Social Security Legislation Amendment Act 1990 (Cth)

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Social Security Legislation Amendment Act 1990

No. 6 of 1991

TABLE OF PROVISIONS

PART 1—PRELIMINARY

Section

1. Short title

2. Commencement

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1947

3. Principal Act

4. Application

5. Interpretation

6. Insertion of new section:

3aa. Calculation of income

7. Calculation of value of property

8. Income from loans

9. Insertion of new section:

4d. Income from certain money

10. Disposal of income or property

11. Pension reduction amounts

12. Earnings credit

13. Insertion of new section:

12aaa. Personal care support schemes

14. Accruing return investments

15. Market-linked investments

16. Special provisions about certain investments made or acquired before 9 September 1988

17. Determinations of entitlement of persons holding market-linked investments

18. Treatment of costs of investments

19. Certain capital amounts taken to be received over 12 months

20. Secrecy

21. Interpretation

TABLE OF PROVISIONS—continued

Section

22. Rate of pension

23. Indexation of certain rates

24. Calculation of income in respect of children

25. Rent assistance

26. Carer’s pension

27. Insertion of new section:

42a. Provision of tax file numbers

28. Rent assistance

29. Tax file numbers

30. Insertion of new section:

58c. Provision of tax file numbers

31. Entitlement of parent or guardian on death of dependent child

32. Entitlement of estate of deceased pensioner

33. Rate of allowance

34. Reduction of rate by reference to taxable income

35. Tax file numbers

36. Qualification for family allowance

37. Entitlement to receive family allowance ceases after 3 years absence of recipient or child

38. Family allowance not payable in respect of certain student children

39. Income test for family allowances

40. Provision of tax file numbers

41. Tax file numbers

42. Application of family allowance

43. Insertion of new section:

116c. Persons with certain assets not qualified for unemployment benefit

44. Insertion of new section:

117aa. Person with certain assets not qualified for sickness benefit

45. Rate of unemployment and sickness benefit

46. Entitlement to unemployment or sickness benefits etc.

47. Rent assistance

48. Special arrangement for victims of major disasters

49. When benefits payable

50. Provision of tax file numbers

51. Insertion of new section:

125b. Provision of tax file numbers—special benefit

52. Education leavers

53. Special benefit

54. Rate of special benefit

55. Benefit not payable to full-time students

56. Tax file numbers

57. Insertion of new section:

143a. Provision of tax file numbers

58. Insertion of new section:

148a. Provision of tax file numbers

59. Insertion of new section:

151a. Provision of tax file numbers

60. Heading to Part XVIa

61. Interpretation

62. Insertion of new section:

151ab. Entitlements under Part limited to residents of Australia

63. Insertion of new sections:

151ha. Qualifications for pharmaceutical allowance

151hb. Pharmaceutical allowance only payable after supplement period

151hc. Rate of pharmaceutical allowance

151hd. Payment of pharmaceutical allowance

64. Pharmaceutical supplements in addition to advance pharmaceutical supplements

65. Rate increases not to apply to advance pensioners A during advance payment period

66. Pharmaceutical allowance not payable to advance pensioners B during advance payment period

TABLE OF PROVISIONS—continued

Section

67. Maximum benefit

68. Insertion of new Part:

PART XVIIa—DISASTER RELIEF PAYMENT

157a. Interpretation

157b. Declaration of major disaster

157c. Disaster relief payment

157d. Rate of relief payment

69. Claims

70. Making a lodgment of claims etc.

71. Manner of payment etc.

72. Some decisions are not reviewable by the Social Security Appeals Tribunal

73. Insertion of new section:

219a. Conditions of members

74. Acting appointments

75. Insertion of new section:

237c. Employment entry payment—sole parent’s pension recipients

76. Insertion of new section:

245a. Restrictions on dual pensions

77. Insertion of new section:

245b. Recoverable payments

78. Recovery of overpayments

79. Pension, benefit or allowance may be paid to bank etc.

80. Write-off, waiver etc.

81. Insertion of clause in Schedule 1b:

7a. Provision of tax file numbers

82. Schedule 1

83. New Schedule 6

PART 3—AMENDMENTS OF THE SOCIAL SECURITY AND VETERANS’

