to which the person would be entitled under Subdivision D is less than $250; or
(b) the person is subject to reduction in payments of newstart allowance as a result of receiving an advance payment of job search allowance or newstart allowance on a previous occasion; or
(c) the person owes a debt to the Commonwealth under Part 5.2.
"
"653B. A person who wants an advance payment of a newstart allowance must apply for the advance payment in accordance with this Subdivision.
"653C.(1) The application must be made in writing and must be in accordance with a form approved by the Secretary.
"(2) The application must specify:
(a) the amount of advance payment sought; and
(b) why the person wants the advance payment; and
(c) on what the advance payment would be spent.
"653D.(1) The application must be lodged:
(a) at an office of the Department; or
(b) at a place approved for the purpose by the Secretary; or
(c) with a person approved for the purpose by the Secretary.
"(2) A place or person approved under subsection (1) must be a place or person in Australia.
"653E.(1) An applicant for an advance payment or a person acting on behalf of an applicant may withdraw an application that has not been determined.
"(2) An application that is withdrawn is taken not to have been made.
"(3) A withdrawal may be made orally or in writing.
"
"653F.(1) The Secretary must determine the application in accordance with this Act.
"(2) The Secretary must determine that the application is to be granted if the Secretary is satisfied that the person is qualified for the advance payment.
"653G.(1) Subject to subsection (3), if the application is granted, the advance payment is to be paid on the next day on which the person is paid an instalment of newstart allowance.
"(2) Subject to subsection (3), the advance payment is to be paid as a single lump sum.
"(3) The Secretary may determine that:
(a) an advance payment is to be paid on the day specified in the determination; or
(b) an advance payment is to be paid in the instalments specified in the determination on the days specified in the determination.
"653H. The advance payment is to be paid on condition that it, or other money of the person, is spent as specified in the application for the advance payment.
"
"653J.(1) This section applies if the person to whom the advance payment is payable has not, at all times during the 6 months immediately preceding the application for the advance payment, been receiving any of the following:
(a) a job search allowance;
(b) a newstart allowance;
(c) a youth training allowance.
"(2) Subject to section 653L, the amount of the advance payment is the smallest of the following amounts:
(a) the amount of advance payment sought;
(b) the maximum amount of advance payment payable to the person as worked out under subsection (3);
(c) $500.
"(3) For the purposes of paragraph (2)(b), the maximum amount of advance payment payable to the person is the amount worked out using the following formula:
14% ×
where:
"(4) Amounts worked out under subsection (3) must be rounded to the nearest cent (rounding 0.5 cents upwards).
George has, at all times during the past 5 months, been receiving a newstart allowance. His fortnightly NSA rate is $140. He applies for an advance payment of $290.
The maximum amount of advance payment payable to George is worked out under subsection (3) as follows:
14% × $140 × 13 = $254.80.
This is the smallest of the 3 amounts referred to in subsection (2). George can therefore be paid an advance payment of $254.
Carol has, at all times during the past 4 months, been receiving a newstart allowance. Her fortnightly NSA rate is $255. She applies for an advance payment of $430.
The maximum amount of advance payment payable to Carol is worked out under subsection (3) as follows:
14% × $255 × 13 = $464.10.
The smallest of the 3 amounts referred to in subsection (2) is $430. Carol can therefore be paid an advance payment of $430.
"653K.(1) This section applies if the person to whom the advance payment is payable has, at all times during the 6 months immediately preceding the application for the advance payment, been receiving any of the following:
(a) a job search allowance;
(b) a newstart allowance;
(c) a youth training allowance.
"(2) Subject to section 653L, the amount of the advance payment is the smallest of the following amounts:
(a) the amount of advance payment sought;
(b) the maximum amount of advance payment payable to the person as worked out under subsection (3);
(c) $1, 000.
"(3) For the purposes of paragraph (2)(b), the maximum amount of advance payment payable to the person is the amount worked out using the following formula:
14% ×
where:
"(4) Amounts worked out under subsection (3) must be rounded to the nearest cent (rounding 0.5 cents upwards).
Angela has, at all times during the past 8 months, been receiving a newstart allowance. Her fortnightly NSA rate is $88. She applies for an advance payment of $295.
The maximum amount of advance payment payable to Angela is worked out under subsection (3) as follows:
14% × $88 × 26 = $320.22.
