Social Security (Family Payment) Amendment Act 1992 (Cth)

Social Security (Family Payment) Amendment Act 1992

No. 69 of 1992

TABLE OF PROVISIONS
PART 1—PRELIMINARY
Section
1.	Short title etc.
2.	Commencement
PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991
3.	Repeal and substitution of Parts 2.17 and 2.18:
PART 2.17—FAMILY PAYMENT
Division 1—Family payment child status
831.	FP child
832.	FP child—prescribed student child not included
833.	FP child—child over 18
834.	FP child—child in approved care organisation care
835.	FP child—residence requirements
836.	FP child—child absent from Australia for more than 3 years
Division 2—Qualification for and payability of family payment
Subdivision A—Qualification
837.	Qualified person outside Australia for more than 13 weeks
838.	Qualification for individual family payment
839.	Qualification for approved care organisation family payment
840.	Qualification for family payment ceases after 3 year absence of recipient from Australia

TABLE OF PROVISIONS—continued

Section	Subdivision B—Payability
841.	Family payment not payable in some circumstances
842.	Family payment generally not payable before claim
843.	Family payment provisional commencement day
844.	Backdating—birth of child
845.	Backdating—new client
846.	Backdating—child disability allowance payable
847.	Backdating—death of former recipient
848.	Family payment not payable to 2 people for the same child
849.	Provision of person’s tax file number
850.	Provision of partner’s tax file number
Division 3—Claim for family payment
851.	Need for a claim
852.	Form of claim
853.	Lodgment of claim
854.	Claimant must be inhabitant of Australia
855.	Secretary may require recipient or claimant to give statement of tax file number
856.	Secretary may require recipient or claimant to give statement of partner’s tax file number
Division 4—Determination of claim
857.	Secretary to determine claim
858.	Grant of claim
859.	Date of effect of determination
Division 5—Rate of family payment
860.	Rate struck for calendar year
861.	How to work out a person’s family payment rate
Division 6—Payment of family payment
862.	Commencement of family payment
863.	Payment by instalments
864.	Effect on instalments of backdating claim
865.	Instalments to be paid to person or nominee
866.	Payment into bank account etc.
867.	Where family payment payday would fall on public holiday etc.
868.	Payment of family payment after death
869.	Secretary may make declaration where 2 people qualified for family payment for the same child
Division 7—Protection of family payment
870.	Family payment to be absolutely inalienable
871.	Effect of garnishee or attachment order
Division 8—Recipient obligations
872.	Secretary may require notice of the happening of an event or a change in circumstances
873.	Secretary may require recipient to give particular information relevant to payment of family payment

TABLE OF PROVISIONS—continued

Section	Division 9—Continuation, variation and termination
Subdivision A—General
874.	Continuing effect of determination
Subdivision B—Automatic termination
875.	Automatic termination—recipient complying with section 872 notification obligations
876.	Automatic termination—recipient not complying with section 872 notification obligations
Subdivision C—Automatic rate reduction
877.	Automatic rate reduction—recipient not complying with section 872 notification obligations
Subdivision D—Determinations
878.	Rate increase determination
879.	Rate reduction determination
880.	Cancellation or suspension determination
881.	Cancellation or suspension for failure to comply with section 873, 1304 or 1305 notice
882.	Changes to payments by computer
883.	Resumption of payment after cancellation or suspension
Subdivision E—Taxable income determinations
884. 885. 886.	Effect of amendment of assessed taxable income Recalculation if taxable income underestimated by 25% or more Recalculation if failure to notify notifiable event
Subdivision F—Date of effect of determinations
887.	Date of effect of favourable determination
888.	Amendment of assessment of taxable income
889.	Date of effect of adverse determination
890.	Date of effect of variation of rate of family payment because of amendment of assessed taxable income
891.	Underestimate of taxable income—date of effect of determination
Division 10—Bereavement payments (death of dependent child)
Subdivision A—Death of dependent child (general)
892.	Continuation of qualification for family payment for bereavement rate continuation period where recipient’s only FP child dies
893.	Bereavement payments on death of dependent child
894.	Continued payment of family payment
895.	Lump sum payable in some circumstances
896.	Additional lump sum payable in some circumstances
Subdivision B—Death of dependent child (special short-term assistance)
897.	Continuation of qualification for family payment for 4 weeks in some cases where recipient’s only FP child dies
898.	Bereavement payments on death of dependent child
899.	Continued payment of family payment

TABLE OF PROVISIONS—continued

Section	Subdivision C—Death of recipient
900. Death of recipient
4.	Repeal of Parts 3.7 and 3.8 and substitution of new Part:
PART 3.7—FAMILY PAYMENT RATE CALCULATOR
MODULE A—OVERALL RATE CALCULATION PROCESS (point 1069-A1)
MODULE B—MAXIMUM BASIC RATE (points 1069-B1 to 1069-B3)
MODULE C—MULTIPLE BIRTH ALLOWANCE (points 1069-C1 and 1069-C2)
MODULE D—ADDITIONAL FAMILY PAYMENT (points 1069-D1 to 1069-D23)
MODULE E—SHARED DAILY CARE AND CONTROL (points 1069-E1 to 1069-E6)
MODULE F—RENT ASSISTANCE (points 1069-F1 to 1069-F7)
MODULE G—GUARDIAN ALLOWANCE (points 1069-G1 to 1069-G8)
MODULE H—TAXABLE INCOME TEST (points 1069-H1 to 1069-H26)
MODULE I—MAINTENANCE INCOME TEST (points 1069-11 to 1069-19)
5.	Repeal of sections 1132A and 1132B and substitution of new section:
1132A. Access to financial hardship rules—family payment
6.	Savings—overseas payments
7.	Transitional—top-up payments
8.	Transitional—transfer to family payment
9.	References to family allowance and family allowance supplement in other laws
10.	Consequential amendments

SCHEDULE

CONSEQUENTIAL AMENDMENTS

Social Security (Family Payment) Amendment Act 1992

No. 69 of 1992

An Act to amend the Social Security Act 1991,and for related purposes

[Assented to 26 June 1992]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title etc.

1.(1) This Act may be cited as the Social Security (Family Payment) Amendment Act 1992.

(2) In this Act, “Principal Act” means the Social Security Act 19911.

Commencement

2. This Act commences on 1 January 1993.

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

Repeal and substitution of Parts 2.17 and 2.18

3. Parts 2.17 and 2.18 of the Principal Act are repealed and the following Part is substituted:

“PART 2.17—FAMILY PAYMENT

“Division 1—Family payment child status

FP child

“831.(1) Subject to subsections (2) and (3) and sections 832 to 836, each dependent child of a person is also an FP child of that person.

“(2) If the male member of a couple has a dependent child, the dependent child is taken to be the dependent child of the female member of the couple.

“(3) Subsection (2) does not apply if family payment is not payable to the female for the child for some reason other than that the child is not her dependent child.

Note: for ‘dependent child’ see subsections 5(2) to (9).

FP child—prescribed student child not included

“832.(1) A dependent child cannot be an FP child if the child:
(a)
has turned 16; and
(b)
is a prescribed student child.

“(2) For the purposes of subsection (1), a young person who is qualified to receive payments under the Assistance for Isolated Children Scheme is not a prescribed student child.

Note: for ‘prescribed student child’ see subsection 5(11).

FP child—child over 18

“833.(1) Subject to subsections (2), (3) and (4), a dependent child who has turned 18 cannot be an FP child.

“(2) A dependent child who has turned 18 and is undertaking secondary studies may be an FP child of a person until:

(a)
the end of the calendar year in which the child turned 18; or
(b)
the child ceases secondary studies;

whichever first happens.

“(3) A dependent child who has turned 18 may be an FP child if a person would, but for subsection (1), be qualified for:

(a) additional family payment; or

(b) a double orphan pension; or
(c) a child disability allowance;

for the child.

“(4) A dependent child who has turned 18 may be an FP child of a person if the person or the person’s partner is receiving a service pension.

FP child—child in approved care organisation care

“834.(1) If a person is qualified for family payment for a young person, an approved care organisation cannot be qualified for family payment for the young person.

Note: for ‘young person’ see subsection 5(1).

“(2) An approved care organisation is not qualified for additional family payment for a young person.

“(3) If an approved care organisation is receiving family payment for a young person, no person is qualified for additional family payment for the young person.

FP child—residence requirements

“835. A dependent child cannot be an FP child unless:
(a)
the child is an inhabitant of Australia; or
(b)
the child is a dependent child of an inhabitant of Australia and is living with that inhabitant.

FP child—child absent from Australia for more than 3 years

“836.(1) If a dependent child of a person:
(a) either:
(i) leaves Australia; or
(ii) is born outside Australia; and
(b) continues to be absent from Australia for more than 3 years;

the child cannot be an FP child of the person at any time after the first 3 years of absence while the child remains absent from Australia.

“(2) If:
(a)
a dependent child who has been absent from Australia for less than 3 years comes to Australia; and
(b)
the child leaves Australia less than 13 weeks later;

for the purposes of subsection (1), the child is taken not to have come to Australia.

“(3) If:
(a)
a dependent child of a person is not an FP child because of subsection (1) or a previous application of this subsection; and
(b)
the child comes to Australia; and

(c) the child leaves Australia less than 13 weeks later;

the child cannot be an FP child of the person when the child leaves Australia as mentioned in paragraph (c).

“Division 2—Qualification for and payability of family payment

“Subdivision A—Qualification

Qualified person outside Australia for more than 13 weeks

“837.(1) Subject to subsection (2), if:
(a)
a person (the ‘first parent’) who is qualified for family payment for a dependent child leaves Australia; and
(b)
the child is also a dependent child of another person; and
(c) the child is living in Australia with the other person;

the child continues to be an FP child of the first parent.

“(2) If the first parent continues to be absent from Australia for more than 13 weeks, the child ceases to be an FP child of the first parent from the end of that period until the first parent returns to Australia.

Qualification for individual family payment

“838.(1) A person is qualified for family payment if:
(a)
the person has at least one FP child; and
(b)
the person is an inhabitant of Australia; and
(c)
the person’s taxable income for the relevant family payment period does not exceed the person’s taxable income ceiling; and
(d)
the value of the person’s assets does not exceed $600,000.

Note 1: for ‘inhabitant of Australia’ see subsection 23(1).

Note 2: for the taxable income ceiling see Module H of the Family Payment Rate Calculator in section 1069.
Note 3: for the assets that are to be disregarded in valuing a person’s assets see section 1118.
Note 4: for the valuation of an asset that is subject to a charge or encumbrance see section 1121.
Note 5: the amount referred to in paragraph (1)(d) is indexed annually in line with CPI increases (see sections 1191 to 1194).

Note 6: the assets test may be modified by the hardship provision in section 1132A.

Note 7: there is a separate assets test for additional family payment (see point 1069-D2 of the Family Payment Rate Calculator in section 1069).

“(2) For the purposes of paragraph (1)(d), the value of the assets of a person is taken to include:

(a)
the value of the assets of the person’s partner; and
(b)
the value of the assets of the person’s FP child or FP children.

Qualification for approved care organisation family payment

“839.(1) An approved care organisation is, subject to subsections (2), (3) and (4), qualified for family payment for a young person if:

(a)
the young person is a client of the organisation; and
(b)
the young person is an inhabitant of Australia; and
(c) no person is receiving family payment for the young person.

Note: for ‘approved care organisation’ see subsection 6(1) and section 35.

“(2) If the young person has not turned 16, the organisation is not qualified for family payment for the young person if the young person:

(a)
is not a full-time student; and
(b)
is in receipt of income from employment; and
(c)
the rate of that income exceeds $111.35 per week.
Note: the amount referred to in paragraph (2) (c) is indexed annually in line with CPI increases (see sections 1191 to 1194).