ENTITLEMENTS (MAINTENANCE INCOME TEST) AMENDMENT ACT 1988

84. Principal Act

85. Application

86. Saving for certain existing pensions

PART 4—AMENDMENTS OF THE FIRST HOME OWNERS ACT 1983

87. Principal Act

88. Insertion of new section:

17b. Provision of tax file numbers

PART 5—AMENDMENTS OF THE HEALTH INSURANCE ACT 1973

89. Principal Act

90. Repeal of section 4d and substitution of new section:

4d. Certain disadvantaged persons

PART 6—AMENDMENTS OF THE NATIONAL HEALTH ACT 1953

91. Principal Act

92. Interpretation

93. Insertion of new section:

4aaa. Certain pensioners

PART 7—AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

94. Principal Act

95. Objects of this Part

TABLE OF PROVISIONS—continued

Section

PART 8—AMENDMENTS OF THE TAXATION ADMINISTRATION ACT

1953

96. Principal Act

97. Unauthorised requirement etc. that tax file number be quoted

98. Unauthorised recording etc. of tax file number

SCHEDULE 1

NEW SCHEDULE 1 OF SOCIAL SECURITY ACT 1947:

AGREEMENT ON SOCIAL SECURITY BETWEEN

THE GOVERNMENT OF AUSTRALIA

AND

THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN

AND NORTHERN IRELAND

SCHEDULE 2

NEW SCHEDULE 6 OF SOCIAL SECURITY ACT 1947:

AGREEMENT BETWEEN AUSTRALIA AND MALTA

ON SOCIAL SECURITY

Social Security Legislation Amendment Act 1990

No. 6 of 1991

An Act to amend the law relating to social welfare, and

for related purposes

[Assented to 8 January 1991]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the Social Security Legislation Amendment Act 1990.

Commencement: Day of Royal Assent

Commencement

2. Each provision of this Act commences, or is taken to have commenced, as the case requires, on the day shown by the note in italics at the foot of the provision.

Commencement: Day of Royal Assent

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT

1947

Principal Act

3. In this Part, “Principal Act” means the Social Security Act 19471.

Commencement: Day of Royal Assent

Application

4.(1) The amendments of the Principal Act made by paragraphs 5 (a), (f) to (k) (inclusive) and (p), section 6, paragraph 7 (b) and sections 14, 15, 16, 17, 18, 19, 24, 37, 71, 76 and 79 apply in relation to payments under that Act that fall due on or after the day on which this Act receives the Royal Assent and the amendment made by section 37 does not affect any payment by way of family allowance made before that day.

Commencement: Day of Royal Assent

(2) The amendments of the Principal Act made by paragraph 5 (q), apply in relation to payments under that Act that fall due on or after 1 January 1991.

Commencement: 1 January 1991

(3) The amendments of the Principal Act made by paragraph 5 (t) and section 11 are made for the avoidance of doubt.

Commencement: Day of Royal Assent

(4) The amendments of the Principal Act made by section 10 apply in relation to a person’s disposal of property on or after 22 August 1990.

Commencement: 22 August 1990

(5) The subsections of the Principal Act omitted by sections 23 and 46 are taken never to have applied.

Commencement: 20 March 1991

(6) The amendments of the Principal Act made by sections 25, 28, 33 and 47 apply in relation to payments that fall due on or after 20 March 1991.

Commencement: 20 March 1991

(7) The amendments of the Principal Act made by sections 31 and 32 and paragraph 70 (1) (b) apply in relation to claims lodged on or after 1 December 1990.

Commencement: 1 December 1990

(8) The amendments of the Principal Act made by section 39 apply to payments under that Act made on or after 1 January 1991.

Commencement: 1 January 1991

(9) The amendments of the Principal Act made by sections 36 and 53 apply in relation to payments under that Act that fall due on or after 1 August 1990.

Commencement: 1 August 1990

(10) The amendments of the Principal Act made by sections 43, 44 and 49 and paragraph 69 (c) apply in relation to claims lodged on or after 1 February 1991.

Commencement: 1 February 1991

(11) The amendments of the Principal Act made by section 45 apply in relation to payments under that Act that fall due on or after 20 September 1990.

Commencement: 20 September 1990

(12) The amendment of the Principal Act made by section 49 applies in relation to claims made on or after 1 December 1990.

Commencement: 1 December 1990

(13) The amendments of the Principal Act made by sections 52 and 55 apply in relation to payments under that Act in respect of periods all or part of which occur on or after the day on which this Act receives the Royal Assent.

Commencement: Day of Royal Assent

(14) The amendment of the Principal Act made by paragraph 70 (1) (d) applies in relation to claims lodged on or after 29 December 1988.