The smallest of the 3 amounts referred to in subsection (2) is $295. Angela can therefore be paid an advance payment of $295.
Philip has, at all times during the past 10 months, been receiving either a job search allowance or a newstart allowance. His fortnightly NSA rate is $239. He applies for an advance payment of $915.
The maximum amount of advance payment payable to Philip is worked out under subsection (3) as follows:
14% × $239 × 26 = $869.96.
This is the smallest of the 3 amounts referred to in subsection (2). Philip can therefore be paid an advance payment of $869.96.
"653L.(1) The advance payment is not payable if the amount of the advance payment would be less than $250.
"(2) Subsection (1) does not prevent payment of an advance payment in instalments of less than $250.
Fiona has, at all times during the past 14 weeks, been receiving a newstart allowance. Her fortnightly NSA rate is $115. She applies for an advance payment of $300.
The maximum amount of advance payment payable to Fiona is worked out under subsection 653J(3) as follows:
14% × $115 × 13 = $209.30.
This is the smallest of the 3 amounts referred to under subsection 653J(2), but, because it is less than $250, no advance payment is payable.".
Omit Step 10, substitute:
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After Module H insert:
"
"1067-J1. Subject to points 1067-J2 and 1067-J5, an amount by way of advance payment deduction is to be deducted from a person's rate if:
(a) a job search allowance is payable to the person; and
(b) the person has received an advance payment of job search allowance under Division 5A of Part 2.11 or an instalment of such an advance payment; and
(c) the person has not yet repaid, by previous deductions under this Module or by any other means of payment, the whole of the advance payment or instalment.
"1067-J2. An amount by way of advance payment deduction is not to be deducted from a person's rate in respect of:
(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.
"1067-J3. Subject to points 1067-J4, 1067-J5, 1067-J6, 1067-J7 and 1067-J8, the amount of the advance payment deduction is worked out as follows:
(a) if the full amount of the advance payment did not exceed, or (in the case of an instalment of an advance payment) 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 instalment of an advance payment) will when fully paid exceed, $500—by dividing the full amount of the advance payment by 26.
Peter has been paid an advance payment of $273 (see Example 1 at the end of section 570J).
Because the advance payment was less than $500, Peter's advance payment deduction is worked out under paragraph (a) of point 1067-J3 as follows:
$273 | = $21. |
13 |
"1067-J4. Subject to points 1067-J5, 1067-J7 and 1067-J8, the amount of the advance payment deduction is taken to be increased to a larger amount if:
(a) the person makes a written request to the Secretary for the amount of the advance payment deduction to be the larger amount; and
(b) the request applies to this advance payment deduction (whether or not it also applies to some or all of the other advance payment deductions to be deducted from the person's rate in relation to the advance payment in question).
However, this point does not apply if the Secretary is satisfied that the person would suffer severe financial hardship if the larger amount were deducted.
"1067-J5. Subject to points 1067-J6, 1067-J7 and 1067-J8, if:
(a) the person applies in writing to the Secretary for advance payment deductions to be decreased, or to be stopped, because of severe financial hardship; and
(b) the Secretary is satisfied that the person's circumstances are unforeseen and exceptional and that the person would suffer severe financial hardship if advance payment deductions of the amounts that would otherwise apply were to continue to be deducted from the person's rate;
the Secretary may determine in writing that, for the period specified in the determination:
(c) the amount of advance payment deductions is to be the lesser amount specified in the determination; or
(d) no amounts by way of advance payment deduction are to be deducted from the person's rate.
"1067-J6. At any time while the determination is in force, the Secretary may, in writing:
(a) vary the determination so as to require to be deducted from the person's rate an amount of advance payment deduction larger than the amount (if any) applying under the determination, but smaller than the amount 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.
"1067-J7. Subject to point 1067-J8, if an amount by way of 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 Module or otherwise), the amount of that advance payment deduction is taken to be an amount equal to the part that the person has not yet repaid.
Assume that, in the example at the end of point 1067-J3, Peter has requested that the advance payment deduction be the larger amount of $25 (see point 1067-J4), so that the advance payment of $273 will be repaid sooner.
If $25 is deducted from Peter's fortnightly rate of benefit, $250 will have been repaid after 10 successive fortnights, leaving $23 unpaid. Under point 1067-J7, the final advance payment deduction will be $23.
