Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994 (Cth)

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Social Security (Home Child Care and

Partner Allowances) Legislation

Amendment Act 1994

No. 55 of 1994

TABLE OF PROVISIONS

PART 1—PRELIMINARY

Section

1. Short title etc.

2. Commencement

PART 2—HOME CHILD CARE ALLOWANCE

3. Insertion of new Part:

PART 2.18—HOME CHILD CARE ALLOWANCE

Division 1Home child care allowance child status

901. Home child care allowance child

902. Home child care allowance child—prescribed student child not included

903. Home child care allowance child—child over 16

TABLE OF PROVISIONS—continued

Section

904. Home child care allowance child—residence requirements

905. Home child care allowance child—child absent from Australia for more than 13 weeks

Division 2Qualification for and payability of home child care allowance

Subdivision AQualification

906. Qualification for home child care allowance

907. Qualification for home child care allowance ceases after 13 week absence of recipient from Australia

Subdivision BPayability

908. Home child care allowance not payable in some circumstances

909. Home child care allowance not generally payable before claim

910. Provisional commencement day

911. Backdating—death of former recipient

912. Home child care allowance not payable to more than one person for the same child

913. Provision of person’s tax file number

914. Provision of partner’s tax file number

Division 3Claim for home child care allowance

915. Need for a claim

916. Form of claim

917. Lodgment of claim

918. Claimant must be inhabitant of Australia and in Australia

919. Claim may be withdrawn

920. Secretary may require claimant to give statement of claimant’s tax file number

921. Secretary may require claimant to give statement of partner’s tax file number

Division 4Determination of claim

922. Secretary to determine claim

923. Grant of claim

924. Date of effect of determination

Division 5Rate of home child care allowance

925. Purpose of Division

926. Interpretation

927. Ordinary income free area

928. Maximum rate of home child care allowance

929. How to calculate a person’s annual rate of home child care allowance

Division 6Payment of home child care allowance

930. Commencement of home child care allowance

931. Payment by instalments

932. Effect on instalments of backdating claim

933. Calculation of amount of instalment

934. Instalments to be paid to person or nominee

935. Payment into bank account etc.

936. Where home child care allowance payday would fall on public holiday etc.

TABLE OF PROVISIONS—continued

Section

937. Payment of home child care allowance after death

938. Secretary may make declaration where more than one person qualified for home child care allowance for the same child

Division 7Protection of home child care allowance

939. Home child care allowance to be absolutely inalienable

940. Effect of garnishee or attachment order

Division 8Recipient obligations

941. Secretary may require recipient to give statement of recipient’s tax file number

942. Secretary may require recipient to give statement of partner’s tax file number

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

944. Secretary may require recipient to give particular information relevant to payment of home child care allowance

Division 9Continuation, variation and termination

Subdivision AGeneral

945. Continuing effect of determination

Subdivision B—Automatic termination

946. Automatic termination—recipient complying with section 943 notification obligations

947. Automatic termination—recipient not complying with section 943 notification obligations

948. Changes to payments by computer following automatic termination

Subdivision CAutomatic rate reduction

949. Automatic rate reduction—recipient not complying with section 943 notification obligations

950. Changes to payments by computer following automatic rate reduction

Subdivision DDeterminations

951. Rate increase determination

951A. Rate reduction determination

951B. Cancellation or suspension determination

951C. Cancellation or suspension for failure to comply with section 944, 1304 or 1305 notice

951D. Changes to payments by computer

951E. Resumption of payment after cancellation or suspension

Subdivision EDate of effect of determinations

951F. Date of effect of favourable determination

951G. Date of effect of adverse determination

Division 10Bereavement

Subdivision ADeath of home child care allowance child

951H. Continuation of qualification for home child care allowance for 4 weeks where recipient’s only home child care allowance child dies

951I. Continued payment of home child care allowance

TABLE OF PROVISIONS—continued

Section

Subdivision BDeath of recipient

951J. Death of recipient of home child care allowance during bereavement period

951K. Death of recipient of home child care allowance

4. Consequential amendments

PART 3—PARTNER ALLOWANCE

5. Insertion of new Part:

PART 2.15A—PARTNER ALLOWANCE

Division 1Qualification for and payability of partner allowance

Subdivision AQualification for partner allowance

771HA. Qualification for partner allowance

771HB. Unemployment due to industrial action

Subdivision BPayability of partner allowance

771HC. Partner allowance not payable in certain situations

771HD. Provision of person’s tax file number

771HE. Provision of partner’s tax file number

771HF. Assets test—allowance not payable if assets value limit exceeded

771HG. Multiple entitlement exclusion

771HH. Educational schemes exclusion

771HI. Multiple entitlement exclusion

771HJ. Educational schemes exclusion

771HK. Commonwealth funded employment program exclusion

771HL. Payments under LEAP program

771HM. Commencement of partner allowance

771HN. Provisional commencement day

771HO. Removal from allowance for failure to comply with notification requirements

Division 2Claim for partner allowance

771IA. Need for a claim

771IB. Form of claim

771IC. Lodgment of claim

771ID. Claimant must be Australian resident and in Australia

771IE. Claim may be withdrawn

771IF. Secretary may require claimant to give statement of claimant’s tax file number

771IG. Secretary may require claimant to give statement of partner’s tax file number

Division 3Determination of claim

771JA. Secretary to determine claim

771JB. Grant of claim

771JC. Date of effect of determination

Division 4Rate of partner allowance

771KA. Rate of partner allowance if partner receiving job search allowance or newstart allowance

TABLE OF PROVISIONS—continued

Section

771KB. Rate of partner allowance if partner receiving sickness allowance

771KC. Limitation on rate—loss of salary, wages or income by partner

771KD. Limitation on rate—partner transferring from social security pension

771KE. Rate of partner allowance if partner receiving special benefit

Division 5Payment of partner allowance

771KF. Commencement of partner allowance

771KG. Instalments

771KH. Instalments for period less than a fortnight

771KI. Rounding off instalment

771KJ. Instalments to be paid to person or nominee

771KK. Payment into bank account etc.

771KL. Where allowance payday would fall on public holiday etc.

771KM. Payment of allowance after death

Division 6Protection of partner allowance

771LA. Partner allowance to be absolutely inalienable

771LB. Effect of garnishee or attachment order

Division 7—Recipient obligations

771MA. Secretary may require recipient to give statement of recipient’s tax file number

771MB. Secretary may require recipient to give statement of partner’s tax file number

771MC. Secretary may require notice of the happening of an event or a change in circumstances

771MD. Secretary may require recipient to give particular information relevant to payment of partner allowance

Division 8Continuation, variation and termination

Subdivision AGeneral

771NA. Continuing effect of determination

Subdivision B—Automatic termination

771NB. Automatic termination—transfer to new payment type

771NC. Automatic termination—transfer of partner to new payment type

771ND. Automatic termination—recipient complying with section 771MC notification obligations

771NE. Automatic termination—recipient not complying with section 771MC notification obligations

771NF. Automatic termination—failure to provide section 771MD statement

771NG. Changes to payments by computer following automatic termination

Subdivision C—Automatic rate reduction

771NH. Automatic rate reduction—partner starting to receive benefit

771NI. Automatic rate reduction—recipient not complying with section 771MC notification obligations

771NJ. Automatic rate reduction—failure to inform Department of payment for remunerative work where earnings credit account balance available

771NK. Changes to payments by computer following automatic reduction

TABLE OF PROVISIONS—continued

Section

Subdivision DDeterminations

771NL. Rate increase determination

771NM. Rate reduction determination

771NN. Cancellation or suspension determination

771NO. Cancellation or suspension for failure to comply with section 771MD, 1304 or 1305 notice

771NP. Changes to payments by computer

771NQ. Resumption of payment after cancellation or suspension

Subdivision E—Date of effect of determinations

771NR. Date of effect of favourable determination

771NS. Date of effect of adverse determination

Division 9Bereavement payments

Subdivision ASurviving partner and deceased partner defined

771NT. Surviving partner and deceased partner

Subdivision BPerson to continue to receive partner allowance where person’s partner dies

771NU. Continuation of partner allowance for bereavement period

Subdivision CBereavement payments for person receiving partner allowance following death of the person’s partner

771NV. Qualification for payments under this Subdivision

771NW. Continued payment of deceased partner’s benefit

771NX. Lump sum payable in some circumstances

771NY. Effect of death of surviving partner

771NZ. Matters affecting payments under this Subdivision

6. Consequential amendments

SCHEDULE 1

CONSEQUENTIAL AMENDMENTS RELATING TO HOME CHILD CARE

ALLOWANCE

PART 1—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

PART 2—AMENDMENT OF THE DATA-MATCHING PROGRAM

(ASSISTANCE AND TAX) ACT 1990

SCHEDULE 2

CONSEQUENTIAL AMENDMENTS RELATING TO PARTNER

ALLOWANCE

PART 1—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

PART 2—AMENDMENT OF OTHER ACT

Data-matching Program (Assistance and Tax) Act 1990

Social Security (Home Child Care and

Partner Allowances) Legislation

Amendment Act 1994

No. 55 of 1994

An Act to amend the Social Security Act 1991,

and for related purposes

[Assented to 7 April 1994]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title etc.

1.(1) This Act may be cited as the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994.

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

Commencement

2.(1) Subject to subsections (2) and (3), this Act commences on the day on which it receives the Royal Assent.

(2) Part 2 commences on 29 September 1994.

(3) Part 3 commences on 20 September 1994.