Commencement: 29 December 1988

(15) The amendments of the Principal Act made by section 80 apply in relation to payments under that Act whenever made.

Commencement: 1 January 1991

(16) The amendments of the Principal Act made by paragraphs (7) (a) and (b) of the Social Security and Veterans’ Affairs Legislation Amendment Act (No. 2) 1990 apply in relation to disposals of property taking place on or after 1 March 1991.

Commencement: 1 March 1991

Interpretation

5. Section 3 of the Principal Act is amended:

(a) by inserting “being income calculated having regard to section 3aa,” after “Australia,” in the definition of “income” in subsection (1);

Commencement: Day of Royal Assent

(b) by inserting “4c, 6a,” after “section” (first occurring) in that definition;

Commencement: 22 August 1990

(c) by inserting “4d,” after “4c,” in that definition;

Commencement: 1 March 1991

(d) by inserting “4c, 6a,” after “section” in paragraph (aa) of that definition;

Commencement: 22 August 1990

(e) by inserting “4d,” after “4c,” in paragraph (aa) of that definition;

Commencement: 1 March 1991

(f) by inserting the following paragraph after paragraph (g) of that definition:

“(ga) a payment by a State or Territory for the purpose of assisting the person to purchase, or build, his or her own home;”;

Commencement: Day of Royal Assent

(g) by inserting the following paragraph after paragraph (j) of that definition.

“(ja) where:

(i) there is a mortgage or other arrangement under which the person owes money; and

(ii) the person has insurance because of which payments under the arrangement are made by the insurer to the creditor when the person is unemployed or ill or another particular event occurs;

payments made to the creditor under the insurance;”;

Commencement: Day of Royal Assent

(h) by omitting subparagraphs (na) (i) and (ii) of that definition and substituting the following subparagraphs:

“(i) a pension under Part IV or V or Schedule 1b; or

(ii) an allowance under Part VI, XIV or XVI; or

(iii) a pension under Part III of the Veterans’ Entitlements Act 1986;”;

Commencement: Day of Royal Assent

(j) by inserting after paragraph (q) of that definition the following paragraphs:

“(qa) remuneration for serving, or being summoned to serve, on a jury; or

(qb) an allowance for travelling, or for other expenses, as a witness, other than an expert witness, in proceedings before a court, tribunal or commission;”;

Commencement: Day of Royal Assent

(k) by inserting the following paragraph after paragraph (v) of that definition:

“(va) a payment towards the cost of personal care support services for the person, being a payment under a scheme approved under section 12aaa;”;

Commencement: Day of Royal Assent

(m) by omitting “22” from the definition of “assurance of support debt” in subsection (1) and substituting “165”;

Commencement: 19 December 1989

(n) by omitting from subsection (1) the definition of “account” and substituting the following definition:

‘account’, in relation to a financial institution, means an account maintained by a person with the institution to which is credited money received on deposit by the institution from that person;”;

Commencement: 1 March 1991

(p) by omitting from subsection (1) the definition of “assurance of support debt” and substituting the following definition:

‘assurance of support debt’ means a debt due and payable by a person to the Commonwealth because of the operation of subregulation 165 (1) of the Migration Regulations in respect of the payment to another person of:

(a) unemployment benefit under section 116; or

(b) special benefit under Division 6 of Part XIII;”;

Commencement: Day of Royal Assent

(q) by omitting from subsection (1) the definition of “prescribed student child” and substituting the following definition:

‘prescribed student child’ means:

(a) in section 82—a dependent child of a person, being a child who is over 16 and who is qualified to receive payments under a prescribed educational scheme other than the Assistance for Isolated Children Scheme; or

(b) elsewhere in the Act—a dependent child of a person, being a child who is over 16 and who is qualified to receive payments under a prescribed educational scheme;”;

Commencement: 1 January 1991

(r) by inserting in subsection (1) the following definitions:

‘employment declaration’ has the same meaning as in Part VA of the Income Tax Assessment Act 1936;

‘financial institution’ means a bank, building society, credit union or other institution that receives money on deposit;

‘tax file number’ has the same meaning as in Part VA of the

Income Tax Assessment Act 1936;”;

Commencement: 22 August 1990

(s) by inserting in subsection (1) the following definition:

‘income support payment’ means:

(a) invalid pension; or

(b) sole parent’s pension; or

(c) wife’s pension; or

(d) class B widow’s pension; or

(e) widowed person’s allowance; or

(f) carer’s pension; or

(g) sheltered employment allowance; or

(h) rehabilitation allowance; or

(j) unemployment benefit; or

(k) sickness benefit; or

(m) special benefit;”;

Commencement: 1 June 1990

(t) by omitting from paragraph (5) (a) all the words from and including “sum” and substituting:

“sum of what, but for this subsection but having regard to section 4, would be:

(i) the value of the property, or property of that kind, of the person; and

(ii) the value of the property, or property of that kind, of the person’s spouse; and

(iii) the value of the property, or property of that kind, of the person and the person’s spouse; and”.