"1067-J8. If the provisional payment rate referred to in Step 11 of the Method statement in point 1067-A1 is less than the amount that would otherwise be the advance payment deduction, the amount of that advance payment deduction is taken to be an amount equal to the provisional payment rate.
"1067-J9. Amounts worked out under this Module must be rounded to the nearest cent (rounding 0.5 cents upwards).".
Omit Step 8, substitute:
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After Module G insert:
"
"1068-H1. Subject to points 1068-H2 and 1068-H5, an amount by way of advance payment deduction is to be deducted from a person's rate if:
(a) a job search allowance or a newstart allowance is payable to the person; and
(b) the person has received an advance payment of job search allowance under Division 5A of Part 2.11, an advance payment of newstart allowance under Division 5A of Part 2.12, or an instalment of such an advance payment; and
(c) the person has not yet repaid, by previous deductions under Module J of Benefit Rate Calculator A or this Module or by any other means of payment, the whole of the advance payment or instalment.
"1068-H2. An amount by way of advance payment deduction is not to be deducted from a person's rate in respect of:
(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.
"1068-H3. Subject to points 1068-H4. 1068-H5, 1068-H6, 1068-H7 and 1068-H8, the amount of the advance payment deduction is worked out as follows:
(a) if the full amount of the advance payment did not exceed, or (in the case of an instalment of an advance payment) 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 instalment of an advance payment) will when fully paid exceed, $500—by dividing the full amount of the advance payment by 26.
Anne had applied for and has been paid an advance payment of $450. The maximum amount of advance payment payable to her was $514.51 (see Example 2 at the end of section 570J).
Because the advance payment was less than $500, Anne's advance payment deduction is worked out under paragraph (a) of point 1068-H3 as follows:
$450 | = $34.62. |
13 |
The fact that Anne could have been paid up to $514.51 does not affect the calculation (even though the advance payment deduction for such an amount would have been calculated under paragraph (b) of point 1068-H3).
"1068-H4. Subject to points 1068-H5, 1068-H7 and 1068-H8, the amount of the advance payment deduction is taken to be increased to a larger amount if:
(a) the person makes a written request to the Secretary for the amount of the advance payment deduction to be the larger amount; and
(b) the request applies to this advance payment deduction (whether or not it also applies to some or all of the other advance payment deductions to be deducted from the person's rate in relation to the advance payment in question).
However, this point does not apply if the Secretary is satisfied that the person would suffer severe financial hardship if the larger amount were deducted.
"1068-H5. Subject to points 1068-H6, 1068-H7 and 1068-H8, if:
(a) the person applies in writing to the Secretary for advance payment deductions to be decreased, or to be stopped, because of severe financial hardship; and
(b) the Secretary is satisfied that the person's circumstances are unforeseen and exceptional and that the person would suffer severe financial hardship if advance payment deductions of the amounts that would otherwise apply were to continue to be deducted from the person's rate;
the Secretary may determine in writing that, for the period specified in the determination:
(c) the amount of advance payment deductions is to be the lesser amount specified in the determination; or
(d) no amounts by way of advance payment deduction are to be deducted from the person's rate.
"1068-H6. At any time while the determination is in force, the Secretary may, in writing:
(a) vary the determination so as to require to be deducted from the person's rate an amount of advance payment deduction larger than the amount (if any) applying under the determination, but smaller than the amount 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.
"1068-H7. Subject to point 1068-H8, if an amount by way of 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 Module or otherwise), the amount of that advance payment deduction is taken to be an amount equal to the part that the person has not yet repaid.
Assume that, in the example at the end of point 1068-H3, Anne has requested that the advance payment deduction be the larger amount of $55 (see point 1068-H4), so that the advance payment of $450 will be repaid sooner.
If $55 is deducted from Anne's fortnightly rate of benefit, $440 will have been repaid after 8 successive fortnights, leaving $10 unpaid. Under point 1068-H7, the final advance payment deduction will be $10.
"1068-H8. If the provisional payment rate referred to in Step 9 of the Method statement in point 1068-A1 is less than the amount that would otherwise be the advance payment deduction, the amount of that advance payment deduction is taken to be an amount equal to the provisional payment rate.
"1068-H9. Amounts worked out under this Module must be rounded to the nearest cent (rounding 0.5 cents upwards).".
After:
" • section 1224D debts—mobility allowance advance debts;"
insert:
" • section 1224E debts—debts arising from advance payments of job search allowance and newstart allowance;".