“(3) If the young person has turned 16, the organisation is not qualified for family payment for the young person if the young person is a prescribed student child.

Note: for ‘prescribed student child’ see subsection 5(11).

“(4) An approved care organisation is not qualified for family payment for a young person if the young person is receiving:

(a)
a social security pension or benefit; or
(b)
a payment under a program included in the programs known as Labour Force Programs.

“(5) For the purposes of subsection (3), a prescribed student child does not include a young person qualified to receive payments under the Assistance for Isolated Children Scheme.

Qualification for family payment ceases after 3 year absence of recipient from Australia

“840.(1) If a person who is qualified for family payment:
(a)
leaves Australia; and
(b)
continues to be absent from Australia for more than 3 years;

the person is not qualified for family payment at any time after the first 3 years of the absence while the person remains absent from Australia.

Note: for effects of absence for shorter periods see section 837.

“(2) If:
(a)
a person who has been absent from Australia for less than 3 years returns to Australia; and
(b)
the person leaves Australia again within 13 weeks after returning to Australia;

for the purposes of subsection (1), the person is taken not to have returned to Australia.

“(3) If:
(a)
a person who has been absent from Australia is not qualified for family payment because of the application of subsection (1), or a previous application of this subsection, in relation to the person’s absence; and
(b)
the person returns to Australia; and
(c)
within 13 weeks after returning, the person leaves Australia again;

the person is not qualified for family payment at any time during the absence referred to in paragraph (c).

“Subdivision B—Payability

Family payment not payable in some circumstances

“841. Even though a person is qualified for family payment, the payment may not be payable to the person because:

(a)
the payment has not commenced to be payable (see sections 842 and 862); or
(b)
the person has not provided a tax file number for the person (see section 849) or the person’s partner (see section 850); or
(c)
another person is receiving family payment for the person’s child (see section 848); or
(d)
the person’s family payment rate would be nil.

Family payment generally not payable before claim

“842. Family payment is not payable to a person before the provisional commencement day (identified under section 843).

Note: for ‘recipient’ see section 6.

Family payment provisional commencement day

“843.(1) Subject to this section and to sections 844, 845, 846 and 847, the provisional commencement day is the day on which the person or approved care organisation claims family payment.

“(2) If:
(a) a person or an approved care organisation makes a claim (the ‘initial claim’) for:
(i) a child disability allowance or a double orphan pension;
or
(ii) a pension, allowance, benefit or other payment under another Act, or under a program administered by the Commonwealth, that is similar in character to a family payment; and

(b)
on the day on which the person or organisation makes the initial claim, the person or organisation is qualified for family payment; and
(c)
the person or organisation subsequently makes a claim for family payment; and
(d)
the Secretary is satisfied that it is reasonable for this subsection to apply to the person or organisation;

the person’s or organisation’s provisional commencement day is the day on which the person or organisation made the initial claim.

“(3) If:
(a)
a person lodges a claim for family payment; and
(b)
the person is not, on the day on which the claim is lodged, qualified for family payment; and
(c)
the person becomes qualified for family payment during the period of 13 weeks that starts immediately after that day;

the person’s provisional commencement day is the first day on which the person is qualified for family payment.

Backdating—birth of child

“844. If:
(a)
a person has a dependent child; and
(b)
the person lodges a claim for family payment in respect of the dependent child within 13 weeks of the birth of the dependent child;

the person’s provisional commencement day is the day on which the dependent child is born.

Backdating—new client

“845. If:
(a)
a young person becomes a client of an approved care organisation; and
(b)
the organisation lodges a claim for family payment within 4 weeks after the day on which the young person becomes a client of the organisation;

the organisation’s provisional commencement day is the day on which the young person becomes a client of the organisation.

Note: for ‘provisional commencement day’ see section 843.

Backdating—child disability allowance payable

“846. If:
(a)
a person who is qualified for family payment claims family payment; and
(b)
an FP child of the person is also a CDA child of the person (see sections 952 and 953); and

(c) child disability allowance is payable to the person for the child from a day determined in accordance with section 959 (backdating CDA—claim within 12 months of becoming qualified) or section 960 (backdating CDA—claim after 12 months of becoming qualified);

family payment can become payable before the provisional commencement day but cannot become payable before:

(d)
if the person’s provisional commencement day is within 52 weeks after the day on which the person became qualified for family payment—the first day in the period on which the person is qualified for family payment; or
(e)
if the person’s provisional commencement day is more than 52 weeks after the person became qualified for family payment— the day occurring 52 weeks before the person’s provisional commencement day.
Note 1: for ‘provisional commencement day’ see section 843.
Note 2: the family payment will not necessarily be backdated to the day referred to in paragraph (d) or (e)—some other factor may make the payment not payable at that time.

Backdating—death of former recipient

“847. If:
(a)
a person who is receiving family payment for an FP child dies; and
(b)
another person makes a claim for family payment for the child within 13 weeks after the death;

family payment can become payable to the second person before the provisional commencement day but cannot become payable to that person before the day of the death.

Family payment not payable to 2 people for the same child

“848. If:
(a)
2 people are each qualified for family payment for the same child; and
(b)
the Secretary has not made a declaration under subsection 869(1) in respect of family payment for the child; and
(c)
one of the people is receiving family payment for the child; and
(d) the child is the only FP child of the other person;

family payment is not payable to that other person.

Provision of person’s tax file number

“849.(1) Family payment is not payable to a person if:
(a) the person is required under section 855 to give the Secretary a written statement of the person’s tax file number; and

(b) at the end of the period of 28 days after the requirement 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 a declaration by the person in a form approved by the Secretary and satisfied either subsection (2) or (3).
“(2) The person satisfies this subsection if:
(a) the person’s 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 the person of the person’s tax file number; and
(b) the person has given the Secretary a document by the person that authorises the Commissioner of Taxation 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 of Taxation has not told the Secretary that the person has no tax file number.
“(3) The person satisfies this subsection if:
(a)
the person’s declaration states that an application by the person for a tax file number is pending; and
(b)
the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:
(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 of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and
(d)
the application for a tax file number has not been withdrawn.

Provision of partner’s tax file number

“850.(1) Subject to subsection (4), family payment is not payable to a person if:

(a)
the person is a member of a couple; and
(b)
the person is required under section 856 to give the Secretary a written statement of the tax file number of the person’s partner; and

(c) at the end of the period of 28 days after the requirement is made the person has neither:
(i) given the Secretary a written statement of the partner’s tax file number; nor
(ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).
“(2) The person satisfies this subsection if:
(a) the partner’s declaration states that the partner:
(i) has a tax file number but does not know what it is; and (ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and
(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:
(i) whether the partner has a tax file number; and
(ii) if the partner has a tax file number—the tax file number; and
(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.
“(3) The person satisfies this subsection if:
(a)
the partner’s declaration states that an application by the partner for a tax file number is pending; and
(b)
the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:
(i) if a tax file number is issued to the partner—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 of Taxation has not told the Secretary that an application by the partner 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 requirement for a statement of the partner’s tax file number if the Secretary is satisfied that:

(a)
the person does not know the partner’s tax file number; and
(b)
the person can obtain none of the following from the partner:
(i) the partner’s tax file number;
(ii) a statement of the partner’s tax file number;
(iii) a declaration by the partner under subparagraph (1)(c)(ii).

“Division 3—Claim for family payment

Need for a claim

“851.(1) A person who wants to be granted family payment must make a proper claim for that payment.

“(2) An approved care organisation that wants to be granted family payment must make a proper claim for that payment.

Note: for ‘proper claim’ see section 852 (form), section 853 (manner of lodgment) and section 854 (inhabitant of Australia).
“(3) For the purposes of subsections (1) and (2), if:
(a)
a claim for family payment is made by or on behalf of a person or an approved care organisation; and
(b)
at the time the claim is made, the claim cannot be granted because the person or organisation is not qualified for family payment;

the claim is, subject to subsection 843(3), to be taken not to have been made.

Form of claim

“852. To be a proper claim, a claim must be made in writing and must be in accordance with a form approved by the Secretary.

Lodgment of claim

“853.(1) To be a proper claim, a claim 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)

Subject to subsection (3), a place or person approved under subsection (1) must be a place or person in Australia.

(3)

The Secretary may approve a place or person outside Australia under subsection (1) for the purpose of lodgment of claims made under an international agreement.

Note: for international agreements see Part 4.1.

Claimant must be inhabitant of Australia

“854. A claim by a person is not a proper claim unless the person is an inhabitant of Australia on the day on which the claim is lodged.

Note: for ‘inhabitant of Australia’ see subsection 23(1).

Secretary may require recipient or claimant to give statement of tax file number

“855. The Secretary may require a recipient of, or a claimant for, family payment to give the Secretary a written statement of the person’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 849.
Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the person about the person’s tax file number and an authority by the person to the Commissioner of Taxation to give the Secretary certain information about the person’s tax file number (see subsections 849(2) and (3)).

Secretary may require recipient or claimant to give statement of partner’s tax file number

“856. If:
(a)
a recipient of, or a claimant for, family payment is a member of a couple; and
(b)
the person’s partner is in Australia;

the Secretary may require the person to give the Secretary a written statement of the tax file number of the person’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 850.
Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number (see subsections 850(2) and (3)).

Note 3: the Secretary can waive the requirement in some cases (see subsection 850(4)).

“Division 4—Determination of claim

Secretary to determine claim

“857. The Secretary must, in accordance with this Act, determine the claim.

Grant of claim

“858. The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

(a)
the person or approved care organisation is qualified for family payment; and
(b)
the payment is payable.

Date of effect of determination

“859.(1) Subject to this section, a determination under section 858 takes effect on the day on which the determination is made or on such later day or earlier day as is specified in the determination.

Notified decision—review sought within 13 weeks

“(2) If:
(a) a decision (the ‘previous decision’) is made rejecting a person’s or approved care organisation’s claim for family payment; and

(b)
a notice is given to the person or organisation advising the person or organisation of the making of the previous decision; and
(c)
the person or organisation applies to the Secretary under section 1240, within 13 weeks after the notice is given, for review of the previous decision; and
(d)
a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Notified decision—review sought after 13 weeks

“(3) If:
(a)
a decision (the ‘previous decision’) is made rejecting the person’s or organisation’s claim for family payment; and
(b)
a notice is given to the person or organisation advising the person or organisation of the making of the previous decision; and
(c)
the person or organisation applies to the Secretary under section 1240, more than 13 weeks after the notice is given, for review of the previous decision; and
(d)
a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the person or organisation sought the review.

Decision not notified

“(4) If:
(a)
a decision (the ‘previous decision’) is made rejecting a person’s or organisation’s claim for family payment; and
(b)
no notice is given to the person or organisation advising the person or organisation of the making of the previous decision; and
(c)
the person or organisation applies to the Secretary under section 1240 for review of the previous decision; and
(d)
a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Prescribed student child determination

“(5) If:
(a) a determination under section 858 is made as a result of the Secretary forming the opinion for the purposes of subsections 5(12) and (13) that a young person will not, or would not, receive payments under a prescribed educational scheme; and

(b) the Secretary is notified that the young person has been refused payment under a prescribed educational scheme within 28 days after the person is notified of that refusal;

the determination takes effect on the day when the determination is made or on such earlier or later day as is specified in the determination.

“(6) If:
(a)
a determination under section 858 is made because, under subsection 5(13), a young person is not qualified to receive a payment under a prescribed educational scheme; and
(b)
the young person, or another person or organisation, was previously in receipt of a payment under a prescribed educational scheme in respect of that young person, and the young person or other person or organisation has since ceased to receive that payment; and
(c)
the Secretary was notified, within 28 days after the payment was granted, that it was no longer being received;

the determination takes effect on the day when the determination is made or on such earlier or later day as is specified in the determination.