PART 2—HOME CHILD CARE ALLOWANCE

Insertion of new Part

3. After Part 2.17 of the Principal Act the following Part is inserted:

PART 2.18—HOME CHILD CARE ALLOWANCE

Division 1Home child care allowance child status

Home child care allowance child

“901. Subject to sections 902 to 905, a home child care allowance child is a dependent child of a member of a couple.

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

Home child care allowance child—prescribed student child not included

“902.(1) A dependent child cannot be a home child care allowance child if the child 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).

Home child care allowance child—child over 16

“903.(1) Subject to subsection (2), a dependent child who has turned 16 cannot be a home child care allowance child.

“(2) A dependent child who has turned 16 and is undertaking secondary studies may be a home child care allowance child until:

(a) the end of the calendar year in which the child turns 18; or

(b) the child ceases secondary studies;

whichever happens first.

Home child care allowance child—residence requirements

“904. A dependent child cannot be a home child care allowance 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.

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

Home child care allowance child—child absent from Australia for more than 13 weeks

“905.(1) If a dependent child:

(a) either:

(i) leaves Australia; or

(ii) is born outside Australia; and

(b) continues to be absent from Australia for more than 13 weeks;

the child cannot be a home child care allowance child at any time after the 13 weeks while the child remains absent from Australia.

“(2) If:

(a) a dependent child is not a home child care allowance 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 a home child care allowance child when the child leaves Australia as mentioned in paragraph (c).

Division 2Qualification for and payability of home child care allowance

Subdivision AQualification

Qualification for home child care allowance

“906. A person is qualified for home child care allowance if the person:

(a) is a member of a couple; and

(b) has a home child care allowance child; and

(c) is an inhabitant of Australia; and

(d) is in Australia.

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

Qualification for home child care allowance ceases after 13 week absence of recipient from Australia

“907.(1) Subject to subsection (2), for the purposes of paragraph 906(d), a person is taken to be in Australia if the person is temporarily absent from Australia for a period of 13 weeks or less.

“(2) If:

(a) a person who has been absent from Australia for a period of more than 13 weeks 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 not to be taken to be in Australia during the subsequent period of absence.

Subdivision BPayability

Home child care allowance not payable in some circumstances

“908. Even though a person is qualified for home child care allowance, the allowance may not be payable to the person because:

(a) the allowance has not commenced to be payable (see sections 909 and 930); or

(b) the person has not provided a tax file number for the person (see section 913) or the person’s partner (see section 914); or

(c) another person is receiving home child care allowance for the same child (see subsection 912(1)); or

(d) the person’s partner is receiving home child care allowance (see subsection 912(2)); or

(e) the person’s home child care allowance rate would be nil; or

(f) the person is in gaol (see Part 3.13).

Home child care allowance generally not payable before claim

“909. Subject to section 911, home child care allowance is not payable to a person before the person’s provisional commencement day (identified under section 910).

Provisional commencement day

General rule

“910.(1) Subject to subsections (2) to (5), a person’s provisional commencement day is the day on which the person claims home child care allowance.

Initial incorrect or inappropriate claim followed by claim for home child care allowance

“(2) If:

(a) a person makes a claim (the ‘initial claim’) for:

(i) another payment under this Act; 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 home child care allowance; and

(b) on the day on which the person makes the initial claim, the person is qualified for home child care allowance; and

(c) the person subsequently makes a claim for home child care allowance; and

(d) the Secretary is satisfied that it is reasonable for this subsection to apply to the person;

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

Early claim

“(3) If:

(a) a person lodges a claim for home child care allowance; and

(b) the person is not, on the day on which the claim is lodged, qualified for home child care allowance; and

(c) the person becomes qualified for home child care allowance 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 home child care allowance.

Backdatingclaim lodged on or after 29 September 1994 and on or before 31 December 1994

“(4) If:

(a) a person lodges a claim for home child care allowance on a day (the ‘claim day’) in the period commencing on 29 September 1994 and ending on 31 December 1994 (the ‘claim period’); and

(b) on a day in the claim period that is before the claim day the person is qualified for home child care allowance;

the person’s provisional commencement day is the first day in the claim period on which the person is qualified for home child care allowance.

Backdatingbirth of child

“(5) If a person lodges a claim for home child care allowance within 13 weeks of the birth of a dependent child, the person’s provisional commencement day is the day on which the dependent child is born.

Backdating—death of former recipient

“911. If:

(a) a person who is receiving home child care allowance in relation to a child dies; and

(b) another person makes a claim for home child care allowance in relation to the child within 13 weeks after the death;

home child care allowance may become payable to the other person before that person’s provisional commencement day but not before the day of the person’s death.

Home child care allowance not payable to more than one person for the same child

“912.(1) If:

(a) more than one person qualifies for home child care allowance in relation to the same child; and

(b) the Secretary has not made a declaration under subsection 938(1) in respect of home child care allowance in relation to the child; and

(c) one of the persons is receiving home child care allowance for the child;

home child care allowance is not payable to any other person in relation to that child.

“(2) If:

(a) both members of a couple are qualified for home child care allowance; and

(b) the Secretary has not made a declaration under subsection 938(1) in respect of the home child care allowance; and

(c) one of the members of the couple is receiving home child care allowance;

home child care allowance is not payable to the other member of the couple.

Note: Subsection 938(1) allows the Secretary to make a declaration that more than one person can share home child care allowance.

Provision of person’s tax file number

“913.(1) Home child care allowance is not payable to a person if:

(a) the person is required under section 920 or 941 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

“914.(1) Subject to subsection (4), home child care allowance is not payable to a person if:

(a) the person is required under section 921 or 942 to give the Secretary a written statement of the tax file number of the person’s partner; 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 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)(b)(ii).

Division 3Claim for home child care allowance

Need for a claim

“915.(1) A person who wants to be granted home child care allowance must make a proper claim for that payment.

Note: For ‘proper claim’ see section 916 (form), section 917 (manner of lodgment) and section 918 (inhabitant of Australia).

“(2) For the purposes of subsection (1), if:

(a) a claim for home child care allowance is made by or on behalf of a person; and

(b) at the time the claim is made, the claim cannot be granted because the person is not qualified for home child care allowance;

the claim is, subject to subsection 910(3), taken not to have been made.

Form of claim

“916. 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

“917.(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) A place or person approved under subsection (1) must be a place or person in Australia.

Claimant must be an inhabitant of Australia and in Australia

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

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

Claim may be withdrawn

“919.(1) A claimant for home child care allowance or a person on behalf of a claimant may withdraw a claim that has not been determined.

“(2) A claim that is withdrawn is taken to have not been made.

“(3) A withdrawal may be made orally or in writing.

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

“920. The Secretary may require a claimant for home child care allowance 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 913.

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 913(2) and (3)).

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

“921. If the partner of a claimant for home child care allowance is in Australia, the Secretary may require the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Note 1: For the consequences of a failure to comply with the requirement see section 914.

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 914(2) and (3)).

Note 3: The Secretary may waive the requirement in some cases (see subsection 914(4)).

Division 4Determination of claim

Secretary to determine claim

“922. The Secretary must, in accordance with this Act, determine a claim for home child care allowance.

Grant of claim

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

(a) the person is qualified for home child care allowance; and

(b) the allowance is payable.

Date of effect of determination

“924.(1) Subject to subsections (2) to (7), a determination under section 923 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 decisionreview sought within 13 weeks

“(2) If:

(a) a decision (the ‘previous decision’) is made rejecting a person’s claim for home child care allowance; and

(b) a notice is given to the person advising the person of the making of the previous decision; and

(c) the person 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 decisionreview sought after 13 weeks

“(3) If:

(a) a decision (the ‘previous decision’) is made rejecting the person’s claim for home child care allowance; and

(b) a notice is given to the person advising the person of the making of the previous decision; and

(c) the person 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 sought the review.

Decision not notified

“(4) If:

(a) a decision (the ‘previous decision’) is made rejecting a person’s claim for home child care allowance; and

(b) no notice is given to the person advising the person of the making of the previous decision; and

(c) the person 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.

Division 5Rate of home child care allowance

Purpose of Division

“925. The purpose of this Division is to work out the annual rate at which home child care allowance is payable to a person.

Interpretation

“926. For the purposes of this Division, ‘ordinary income’ includes:

(a) a payment by way of a social security pension, social security benefit or rehabilitation allowance other than that part of the payment that is for rent assistance, pharmaceutical allowance or remote area allowance; and

(b) a payment received by a trainee in full-time training under a program included in the programs known as the Labour Force Programs, to the extent that the payment includes one or more of the following amounts:

(i) an amount calculated by a reference to a rate of job search or newstart allowance;

(ii) an amount known as the training component;

(iii) an amount by way of a living away from home allowance; and

(c) a payment received by the person under the scheme known as the New Enterprise Incentive Scheme; and

(d) a payment received by the person under a scheme known as the Aboriginal Employment Incentive Scheme; and

(e) a payment by way of a service pension.

Note: For general definition of ‘ordinary income’ see subsection 8(1).

Ordinary income free area

“927.(1) A person’s ‘ordinary income free area’ is the amount of ordinary income that the person can have without a deduction being made from the person’s home child care allowance payment.

“(2) The ordinary income free area is $282.00 a year.

Maximum rate of home child care allowance

“928. The maximum rate of home child care allowance is $1,560.00 per annum.

How to calculate a person’s annual rate of home child care allowance

“929.(1) To work out the person’s annual rate of home child care allowance, first, work out the person’s ordinary income excess using the following Method statement:

Method statement

Step 1.

Work out the amount of the person’s ordinary income on a yearly basis.

Step 2.

Work out whether the person’s ordinary income exceeds the ordinary income free area.

Step 3.