After item 5C insert:
"
5D. | 1224E (debt arising from advance payments of job search allowance and newstart allowance) | deductions legal proceedings garnishee notice | 1231, 1234A 1232 1233 | ". |
After "1224D," insert "1224E, ".
Insert:
"1224E.(1) If:
(a) a person has received an advance payment of job search allowance under Division 5A of Part 2.11, an advance payment of newstart allowance under Division 5A of Part 2.12, or an instalment of such an advance payment; and
(b) subject to subsection (3), job search allowance ceases to be payable to the person, or newstart allowance ceases to be payable to the person, as the case requires; and
(c) at the time of job search allowance or newstart allowance ceasing to be payable, the person has not yet repaid, by previous deductions under Module J of Benefit Rate Calculator A or Module H of Benefit Rate Calculator B or by any other means of payment, the whole of the advance payment or instalment;
the amount that has not been repaid is a debt due to the Commonwealth.
"(2) The debt is recoverable by the Commonwealth by means of:
(a) if the person is receiving a social security payment under this Act—deductions from that person's social security payment; or
(b) if section 1234A applies to another person who is receiving a social security payment under this Act—deductions from that other person's social security payment; or
(c) legal proceedings; or
(d) garnishee notice.
Note 1: For deductions see sections 1231 and 1234A.
Note 2: For legal proceedings see section 1232.
Note 3: For garnishee notice see section 1233.
Note 4: If the person does not pay the debt or enter into an agreement to pay the debt within a certain time, interest may become payable on the debt (see section 1229). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 1229A).
"(3) For the purposes of paragraph (1)(b), a job search allowance is taken not to have ceased to become payable if a newstart allowance becomes payable to the person immediately after the job search allowance ceases to be payable to the person.".
After "1224D, " insert "1224E, ".
AMENDMENTS RELATING TO ACTIVITY TESTS
Add at the end:
"Note: See subsection (2A) on taking reasonable steps.".
Add at the end:
"Note: See subsection (2A) on taking reasonable steps.".
Add at the end:
"Note: See subsection (2A) on taking reasonable steps.".
Insert:
"(2A) For the purposes of paragraph (1)(bb), (1A)(cb) or (2)(bb), a person is taking reasonable steps to comply with the terms of a Job Search Activity Agreement unless the person has failed to comply with the terms of the agreement and:
(a) the main reason for failing to comply involved a matter that was within the person's control; or
(b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.".
(a) Omit "that in the opinion of the Secretary is suitable", substitute ", other than paid work that is unsuitable".
(b) Add at the end:
"Note 2: See subsections (2A) and (2B) on what paid work is unsuitable.".
Add at the end:
"Note: See subsection (6) on taking reasonable steps.".
(a) Omit "that, in the opinion of the Secretary, is suitable", substitute ", than paid work that is unsuitable".
(b) Add at the end:
"Note: See subsections (2A) and (2B) on what paid work is unsuitable.".
Add at the end:
"Note 2: See subsection (6) on taking reasonable steps.".
Insert:
"(2A) For the purposes of subsection (1) and subparagraph (2)(a)(i), particular paid work is unsuitable for a person if and only if, in the Secretary's opinion:
(a) the person lacks the particular skills, experience or qualifications that are needed to perform the work; or
(b) the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or
(c) performing the work in the conditions in which the work would be performed would constitute a risk to health or safety and would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or
(d) the work would involve the person being self-employed; or
(e) the work would be covered by an industrial award but the employer would only employ the person if the person agreed to become a party to an agreement reducing or abolishing rights that the award confers on employees; or
(f) the work would not be covered by an industrial award and the remuneration for the work would be lower than the minimum applicable rate of remuneration for comparable work that is covered by an industrial award; or
(g) commuting between the person's home and the place of work would be unreasonably difficult; or
(h) for any other reason, the work is unsuitable for the person.
"(2B) Commuting is not unreasonably difficult for the purposes of paragraph (2A)(g) if:
(a) the sole or principal reason for the difficulty is that the commuting involves a journey, either from the person's home to the place of work or from the place of work to the person's home, that does not normally exceed 90 minutes in duration; or
(b) in the Secretary's opinion, a substantial number of people living in the same area as the person regularly commute to their places of work in circumstances similar to those of the person.