“(7) If:
(a)
a determination under section 858 is made because, under paragraph 5(12)(c), a young person is not qualified to receive payments under any of the prescribed educational schemes; and
(b)
no applications have been made for payments in respect of that young person under any of the prescribed educational schemes; and
(c)
the Secretary is satisfied that it is reasonable for such applications not to be made; and
(d)
the young person ceased to be a prescribed student child because of the operation of paragraph 5(12)(c) within 13 weeks after becoming a prescribed student child;

the determination takes effect on the day on which the young person became a prescribed student child.

“Division 5—Rate of family payment

Rate struck for calendar year

“860. If the rate of the family payment payable to a person in a calendar year has been worked out in accordance with the Family Payment Rate Calculator in section 1069, the rate of family payment payable to the person only has to be worked out again during that calendar year if:

(a)
the person notifies the Department or an officer that a notifiable event has occurred in relation to the person; or
(b)
a notifiable event has occurred in relation to the person and

the person fails to notify the Department that it has occurred; or
(c)
additional family payment becomes payable to the person during that calendar year; or
(d)
the person revises an estimate of his or her taxable income; or
(e) the person has underestimated his or her taxable income; or
(f) the Commissioner of Taxation changes an assessment of the person’s taxable income.
Note: for additional family payment see Module D of the Family Payment Rate Calculator in section 1069.

How to work out a person’s family payment rate

“861. The rate of family payment payable to a person or to an approved care organisation for an FP child is worked out using the Family Payment Rate Calculator at the end of section 1069.

Note 1: for base rate for a person see points 1069-B1, 1069-C1 and 1069-C2.

Note 2: for the rate of additional family payment see point 1069-D23.

Note 3: for the rate payable to an approved care organisation see point 1069-B3.

“Division 6—Payment of family payment

Commencement of family payment

“862. Family payment becomes payable to a recipient on the first day on which:

(a)
the recipient is qualified for the payment; and
(b)
no provision of this Act makes family payment not payable to the recipient.

Note 1: for qualification see sections 838 and 839.

Note 2: for the circumstances when family payment is not payable see section 841.

Note 3: for ‘recipient’ see section 6.

Payment by instalments

“863.(1) Subject to section 864, a full instalment of family payment is payable to a recipient on each family payment payday on which:

(a)
the recipient is qualified for family payment; and
(b)
family payment is payable to the recipient.

“(2) If the amount of an instalment of family payment or additional family payment would not be a multiple of 5 cents, the amount is to be rounded up to the nearest multiple of 5 cents.

Effect on instalments of backdating claim

“864. If:
(a) a person or an approved care organisation claims a family payment on a particular day (the ‘claim day’); and

(b)
the person’s or organisation’s provisional commencement day is before the claim day; and
(c)
there is a family payment payday on or after the provisional commencement day and before the claim day;

then:

(d)
no instalment of family payment is payable on that payday; and
(e)
a full instalment of family payment in respect of that payday is payable on the first family payment payday on or after the claim day.

Note: for ‘provisional commencement day’ see section 843.

Instalments to be paid to person or nominee

“865.(1) Subject to subsection (3), instalments of a recipient’s family payment are to be paid to that recipient.

“(2) The Secretary may direct that the whole or a part of the instalments of a recipient’s family payment are to be paid to someone else on behalf of the recipient.

“(3) If the Secretary makes a direction under subsection (2), the instalments are to be paid in accordance with the direction.

Payment into bank account etc.

“866.(1) An amount that is to be paid to a recipient under section 865 is to be paid in the manner set out in this section.

“(2) Subject to this section, the amount is to be paid to the credit of a bank account, credit union account or building society account nominated and maintained by the recipient.

“(3) The account may be an account that is maintained by the recipient either alone or jointly or in common with another person or organisation.

“(4) If the recipient has not nominated an account for the purposes of subsection (2) then, subject to subsections (5) and (6), the amount is not to be paid.

“(5) If:
(a)
an amount has not been paid because of subsection (4); and
(b)
the recipient nominates an account for the purposes of subsection (2);

the amount is to be paid into that account.

“(6) The Secretary may direct that the whole or a part of the amount be paid to the recipient in a different way to that provided for by subsection (2).

“(7) If the Secretary makes a direction under subsection (6), the family payment is to be paid in accordance with the direction.

Where family payment payday would fall on public holiday etc.

“867. If the Secretary is satisfied that an amount of family payment that would normally be paid on a particular day cannot reasonably be paid on that day (because, for example, it is a public holiday or a bank holiday), the Secretary may direct that the amount be paid on an earlier day.

Payment of family payment after death

“868.(1) If:
(a)
a family payment is payable to a person; and
(b)
the person dies; and
(c)
at the date of the person’s death the person had not received an amount of family payment payable to him or her; and
(d)
another person or approved care organisation applies to receive that amount; and
(e)
the application is made:
(i) within 26 weeks after the death; or
(ii) within a further period allowed by the Secretary in special circumstances;

the Secretary may pay the amount to the person or organisation, as the case may be, who, in the Secretary’s opinion, is best entitled to it.

“(2) If the Secretary pays an amount of family payment under subsection (1), the Commonwealth has no further liability to any person or organisation in respect of that amount of family payment.

Secretary may make declaration where 2 people qualified for family payment for the same child

“869.(1) If the Secretary is satisfied that 2 people are each qualified for family payment for the same child, the Secretary is to make a declaration:

(a)
stating that the Secretary is satisfied that the 2 people are each qualified for family payment for the child; and
(b)
specifying the share of the family payment for the child that each of the 2 people is to receive.

“(2) If the child is one of 3 or more children who were born during the same multiple birth, the Secretary is to specify in the declaration under subsection (1) the manner in which multiple birth allowance under point 1069-C1 of the Family Payment Rate Calculator is to be dealt with.

“(3) Without limiting subsection (2), the Secretary may specify that the whole of the multiple birth allowance is to be paid to one of the 2 people involved.

“(4) If the Secretary makes a declaration under subsection (1), the Secretary is to give each of the 2 people involved notice of the declaration.

Note 1: until the declaration under this section is made only one of the 2 people involved can receive family payment for the child (see section 848).
Note 2: for the effect of a determination under this section on the calculation of family payment rates see Module E of the Family Payment Rate Calculator.

“Division 7—Protection of family payment

Family payment to be absolutely inalienable

“870.(1) Subject to subsections (2) and (3) and section 1359, family payment is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

Payments to Commissioner of Taxation at recipient’s request

“(2) The Secretary may make deductions from the instalments of family payment payable to a recipient if the recipient asks the Secretary:

(a)
to make the deductions; and
(b)
to pay the amounts to be deducted to the Commissioner of Taxation.
Note: the Secretary must make deductions from a person’s pension, benefit or allowance if requested by the Commissioner of Taxation (see section 1359).

“(3) The Secretary may make deductions from the instalments of family payment payable to a recipient if the recipient consents under section 1234A to the Secretary making the deductions.

Note: section 1234A enables the Secretary to recover a debt from a person other than the debtor if the person is receiving a pension, benefit or family payment.

Effect of garnishee or attachment order

“871.(1) If:
(a)
a recipient has an account with a financial institution; and
(b)
instalments of family payment payable to the recipient (whether on the recipient’s own behalf or not) are being paid to the credit of that account; and
(c)
a court order in the nature of a garnishee order comes into force in respect of the account;

the court order does not apply to the saved amount (if any) in the account.

“(2) The saved amount is worked out as follows:

Method statement
Step 1.	Work out the total amount of family payment payable to the recipient that has been paid to the credit of the account during the 4 week period immediately before the court order came into force.
Step 2.	Subtract from that amount the total amount withdrawn from the account during the same 4 week period: the result is the saved amount.

“(3) This section applies to an account whether it is maintained by a person:

(a)
alone; or
(b)
jointly with another person; or
(c)
in common with another person.

“Division 8—Recipient obligations

Secretary may require notice of the happening of an event or a change in circumstances

“872.(1) The Secretary may give a recipient of family payment a notice that requires the recipient to inform the Department if:

(a)
a specified event or change of circumstances occurs; or
(b)
the recipient becomes aware that a specified event or change of circumstances is likely to occur.

“(2) An event or change of circumstances is not to be specified in a notice under subsection (1) unless the occurrence of the event or change of circumstances might affect the payment of the family payment.

“(3) A notice under subsection (1):
(a)
must be in writing; and
(b)
may be given personally or by post; and
(c)
must specify how the recipient is to give the information to the Department; and
(d)
must specify the period within which the recipient is to give the information to the Department; and
(e)
must specify that the notice is a recipient notification notice given under this Act.

Note: for recipient notification notice see subsection 23(1).

“(4) The period specified under paragraph (3)(d) must end at least 14 days after:

(a)
the day on which the event or change of circumstances occurs; or
(b)
the day on which the recipient becomes aware that the event or change of circumstances is likely to occur.

“(5) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.

“(6) A recipient must not, without reasonable excuse, refuse or fail to comply with a notice under subsection (1) to the extent that the recipient is capable of complying with the notice.

Penalty: $1,000 or imprisonment for 6 months, or both.

“(7) A recipient must not, in purporting to comply with a notice under subsection (1), knowingly or recklessly give information that is false or misleading in a material particular.

Penalty: Imprisonment for 2 years.

Note: subsections 4B(2) and (3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.
“(8) This section extends to:
(a)
acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b)
all persons irrespective of their nationality or citizenship.

Secretary may require recipient to give particular information relevant to payment of family payment

“873.(1) The Secretary may give a recipient of family payment a notice that requires the recipient to give the Department a statement about a matter that might affect the payment of the family payment to the recipient.

“(2) A notice under subsection (1):
(a)
must be in writing; and
(b)
may be given personally or by post; and
(c)
must specify how the statement is to be given to the Department; and
(d)
must specify the period within which the recipient is to give the statement to the Department; and
(e)
must specify that the notice is a recipient statement notice given under this Act.

Note: for recipient statement notice see subsection 23(1).

“(3) The period specified under paragraph (2) (d) must end at least 14 days after the day on which the notice is given.

“(4) A statement given in response to a notice under subsection (1) must be in writing and in accordance with a form approved by the Secretary.

“(5) A recipient must not, without reasonable excuse, refuse or fail to comply with a notice under subsection (1) to the extent that the recipient is capable of complying with the notice.

Penalty: $1,000 or imprisonment for 6 months, or both.

“(6) A recipient must not, in purporting to comply with a notice under subsection (1), knowingly or recklessly give information that is false or misleading in a material particular.

Penalty: Imprisonment for 2 years.

Note: subsections 4B(2) and (3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.
“(7) This section extends to:
(a)
acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b)
all persons irrespective of their nationality or citizenship.

“Division 9—Continuation, variation and termination

“Subdivision A—General

Continuing effect of determination

Entitlement determination

“874. (1) A determination that:
(a) a person’s or an approved care organisation’s claim for family payment is granted; or

(b)

family payment is payable to a person or organisation; continues in effect until:

(c)
the payment ceases to be payable under section 875 or 876; or
(d) a further determination in relation to the payment under section 880 or 881 has taken effect.

Note 1: for paragraph (a) see section 858.

Note 2: for paragraph (b) see section 883—this paragraph is relevant where the determination in question reverses an earlier cancellation or suspension.

Note 3: for paragraph (d) see also section 882.

Rate determination

“(2) A determination of the rate of family payment continues in effect until:

(a)
the family payment becomes payable at a lower rate under section 877; or
(b)
a further determination in relation to the family payment under section 878 or 879 has taken effect.

Note: for paragraph (b) see also section 882.