If the person’s ordinary income exceeds the ordinary income free area, the person’s ordinary income excess is the person’s ordinary income less the ordinary income free area.

Step 4.

If the person’s ordinary income does not exceed the ordinary income free area, the person’s ordinary income excess is nil.

“(2) If the person’s ordinary income excess is nil, the person’s annual rate of home child care allowance is equal to the maximum rate of the allowance.

Note: For the maximum rate of home child care allowance see section 928.

“(3) If the person’s ordinary income exceeds the ordinary income free area, the person’s annual rate of home child care allowance is worked out as follows:

(a) divide the person’s ordinary income excess by 4;

(b) take the result in paragraph (a) away from the maximum rate of allowance;

the result is the person’s annual rate of home child care allowance.

Division 6Payment of home child care allowance

Commencement of home child care allowance

“930. Home child care allowance becomes payable to a person on the first day on which:

(a) the person is qualified for the allowance; and

(b) no provision of this Act makes home child care allowance not payable to the person.

Note 1: For ‘qualification’ see section 906.

Note 2: For the circumstances when home child care allowance is not payable see section 908.

Payment by instalments

“931. Subject to section 932, a full instalment of home child care allowance is payable to a person on each home child care allowance payday on which:

(a) the person is qualified for the allowance; and

(b) the allowance is payable to the person.

Note: For ‘home child care allowance payday’ see subsection 23(1).

Effect on instalments of backdating claim

“932. If:

(a) a person claims home child care allowance on a particular day (the ‘claim day’); and

(b) the person’s provisional commencement day is before the claim day; and

(c) there is a home child care allowance payday on or after the provisional commencement day and before the claim day;

then:

(d) no instalment of home child care allowance is payable on that payday; and

(e) a full instalment of home child care allowance in respect of that payday is payable on the first home child care allowance payday on or after the claim day.

Note 1: For ‘provisional commencement day’ see section 910.

Note 2: For ‘home child care allowance payday’ see subsection 23(1).

Calculation of amount of instalment

“933.(1) The amount of an instalment of home child care allowance is the amount worked out by dividing the amount of the annual rate of the allowance by 26.

“(2) If an amount that is payable to a person on a home child care allowance payday is not a multiple of 10 cents, the amount is, subject to subsection (3), to be increased or decreased to the nearest multiple of 10 cents.

“(3) If the amount that is payable to a person on a home child care allowance payday is not a multiple of 10 cents but is a multiple of 5 cents, the amount is to be increased by 5 cents.

“(4) If, apart from this subsection, the amount of an instalment of home child care allowance would be less than $1.00, the amount of the instalment is to be increased to $1.00.

Note: For ‘home child care allowance payday’ see subsection 23(1).

Instalments to be paid to person or nominee

“934.(1) Subject to subsection (3), instalments of a person’s home child care allowance are to be paid to that person.

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

“(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.

“935.(1) An amount that is to be paid to a person under section 934 is to be paid in the manner set out in this section.

“(2) Subject to subsections (4) and (7), 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 person.

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

“(4) If the person 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 person 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 person in a different way to that provided for by subsection (2).

“(7) If the Secretary makes a direction under subsection (6), the home child care allowance is to be paid in accordance with the direction.

Where home child care allowance payday would fall on public holiday etc.

“936. If the Secretary is satisfied that an amount of home child care allowance 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 home child care allowance after death

“937.(1) If:

(a) a home child care allowance is payable to a person; and

(b) the person dies; and

(c) at the date of the person’s death the person has not received an amount of home child care allowance payable to him or her; and

(d) another person 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 who, in the Secretary’s opinion, is best entitled to it.

“(2) If the Secretary pays an amount of home child care allowance under subsection (1), the Commonwealth has no further liability to any person in respect of that amount of home child care allowance.

Secretary may make a declaration where more than one person qualified for home child care allowance for the same child

“938.(1) If the Secretary is satisfied that more than one person qualifies for home child care allowance in relation to the same child, the Secretary is to make a declaration:

(a) stating that the Secretary is satisfied that each person is qualified for home child care allowance in relation to the child; and

(b) specifying the share of the home child care allowance in relation to the child that each person is to receive.

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

Note: Until the declaration under this section is made, only one person can receive home child care allowance in relation to the child (see subsection 912(1)).

Division 7Protection of home child care allowance

Home child care allowance to be absolutely inalienable

“939.(1) Subject to subsections (2) and (3) and section 1359, home child care allowance is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

Payments to Commissioner of Taxation at person’s request

“(2) The Secretary may make deductions from the instalments of home child care allowance payable to a person if the person 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 social security payment if requested by the Commissioner of Taxation (see section 1359).

“(3) The Secretary may make deductions from the instalments of home child care allowance payable to a person if the person 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 social security payment.

Effect of garnishee or attachment order

“940.(1) If:

(a) a person has an account with a financial institution; and

(b) instalments of home child care allowance payable to the person (whether on the person’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 home child care allowance payable to the person 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 8Recipient obligations

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

“941. The Secretary may require the recipient to give the Secretary a written statement of the recipient’s tax file number.

Note 1: For the consequences of a failure to comply with the requirement see section 913.

Note 2: In some cases the requirement can be satisfied by giving the Secretary a declaration by the recipient about the recipient’s tax file number and an authority by the recipient to the Commissioner of Taxation to give the Secretary certain information about the recipient’s tax file number (see subsections 913(2) and (3)).

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

“942. If a partner of a recipient of home child care allowance is in Australia, the Secretary may require the recipient to give the Secretary a written statement of the tax file number of the recipient’s partner.

Note 1: For the consequences of a failure to comply with the requirement see section 914.

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 914(2) and (3)).

Note 3: The Secretary may waive the requirement in some cases (see subsection 914(4)).

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

“943.(1) The Secretary may give a person who is receiving home child care allowance a notice that requires the person to inform the Department if:

(a) a specified event or change of circumstances occurs; or

(b) the person 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 home child care allowance.

“(3) Subject to subsection (4), 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 person is to give the information to the Department; and

(d) must specify the period within which the person 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) A notice under subsection (1) is not invalid merely because it fails to comply with paragraph (3)(c) or (e).

“(5) 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 person becomes aware that the event or change of circumstances is likely to occur.

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

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

Penalty: Imprisonment for 6 months.

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 person to give particular information relevant to payment of home child care allowance

“944.(1) The Secretary may give a person who is receiving home child care allowance a notice that requires the person to give the Department a statement about a matter that might affect the payment of the home child care allowance to the person.

“(2) Subject to subsection (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 statement is to be given to the Department; and

(d) must specify the period within which the person 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) A notice under subsection (1) is not invalid merely because it fails to comply with paragraph (2)(c) or (e).

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

“(5) 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.

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

Penalty: Imprisonment for 6 months.

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 9Continuation, variation and termination

Subdivision AGeneral

Continuing effect of determination

Entitlement determination

“945.(1) A determination that:

(a) a person’s claim for home child care allowance is granted; or

(b) home child care allowance is payable to a person;

continues in effect until:

(c) the payment ceases to be payable under section 946 or 947; or

(d) a further determination in relation to the payment under section 951B or 951C has taken effect.

Note 1: A determination to grant a claim for home child care allowance is made under section 923.

Note 2: A determination that home child care allowance is payable to a person is necessary where the determination is to reverse an earlier determination to cancel or suspend the allowance (see section 951E).

Note 3: If changes are made to a person’s home child care allowance payments because of the operation of a computer program, a determination is taken to have been made in certain circumstances (see section 951D).

Rate determination

“(2) A determination of the rate of home child care allowance continues in effect until:

(a) the home child care allowance becomes payable at a lower rate under section 949; or

(b) a further determination in relation to the home child care allowance under section 951 or 951A has taken effect.

Note: For paragraph (b) see also section 951D (changes to payments by computer).

Subdivision BAutomatic termination

Automatic termination—recipient complying with section 943 notification obligations

“946. If:

(a) a person is given a notice under section 943; and

(b) the notice requires the person 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 person 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 person ceases to be qualified for home child care allowance; or

(ii) home child care allowance would, but for this subsection, cease to be payable to the person; and

(f) home child care allowance is not cancelled before the end of the notification period;

home child care allowance continues to be payable to the person until the end of the notification period and then ceases to be payable to the person.

Automatic terminationrecipient not complying with section 943 notification obligations

“947. If:

(a) a person is given a notice under section 943; and

(b) the notice requires the person 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 person 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 person ceases to be qualified for home child care allowance; or

(ii) home child care allowance ceases to be payable to the person;

home child care allowance ceases to be payable to the person immediately after the day on which the event or change in circumstances occurs.

Changes to payments by computer following automatic termination

“948. If:

(a) a person is receiving home child care allowance on the basis of data in a computer; and

(b) the home child care allowance is automatically terminated by the operation of a provision of this Act; and

(c) the automatic termination is given effect to by the operation of a computer program approved by the Secretary stopping payment of the home child care allowance;

there is taken to be a decision by the Secretary that the automatic termination provision applies to the person’s home child care allowance.

Note: The decision that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 1239 and 1240) and the Social Security Appeals Tribunal (see section 1247).

Subdivision CAutomatic rate reduction

Automatic rate reduction—recipient not complying with section 943 notification obligations

“949. If:

(a) a person is given a notice under section 943; and

(b) the notice requires the person 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 person 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 person’s rate of home child care allowance is to be reduced;

home child care allowance becomes payable to the person at the reduced rate immediately after the day on which the event or change in circumstances occurs.