Commencement: Day of Royal Assent

6. After section 3a of the Principal Act the following section is inserted:

Calculation of income

“3aa. (1) This section applies to the calculation for the purposes of this Act of a person’s income, other than income of the person because of Division 2.

“(2) Where:

(a) the person carries on any business; and

(b) the value of all trading stock on hand at the end of a year exceeds the value of all trading stock on hand at the beginning of that year;

the income of the person for that year by way of profits includes the amount of the excess.

“(3) Where:

(a) the person carries on any business; and

(b) the value of all trading stock on hand at the beginning of a year exceeds the value of all trading stock on hand at the end of that year;

the income of the person for that year by way of profits shall be reduced by the amount of the excess.

“(4) The income of the person is the gross income of the person reduced by, and only by:

(a) losses and outgoings that are allowable deductions for the purposes of section 51 of the Income Tax Assessment Act 1936; and

(b) depreciation that is an allowable deduction for the purposes of subsection 54 (1) of that Act; and

(c) amounts that are allowable deductions under subsection 82aac (1) of that Act.”.

Commencement: Day of Royal Assent

Calculation of value of property

7. Section 4 of the Principal Act is amended:

(a) by inserting after subparagraph (1) (a) (xi) the following subparagraph:

“(xia) insurance or compensation payments made because of loss of, or damage to, buildings, plant or personal effects, being insurance or payments received by the person within the immediately preceding period of 12 months or such longer period as the Secretary, for any special reason in any particular case, allows;”;

Commencement: 22 August 1990

(b) by omitting paragraph (8) (b) and substituting the following paragraphs:

“(b) so much of any period during which the person resides in a nursing home as is not later than 2 years after the start of the period; and

(c) any period during which:

(i) the person resides in a nursing home; and

(ii) the residence is, or because of paragraph (a) or (b) continues to be, the principal home of the person’s spouse; and

(d) any period:

(i) during which the person resides in a nursing home; and

(ii) where the person’s spouse died while paragraph (c) applied and while a resident of a nursing

home—within the 2 years immediately after the person’s spouse became such a resident; and

(e) any period:

(i) during which the person resides in a nursing home; and

(ii) where the person’s spouse died while paragraph (c) applied but not while a resident of a nursing home—within the 2 years immediately after the death.”.

Commencement: Day of Royal Assent

Income from loans

8. Section 4c of the Principal Act is amended:

(a) by inserting in subsection (1) the following definition:

‘entry contribution’ has the same meaning as in section 4b;”;

(b) by omitting subsection (3) and substituting the following subsection:

“(3) For the purposes of this section, there is no loan by a person:

(a) because the person has money in an account with a financial institution; or

(b) because of any entry contribution of the person.”;

(c) by inserting after subsection (6) the following subsection:

“(6a) The Minister may, by notice in writing, determine that this section does not apply to specified loans or a specified class of loans.”.

Commencement: 22 August 1990

9. (1) After section 4c of the Principal Act the following section is inserted:

Income from certain money

“4d. (1) In this section:

‘assumed rate’ means 10% or, if there is a lower rate determined under subsection (7), that lower rate;

‘available money’, in relation to a person, means money held by, or on behalf of, the person, but does not include the person’s deposit money or money to which section 4c applies;

‘deposit money’, in relation to a person, means the person’s money that is deposited in an account with a financial institution;

‘income money’, in relation to a person at any time, means so much of:

(a) the person’s deposit money; and

(b) the person’s available money;

at that time as exceeds $2,000.

“(2) For the purposes of this section, a person’s deposit money on which interest is paid is not to be treated as income money of the person at a particular time unless such of:

(a) the person’s deposit money on which a lower, or no interest is paid; and

(b) the person’s available money;

as does not exceed $2,000 has not been so treated at that time.

“(3) For the purposes of this Act, where interest is not paid on income money of a person, the person is taken to receive interest on that money at the rate per year of the assumed rate.