"(2C) Subsection (2B) does not limit the Secretary's discretion to form the opinion that, for the purposes of paragraph (2A)(g), commuting is not unreasonably difficult.
"(2D) A reference in subsection (2A) to remuneration for work is a reference to any income derived from the work that is income from personal exertion.
Note: For 'income from personal exertion' see subsection 8(1).".
Add at the end:
"Note: See subsection (6) on taking reasonable steps.".
Add at the end:
"Note: See subsection (6) on taking reasonable steps.".
Add at the end:
"(6) For the purposes of this section, a person takes reasonable steps to comply with a notice under subsection (1A), with a requirement of the Secretary under subsection (2), or with the terms of a Job Search Activity Agreement (as the case requires) unless the person has failed so to comply and:
(a) the main reason for failing to comply involved a matter that was within the person's control; or
(b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.".
Add at the end:
"Note: See subsection (2A) on taking reasonable steps.".
Add at the end:
"Note: See subsection (2A) on taking reasonable steps.".
Insert:
"(2A) For the purposes of paragraph (1)(f) or (2)(f), a person is taking reasonable steps to comply with the terms of a Newstart Activity Agreement unless the person has failed to comply with the terms of the agreement and:
(a) the main reason for failing to comply involved a matter that was within the person's control; or
(b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.".
(a) Omit "that in the opinion of the Secretary is suitable", substitute ", other than paid work that is unsuitable".
(b) Add at the end:
"Note 2: See subsections (2A) and (2B) on what paid work is unsuitable.".
Add at the end:
"Note: See subsection (6) on taking reasonable steps.".
(a) Omit "that, in the opinion of the Secretary, is suitable", substitute ", other than paid work that is unsuitable".
(b) Add at the end:
"Note: See subsections (2A) and (2B) on what paid work is unsuitable.".
Add at the end:
"Note 2: See subsection (6) on taking reasonable steps.".
Insert:
"(2A) For the purposes of subsection (1) and subparagraph (2)(a)(i), particular paid work is unsuitable for a person if and only if, in the Secretary's opinion:
(a) the person lacks the particular skills, experience or qualifications that are needed to perform the work; or
(b) the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or
(c) performing the work in the conditions in which the work would be performed would constitute a risk to health or safety and would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or
(d) the work would involve the person being self-employed; or
(e) the work would be covered by an industrial award but the employer would only employ the person if the person agreed to become a party to an agreement reducing or abolishing rights that the award confers on employees; or
(f) the work would not be covered by an industrial award and the remuneration for the work would be lower than the minimum applicable rate of remuneration for comparable work that is covered by an industrial award; or
(g) commuting between the person's home and the place of work would be unreasonably difficult; or
(h) for any other reason, the work is unsuitable for the person.
"(2B) Commuting is not unreasonably difficult for the purposes of paragraph (2A)(g) if:
(a) the sole or principal reason for the difficulty is that the commuting involves a journey, either from the person's home to the place of work or from the place of work to the person's home, that does not normally exceed 90 minutes in duration; or
(b) in the Secretary's opinion, a substantial number of people living in the same area as the person regularly commute to their places of work in circumstances similar to those of the person.
"(2C) Subsection (2B) does not limit the Secretary's discretion to form the opinion that, for the purposes of paragraph (2A)(g), commuting is not unreasonably difficult.
"(2D) A reference in subsection (2A) to remuneration for work is a reference to any income derived from the work that is income from personal exertion.
Note: For 'income from personal exertion' see subsection 8(1).".
Add at the end:
"Note: See subsection (6) on taking reasonable steps.".
Add at the end:
"Note: See subsection (6) on taking reasonable steps.".
Add at the end:
"(6) For the purposes of this section, a person takes reasonable steps to comply with a notice under subsection (1A), with a requirement of the Secretary under subsection (2), or with the terms of a Newstart Activity Agreement (as the case requires)'unless the person has failed so to comply and:
(a) the main reason for failing to comply involved a matter that was within the person's control; or
(b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.".
AMENDMENTS RELATING TO ASSESSABLE FRINGE BENEFITS
Omit "If", substitute "Subject to subsection (1A), if".
Insert:
"(1 A) 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.".
Add at the end:
"(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:
(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 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.".
Insert:
"
Repeal the section, substitute:
"1157S.(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.".
After "housing fringe benefit" (first occurring) insert "to which subsection 1157I(1) applies that is provided to a person who is not an employee of the Defence Force".