Changes to payments by computer following automatic rate reduction

“950. If:

(a) a person is receiving home child care allowance on the basis of data in a computer; and

(b) the home child care allowance is automatically reduced by the operation of a provision of this Act; and

(c) the automatic reduction is given effect to by the operation of a computer program approved by the Secretary reducing the rate of payment of the home child care allowance;

there is taken to be a decision by the Secretary that the automatic rate reduction provision applies to the person’s home child care allowance.

Note: The decision that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 1239 and 1240) and the Social Security Appeals Tribunal (see section 1247).

Subdivision DDeterminations

Rate increase determination

“951. If the Secretary is satisfied that the rate at which home child care allowance 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 951F.

Rate reduction determination

“951A. If the Secretary is satisfied that the rate at which home child care allowance 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 949 (see subsection 945(2)).

Note 2: For the date of effect of a determination under this section see section 951G.

Cancellation or suspension determination

“951B. If the Secretary is satisfied that home child care allowance is being, or has been, paid to a person to whom it is not, or was not, payable under this Act, the Secretary is to determine that the home child care allowance 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 946 or 947 (see subsection 945(1)).

Note 2: For the date of effect of a determination under this section see section 951G.

Cancellation or suspension for failure to comply with section 944, 1304 or 1305 notice

“951C. If:

(a) a person is given a notice under section 944, 1304 or 1305; and

(b) the person does not comply with the requirements set out in the notice;

the Secretary may determine that the home child care allowance is to be cancelled or suspended.

Note 1: This section will not apply if section 951B applies.

Note 2: For the date of effect of a determination under this section see section 951G.

Changes to payments by computer

“951D. If:

(a) payment of home child care allowance to a person is based upon data in a computer; and

(b) the rate of home child care allowance is increased or reduced, or home child care allowance 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.

Note: The determination that is taken to have been made is a decision of an officer for the purposes of review by the Secretary (see sections 1239 and 1240) and the Social Security Appeals Tribunal (see section 1247).

Resumption of payment after cancellation or suspension

“951E.(1) If the Secretary:

(a) cancels or suspends a person’s home child care allowance under section 951B or 951C; and

(b) reconsiders the decision to cancel or suspend; and

(c) becomes satisfied that, because of the decision to cancel or suspend:

(i) the person did not receive home child care allowance that was payable to the person; or

(ii) the person is not receiving home child care allowance that is payable to the person;

the Secretary is to determine that home child care allowance was or is payable to the person.

“(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 951F.

Subdivision EDate of effect of determinations

Date of effect of favourable determination

“951F.(1) The day on which a determination under section 951 or 951E (the ‘favourable determination’) takes effect is worked out in accordance with this section.

Notified decisionreview sought within 13 weeks

“(2) If:

(a) a decision (the ‘previous decision’) is made in relation to a person’s home child care allowance; and

(b) a notice is given to the person advising the person of the making of the previous decision; and

(c) the person 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 decisionreview sought after 13 weeks

“(3) If:

(a) a decision (the ‘previous decision’) is made in relation to a person’s home child care allowance; and

(b) a notice is given to the person advising the person of the making of the previous decision; and

(c) the person 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 person sought the review.

Decision not notified

“(4) If:

(a) a decision (the ‘previous decision’) is made in relation to a person’s home child care allowance; and

(b) no notice is given to the person advising the person of the making of the previous decision; and

(c) the person 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 person 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.

Other determinations

“(6) 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.

Date of effect of adverse determination

General

“951G.(1) The day on which a determination under section 951A, 951B or 951C (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 person whose home child care allowance is affected by the adverse determination has contravened a provision of this Act (other than section 944, 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 misrepresentationsuspension or cancellation

“(5) If:

(a) a person has made a false statement or misrepresentation; and

(b) because of the false statement or misrepresentation, the home child care allowance has been paid to a person 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 misrepresentationrate reduction

“(6) If:

(a) a person has made a false statement or misrepresentation; and

(b) because of the false statement or misrepresentation, the rate at which the home child care allowance was paid to a person 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.

Division 10Bereavement

Subdivision ADeath of home child care allowance child

Continuation of qualification for home child care allowance for 4 weeks where person’s only home child care allowance child dies

“951H. If:

(a) a person is receiving home child care allowance in relation to a child; and

(b) the child dies; and

(c) the child was the only home child care allowance child of the person;

the person is qualified for home child care allowance for the period of 4 weeks that starts on the day on which the child dies (the ‘bereavement period’).

Continued payment of home child care allowance

“951I. If a person is qualified for payments under section 951H in relation to the death of a child, the person’s home child care allowance rate, during the bereavement period, is to be calculated as if the child had not died.

Subdivision BDeath of recipient

Death of recipient of home child care allowance during bereavement period

“951J. If:

(a) a person is receiving home child care allowance; and

(b) the person dies; and

(c) the person:

(i) was qualified at the time of the person’s death for payments under section 951H in relation to the death of a home child care allowance 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 amount of home child care allowance that would have been payable to the person under section 9511 if the person had not died.

Death of recipient of home child care allowance

“951K.(1) If:

(a) a person is receiving home child care allowance; and

(b) the person dies;

there is payable to any person that the Secretary thinks fit, the amount of home child care allowance that would have been payable to the deceased person on the next home child care allowance payday after his or her death if the person had not died.

Note: For ‘home child care allowance payday’ see subsection 23(1).

“(2) If an amount of home child care allowance is paid under subsection (1), the Commonwealth has no further liability to any person in respect of that amount of home child care allowance in respect of the deceased person.”.

Consequential amendments

4. The Principal Act is further amended as set out in Schedule 1.

PART 3—PARTNER ALLOWANCE

Insertion of new Part

5. After Part 2.15 of the Principal Act the following Part is inserted:

PART 2.15A—PARTNER ALLOWANCE

Division 1Qualification for and payability of partner allowance

Subdivision AQualification for partner allowance

Qualification for partner allowance

“771HA.(1) Subject to subsections (2) and (3) and section 771HB, a person is qualified for a partner allowance in respect of a period if, throughout the period:

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

(b) the person and the person’s partner are at least 21; and

(c) the person’s partner is receiving job search allowance, newstart allowance, sickness allowance or special benefit; and

(d) the person:

(i) is an Australian resident; and

(ii) is in Australia.

Note 1: For ‘member of a couple’ see section 4.

Note 2: For ‘Australian resident’ see section 7.

Note 3: A person may be temporarily absent from Australia for up to 3 months and nevertheless be treated as being in Australia for the purposes of this section (see subsection (4)).

Person or partner under 21

“(2) If, throughout a period:

(a) a person has not turned 21, or the person’s partner has not turned 21; and

(b) the person or the person’s partner has a dependent child;

the person is qualified for partner allowance in respect of the period.

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

Person subject to waiting period or non-payment period

“(3) If job search allowance, newstart allowance or sickness allowance is not payable to a person because:

(a) the person is serving a waiting period; or

(b) a period of non-payment under paragraph 526(1)(j) or 608(1)(j) applies to the person;

the person is not qualified for a partner allowance throughout the period.

Note 1: For ‘waiting period’ see subsection 23(1).

Note 2: Paragraph 526(1)(j) provides for non-payment periods for job search allowance recipients in certain circumstances.

Note 3: Paragraph 608(1)(j) provides for non-payment periods for newstart allowance recipients in certain circumstances.

Presence of person in Australia

“(4) If a person is temporarily absent from Australia, the person is to be treated, for the purposes of subsection (1), as if the person were in Australia:

(a) if the period of temporary absence is no longer than 3 months—throughout that period; and

(b) in any other case—throughout the first 3 months of that period.

Factors to be considered in determining if absence is temporary

“(5) For the purpose of determining under subsection (4) if an absence is temporary, regard must be had to the following:

(a) the purpose of any such absence;

(b) the intended duration of any such absence;

(c) the frequency of such absences.

Unemployment due to industrial action

“771HB.(1) If a person is unemployed during a period, the person is not qualified for a partner allowance in respect of the period unless the Secretary is satisfied that the person’s unemployment during the period was not due to the person being, or having been, engaged in industrial action or a series of industrial actions.

“(2) For the purposes of subsection (1) and without limiting that subsection, a person is to be taken not to be, or to have been, engaged in industrial action or in a series of industrial actions if the Secretary is satisfied:

(a) the person’s unemployment was due to other people being, or having been, engaged in industrial action or in a series of industrial actions; and

(b) the people, or some of the people, were members of a trade union which was involved in the industrial action; and

(c) the person was not a member of the trade union during the period.

“(3) Subsection (1) does not prevent a person from being qualified for a partner allowance in respect of a period that occurs after the relevant industrial action or series of industrial actions has stopped.

Note: For ‘industrial action’, ‘trade union’ and ‘unemployment’ see section 16.

Subdivision BPayability of partner allowance

Partner allowance not payable in certain situations

“771HC.(1) A partner allowance is not payable to a person for a period during which the person is qualified for partner allowance if during the period:

(a) the person has not provided a tax file number for the person (see section 771HD) or for the person’s partner (see section 771HE); or

(b) the value of the person’s assets exceeds the person’s assets value limit (see section 771HF); or

(c) a pension or another benefit is being paid to the person (see section 771HI); or

(d) the person is receiving a payment under certain educational schemes (see section 771HJ); or

(e) the person is receiving income that is paid by a community or group from funds provided under a Commonwealth funded employment program (see section 771HK); or

(f) the person is receiving payments under a LEAP program; or

(g) the partner allowance has not commenced to be payable (see sections 771HN and 771KD); or

(h) a period of non-payment has been imposed because the person failed to comply with notification requirements (see section 771HO); or

(i) the person has not nominated a bank account, credit union account or building society account for payment of the allowance (see section 771KK); or

(j) the person is in gaol (see Part 3.13); or

(k) the person is subject to a compensation preclusion period (see Part 3.14).