“Subdivision B—Automatic termination

Automatic termination—recipient complying with section 872 notification obligations

“875. If:
(a)
a recipient is given a notice under section 872; and
(b)
the notice requires the recipient to inform the Department of the occurrence of an event or change in circumstances within a specified period (the ‘notification period’); and
(c)
the event or change in circumstances occurs; and
(d)
the recipient informs the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and
(e)
because of the occurrence of the event or change in circumstances:
(i) the recipient ceases to be qualified for family payment; or
(ii) family payment would, but for this subsection, cease to be payable to the recipient; and
(f) family payment is not cancelled before the end of the notification period;

family payment continues to be payable to the recipient until the end of the notification period and then ceases to be payable to the recipient.

Note: if the recipient informs the Department, within the notification period, of an event or change in circumstances that reduces the rate of the recipient’s family payment, there is no automatic rate reduction and a determination under section 879 must be made in order to bring the rate reduction into effect.

Automatic termination—recipient not complying with section 872 notification obligations

“876. If:
(a)
a recipient is given a notice under section 872; and
(b)
the notice requires the recipient to inform the Department of the occurrence of an event or change in circumstances within a specified period (the ‘notification period’); and
(c)
the event or change in circumstances occurs; and
(d)
the recipient does not inform the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and
(e)
because of the occurrence of the event or the change in circumstances:
(i) the recipient ceases to be qualified for family payment; or

(ii) family payment ceases to be payable to the recipient;

family payment ceases to be payable to the recipient immediately after the day on which the event or change in circumstances occurs.

“Subdivision C—Automatic rate reduction

Automatic rate reduction—recipient not complying with section 872 notification obligations

“877. If:
(a)
a recipient is given a notice under section 872; and
(b)
the notice requires the recipient to inform the Department of the occurrence of an event or change in circumstances within a specified period (the ‘notification period’); and
(c)
the event or change in circumstances occurs; and
(d)
the recipient does not inform the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and
(e)
because of the occurrence of the event or change in circumstances, the recipient’s rate of family payment is to be reduced;

family payment becomes payable to the recipient at the reduced rate immediately after the day on which the event or change in circumstances occurs.

“Subdivision D—Determinations

Rate increase determination

“878. If the Secretary is satisfied that the rate at which family payment is being, or has been, paid is less than the rate provided for by this Act, the Secretary is to determine that the rate is to be increased to the rate specified in the determination.

Note: for the date of effect of a determination under this section see section 887.

Rate reduction determination

“879. If the Secretary is satisfied that the rate at which family payment is being, or has been, paid is more than the rate provided for by this Act, the Secretary is to determine that the rate is to be reduced to the rate specified in the determination.

Note 1: a determination under this section is not necessary in a case where an automatic rate reduction is produced by section 877 (see subsection 874(2)).

Note 2: for the date of effect of a determination under this section see section 889.

Cancellation or suspension determination

“880. If the Secretary is satisfied that family payment is being, or has been, paid to a recipient to whom it is not, or was not, payable under this Act, the Secretary is to determine that the family payment is to be cancelled or suspended.

Note 1: a determination under this section is not necessary in a case where an automatic termination is produced by section 875 or 876 (see subsection 874(1)).

Note 2: for the date of effect of a determination under this section see section 889.

Cancellation or suspension for failure to comply with section 873, 1304 or 1305 notice

“881. If:
(a)
a recipient is given a notice under section 873, 1304 or 1305; and
(b)
the recipient does not comply with the requirements set out in the notice;

the Secretary may determine that the family payment is to be cancelled or suspended.

Note 1: this section will not apply if section 880 applies.

Note 2: for the date of effect of a determination under this section see section 889.

Changes to payments by computer

“882. If:
(a)
payment of family payment to a person is based upon data in a computer; and
(b)
the rate of family payment is increased or reduced, or family payment is cancelled or suspended, because of the operation of a computer program approved by the Secretary; and
(c)
the program causes the change for a reason for which the Secretary could determine the change;

the change is taken to have been made because of a determination by the Secretary for that reason.

Resumption of payment after cancellation or suspension

“883.(1) If the Secretary:
(a)
cancels or suspends a recipient’s family payment under section 880 or 881; and
(b)
reconsiders the decision to cancel or suspend; and
(c)
becomes satisfied that, because of the decision to cancel or suspend:
(i) the recipient did not receive family payment that was payable to the recipient; or
(ii) the recipient is not receiving family payment that is payable to the recipient;

the Secretary is to determine that family payment was or is payable to the recipient.

“(2) The reconsideration referred to in paragraph (1)(b) might be a reconsideration on an application under section 1240 for review or a reconsideration on the Secretary’s own initiative.

Note: for the date of effect of a determination under this section see section 887.

“Subdivision E—Taxable income determinations

Effect of amendment of assessed taxable income

“884. If:
(a)
a person’s rate of family payment has been worked out on the basis of an assessment of the person’s taxable income for a tax year; and
(b)
the assessment is subsequently amended by:
(i) the Commissioner of Taxation; or
(ii) a tribunal; or
(iii) a court;

the person’s rate of family payment is to be recalculated on the basis of the person’s taxable income for that year according to the assessment as amended.

Note: for the date of effect of a recalculation under this section see sections 888 and 890.

Recalculation if taxable income underestimated by 25% or more

“885. If:
(a)
in working out the rate of family payment payable to a person, regard is had to the person’s taxable income for a tax year; and
(b)
that taxable income is an amount estimated by the person; and
(c)
the Commissioner of Taxation subsequently makes an assessment of that taxable income; and
(d)
the estimated amount is less than 75% of the amount assessed by the Commissioner;

the person’s rate of family payment is to be recalculated on the basis of that taxable income as assessed by the Commissioner.

Note 1: the person’s rate of family payment will be recalculated under section 860.

Note 2: for the date of effect of a recalculation under this section see section 891.

Recalculation if failure to notify notifiable event

“886. If:
(a)
a notifiable event occurs in relation to a person; and
(b)
the person fails to notify the notifiable event in accordance with section 872; and
(c)
the Commissioner of Taxation subsequently makes an assessment of the person’s taxable income for the tax year in which the notifiable event occurs; and
(d)
the person’s taxable income for that tax year exceeds 125% of:

(i) the person’s taxable income for the tax year that is, when the event occurs, the person’s base tax year; and
(ii) the person’s taxable income free area at that time;

the person’s family payment rate is to be recalculated on the basis that the person’s appropriate tax year is the tax year in which the notifiable event occurred.

Note 1: if the person notifies the notifiable event, the person’s rate of family payment will be recalculated under section 860.
Note 2: for the date of effect of a determination giving effect to this point see sections 876 and 877.

Note 3: for taxable income free area see point 1069-H21.

Note 4: for base tax year see point 1069-H12.

“Subdivision F—Date of effect of determinations

Date of effect of favourable determination

“887.(1) The day on which a determination under section 878 or 883 (the ‘favourable determination’) takes effect is worked out in accordance with this section.

Notified decision—review sought within 13 weeks

“(2) If:
(a)
a decision (the ‘previous decision’) is made in relation to family payment; and
(b)
a notice is given to the recipient advising the recipient of the making of the previous decision; and
(c)
the recipient applies to the Secretary under section 1240, within 13 weeks after the notice is given, for review of the previous decision; and
(d)
a favourable determination is made as a result of the application for review; and
(e) subsections (6), (7) and (8) do not apply to the determination;

the determination takes effect on the day on which the previous decision took effect.

Notified decision—review sought after 13 weeks

“(3) If:
(a)
a decision (the ‘previous decision’) is made in relation to a family payment; and
(b)
a notice is given to the recipient advising the recipient of the making of the previous decision; and
(c)
the recipient applies to the Secretary under section 1240, more than 13 weeks after the notice is given, for review of the previous decision; and
(d)
a favourable determination is made as a result of the application for review; and

(e) subsections (6), (7) and (8) do not apply to the determination;

the determination takes effect on the day on which the recipient sought the review.

Decision not notified

“(4) If:
(a)
a decision (the ‘previous decision’) is made in relation to a family payment; and
(b)
no notice is given to the recipient advising the recipient of the making of the previous decision; and
(c)
the recipient applies to the Secretary under section 1240 for review of the previous decision; and
(d)
a favourable determination is made as a result of the application for review; and
(e)
subsections (6), (7) and (8) do not apply to the determination;

the determination takes effect on the day on which the previous decision took effect.

Notified change of circumstances

“(5) If the favourable determination is made following a recipient having advised the Department of a change in circumstances, the determination takes effect on the day on which the advice was received or on the day on which the change occurred, whichever is the later.

Prescribed student child determination

“(6) If:
(a)
the favourable determination is made as a result of the Secretary forming the opinion for the purposes of subsections 5(12) and (13) that a young person will not, or would not, receive payments under a prescribed educational scheme; and
(b)
the Secretary is notified that the young person has been refused payment under a prescribed educational scheme within 28 days after the person is notified of that refusal;

the determination takes effect on the day when the determination is made or on such earlier or later day as is specified in the determination.

“(7) If:
(a)
the favourable determination is made because, under subsection 5(13), a young person is not qualified to receive a payment under a prescribed educational scheme; and
(b)
the young person, or another person or organisation, was previously in receipt of a payment under a prescribed educational scheme in respect of that young person, and the young person or other person or organisation has since ceased to receive that payment; and

(c) the Secretary was notified, within 28 days after the payment was granted, that it was no longer being received;

the determination takes effect on the day when the determination is made or on such earlier or later day as is specified in the determination.

“(8) If:
(a)
the favourable determination is made because, under paragraph 5(12)(c), a young person is not qualified to receive payments under any of the prescribed educational schemes; and
(b)
no applications have been made for payments in respect of that young person under any of the prescribed educational schemes; and
(c)
the Secretary is satisfied that it is reasonable for such applications not to be made; and
(d)
the young person ceased to be a prescribed student child because of the operation of paragraph 5(12)(c) within 13 weeks after becoming a prescribed student child;

the determination takes effect on the day on which the young person became a prescribed student child.

Other determinations

“(9) In any other case, the favourable determination takes effect on the day on which the determination was made or on such later day or earlier day (not being a day more than 13 weeks before the determination was made) as is specified in the determination.

Amendment of assessment of taxable income

“888. If:
(a)
a determination of a person’s rate of family payment is made; and
(b)
the determination is based on an assessment of the person’s taxable income for a tax year; and
(c)
the assessment is subsequently amended by:
(i) the Commissioner of Taxation; or
(ii) a tribunal; or
(iii) a court; and
(d)
the person’s taxable income for that year according to the assessment as amended is less than the person’s taxable income for that year according to the assessment that was amended; and
(e)
the Secretary makes a determination varying the person’s rate of family payment to give effect to the recalculation required by section 884;

the later determination takes effect from:

(f) if the amendment of the assessment was made on application

by the person—the day on which the earlier determination took effect; or
(g) if the amendment of the assessment was made otherwise than on application by the person—the day on which the person notifies the Department or an officer of the amendment of the assessment.

Note: this section results in arrears being payable to the person for the period between the date of effect of the later determination and the day on which the later determination is made.

Date of effect of adverse determination

General

“889.(1) The day on which a determination under section 879, 880 or 881 (the ‘adverse determination’) takes effect is worked out in accordance with this section.

Note: if the adverse determination depends on a discretion or opinion and a person affected by the determination applies for review, the Secretary may continue payment pending the outcome of the review see section 1241 (internal review) and section 1251 (review by Social Security Appeals Tribunal).
“(2) The adverse determination takes effect on:
(a)
the day on which the determination is made; or
(b)
if another day is specified in the determination—on that day.

“(3) Subject to subsections (4), (5) and (6), the day specified under paragraph (2)(b) must be later than the day on which the determination is made.