Omit "housing benefit", substitute "housing fringe benefit".
After "housing fringe benefit" (first occurring) insert "to which subsection 1157I(1) applies that is provided to a person who is not an employee of the Defence Force".
Insert:
"1157TA.(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:
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 | |
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Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person. | |
Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 2: the result is the | |
Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3). | |
| |
Take the allowable rent away from the provisional value of the housing fringe benefit: the result is the | |
Note: For 'employee' see section 10A.
"(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:
Type of accommodation | ||
House, flat or home unit | Any other unit of accommodation | |
3 or more bedrooms | 1-2 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.".
Insert:
"
"1157TB.(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. The value of a housing fringe benefit to which subsection 1157I(2) applies is the amount of the payment that constitutes the housing benefit.
"
"1157TD.(1) Subject to subsection (3), the value of a housing fringe benefit to which subsection 1157I(4) 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(4) applies that is provided to an employee of the Defence Force is to be worked out in accordance with section 1157TF.
"(3) If:
(a) a determination is in force under section 1157U; and
(b) the determination applies to housing fringe benefits to which subsection 1157I(4) applies;
the value of a housing fringe benefit to which subsection 1157I(4) applies is to be worked out in accordance with the determination.
"1157TE.(1) This is how to work out the value of a housing fringe benefit to which subsection 1157I(4) applies that is provided to a person who is not an employee of the Defence Force:
Work out the location of the unit of accommodation and go to the appropriate row of the Housing Fringe Benefits Value Table. | |
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 | |
| |
Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person. | |
Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 3: the result is the | |
Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3). | |
| |
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 | |
Work out the amount (if any) by which the allowable rent exceeds the employer subsidy: the result is the | |
| |
Take the employee contribution away from the provisional value of the housing fringe benefit: the result is the |
"(2) The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(4) applies that is provided to a person who is not an employee of the Defence Force:
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 |
Note 1: For 'unit of accommodation', 'metropolitan location', 'non-metropolitan location' and 'special housing location' see section 10A.
Note 2: 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.(1) This is how to work out the value of a housing fringe benefit to which subsection 1157I(4) applies that is provided to an employee of the Defence Force:
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 | |
| |
Work out how many complete weeks in the appropriate tax year the unit of accommodation was or will be available to the person. | |
Multiply the weekly market rent of the unit of accommodation and the number of weeks obtained in Step 2: the result is the | |
Work out the allowable rent for the unit of accommodation in the appropriate tax year using subsection (3). | |
| |
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 | |
Work out the amount (if any) by which the allowable rent exceeds the employer subsidy: the result is the | |
| |
Take the employee contribution away from the provisional value of the housing fringe benefit: the result is the | |
"(2) The following Table is to be used in working out the value of a housing fringe benefit to which subsection 1157I(4) applies that is provided to an employee of the Defence Force:
Type of accommodation | ||
House, flat or home unit | Any other unit of accommodation | |
3 or more bedrooms | 1-2 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.
"
Insert:
"(1A) A determination under subsection (1) may apply to all housing fringe benefits or only to specified kinds of housing fringe benefits.".
AMENDMENTS RELATING TO SUPERANNUATION
INVESTMENT PRODUCTS
Add at the end:
"Note: See subsection (12).".
Add at the end:
"Note: See subsection (12).".
Add at the end:
"Note: See subsection (12).".
Add at the end:
"(12) References to the Income Tax Assessment Act in the definitions of 'deductible amount', 'non-assessable purchase price' and 'roll-over purchase price' in subsection (1) are taken to be references to the Income Tax Assessment Act as in force immediately before 1 July 1994.".
Social Security Act 1991 1. No. 46, 1991, as amended. For previous amendments, see Nos. 68, 69, 70, 73, 74, 115, 116, 141, 175, 194, and 208, 1991; Nos. 12, 69, 81, 94, 118, 133, 134, 138, 228, 229, 230, 233 and 241, 1992; Nos. 25, 36, 61, 120 and 121, 1993; and Nos. 55 and 109, 1994.
NOTE ABOUT SECTION HEADING
1. Upon the commencement of items 5 to 9 of Schedule 7, the heading to section 1157T of the Principal Act is omitted and the following heading is substituted: "
Value of grants of housing rights—general ".[
Minister's second reading speech made in—
House of Representatives on 22 September 1994
Senate on 18 October 1994
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