“(2) Subject to subsection (3), a partner allowance is not payable to a person if the person’s partner allowance rate would be nil.

“(3) Subsection (2) does not apply to a person if the person’s rate of partner allowance is nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) Part 2.23 of this Act; or

(b) Division 2 of Part VILA, of the Veterans’ Entitlements Act.

Provision of person’s tax file number

“771HD.(1) A partner allowance is not payable to a person if:

(a) the person is required under section 771IF or 771MA 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 him or her of the 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

“771HE.(1) Subject to subsection (4), a partner allowance is not payable to a person if:

(a) the person is required under section 771IG or 771MB to give the Secretary a written statement of the tax file number of the person’s partner; 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 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 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).

Assets test—allowance not payable if assets value limit exceeded

“771HF.(1) A partner allowance is not payable to a person if the value of the person’s assets exceeds the person’s assets value limit.

Note: The value of the person’s assets is only half the combined value of the person’s assets and the assets of the person’s partner (see subsection (3)).

“(2) A person’s assets value limit is worked out using the following Table:

ASSETS VALUE LIMIT TABLE

column 1

column 2

column 3

item

person’s situation

assets value limit

1.

Person or partner a homeowner

$80,250.00

2.

Neither person nor partner a homeowner

$120,500.00

Note 1: For ‘homeowner’ see section 11.

Note 2: The assets value limits in column 3 are indexed annually in line with CPI increases (see sections 1191 to 1194).

“(3) The value of the person’s assets is taken to be 50% of the sum of the value of the assets of the person and the value of the assets of the person’s partner.

“(4) The amounts in column 3 of the Assets Value Limit Table are to be indexed on 1 July 1994 as if this section and items 79A and 79B of Schedule 2 had commenced on 30 June 1993.

Multiple entitlement exclusion

“771HI.(1) A partner allowance is not payable to a person if the person is already receiving a service pension.

“(2) If:

(a) a person is receiving a partner allowance; and

(b) a social security pension, another social security benefit or a service pension becomes payable to the person;

a partner allowance is not payable to the person.

Note 1: Another payment type will generally not become payable to the person until the person claims it.

Note 2: For the day on which the partner allowance ceases to be payable see section 771NA.

“(3) A partner allowance is not payable to a person if the person is receiving:

(a) a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; or

(b) a pension under the Seamen’s War Pensions and Allowances Act 1940 at a rate determined under subsection 18(2) of that Act.

Educational schemes exclusion

“771HJ. A partner allowance is not payable to a person for a period if the person is receiving a payment for that period under:

(a) the AUSTUDY Scheme; or

(b) the ABSTUDY Scheme; or

(c) the Student Financial Supplement Scheme.

Commonwealth funded employment program exclusion

“771HK. A partner allowance is not payable to a person for a period if the person is receiving income for that period that is paid by a community or group from funds provided under a Commonwealth funded employment program.

Note: For ‘Commonwealth funded employment program’ see subsection 23(1).

Payments under LEAP program

“771HL. A partner allowance is not payable to a person for a period if the person is receiving payments under a LEAP program for that period.

Note: For “LEAP program” see subsection 23(1).

Commencement of partner allowance

“771HM. A partner allowance is not payable to a person before the person’s provisional commencement day.

Note: For ‘provisional commencement day’ see section 771HN.

Provisional commencement day

General rule

“771HN.(1) Subject to subsections (2) and (3), a person’s provisional commencement day is the day on which the person claims a partner allowance.

Initial incorrect or inappropriate claim followed by claim for partner allowance

“(2) If:

(a) the person makes a claim (the ‘initial claim’) for:

(i) a social security or service pension or a social security benefit; 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 partner allowance; and

(b) on the day on which the person makes the initial claim, the person is qualified for partner allowance; and

(c) the person subsequently makes a claim for partner allowance; and

(d) the Secretary is satisfied that it is reasonable for this subsection to apply to the person;

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

Transferees

“(3) If:

(a) a person is a transferee to partner allowance; and

(b) the person claims the partner allowance within 14 days after the transfer day;

the person’s provisional commencement day is the person’s transfer day.

Note: For ‘transferee’ and ‘transfer day’ see subsections 23(6) and (7).

Backdating of claim

“(4) If:

(a) a person makes a claim for partner allowance; and

(b) on the day (the ‘claim day’) on which the person makes the claim, the person is qualified for partner allowance; and

(c) the person was qualified for partner allowance on a day during the 14 day period that ends on the day immediately before the claim day;

the person’s provisional commencement day is the first day in that period that the person was qualified for partner allowance.

Removal from allowance for failure to comply with notification requirements

“771HO.(1) If a person refuses or fails, without sufficient reason, to comply with a requirement made of the person under section 771MA, 771MB, 771MC, 771MD or 1304, a partner allowance is not payable to the person for the deferment period.

“(2) Subject to subsections (3) and (4), the deferment period is 2 weeks.

“(3) If:

(a) subsection (1) applies to a person at a particular time; and

(b) on one occasion only within the period of 3 years before that time an automatic deferment provision applied to the person;

the deferment period is 6 weeks.

Note: For ‘automatic deferment provision’ see section 23.

“(4) If:

(a) subsection (1) applies to the person at a particular time; and

(b) an automatic deferment provision or provisions applied to the person on 2 or more occasions within the period of 3 years before that time;

the deferment period is 6 weeks plus 6 weeks for each occasion referred to in paragraph (b) after the first.

Note: For ‘automatic deferment provision’ see section 23.

“(5) The Secretary may determine in writing the day on which the deferment period commences and that day may be before the day of the determination.

Division 2Claim for partner allowance

Need for a claim

“771IA.(1) A person who wants to be granted a partner allowance must make a proper claim for that allowance.

Note: For ‘proper claim’ see section 771IB (form), section 771IC (manner of lodgment) and section 771ID (residence/presence in Australia).

“(2) For the purposes of subsection (1), if:

(a) a claim for partner allowance is made by or on behalf of a person; and

(b) at the time the claim is made, the claim cannot be granted because the person is not qualified for partner allowance;

the claim is taken to have not been made.

Form of claim

“771IB. 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

“771IC.(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) A place or person approved under subsection (1) must be a place or person in Australia.

Claimant must be Australian resident and in Australia

“771ID. A claim by a person is not a proper claim unless the person is:

(a) an Australian resident; and

(b) in Australia;

on the day on which the claim is lodged.

Note: For ‘Australian resident’ see subsection 7(2).

Claim may be withdrawn

“771IE.(1) A claimant for partner allowance or a person on behalf of a claimant may withdraw a claim that has not been determined.

“(2) A claim that is withdrawn is taken to have not been made.

“(3) A withdrawal may be made orally or in writing.

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

“771IF. The Secretary may require a claimant for partner allowance to give the Secretary a written statement of the claimant’s tax file number.

Note 1: For the consequences of a failure to comply with the requirement see section 771HD.

Note 2: In some cases the requirement can be satisfied by giving the Secretary a declaration and an authority to the Commissioner of Taxation to give the Secretary certain information relevant to the person’s tax file number (see subsections 771HD(2) and (3)).

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

“771IG. The Secretary may require a claimant for partner allowance to give the Secretary a written statement of the tax file number of the claimant’s partner if the partner is in Australia.

Note 1: For the consequences of a failure to comply with the requirement see section 771HE.

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 relevant to the partner’s tax file number (see subsections 771HE(2) and (3)).

Note 3: The Secretary can waive the requirement in some cases (see subsection 771HE(4)).

Division 3Determination of claim

Secretary to determine claim

“771JA. The Secretary must, in accordance with this Act, determine the claim.

Grant of claim

“771JB. The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

(a) the person is qualified for partner allowance; and

(b) the allowance is payable.

Date of effect of determination

“771JC.(1) Subject to subsections (2), (3) and (4), a determination under section 771JB 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 decisionreview sought within 3 months

“(2) If:

(a) a decision (the ‘previous decision’) is made rejecting a person’s claim for partner allowance; and

(b) a notice is given to the person advising the person of the making of the previous decision; and

(c) the person applies to the Secretary under section 1240, within 3 months 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 decisionreview sought after 3 months

“(3) If:

(a) a decision (the ‘previous decision’) is made rejecting a person’s claim for partner allowance; and

Lump sum payable in some circumstances

“771NX.(1) If:

(a) a surviving partner is qualified for payments under this Subdivision in relation to the death of the deceased partner; and

(b) the first available bereavement adjustment payday occurs before the end of the bereavement period;

there is payable to the surviving partner as a lump sum an amount worked out using the following Lump Sum Calculator:

LUMP SUM CALCULATOR

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

Method statement

Step 1.

Work out the amount that, if the deceased partner had not died, would have been payable to the surviving partner on the surviving partner’s payday immediately before the first available bereavement adjustment payday.

Step 2.

Work out the amount that, if the deceased partner had not died, would have been payable to the deceased partner on the deceased partner’s payday immediately before the first available bereavement adjustment payday.

Step 3.

Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4.

Work out the surviving partner’s notional rate using subsection (2), (3), (4) or (5) (whichever applies).

Note: The subsection that you use depends on whether the deceased partner was receiving a job search allowance, newstart allowance, sickness allowance or special benefit before he or she died.

Step 5.

Take the surviving partner’s notional rate away from the combined rate: the result is called the deceased partner’s instalment component.

Step 6.

Work out the number of the deceased partner’s paydays in the lump sum bereavement period.

Step 7.

Multiply the deceased partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable to the surviving partner under this section.