Contravention of Act

“(4) If:
(a)
the recipient whose family payment is affected by the adverse determination has contravened a provision of this Act (other than section 873, 1304, 1305, 1306 or 1307); and
(b)
the contravention causes a delay in making the determination;

the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.

False statement or misrepresentation—suspension or cancellation

“(5) If:

(a)
a recipient has made a false statement or misrepresentation; and
(b)
because of the false statement or misrepresentation, the family payment has been paid to a recipient when it should have been cancelled or suspended;

the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.

False statement or misrepresentation—rate reduction

“(6) If:
(a)
a recipient has made a false statement or misrepresentation; and
(b)
because of the false statement or misrepresentation, the rate at which the family payment was paid to a recipient was more than it should have been;

the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.

Date of effect of variation of rate of family payment because of amendment of assessed taxable income

“890. If:
(a)
a determination of a person’s rate of family payment is made; and
(b)
the determination is based on an assessment of a taxable income for a tax year; and
(c)
the assessment is subsequently amended by:
(i) the Commissioner of Taxation; or
(ii) a tribunal; or
(iii) a court; and
(d)
the taxable income for that year according to the assessment as amended is more than 125% of the taxable income for that year according to the assessment that has been amended; and
(e)
the Secretary makes a determination varying the person’s rate of family payment to give effect to the recalculation required by section 884;

the later determination takes effect on the day on which the earlier determination took effect.

Note: this section results in overpayments for the period between the earlier determination and the later determination and these overpayments may be recovered under Chapter 5 (Overpayments and debt recovery).

Underestimate of taxable income—date of effect of determination

“891. If:
(a)
the Secretary makes a determination of a person’s rate of family payment; and
(b)
in making the determination, the Secretary had regard to:
(i) the person’s taxable income for a tax year; or
(ii) the person’s partner’s taxable income for a tax year; and
(c)
that taxable income is an amount estimated by the person; and
(d)
the Commissioner of Taxation subsequently makes an assessment of that taxable income; and

(e) the estimated amount is less than 75% of the amount assessed by the Commissioner; and
(f) the Secretary makes a determination varying the person’s rate of family payment, or cancelling family payment, to give effect to the recalculation required by section 885;

the later determination takes effect on the day on which the earlier determination took effect.

Note: this section gives rise to debts that may be recovered under Chapter 5.

“Division 10—Bereavement payments (death of dependent child)

“Subdivision A—Death of dependent child (general)

Continuation of qualification for family payment for bereavement rate continuation period where recipient’s only FP child dies

“892. If:
(a)
a person is receiving family payment for a dependent child; and
(b)
the child dies; and
(c)
the child was the only FP child of the person; and
(d)
immediately before the child died:
(i) the person was receiving additional family payment for the child; or
(ii) the person or the person’s partner was receiving a service pension whose rate included a dependent child add-on for the child or guardian allowance in respect of the child;

the person is to be qualified for family payment during the bereavement rate continuation period as if the child had not died.

Note 1: if a person fails to satisfy paragraph (d), the person may still be qualified for family payment for 4 weeks after the death of the child under section 897.

Note 2: for ‘FP child’ see subsection 6(1).

Note 3: for ‘service pension’ and ‘dependent child add-on’ see subsection 23(1).

Note 4: for definitions relating to bereavement see section 21.

Bereavement payments on death of dependent child

“893. If:
(a)
a person is receiving family payment; and
(b)
a dependent child of the person dies; and
(c)
immediately before the child died:
(i) the person was receiving additional family payment for the child; or
(ii) the person or the person’s partner was receiving a service pension whose rate included a dependent child add-on

for the child or guardian allowance in respect of the child;

the person is qualified for payments under this Division to cover the bereavement period.

Note 1: section 894 provides for family payment to be paid to the person, up to the first available bereavement adjustment payday, at the rate at which it would have been paid if the child had not died but the child’s death were disregarded for the purposes of working out the person’s taxable income test free areas.
Note 2: section 895 provides for a lump sum to be paid to the person if the first available bereavement adjustment payday occurs before the end of the bereavement period: the lump sum represents the difference, over the bereavement lump sum period, between the person’s new family payment rate and the rate at which the family payment would have been paid if the child had not died but the child’s death were disregarded for the purposes of working out the person’s income test free areas.

Note 3: section 896 provides for an additional lump sum in some circumstances.

Note 4: if a person fails to satisfy paragraph (c), the person may still be qualified for payments under Subdivision B for 4 weeks after the death of the child.

Continued payment of family payment

“894. If a person is qualified for payments under this Subdivision in relation to the death of a dependent child, the person’s family payment rate during the bereavement rate continuation period is to be calculated as if:

(a)
the child had not died; and
(b)
the child’s death was disregarded in calculating the person’s taxable income ceiling and taxable income free area.

Lump sum payable in some circumstances

“895. If:
(a)
a person is qualified for payments under this Subdivision in relation to the death of a dependent child; and
(b)
the first available bereavement adjustment payday occurs before the end of the bereavement period;

a lump sum (worked out using the lump sum calculator at the end of this section) is payable to the person.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement
Step 1.	Work out the person’s family payment rate on the family payment payday immediately before the first available bereavement adjustment payday: the result is the continued rate.
Note: section 894 applies in working out the amount of this instalment because the payday on which it is payable is within the bereavement rate continuation period.
Step 2.	Work out the rate that would have been the person’s family payment rate on the payday immediately before the first available bereavement adjustment payday if the person’s rate were not calculated under section 894: the result is the new rate.
Step 3.	Take the new rate away from the continued rate: the result is the deceased child component.
Step 4.	Work out the number of family payment paydays in the bereavement lump sum period.
Step 5.	Multiply the deceased child component by the number of family payment paydays in the bereavement lump sum period: the result is the amount of the additional lump sum payable to the person under this section.

Additional lump sum payable in some circumstances

“896.(1) A lump sum (worked out using the lump sum calculator at the end of this subsection) is payable to a person if:

(a)
the person is qualified for payments under this Subdivision in relation to the death of a dependent child; and
(b)
the first available bereavement adjustment payday occurs before the end of the bereavement period; and
(c)
the person was, immediately before the child died, the only person receiving family payment for the child; and
(d)
the person or the person’s partner was, immediately before the child died, receiving additional remote area allowance for the child under this Act.

ADDITIONAL LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement
Step 1.	Calculate the amount of additional remote area allowance that was payable to the person or the person’s partner on the payday immediately before the first available bereavement adjustment payday: the result is the continued rate.
Step 2.	Calculate the amount of additional remote area allowance that would have been payable to the person or the person’s partner on the payday immediately before the first available bereavement adjustment payday if the rate were not calculated under a bereavement rate adjustment provision: the result is the new rate.
Step 3.	Take the new rate away from the continued rate: the result is the deceased child component.
Step 4.	Work out the number of paydays in the bereavement lump sum period.
Step 5.	Multiply the deceased child component by the number of paydays in the bereavement lump sum period: the result is the amount of additional lump sum payable to the family payment recipient under this section.

“(2) For the purposes of applying the additional Lump Sum Calculator, a reference in that calculator to a payday is a reference to a payday for the pension, benefit or allowance that constitutes or includes the additional remote area allowance amount concerned.

“Subdivision B—Death of dependent child (special short-term assistance)

Continuation of qualification for family payment for 4 weeks in some cases where recipient’s only FP child dies

“897. If:
(a)
a person is receiving family payment for a dependent child; and
(b)
the child dies; and
(c)
the child was the only FP child of the person; and
(d)
the person or the person’s partner was, immediately before the child died, receiving additional remote area allowance under this Act;

the person is qualified for family payment for the period of 4 weeks that starts on the day on which the child died as if the child had not died.

Bereavement payments on death of dependent child

“898. If:
(a)
a person is receiving family payment; and
(b)
a dependent child of the person dies; and
(c)
the child was not the only FP child of the person; and
(d)
the person is not qualified for payments under Subdivision A to cover the bereavement period;

the person is qualified for payments under this Subdivision to cover the period of 4 weeks that starts on the day on which the child died.

Continued payment of family payment

“899. If a person is qualified for payments under this Subdivision in relation to the death of a dependent child, the person’s family payment rate, during the period of 4 weeks that starts on the day on which the child dies, is to be calculated as if the child had not died.

“Subdivision C—Death of recipient

Death of recipient

“900.(1) If:
(a)
a person is receiving family payment; and
(b)
the person is a member of a couple; and
(c)
the person dies; and
(d)
the person:
(i) was qualified at the time of the person’s death for payments under Subdivision A in relation to the death of a dependent child; or
(ii) would have been so qualified if the person had not died; and
(e) the person’s partner claims the payments referred to in paragraph (d) within 13 weeks after the death of the child;

the partner is to be paid an amount equal to the sum of the following amounts:

(f) the difference between:
(i) the amount of family payment that would have been payable to the person under section 894 if the person had not died; and
(ii) the amount of family payment that would have been payable to the person apart from Subdivision A for the same period if the person had not died;
(g) any lump sum that would have been payable to the person under section 895 if the person had not died;
(h) any lump sum that would have been payable to the person under section 896 if the person had not died.

“(2) If:
(a)
a person is receiving family payment; and
(b)
the person is not a member of a couple; and
(c)
the person dies; and
(d)
the person:
(i) was qualified at the time of the person’s death for payments under Subdivision A in relation to the death of a dependent child; or
(ii) would have been so qualified if the person had not died;

there is payable to such person as the Secretary thinks appropriate an amount equal to the sum of the following amounts:

(e) the difference between:
(i) the amount of family payment that would have been payable to the person under section 894 if the person had not died; and
(ii) the amount of family payment that would have been payable to the person apart from Subdivision A for the same period if the person had not died;
(f) any lump sum that would have been payable to the person under section 895 if the person had not died;
(g) any lump sum that would have been payable to the person under section 896 if the person had not died.”.

4. Parts 3.7 and 3.8 of the Principal Act are repealed and the following Part is substituted:

“PART 3.7—FAMILY PAYMENT RATE CALCULATOR

Rate of family payment

“1069. The rate of a person’s family payment is to be calculated in accordance with the following Rate Calculator.

“FAMILY PAYMENT RATE CALCULATOR

“MODULE A—OVERALL RATE CALCULATION PROCESS

Method of calculating rate

“1069-A1. The rate of family payment of a person with an FP child or FP children is a fortnightly rate calculated as follows:

Method statement
Step 1.	Work out the person’s maximum basic rate using MODULE B.
Step 2.	Work out the amount per fortnight (if any) for multiple birth allowance using MODULE C.
Step 3.	Work out the amount per fortnight (if any) for additional family payment using MODULE D.
Step 4.	If the person shares the daily care and control of the FP child or FP children, work out the proportion of the sum of the amounts obtained under steps 1 to 3 that is payable to the person using MODULE E.
Step 5.	Work out the amount per fortnight (if any) for rent assistance using MODULE F.
Step 6.	Work out the amount per fortnight (if any) for guardian allowance using MODULE G.
Step 7.	Add the amounts obtained under steps 1, 2, 3, 5 and 6 or, if step 4 applies to the person, add the amounts obtained under steps 4, 5 and 6: the result is the person’s maximum family payment rate.
Step 8.	Apply the taxable income test in MODULE H to work out any reduction for taxable income. Take the reduction away from the person’s maximum family payment rate: the result is the person’s taxable income reduced rate.
Step 9.	Add the amounts obtained under steps 1 and 2 or, if step 4 applies to the person, work out the proportion of the sum of the amounts obtained under steps 1 and 2 using MODULE E: the result is the person’s preliminary rate.
Step 10.	Take the person’s preliminary rate away from the person’s taxable income reduced rate: the result is the person’s maintenance testable amount.
Step 11.	Apply the maintenance income test in Module I to the person’s maintenance testable amount. Take any reduction away from the person’s maintenance testable amount: the result is the person’s maintenance tested amount.
Step 12.	Add the person’s maintenance tested amount to the person’s preliminary rate: the result is the person’s family payment rate.

MODULE B—MAXIMUM BASIC RATE

Maximum basic rate

“1069-B1. A person’s maximum basic rate is worked out using Table B1. Work out which category applies to each FP child of the person. The FP child rate for that child is the corresponding rate in column 3. The maximum basic rate is the sum of the FP child rates.

TABLE B1
MAXIMUM BASIC RATE
column 1	column 2	column 3
item	category of FP child	rate per fortnight
1.	First, second or third FP child of the person	$20.70
2.	Fourth or subsequent FP child of the person	$27.60

Note 1: for ‘FP child’ see sections 831 to 836.

Note 2: the amounts referred to in column 3 are indexed annually in line with CPI increases (see sections 1191 to 1194).

Taxable income test—exempt FP child

“1069-B2. If:
(a)
the person’s taxable income for the year that is the appropriate tax year for the purposes of Module H (taxable income test) is greater than the person’s taxable income ceiling for the purposes of that Module; and
(b)
the person has an exempt FP child;

the person’s basic rate is to be worked out under point 1069-B1 having regard only to the exempt FP child or exempt FP children of the person.

Note: for taxable income ceiling see point 1069-H21.

Rate of family payment payable to an approved care organisation

“1069-B3. The rate of family payment payable to an approved care organisation for a child is $27.60 per fortnight.

Note: the amount referred to in this point is indexed annually in line with CPI increases (see sections 1191 to 1194).

MODULE C—MULTIPLE BIRTH ALLOWANCE

Qualification for multiple birth allowance

“1069-C1. An amount by way of a multiple birth allowance is to be added to a person’s basic rate for a family payment payday if:

(a)
the person has 3 or more FP children; and
(b)
at least 3 of those children were born during the same multiple birth and are under the age of 6 years.

Rate of multiple birth allowance

“1069-C2. The rate of multiple birth allowance is:
(a)
if the number of the FP children born during the same multiple birth is 3—$82.90; and
(b)
if the number of the FP children born during the same multiple birth is 4 or more—$110.70.
Note: the multiple birth allowances are indexed annually in line with CPI increases (see sections 1191 to 1194).

MODULE D—ADDITIONAL FAMILY PAYMENT

Submodule 1—Method

Method of calculating additional family payment

“1069-D1. This is how to work out whether a person qualifies for additional family payment, and the rate of the additional family payment.

Method statement
Step 1.	Work out whether the person qualifies for additional family payment using Submodule 2.
Step 2.	If the person is qualified for additional family payment, work out the person’s maximum rate of AFP using Submodule 3.

Submodule 2—Qualification for additional family payment

Qualification for additional family payment

“1069-D2. Subject to points 1069-D5, 1069-D6, 1069-D7, 1069-D9 and 1069-D11, a person is qualified for additional family payment for a dependent child of the person (an ‘AFP child’) if:

(a)
the person and the child are present in Australia and:
(b)
the person:
(i) is receiving family payment in respect of the child; or

(ii) is a member of a couple and the person’s partner is outside Australia and is receiving family payment in respect of the child; and
(c) the value of the person’s assets does not exceed $359,250.
Note 1: for the treatment of a person whose partner is overseas and receiving family payment see point 1069-D5.
Note 2: for the assets that are to be disregarded in valuing a person’s assets see section 1118.
Note 3: for the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Note 4: the assets test may be modified by the hardship provision in section 1132A.

Note 5: the amount referred to in paragraph 1069-D2(c) is indexed annually in line with CPI increases see sections 1191 to 1194.

the person’s job search allowance rate during the bereavement rate continuation period is to be calculated as if the child had not died.”.

Subsections 660K(6), (7) and (8):

Omit the subsections.

Sections 660M, 660N, 660O and 660P:

Repeal the sections, substitute:

Rate continued if calculated with reference to a dependent child

“660M. If:
(a)
a person is receiving a newstart allowance; and
(b)
a dependent child of the person dies; and
(c)
immediately before the child died, the person’s newstart allowance rate was calculated by reference to that child;

the person’s newstart allowance rate during the bereavement rate continuation period is to be calculated as if the child had not died.”.

Paragraph 664A(4)(c):

Omit “dependent child add-on”, substitute “family payment”.

Paragraph 664A(4)(e):

Omit the paragraph.

Paragraph 675(1)(b):

Omit the paragraph.

Paragraph 710(2)(b):

Omit the paragraph.

Subsections 728Q(6), (7) and (8):

Omit the subsections.

SCHEDULE—continued

Sections 728S, 728T, 728U and 728V:

Repeal the sections, substitute:

Rate continued if calculated with reference to a dependent child

“728S. If:
(a)
a person is receiving a sickness allowance; and
(b)
a dependent child of the person dies; and
(c)
immediately before the child died, the person’s sickness allowance rate was calculated by reference to that child;

the person’s sickness allowance rate during the bereavement rate continuation period is to be calculated as if the child had not died.”.

Subsections 767(6), (7) and (8):

Omit the subsections.

Sections 769, 770, 771 and 771A:

Repeal the sections, substitute:

Rate continued if calculated with reference to a dependent child

“769. If:
(a)
a person is receiving a special benefit; and
(b)
a dependent child of the person dies; and
(c)
immediately before the child died, the person’s special benefit rate was calculated by reference to that child;

the person’s special benefit rate during the bereavement rate continuation period is to be calculated as if the child had not died.”.

Sections 828 and 829:

Repeal the sections, substitute:

Rate continued if calculated with reference to a dependent child

“828. If:
(a)
a person is receiving a special needs pension; and
(b)
a dependent child of the person dies; and
(c)
immediately before the child died, the person’s special needs pension rate was calculated by reference to that child;

the person’s special needs pension rate during the bereavement rate continuation period is to be calculated as if the child had not died.”.

Subsections 830(3) and (4):

Omit the subsections.

Paragraph 830(4)(d):

Omit the paragraph.

SCHEDULE— continued

Paragraphs 953(a) and (b):

Omit “a family allowance” (wherever occurring), substitute “family payment”.

Subparagraph 953(b)(i):

Omit “FA child”, substitute “FP child”.

Subparagraph 953(b)(ia):

(a)
Omit “FA child”, substitute “FP child”.
(b)
Omit “family allowance”, substitute “family payment”.

Subparagraph 953(b)(ii):

Omit the subparagraph.

Subparagraph 953(b)(iii):

Omit “section 840A”, substitute “Module H of the Family Payment Rate Calculator”.

Section 953 (Note):

Omit “family allowance”, substitute “family payment”.

Paragraph 954(2):

(a)
Omit “868”, substitute “869”.
(b)
Omit “family allowance”, substitute “family payment”.

Subparagraph 958(2)(a)(i):

Omit “a family allowance, a family allowance supplement”, substitute “family payment”.

Paragraph 975A(1)(b):

(a)
Omit “family allowance”, substitute “family payment”.
(b)
Omit “868”, substitute “869”.

Subparagraph 991(1)(c)(i):

Omit the subparagraph.

Paragraph 992(c):

Omit “family allowance”, substitute “family payment”.

Section 992 (Note):

Omit “890”, substitute “892”.

Paragraphs 992A(1)(d) and (e):

Omit the paragraphs.

SCHEDULE—continued

Paragraph 992A(2)(d):

Omit the paragraph.

Paragraph 999(1)(a):

Omit “a family allowance”, substitute “family payment”.

Subparagraph 999(1)(a)(i):

Omit “FA child”, substitute “FP child”.

Subparagraph 999(1)(a)(ii):

Omit the subparagraph.

Subparagraph 999(1)(a)(iii):

Omit “section 840A”, substitute “Module H of the Family Payment Rate Calculator”.

Subsection 999(1) (Note 2):

Omit “family allowance”, substitute “family payment”.

Paragraph 999(2)(a):

(a)
Omit “a family allowance”, substitute “family payment”.
(b)
Omit “FA child”, substitute “FP child”.

Subsection 999(2) (Note 3):

Omit “family allowance”, substitute “family payment”.

Subparagraph 1002(2)(a):

Omit “family allowance, family allowance supplement”, substitute “family payment”.

Section 1033 (Note):

Omit “family allowance”, substitute “family payment”.

Subparagraph 1033(c)(i):

Omit the subparagraph.

Subparagraph 1033(c)(ii):

Omit “family allowance supplement”, substitute “family payment”.

Paragraph 1034(c):

Omit “family allowance”, substitute “family payment”.

SCHEDULE—continued

Section 1034 (Note):

(a)
Omit “family allowance” (wherever occurring), substitute “family payment”.
(b)
Omit “890”, substitute “896”.

Section 1061P:

Repeal the section, substitute:

Amount of payment

“1061P.(1) The amount of a disaster relief payment payable to a person is the sum of:

(a)
the rate per fortnight for Item 3 in Table B of point 1064-B1 (maximum basic rate); and
(b)
the rate per fortnight of family payment (excluding the base rate of family payment) that would be payable to the person if the taxable income test and the assets test did not apply to the person.”.

Section 1064 (point 1064-A1):

(a)
Omit Step 2.
(b)
Omit from Step 5 “reduction for ordinary income”, substitute “income reduction”.
(c)
Omit Steps 6 and 7.
(d)
Omit from Step 8 “total”.

Section 1064 (Note 2):

Omit “and finally child amounts).

Section 1064 (points 1064-A4 and 1064-A5):

Omit the points.

Section 1064 (Module C):

Omit the Module.

Section 1064 (point 1064-D1):

Add at the end the following paragraph:
“(f) neither the person nor the person’s partner is qualified for additional family payment for a dependent child of the person.”.

Section 1064 (point 1064-D3):

(a)
Omit paragraph (b).
(b)
Omit the Note.

SCHEDULE— continued

Section 1064 (point 1064-D5—Table D):

Omit column 4, substitute the following column:

“

column 4

no AFP child

Rate B

Nil

$1,612.00

$806.00

$1,612.00

”.

Section 1064—Module D—Rent assistance examples:

(a)
Omit from example 1 “does not have any children and”.
(b)
Omit from example 2 “They do not have any children.”.
(c)
Omit example 3.

Section 1064 (point 1064-E8):

Omit paragraph (f).

Section 1064 (point 1064-E9):

Omit paragraph (d).

Section 1064 (point 1064-E10):

(a)
Omit Items 4, 5 and 6.
(b)
Omit Note 2.

Section 1064 (point 1064-F12):

Omit the point.

Section 1064 (Module F):

Omit the Module.

Section 1064 (point 1064-G4—Table G-2):

(a)
Insert “or pension” after “benefit” in Item 3.
(b)
Omit Items 4, 5 and 6.
(c)
Omit Notes 2, 5 and 6.

Section 1064 (point 1064-G6):

Omit the point.

SCHEDULE—continued

Section 1064 (point 1064-H2):

(a)
Omit “pension or benefit increase child”, substitute “AFP child”.
(b)
Omit Notes 2, 3 and 4, substitute the following Note:
“Note 2: for ‘AFP child’ see section 6.”.

Section 1064 (point 1064-H4):

Omit “a pension or benefit increase child”, substitute “an AFP child”.

Section 1064 (point 1064-H5):

Omit the point, substitute the following point:

Special rule where partner has an AFP 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 AFP child;

the child is taken, for the purposes of this Module, to be an AFP child of the person.”.

Section 1065 (point 1065-A1):

Omit Step 2.

Section 1065 (point 1065-A2):

Omit “, a maintenance income test (compare Module F of Pension Rate Calculator A)”.

Section 1065 (Module C):

Omit the Module.

Section 1065 (point 1065-D1):

Add at the end the following paragraph:
“(g) neither the person nor the person’s partner is qualified for additional family payment for a dependent child of the person.”.