Deceased partner receiving job search allowance

“(2) If, immediately before the deceased partner died, he or she was receiving job search allowance, the surviving partner’s notional rate is the amount of job search allowance that would have been payable to the surviving partner on the surviving partner’s pay day immediately before the first available bereavement adjustment pay day if:

(a) a job search allowance had been payable to the surviving partner on that pay day; and

(b) the surviving partner was not a member of a couple on that pay day.

Deceased partner receiving newstart allowance

“(3) If, immediately before the deceased partner died, he or she was receiving newstart allowance, the surviving partner’s notional rate is the amount of newstart allowance that would have been payable to the surviving partner on the surviving partner’s pay day immediately before the first available bereavement adjustment pay day if:

(a) a newstart allowance had been payable to the surviving partner on that pay day; and

(b) the surviving partner was not a member of a couple on that pay day.

Deceased partner receiving sickness allowance

“(4) If, immediately before the deceased partner died, he or she was receiving sickness allowance, the surviving partner’s notional rate is the amount of sickness allowance that would have been payable to the surviving partner on the surviving partner’s pay day immediately before the first available bereavement adjustment pay day if:

(a) a sickness allowance had been payable to the surviving partner on that pay day; and

(b) the surviving partner was not a member of a couple on that pay day.

Deceased partner receiving special benefit

“(5) If, immediately before the deceased partner died, he or she was receiving special benefit, the surviving partner’s notional rate is the amount of special benefit that would have been payable to the surviving partner on the surviving partner’s pay day immediately before the first available bereavement adjustment pay day if:

(a) a special benefit had been payable to the surviving partner on that pay day; and

(b) the surviving partner was not a member of a couple on that pay day.

Effect of death of surviving partner

“771NY. If:

(a) a surviving partner is qualified for payments under this Subdivision in relation to the death of the deceased partner; and

(b) the surviving partner dies within the bereavement period; and

(c) the Secretary does not become aware of the death of the deceased partner before the surviving partner dies;

there is payable as a lump sum, to any person that the Secretary thinks appropriate, an amount worked out using the following Lump Sum Calculator:

LUMP SUM CALCULATOR

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

Method statement

Step 1.

Work out the amount that, if neither the surviving partner nor the deceased partner had died, would have been payable to the surviving partner on the surviving partner’s payday immediately after the day on which the surviving partner died.

Step 2.

Work out the amount that, if neither the surviving partner nor the deceased partner had died, would have been payable to the deceased partner on the surviving partner’s payday immediately after the day on which the surviving partner died.

Step 3.

Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4.

Work out the amount that, but for section 589A, would have been payable to the surviving partner on the surviving partner’s payday immediately after the day on which the surviving partner died if he or she had not died: the result is called the surviving partner’s individual rate.

Step 5.

Take the surviving partner’s individual rate away from the combined rate: the result is called the deceased partner’s instalment component.

Step 6.

Work out the number of the surviving partner’s paydays in the period that commences on the day after the surviving partner dies and ends on the day on which the bereavement period ends.

Step 7.

Multiply the deceased partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable under this section.

Matters affecting payments under this Subdivision

“771NZ.(1) If:

(a) the surviving partner is qualified for payments under this Subdivision; and

(b) after the deceased partner died, an amount to which the deceased partner would have been entitled if he or she had not died has been paid under this Act or under Part III of the Veterans’ Entitlements Act; and

(c) the Secretary is not satisfied that the surviving partner had not had the benefit of that amount;

the following provisions have effect:

(d) the amount referred to in paragraph (b) is not recoverable from the surviving partner or from the personal representative of the deceased partner, except to the extent (if any) that the amount exceeds the amount payable to the surviving partner under this Subdivision;

(e) the amount payable to the surviving partner under this Subdivision is to be reduced by the amount referred to in paragraph (b).

“(2) If:

(a) the surviving partner is qualified for payments under this Subdivision; and

(b) an amount to which the deceased partner would have been entitled if the deceased partner had not died has been paid under this Act or under Part III of the Veterans’ Entitlements Act, within the bereavement period, into an account with a bank, credit union or building society (the ‘financial institution’); and

(c) the financial institution pays to the surviving partner, out of that account, an amount not exceeding the total of the amounts paid as mentioned in paragraph (b);

the financial institution is, in spite of anything in any other law, not liable to any action, claim or demand by the Commonwealth, the personal representative of the deceased partner or anyone else in respect of the payment of that money to the surviving partner.”.

Consequential amendments

6. The Acts specified in Schedule 2 are amended as set out in that Schedule.

SCHEDULE 1 Section 4

CONSEQUENTIAL AMENDMENTS RELATING TO HOME CHILD

CARE ALLOWANCE

PART 1—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

1.Section 3 (Index of definitions):

Insert:

“home child care allowance payday 23(1)”.

2.Subsection 5(9):

Omit “Part 2.17,”, substitute “Parts 2.17 and 2.18”.

3.Subsection 8(1) (definition of “ordinary income”):

Add at the end the following Note:

“Note: Section 926 varies the definition of ordinary income. This varied definition applies only to Part 2.18, home child care allowance.’ .

4.Subsection 23(1):

Insert:

‘home child care allowance payday’ means:

(a) the Thursday that falls on 29 September 1994; and

(b) each succeeding alternate Thursday;”.

5.Section 23 (paragraph (m) of the definition of “recipient notification notice”):

After the paragraph insert:

“(n) section 943 (home child care allowance); or”.

6.Section 23 (paragraph (m) of the definition of “recipient statement notice”):

After the paragraph insert:

“(n) section 944 (home child care allowance); or”.

7.Subsection 1072A(1) (Note):

Add at the end:

“and section 926 (home child care allowance)”.

8.Paragraph 1072A(2)(a):

Omit “in subsection 8(1)”.

9.Section 1158:

(a) Omit “or special needs pension”, substitute “, special needs pension or home child care allowance”.

SCHEDULE 1—continued

(b) Insert before the Notes:

“(2) A home child care allowance is not payable to a person on a home child care allowance payday if:

(a) on that payday the person is:

(i) in gaol; or

(ii) undergoing psychiatric confinement because the person has been charged with committing an offence; and

(b) that payday is not the first home child care allowance payday and not the last home child care allowance payday in the period of imprisonment or confinement.”.

(c) Add at the end:

“Note 4: For ‘home child care allowance payday’ see subsection 23(1).”.

10. Section 1190 (Indexed and Adjusted Amounts Table):

After item 16, insert:

16A.

Rate of home child care allowance

HCCA rate

[section 926]

”.

11. Section 1191 (CPI Indexation Table):

After item 10, insert:

10A.

home child care allowance

1 January

June

highest June quarter before reference quarter (but not earlier than June quarter 1993)

$2.60

”.

12.Section 1211:

(a) Omit “and additional family payment”, substitute “, additional family payment and home child care allowance”.

(b) Insert “, 906(d),” after “729(2)(fa)”.

(c) Add at the end:

“Note 4: A person is taken to be in Australia for the purposes of paragraph 906(1)(d) (qualification for home child care allowance) if the person is temporarily absent from Australia for a period of 13 weeks or less.”.

13.After paragraph 1223(11)(d):

Insert:

“(da) a home child care allowance; or”.

SCHEDULE 1— continued

14.After paragraph 1224C(2)(d):

Insert:

“(da) a home child care allowance; or”.

15.Section 1239 (Note):

(a) After “877A,” insert “950,”.

(b) After “882,” insert “951D,”.

16.Section 1240 (Note):

(a) After “877A,” insert “950,”.

(b) After “882,” insert “951D,”.

17.Section 1247 (Note):

(a) After “877A,” insert “950,”.

(b) After “882,” insert “951D,”.

18.Paragraph 1250(1)(d):

Omit “903, 904,”, substitute “916, 917,”.

PART 2—AMENDMENT OF THE DATA-MATCHING PROGRAM (ASSISTANCE AND TAX) ACT 1990

19.Section 3 (paragraph (c) of the definition of “personal assistance”):

Insert after paragraph (xxiva):

“(xxivb) home child care allowance;”.

SCHEDULE 2 Section 6

CONSEQUENTIAL AMENDMENTS RELATING TO PARTNER ALLOWANCE

PART 1—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

1.Section 3 (Index of definitions):

Omit “benefit increase partner”.

2.Subsection 4(1) (definition of “benefit increase partner”):

Omit.

3.Subsection 4(10):

Omit.

4.Subsection 21(1) (definition of “partner bereavement payment”):

After “304” insert “, 771NW”.

5.Subsection 23(1) (after paragraph (b) of the definition of “automatic deferment provision”):

Insert:

“(ba) a partner allowance automatic deferment provision; or”.

6.Subsection 23(1) (definition of “compensation arrears debt”):

After “728R” insert “, 771NS”.

7.Subsection 23(1) (after paragraph (k) of the definition of “recipient notification notice”):

Insert:

“(ka) section 771MC (partner allowance);”.

8.Subsection 23(1) (after paragraph (k) of the definition of “recipient statement notice”):

Insert:

“(ka) section 771MD (partner allowance);”.

9.Subsection 23(1) (definition of “social security benefit”):

Add:

“or (e) partner allowance;”.

10.Subsection 23(1) (definition of “social security recipient status”):

Omit, substitute:

‘social security recipient status’, for the purposes of the definition of ‘long-term social security recipient’ means status as a recipient of a social security pension, a social security benefit or a service pension;”.

SCHEDULE 2— continued

11.Subsection 23(1):

Insert:

‘partner allowance automatic deferment provision’ means subsection 547(1) (failure to comply with notification requirement);”.

12.Subsection 23(4AB):

Omit.