Section 1065 (point 1065-D3):

(a)
Omit from Note 1 “, a maintenance income test (Module F)”.
(b)
Omit from Note 2 “, the maintenance income test”.
(c)
Omit from Note 2 “, then against dependent child amount”.

Section 1065 (point 1065-E2):

(a) Omit “pension or benefit increase child”, substitute “AFP child”.

SCHEDULE—continued

(b) Omit Notes 3 and 4, substitute the following note: “Note 3: for ‘AFP child’ see section 6.”.

Section 1065 (point 1065-E3):

Omit “a pension or benefit increase child”, substitute “an AFP child”.

Section 1065 (point 1065-E4):

Omit the point, substitute the following point:

Special rule where partner has an AFP 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 AFP child;

the child is taken, for the purposes of this Module, to be an AFP child of the person.”.

Subsection 1066(3):

Omit from the Note “, a maintenance income test (Module F)”.

Section 1066 (point 1066-A1):

(a)
Omit Step 2.
(b)
Omit from Step 4 “, 2”.
(c)
Omit from Step 5 “reduction for ordinary income”, substitute “income reduction”.
(d)
Omit Steps 6 and 7.
(e)
Omit from Step 8 “total”.
(f) Omit from Note 2 “and finally child amounts”.

Section 1066 (Module C):

Omit the Module.

Section 1066 (point 1066-D1):

Add at the end the following paragraph:
“(e) neither the person nor the person’s partner is qualified for additional family payment for a dependent child of the person.”.

Section 1066 (point 1066-D2):

Omit the point.

SCHEDULE—continued

Section 1066 (point 1066-D3):

Omit paragraph (b).

Section 1066 (point 1066-D4—Table D):

Omit column 2, substitute the following column:

“

column 2

no AFP child

Rate B

$1,612.00

”.

Section 1066 (point 1066-D4):

Omit Note 1.

Section 1066 (point 1066-E6):

Omit paragraph (f).

Section 1066 (point 1066-E7):

(a)
Omit paragraph (d).
(b)
Omit the example.

Section 1066 (Module F):

Omit the Module.

Section 1066 (point 1066-H2):

(a)
Omit “pension or benefit increase child”, substitute “AFP child”.
(b)
Omit Notes 3 and 4, substitute the following Note:
“Note 3: for ‘AFP child’ see section 6.”.

Section 1066 (point 1066-H3):

Omit “a pension or benefit increase child”, substitute “an AFP child”.

Section 1066 (point 1066-H4):

Omit the point, substitute the following point:

Special rule where partner has an AFP child but is not receiving a pension

“1066-H4. 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 AFP child;

SCHEDULE— continued

the child is taken, for the purposes of this Module, to be an AFP child of the person.”.

Section 1066A (point 1066A-A1):

(a)
Omit Step 3.
(b)
Omit from Step 6 “reduction for ordinary income”, substitute “income reduction”.
(c)
Omit Steps 7 and 8.
(d)
Omit from Step 9 “total”.
(e)
Omit from Note 2 “and finally child amounts”.

Section 1066A (point 1066A-A1):

Omit Note 4.

Section 1066A (point 1066A-A3 and 1066A-A4):

Omit the points.

Section 1066A (point 1066A-B1—Table B):

Omit columns 3 and 4, substitute the following columns:

“	column 3	column 4	”.
	rate per year	rate per fortnight
	$3,226.60	$124.10
	$5,324.80	$204.80
	$3,876.60	$149.10
	$5,889.00	$226.50
	$5,324.80	$204.80
	$5,889.00	$226.50
	$5,324.80	$204.80
	$5,889.00	$226.50

Section 1066A (point 1066A-B1—Table B):

(a)
Omit from Note 2 “ ‘dependent child’,”.
(b)
Omit Note 4.
(c)
Omit from Note 5 “3B”, substitute “3”.

Section 1066A (Module D):

Omit the Module.

Section 1066A (point 1066A-EA2):

(a)
Omit paragraph (b).
(b)
Add at the end the following paragraph:
“(h) neither the person nor the person’s partner is qualified

SCHEDULE—continued

for additional family payment for a dependent child of the person.”.
(c) Omit Note 1.

Section 1066A (point 1066A-EA10):

Omit paragraph (b).

Section 1066A (point 1066A-EA12—Table EA):

Omit column 4, substitute the following column:

“

column 4

no AFP child

Rate B

Nil

$1,612.00

$806.00

”.

Section 1066A (point 1066A-EB2):

(a)
Omit paragraph (b).
(b)
Add at the end the following paragraph:
“(i) neither the person nor the person’s partner is qualified for additional family payment for a dependent child of the person.”.
(c) Omit Note 1.

Section 1066A (point 1066A-EB11):

Omit paragraph (b).

Section 1066A (point 1066A-EB13—Table EB):

Omit column 4, substitute the following column:

“	column 4 no AFP child Rate B
Nil $1,612.00 $1,612.00 $1,612.00 $806.00	”.

SCHEDULE—continued

Section 1066A (point 1066A-F7):

Omit paragraph (f).

Section 1066A (point 1066A-F8):

Omit paragraph (d).

Section 1066A (point 1066A-F9—Table F-2):

(a)
Insert in Item 3 “or pension” after “benefit”.
(b)
Omit Items 4, 5 and 6.
(c)
Omit Notes 2, 4 and 5.

Section 1066A (point 1066A-F11):

Omit the point.

Section 1066A (Module G):

Omit the Module.

Section 1066A (point 1066A-H4—Table H-2):

(a)
Insert in Item 3 “or pension” after “benefit”.
(b)
Omit Items 4, 5 and 6.
(c)
Omit Notes 2, 4 and 5.

Section 1066A (point 1066A-H6):

Omit the point.

Section 1066A (point 1066A-I2):

(a)
Omit “pension or benefit increase child”, substitute “AFP child”.
(b)
Omit Notes 2, 3 and 4.

Section 1066A (point 1066A-I4):

Omit the point, substitute the following point:

Special rule where partner has an AFP child but is not receiving a pension

“1066-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 AFP child;

the child is taken, for the purposes of this Module, to be an AFP child of the person.”.

Section 1066B (point 1066B-A1):

Omit Step 3.

SCHEDULE—continued

Section 1066B (point 1066B-A2):

Omit “, a maintenance income test (compare Module G of Pension Rate Calculator D)”.

Section 1066B (Module D):

Omit the Module.

Section 1066B (point 1066B-EA2):

(a)
Omit paragraph (b).
(b)
Add at the end the following paragraph:
“(h) neither the person nor the person’s partner is qualified for additional family payment for a dependent child of the person.”.
(c) Omit Note 1.

Section 1066B (point 1066B-EA10):

(a)
Omit from Note 1“, a maintenance income test (Module G)”.
(b)
Omit from Note 2 “, the maintenance income test”.
(c)
Omit from Note 2 “, then against the dependent child amount”.

Section 1066B (point 1066B-EB2):

(a)
Omit paragraph (b).
(b)
Add at the end the following paragraph:
“(i) neither the person nor the person’s partner is qualified for additional family payment for a dependent child of the person.”.
(c) Omit Note 1.

Section 1066B (point 1066B-EB11):

(a)
Omit from Note 1 “, a maintenance income test (Module G)”.
(b)
Omit from Note 2 “, the maintenance income test”.
(c)
Omit from Note 2 “, then against the dependent child amount”.

Section 1066B (point 1066B-F2):

(a)
Omit “pension or benefit increase child”, substitute “AFP child”.
(b)
Omit Notes 3 and 4, substitute the following Note:
“Note 3: for ‘AFP child’ see section 6.”.

Section 1066B (point 1066B-F3):

Omit “a pension or benefit increase child”, substitute “an AFP child”.

Section 1066B (point 1066B-F4):

Omit the point, substitute the following point:

SCHEDULE—continued

Special rule where partner has an AFP 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 AFP child;

the child is taken, for the purposes of this Module, to be an AFP child of the person.”.

Subsection 1067(2) (Note):

(a)
Omit “, maintenance income” (first occurring).
(b)
Omit “, maintenance income test”.

Section 1067 (point 1067-A1):

(a)
Omit Step 3.
(b)
Omit from Step 4 “If the person has a dependent child or is a member of a couple, work”, substitute “Work”.
(c)
Omit from Step 8 “reduction for ordinary income”, substitute “income reduction”.
(d)
Omit Steps 9 and 10.
(e)
Omit from Step 11 “total”.
(f) Omit from Note 1 “and finally child amounts”.
(g) Omit Note 2.

Section 1067 (point 1067-A2):

(a)
Omit “and additional amounts for children (Module E)”.
(b)
Omit “, H and J”, substitute “and H”.

Section 1067 (Module E):

Omit the Module.

Section 1067 (point 1067-F1):

(a)
Omit paragraph (b).
(b)
Add at the end the following paragraph:
“(h) neither the person nor the person’s partner is qualified for additional family payment for a dependent child of the person.”.
(c) Omit Note 1.

Section 1067 (point 1067-F5):

(a)
Omit paragraph (a).
(b)
Omit the Note.

SCHEDULE—continued

Section 1067 (point 1067-F8):

Omit “or maintenance income test”.

Section 1067 (point 1067-F10):

Omit paragraph (b).

Section 1067 (point 1067-F11):

Omit the point.

Section 1067 (point 1067-F13—Table F):

Omit column 4, substitute the following column:

“

column 4

no AFP child

Rate B

Nil

$62.00

$31.00

$124.00

$62.00

”.

Section 1067 (Module J):

Omit the Module.

Section 1067 (Point 1067-K3):

Omit “pension or benefit increase child” (wherever occurring), substitute “AFP child”.

Section 1067 (point 1067-K7):

Omit the point, substitute the following point:

Special rule where partner has an AFP child but is not receiving a pension

“1067-K7. 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 AFP child;

the child is taken, for the purposes of this Module, to be an AFP child of the person.”.

SCHEDULE—continued

Subsection 1068(2) (Note):

(a)
Omit “, maintenance income” (first occurring).
(b)
Omit “, maintenance income test”.

Section 1068 (point 1068-A1):

(a)
Omit Step 3.
(b)
Omit from Step 6 “reduction for ordinary income”, substitute “income reduction”.
(c)
Omit Steps 7 and 8.
(d)
Omit from Step 9 “total”.
(e)
Omit from Note 1 “and finally child amounts”.
(f)
Omit from Note 3 “8”, substitute “6”.

Section 1068 (point 1068-A2):

Omit “and additional amounts for children (Module E)”.

Section 1068 (Module E):

Omit the Module.

Section 1068 (point 1068-F1):

Add at the end the following paragraph:
“(f) neither the person nor the person’s partner is qualified for additional family payment for a dependent child of the person.”.

Section 1068 (point 1068-F4):

(a)
Omit paragraph (a).
(b)
Omit the Note.

Section 1068 (point 1068-F12):

Omit paragraph (b).

Section 1068 (point 1068-F13):

Omit the point.

Section 1068 (point 1068-F15—Table F):

Omit column 4, substitute the following column:

SCHEDULE— continued

“

column 4

no AFP children

Rate B

$62.00

$31.00

$124.00

$62.00

”.

Section 1068 (Module H):

Omit the Module.

Section 1068 (point 1068-J3):

Omit “pension or benefit increase child” (wherever occurring), substitute “AFP child”.

Section 1068 (point 1068-J7):

Omit the point, substitute the following point:

Special rule where partner has an AFP child but is not receiving a pension

“1066-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 AFP child;

the child is taken, for the purposes of this Module, to be an AFP child of the person.”.

Paragraph 1111(a):

After “a family allowance supplement” insert “or additional family payment”.

Paragraph 1111(b):

Omit “or allowance”, substitute “, allowance or payment”.

Subsection 1112(2):

Omit “Part 2.18 (family allowance supplement)”, substitute “Module D of the Family Payment Rate Calculator (additional family payment)”.

Paragraph 1127(a):

Omit “or a family allowance supplement”, substitute “, family allowance supplement or additional family payment”.

SCHEDULE—continued

Paragraph 1127(b):

Omit “or allowance”, substitute “, allowance or payment”.

Subsection 1128(2):

Omit “Part 2.18 (family allowance supplement)”, substitute “Module D of the Family Payment Rate Calculator (additional family payment)”.

Section 1128:

Add at the end:

“(3) For the purposes of the application of this Division to Module B of the Family Payment Rate Calculator (additional family payment), references in this Division to 1 June 1984 are to be read as references to 1 January 1992.”.

Subsection 1132C(1):

Omit the subsection, substitute:

“(1) If the Secretary decides, under subsection 1132A(1), that paragraph 838(1)(d) or 1069-D2 (c) does not apply to a person, the day on which that decision takes effect is worked out under this section.”.

Paragraphs 1132C(3)(a), (4)(a) and (5)(a):

Omit “or 1132B(1)”.

Section 1132D:

Repeal the section, substitute:

Date of effect of adverse decision under section 1132A

“1132D. If the Secretary decides under subsection 1132A(1) that paragraph 838(1)(d) or 1069-D2(c) does apply to a person, the decision takes effect on the day on which the person’s request under section 1132A was lodged with the Department.”.

Paragraph 1166(5)(b):

Omit the paragraph, substitute:
“(b) the Secretary is satisfied that additional family payment would have been payable to the person, or the person’s partner, for some or all of the overpayment recovery period if the person or the person’s partner had applied for additional family payment for that period;”.

Subsection 1166(5):

Omit “notional FAS entitlement”, substitute “notional additional family payment entitlement”.

SCHEDULE—continued

Subsection 1166(6):

Omit the subsection, substitute:

“(6) For the purposes of subsection (5), the ‘notional additional family payment entitlement’ is the amount of additional family payment that the person or the person’s partner would, in the Secretary’s opinion, have received during the overpayment recovery period if the person or the person’s partner had applied for additional family payment for that period.”.

Section 1167:

Omit “Part 2.18 or”, substitute “Module D of the Family Payment Rate Calculator and”.

Section 1167 (Note 2):

Omit the note, substitute:
“Note 2: Module D of the Family Payment Rate Calculator deals with additional family payment.”.

Subsection 1168(3) (Note 2):

Omit “and finally child amounts”.

Section 1169:

Omit “, the maintenance income test Module” (wherever occurring).

Section 1171:

Omit “Part 2.18 or”, substitute “Module D of the Family Payment Rate Calculator and”.

Section 1171 (Note 2):

Omit the note, substitute:
“Note 2: Module D of the Family Payment Rate Calculator deals with additional family payment.”.

Section 1190:

(a) Omit item 4 of the Table, substitute the following item:

“

Maximum basic rate of family payment

FP MBR

[Family Payment Rate Calculator—Module B— Table B1—all amounts

”.

SCHEDULE—continued

(b) Omit items 5 to 12 of the Table, substitute the following items:

“	5.	Maximum basic rate of additional family payment for child who has not turned 13	AFP under 13 child MBR	[Family Payment Rate Calculator—Module D— Table D—Item 1]
6.	Maximum basic rate of additional family payment for child who has turned 13 but has not turned 16	AFP 13-15 child MBR	[Family Payment Rate Calculator—Module D— Table D—Item 2]
7.	Guardian allowance for additional family payment	GA	[Family Payment Rate Calculator—Module G]	”.

(c)
Item 13 of the Table, column 2, omit “family allowance”, substitute “family payment”.
(d)
Item 13 of the Table, column 3, omit “FA”, substitute “FP”.
(e)
Item 13 of the Table, column 4, omit “Family Allowance Rate Calculator”, substitute “Family Payment Rate Calculator”.
(f)
Item 14 of the Table, column 2, omit “family allowance”, substitute “family payment”.
(g)
Item 14 of the Table, column 3, omit “FA”, substitute “FP”.
(h) Item 14 of the Table, column 4, omit “855(2)”, substitute “point 1069-B3”.
(i) Omit item 19 of the Table, substitute the following item:

“

19.

Rent assistance

FPRA

[Family Payment Rate Calculator—Module E— Table E—Column 4—all amounts]

”.

(j) Item 21 of the Table, column 2, omit “family allowance”, substitute “family payment”.
(k) Item 21 of the Table, column 3, omit “family allowance free area”, substitute “basic ceiling for the base rate of family payment”.
(l) Item 21 of the Table, column 4, omit “[Subsection 840A(8) Taxable Income Free Area Table—columns 1 and 2]”, substitute “[Family Payment Rate Calculator—Module H—Table H— Item 1—column 3]”.
(m) Item 22 of the Table, column 2, omit “Taxable income basic free area limit for family allowance supplement”, substitute “Taxable income free area for additional family payment”.

SCHEDULE—continued

(n) Item 22 of the Table, column 3, omit “FAS free area”, substitute “AFP free area”.
(o) Item 22 of the Table, column 4, omit “[Family Allowance Supplement Rate Calculator—point 1070-D14—Table D— column 1], substitute “[Family Payment Rate Calculator— Module H—Table H—Item 3]”.
(p) Item 23A of the Table, column 2, omit “for social security pension”.
(q) Item 23A of the Table, column 3, omit “pension”.
(r) Item 23A of the Table, omit all the material in column 4 in relation to the item, substitute “Family Payment Rate Calculator—Module I—Table 12”.
(s) Item 23B of the Table, omit the Item.
(t) Item 34A of the Table, column 2, omit “family allowance”, substitute “family payment”.
(u) Item 34A of the Table, column 3, omit “FA AVL”, substitute “FP AVL”.
(v) Item 35 of the Table, column 2, omit “family allowance supplement”, substitute “additional family payment”.
(w) Item 35 of the Table, column 3, omit “FAS AVL”, substitute “AFP AVL”.
(x) Item 35 of the Table, column 4, omit “paragraph 895(1)(d)”, substitute “the Family Payment Rate Calculator—paragraph 1069-D2(c)”.

Section 1191:

(a)
Item 4 of the Table, column 2, omit “family allowance”, substitute “family payment”.
(b)
Item 5 of the Table, column 2, omit “pension”.
(c)
Item 5 of the Table, column 6, omit “$2.60”, substitute “$0.10”.
(d)
Omit Item 6 of the Table.
(e)
Item 7 of the Table, column 2, omit “FA”, substitute “FP”.
(f)
Item 8 of the Table, column 2, omit “FA”, substitute “FP”.
(g)
Item 13 of the Table, column 2, omit “FAS MRA”, substitute “AFP MRA”.
(h) Item 15 of the Table, column 2, omit “family allowance free area”, substitute “family payment taxable income ceiling”.
(i) Item 17A of the Table, column 2, omit “pension”.
(j) Item 17B of the Table, omit the Item.
(k) Item 24A of the Table, column 2, omit “FA AVL”, substitute “FP AVL”.
(l) Item 25 of the Table, column 2, omit “FAS AVL”, substitute “AFP AVL”.

SCHEDULE—continued

Subsection 1194(4):

Omit “family allowance free area”, substitute “family payment taxable income ceiling”.

Section 1195:

Omit “FAS”, substitute “AFP”.

Subsection 1199(1):

(a)
Omit “FAS under 13 child MBR”, substitute “AFP under 13 child MBR”.
(b)
Omit “FA amount”, substitute “FP amount”.

Subsection 1199(1) (Note 2):

(a)
Omit “FA amount”, substitute “FP amount”.
(b)
Omit “family allowance”, substitute “family payment”.

Subsection 1199(1) (Note 3):

Omit “family allowance”, substitute “family payment”.

Subsection 1199(2):

Omit “FAS under 13 child MBR”, substitute “AFP under 13 child MBR”.

Subsection 1199(3):

(a)
Omit “FAS 13-15 child MBR”, substitute “AFP 13-15 child MBR”.
(b)
Omit “FA amount”, substitute “FP amount”.

Subsection 1199(3) (Note 2):

(a)
Omit “FA amount”, substitute “FP amount”.
(b)
Omit “family allowance”, substitute “family payment”.

Subsection 1199(3) (Note 3):

Omit “family allowance”, substitute “family payment”.

Subsection 1199(4):

Omit “FAS 13-15 child MBR”, substitute “AFP 13-15 child MBR”.

Section 1200:

Repeal the section.

Section 1201:

Repeal the section.

SCHEDULE—continued

Subsection 1202(1):

(a)
Omit “FAS MRA”, substitute “AFP MRA”.
(b)
Omit “FAS children”, substitute “AFP children”.

Subsection 1202(2):

(a)
Omit “FAS MRA”, substitute “AFP MRA”.
(b)
Omit “FAS children”, substitute “AFP children”.

Subsection 1207(1):

(a)
Omit from paragraph (a) “the additional amounts for children Module of a Rate Calculator or”.
(b)
Omit from paragraph (b) “, the maintenance income test Module”.
(c)
Omit from paragraph (c) “the additional amounts for children Module or”.
(d)
Omit paragraph (e).

Subsection 1207(2) (Table):

Omit columns 2 and 5.

SCHEDULE— continued

Point 1210-A1—Method statement:

Omit the Method statement, substitute:

“	Method statement
	Step 1.	Work out the period of the person’s Australian working life residence in Australia using Module B: the result is the residence period.
	Step 2.	Use the person’s residence period to work out the person’s residence factor using Module C.
	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 and taking into account point 1210-A2: the result is the person’s notional agreement pension rate.
	Step 4.	If the person’s notional agreement pension rate is nil, the international agreement portability rate is also nil.
	Step 5.	If the person’s notional agreement pension rate is not nil, work out the person’s notional family payment rate by working out the amount of additional family payment and guardian allowance that would be payable to the person if the person were in Australia.
	Step 6.	Add the person’s notional agreement pension rate and the person’s notional family payment rate: the result is the person’s total notional rate.
	Step 7.	Multiply the person’s total notional rate by the person’s residence factor: the result is the person’s international agreement portability rate.

Note 1: for the treatment of income of the person see point 1210-A2.

Note 2: because the person is outside Australia, he or she does not receive any rent assistance.

Note 3: the rate is not proportioned (see subsections 1220B(1A) and 1221(3)).”.

Section 1211:

(a)
Omit “family allowance supplement”, substitute “additional family payment”.
(b)
Omit “895(1)(c)”, substitute “1069-D2(a)”.

Section 1211 (Note 2):

Omit “family allowance”, substitute “family payment”.

Subparagraph 1223(1)(b)(iv):

(a) Omit “family allowance supplement rate”, substitute “rate of family payment”.

SCHEDULE—continued

(b) Omit “section 914 and section 947 (FAS—underestimate of taxable income)”, substitute “section 885 (underestimate of taxable income)”.

Subparagraph 1223(1)(b)(v):

(a)
Omit “family allowance supplement rate”, substitute “rate of family payment”.
(b)
Omit “section 915 and section 947 (FAS—failure to notify FAS notifiable event”, substitute “section 886 (failure to notify notifiable event”.

Subsection 1223(2A):

Omit “family allowance supplement” (wherever occurring), substitute “additional family payment”.

Schedule 1A:

(a)
Omit clause 26.
(b)
Omit clause 30.

NOTE

1. No. 46, 1991, as amended. For previous amendments, see Nos. 68, 69, 70, 73, 74, 115, 116, 141, 175, 194 and 208, 1991; and No. 12, 1992.

[Minister’s second reading speech made in—

House of Representatives on 7 May 1992
Senate on 28 May 1992