13.Sub-subparagraph 23(7)(a)(ii)(C):

Omit “and”.

14.Subparagraph 23(7)(b)(iii):

Omit.

15.Paragraph 82(5)(a):

Omit, substitute:

“(a) the person is receiving a social security benefit; and”.

16.Subparagraph 82(5)(b)(iii):

Omit “or”, substitute “.”.

17.Subparagraph 82(5)(b)(iv):

Omit.

18.Subsection 82(6):

Omit, substitute:

“(6) A person is taken to satisfy the requirements of paragraph (5)(b) if:

(a) the person was receiving one or a combination of the payments referred to in that paragraph for a continuous period of 12 months; or

(b) the person was receiving one or a combination of the payments referred to in that paragraph for 46 weeks of the previous 52.”.

19.Paragraph 146F(5)(a):

Omit, substitute:

“(a) the person is receiving a social security benefit; and”.

20.Subparagraph 146F(5)(b)(iii):

Omit “or”, substitute “.”.

21.Subparagraph 146F(5)(b)(iv):

Omit.

SCHEDULE 2—continued

22.Subsection 146F(6):

Omit, substitute:

“(6) A person is taken to satisfy the requirements of paragraph (5)(b) if:

(a) the person was receiving one or a combination of the payments referred to in that paragraph for a continuous period of 12 months; or

(b) the person was receiving one or a combination of the payments referred to in that paragraph for 46 weeks of the previous 52.”.

23.Subparagraph 538(ea)(iii):

Omit, substitute:

“(iii) immediately before the partner’s death, the person was receiving a partner allowance;”.

24.Subparagraph 538(ea)(iv):

Omit “the former benefit increase partner”, substitute “, the person”.

25.Section 538 (Note 7):

Omit.

26.Section 589B (Note):

Omit.

27.Subdivision AB of Division 9 of Part 2.11:

Repeal.

28.Subparagraph 620(fa)(iii):

Omit, substitute:

“(iii) immediately before the partner’s death, the person was receiving a partner allowance;”.

29.Subparagraph 620(fa)(iv):

Omit “the former benefit increase partner”, substitute “, the person”.

30.Section 620 (Note 6):

Omit.

31.Section 660LB (Note):

Omit.

32.Subdivision AB of Division 9 of Part 2.12:

Repeal.

SCHEDULE 2—continued

33.Paragraph 660XBA(1)(d):

Omit, substitute:

“(d) has been receiving one or a combination of the following:

(i) a social security pension;

(ii) a social security benefit;

(iii) a service pension;

for a continuous period of at least 12 months immediately before a claim period day; and”.

34.Subsection 660XBA(1B):

Omit, substitute:

“(1B) For the purposes of paragraph (1)(d), if a person ceases to receive one of the following:

(a) a social security pension;

(b) a social security benefit;

(c) a service pension;

for a period of less than 13 weeks, the person is taken to have been receiving the pension or benefit for that period.”.

35.Subsection 660XBA(4) (Note 4):

Omit.

36.Subparagraph 661(2)(d)(i):

Omit, substitute:

“(i) the person’s partner was receiving newstart allowance or job search allowance and the person was receiving special benefit or sickness allowance; and”.

37.Subparagraph 663(2)(c)(i):

Omit, substitute:

“(i) the person’s partner was receiving newstart allowance or job search allowance and the person was receiving special benefit or sickness allowance; and”.

38.After section 664H:

Insert:

Partner allowance recipients

“664I.(1) A person is qualified for an employment entry payment under this section if:

SCHEDULE 2— continued

(a) the person commences employment; and

(b) immediately before the person commenced the employment:

(i) the person was receiving partner allowance; and

(ii) the person’s partner had been registered for at least 12 months by the CES in an allowance category as being unemployed; and

Note: For ‘allowance category’ see subsection 23(4A).

(c) because of the income earned by the person from the employment, newstart allowance or job search allowance ceases to be payable to the person’s partner; and

(d) the employment is, in the Secretary’s opinion, likely to continue for more than 4 weeks; and

(e) the person has not, within the last 12 months, received a payment under this Part.

“(2) If the Secretary is satisfied that:

(a) a person has entered an agreement under which the person is to be employed; and

(b) on the start of that employment, the person would, but for receiving a payment under this subsection, be qualified for a payment under subsection (1);

the following provisions have effect:

(c) subject to paragraph (d), the person is qualified for an employment entry payment, which is payable to the person at the time the Secretary determines;

(d) the person is not qualified for the employment entry payment unless the Secretary is still satisfied as mentioned in paragraphs (a) and (b) when the payment is payable to the person.

“(3) The time determined under paragraph (2)(c) is not to be more than 14 days before the person is to commence the employment.”.

39.Before section 665:

Insert:

Amount of section 664I payment

“664J. The amount of an employment entry payment under section 664I is $100.”.

40.Subparagraph 693(e)(iii):

Omit, substitute:

SCHEDULE 2— continued

“(iii) immediately before the partner’s death, the person was receiving a partner allowance;”.

41.Subparagraph 693(e)(iv):

Omit “the former benefit increase partner”, substitute “, the person”.

42.Section 693 (Note 5):

Omit.

43.Subsection 710(1):

Omit “If”, substitute “Subject to subsection (1A), if”.

44.After subsection 710(1):

Insert:

“(1A) If:

(a) a person is qualified for sickness allowance through subparagraph 666(1)(d)(i) (loss of salary, wages or other income of a similar nature); and

(b) the person’s partner is receiving a partner allowance;

the rate per fortnight of the person’s sickness allowance is not to exceed the rate that, in the Secretary’s opinion, is one half of the rate per fortnight of the salary, wages or other income that the person has lost because of the person’s incapacity for work.

Note: There is also limitation on the rate of partner allowance payable to the partner (see section 771KC).”.

45.Section 712:

Repeal, substitute:

“Limitation on rate-transferee

712. If a person is qualified for sickness allowance through subparagraph 666(1)(d)(iii) (transfer from social security pension), the rate per fortnight of the person’s allowance is not to exceed the rate per fortnight of the social security pension.”.

46.Section 728PB (Note):

Omit.

47.Subdivision AB of Division 9 of Part 2.14:

Repeal.

SCHEDULE 2—continued

48.Section 768B (Note):

Omit.

49.Subdivision AB of Division 9 of Part 2.15:

Repeal.

50.Paragraph 822(5)(a):

Omit, substitute:

“(a) the person is receiving a social security benefit; and”.

51.Subparagraph 822(5)(b)(iii):

Omit “or”, substitute “.”.

52.Subparagraph 822(5)(b)(iv):

Omit.

53.Subsection 822(6):

Omit, substitute:

“(6) A person is taken to satisfy the requirements of paragraph (5)(b) if:

(a) the person was receiving one or a combination of the payments referred to in that paragraph for a continuous period of 12 months; or

(b) the person was receiving one or a combination of the payments referred to in that paragraph for 46 weeks of the previous 52.”.

54.After subsection 1061Q(3):

Insert:

“(3A) A person is qualified for telephone allowance if:

(a) the person is receiving partner allowance; and

(b) the person is a telephone subscriber; and

(c) the person’s partner has turned 60; and

(d) the person’s partner is receiving job search allowance, newstart allowance or sickness allowance; and

(e) the person’s partner has been receiving:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension;

continuously for the last 12 months.

Note: For ‘telephone subscriber’ see subsection (5).”.

SCHEDULE 2— continued

55.Section 1067 (Benefit Rate Calculator A—point 1067-A1—Method statement—Step 2):

(a) Omit.

(b) Renumber Steps 3 to 11 as Steps 2 to 10.

56.Section 1067 (Benefit Rate Calculator A—point 1067-A1—Method statement—Step 11—Note):

Omit “Step 7 or Step 11”, substitute “Step 6 or Step 10”.

57.Section 1067 (Benefit Rate Calculator A—Module C):

Omit.

58.Section 1067 (Benefit Rate Calculator A—point 1067-D9—Pharmaceutical Allowance Amount Table—item 2—column 2):

Omit “—person’s rate not increased for partner under Module C”.

59.Section 1067 (Benefit Rate Calculator A—point 1067-D9—Pharmaceutical Allowance Amount Table—item 3):

Omit.

60.Section 1067 (Benefit Rate Calculator A—point 1067-F1A—Table FA—items 4, 6 and 8):

Omit.

61.Section 1067 (Benefit Rate Calculator A—point 1067-F1A—Table FA—items 5, 7 and 9):

Omit “where person’s rate is not increased for partner under Module C”.

62.Section 1067 (Benefit Rate Calculator A—paragraph 1067-F12(b)):

Omit “or sickness allowance”, substitute “, sickness allowance or partner allowance”.

63.Section 1067 (Benefit Rate Calculator A—paragraph 1067-F13—Table F—items 4, 6 and 8):

Omit.

64.Section 1067 (Benefit Rate Calculator A—point 1067-F13—Table F—items 5, 7 and 9):

Omit “where person’s rate is not increased for partner under Module C”.

65.Section 1067 (Benefit Rate Calculator A—point 1067-K2):

Omit.

SCHEDULE 2—continued

66.Section 1067 (Benefit Rate Calculator A—point 1067-K3—Table K—item 2—column 2):

Omit “—partner is not benefit increase partner”.

67.Section 1067 (Benefit Rate Calculator A—point 1067-K3—Table K—item 3—column 2):

Omit “—partner not benefit increase partner”.

68.Section 1067 (Benefit Rate Calculator A—point 1067-K3—Table K—item 4—column 2):

Omit.

69.Section 1067 (Benefit Rate Calculator A—point 1067-K3—Table K—Notes 1 and 2):

Omit.

70.After paragraph 1068(1)(b):

Insert:

“or (c) partner allowance;”.

71.Subsection 1068(3) (Note 1):

Omit “and 675”, substitute “, 675 and 771HI”.

72.Section 1068 (Benefit Rate Calculator B—point 1068-A1—Method statement—Step 2):

(a) Omit Step 2.

(b) Renumber Steps 3 to 9 as Steps 2 to 8.

73.Section 1068 (Benefit Rate Calculator B—point 1068-A1—Note 1):

(a) Omit “9”, substitute “8”.

(b) Omit “and additional amount for partner”.

74.Section 1068 (Benefit Rate Calculator B—point 1068-A1—Note 3):

(a) Omit “9”, substitute “8”.

(b) Omit “6”, substitute “5”.

75.Section 1068 (Benefit Rate Calculator B—Module C):

Omit.

SCHEDULE 2— continued

76.Section 1068 (Benefit Rate Calculator B—point 1068-D10—Pharmaceutical Allowance Amount Table—item 2—column 2):

Omit “—person’s rate not increased for partner under Module C”.

77.Section 1068 (Benefit Rate Calculator B—point 1068-D10—Pharmaceutical Allowance Amount Table—item 3):

Omit.

78.Section 1068 (Benefit Rate Calculator B—point 1068-F1A—Table FA—items 4, 6 and 8):

Omit.

79.Section 1068 (Benefit Rate Calculator B—point 1068-F1A—Table FA—items 5, 7 and 9):

Omit “where person’s rate is not increased for partner under Module C”.

80.Section 1068 (Benefit Rate Calculator B—point 1068-F15—Table F—items 4, 6 and 8):

Omit.

81.Section 1068 (Benefit Rate Calculator B—point 1068-F15—Table F—items 5, 7 and 9):

Omit “where person’s rate is not increased for partner under Module C”.

82.Section 1068 (Benefit Rate Calculator B—point 1068-G11—Table G-2—item 2):

Omit.

83.Section 1068 (Benefit Rate Calculator B—point 1068-G11—Table G-2—item 3—column 2):

Omit “—no additional amount for partner”.

84.Section 1068 (Benefit Rate Calculator B—point 1068-G11—Note 2):

Omit.

85.Section 1068 (Benefit Rate Calculator B—point 1068-J2):

Omit.

86.Section 1068 (Benefit Rate Calculator B—point 1068-J3—Table J—item 2—column 2):

Omit “—partner is not benefit increase partner”.

SCHEDULE 2—continued

87.Section 1068 (Benefit Rate Calculator B—point 1068-J3—Table J—item 3—column 2):

Omit “—partner not benefit increase partner”.

88.Section 1068 (Benefit Rate Calculator B—point 1068-J3—Table J—item 4):

Omit.

89.Section 1068 (Benefit Rate Calculator B—point 1068-J3—Notes 1 and 2):

Omit.

90.Subsection 1128(1):

(a) Omit “and 2.15”, substitute “, 2.15 and 2.15A”.

(b) Omit “and special benefit”, substitute “, special benefit and partner allowance”.

91.After paragraph 1160(b):

Insert:

“Note: If someone else is receiving a payment that depends on the person in gaol receiving a social security benefit, that other person’s payment is not payable during the period identified in this section. That other person may, however, become qualified for another social security benefit.”.

92.Paragraph 1161(1)(b):

Omit “or sickness allowance”, substitute “, sickness allowance or partner allowance”.

93.Section 1163:

Add at the end:

“(10) A partner allowance will only be affected under this Part if:

(a) the compensation is received on or after 20 September 1994; and

(b) the claim for the allowance is made on or after 20 September 1994.”.

94.Subsection 1168(3) (Note 2):

Omit “and additional amount for partner”.

95.After subparagraph 1187(1A)(a)(iv):

Insert:

“(iva) partner allowance; or”.

96.Paragraph 1187(3)(c):

Omit, substitute:

SCHEDULE 2— continued

“(c) a payment of rehabilitation allowance is payable to the person’s partner during that pension period; and”.

97.Section 1190 (Indexed and Adjusted Amounts Table—item 2—column 4):

(a) Omit “[Benefit Rate Calculator A—point 1067-C3—paragraphs (a) and (b)]”.

(b) Omit “[Benefit Rate Calculator B—point 1068-C4—paragraphs (a) and (b)]”.

98.Section 1190 (Indexed and Adjusted Amounts Table—item 32— column 4):

Add at the end:

“[subsection 771HF(2)—Table—column 3—item 1]”.

99.Section 1190 (Indexed and Adjusted Amounts Table—item 33—column 4):

Add at the end:

“[subsection 771HF(2)—Table—column 3—item 3]”.

100.Section 1190 (Indexed and Adjusted Amounts Table—item 47A):

Omit.

101.Section 1211:

(a) After “729(2)(fa)” insert “, [771HA(1)(d)]”.

(b) Add at the end:

“Note 5: Subsection 771HA(4) provides that a person is taken to be in Australia for the purpose of subsection 771HA(1) (qualification for partner allowance) if the person is temporarily absent from Australia for a period of 3 months or less.”.

102.After subparagraph 1223(2A)(b)(ix):

Insert:

“(ixa) subsection 771HI(3) or section 771HJ (partner allowance);”.

103.After paragraph 1223A(3)(o):

Insert:

“(oa) section 771NB (partner allowance);

(ob) section 771NC (partner allowance—partner);”.

104.After paragraph 1223B(2)(i):

Insert:

“; (j) section 771NH (partner allowance).”.

SCHEDULE 2— continued

105.Subsection 1239(1) (Note):

(a) After “762c” insert “,771NG, 771NK”.

(b) After “765B” insert “,771NP”.

106.Subsection 1240(1) (Note):

(a) After “762C” insert “, 771NG, 771NK”.

(b) After “765B” insert “, 771NP”.

107.Paragraph 1250(1)(d):

After “742” insert “, 771IB, 771IC”.

108.Schedule 1A:

Add at the end:

Partner allowance (changes made on 20 September 1994)

“70.(1) If:

(a) a job search allowance, newstart allowance, sickness allowance or special benefit is payable to a person for a fortnightly period that starts before 20 September 1994 and ends after that day; and

(b) apart from the amendments made by section 5 of the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994, the rate of the person’s payment would include an additional payment for the person’s partner under Module C of Benefit Rate Calculator A in section 1067 or Benefit Rate Calculator B in section 1068 (whichever applies);

the rate of the person’s payment for that period is to be worked out in accordance with this Act as in force immediately before 20 September 1994.

“(2) If:

(a) a special benefit is payable to a person for a period that starts on or before 20 September 1994 and ends after that day; and

(b) apart from the amendments made by section 5 of the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994, the rate of the person’s special benefit would include an additional amount for the person’s partner;

the rate of the person’s special benefit for that period is to be worked out in accordance with this Act as in force immediately before 20 September 1994.

“(3) If subclause (1) or (2) applies to a person, then, despite the amendments made by section 5 of the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994, a partner allowance is not payable to the person’s partner before the end of the period referred to in paragraph (1)(a) or (2)(a).

SCHEDULE 2— continued

Bereavement payments (partner allowance changes made on 20 September 1994)

“71.(1) If a person is receiving bereavement payments under Subdivision AB of Division 9 of Part 2.11 of this Act in relation to a bereavement period that starts on or before 20 September 1994 and ends after that day, then, despite the amendments made by section 5 of the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994, this Act as in force immediately before 20 September 1994 applies to the person in relation to the bereavement period until the end of that period.

“(2) If a person is receiving bereavement payments under Subdivision AB of Division 9 of Part 2.12 of this Act in relation to a bereavement period that starts on or before 20 September 1994 and ends after that day, then, despite the amendments made by section 5 of the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994, this Act as in force immediately before 20 September 1994 applies to the person in relation to the bereavement period until the end of that period.

“(3) If a person is receiving bereavement payments under Subdivision AB of Division 9 of Part 2.14 of this Act in relation to a bereavement period that starts on or before 20 September 1994 and ends after that day, then, despite the amendments made by section 5 of the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994, this Act as in force immediately before 20 September 1994 applies to the person in relation to the bereavement period until the end of that period.

“(4) If a person is receiving bereavement payments under Subdivision AB of Division 9 of Part 2.15 of this Act in relation to a bereavement period that starts on or before 20 September 1994 and ends after that day, then, despite the amendments made by section 5 of the Social Security (Home Child Care and Partner Allowances) Legislation Amendment Act 1994, this Act as in force immediately before 20 September 1994 applies to the person in relation to the bereavement period until the end of that period.

PART 2—AMENDMENT OF OTHER ACT

Data-matching Program (Assistance and Tax) Act 1990

1. Section 3 (after subparagraph (c)(xx) of the definition of “personal assistance”):

Insert:

“(xxa) partner allowance;”.

NOTE

Social Security Act 1991

1. No. 46, 1991, as amended. For previous amendments, see Nos. 68, 69, 70, 73, 74, 115, 116, 141, 175, 194 and 208, 1991;Nos. 12, 69, 81, 94, 118, 133, 134, 138, 228, 229, 230, 233 and 241, 1992; and Nos. 25, 36, 61, 120 and 121, 1993.

NOTE ABOUT SECTION HEADING

1. On the day on which section 5 of this Act commences, the heading to section 1068 of the Social Security Act 1991 is omitted and the following heading is substituted:

Rate of job search allowance (18 or over), newstart allowance, sickness allowance (18 or over) and partner allowance”.

[Minister’s second reading speech made in

House of Representatives on 15 December 1993

Senate on 8 February 1994

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