“(4) Subject to subsection (5), for the purposes of this Act, where the rate per year of interest paid on income money of a person is less than the assumed rate, the person is taken to be paid interest on that money at the rate per year of the assumed rate.

“(5) The Minister may, by notice in writing, determine that this section does not apply to specified income money of a person or of a class of persons.

“(6) For the purposes of this section, where interest paid on deposit money is not received, or accounted for, at least as frequently as each anniversary of the making of the deposit, interest on the money is taken to be received by the depositor on each such anniversary.

“(7) The Minister may from time to time, by notice in writing, determine a rate of less than 10% that is to be the assumed rate for the purposes of this section.

“(8) A notice by the Minister under subsection (7) is a disallowable instrument for the purposes of section 46a of the Acts Interpretation Act 1901.

“(9) Where this section applies, Division 2 of Part 1 does not apply.”.

(2) Where a person:

(a) was not a prescribed person within the meaning of section 251a of the Principal Act on 28 February 1991; and

(b) would have been a prescribed person on that day if the amendments made by subsection (1) had been in force on that day;

then, for the purposes of this Act and other laws of the Commonwealth, the person does not become a prescribed person unless and until he or she would have become so if the amendments had not been made.

Commencement: 1 March 1991

Disposal of income or property

10. Section 6 of the Principal Act is amended:

(a) by omitting from subsection (10) “diminishes, directly or

indirectly, the value” and substituting “directly or indirectly destroys, disposes of, or diminishes the value of, all or part”;

(b) by omitting from subsection (10) “equal to the amount of the diminution in the value of that property” and substituting:

“equal to:

(c) the value of the property destroyed; or

(d) the value of the property disposed of; or

(e) the amount by which the value of the property whose value was diminished was so diminished;”;

(c) by omitting from subsection (11) “diminishes, directly or indirectly, the rate of income of the person” and substituting “directly or indirectly destroys or disposes of the source of, or disposes of or diminishes, the income;”;

(d) by omitting from subsection (11) “that diminution” and substituting “the diminution of the income because of the destruction, disposal or diminution”.

Commencement: 22 August 1990

Pension reduction amounts

11. Section 8 of the Principal Act is amended by inserting “, or to whose spouse,” after “whom” in paragraph (c).

Commencement: Day of Royal Assent

Earnings credit

12. Section 12a of the Principal Act is amended:

(a) by omitting from subsection (1) the definition of “earnings credit” and substituting the following definition:

‘earnings credit’, in relation to a person receiving a pension and to a fortnight beginning on variation day or a later fortnight, means:

(a) in the case of the fortnight in which the person commences to receive the pension (if commencing on or after variation day)—the credit amount (if any) of the person for that fortnight; or

(b) in the case of any other fortnight—the amount of the earnings credit (if any) of the person for the fortnight immediately before the relevant fortnight increased by the credit amounts (if any) of the person for the relevant fortnight and decreased by the amount (if any) by which the person’s earnings credit was reduced in the relevant fortnight because of subsection (3);

or $1,000, whichever is the lesser amount;”;

(b) by inserting in subsection (1) the following definitions:

‘pensioner couple’ has the same meaning as in Part VIII;

‘social security couple’ means a pensioner couple both of whose members are social security pensioners;

‘social security pensioner’ has the same meaning as in Part VIII;

‘social security-veterans couple’ means a pensioner couple other than a social security couple;

‘variation day’ means the earliest pension pay-day on or after 1 October 1990;

‘variation earnings credit’, in relation to a person, means the person’s earnings credit (within the meaning of this section as in force immediately before the commencement of this definition) for the last week of the fortnight immediately before variation day;

‘veterans earnings credit’ means an earnings credit within the meaning of section 49b of the Veterans’ Entitlements Act 1986;”;

(c) by omitting subsection (1a) and substituting the following subsections:

“(1a) For the purposes of this section, the earnings credit of a social security pensioner for the fortnight immediately before variation day is:

(a) in the case of a person who is not a member of a pensioner couple—the person’s variation earnings credit; or

(b) in the case of a person who is a member of a social security couple—an amount equal to one-half of the sum of the person’s variation earnings credit and the person’s spouse’s variation earnings credit; or

(c) in the case of a person who is a member of a social security-veterans couple—an amount equal to one-half of the sum of the person’s variation earnings credit and the person’s spouse’s variation earnings credit within the meaning of section 49b of the Veterans’ Entitlements Act 1986.

“(1b) A social security pensioner has a credit amount for the purposes of this section in relation to a fortnight beginning on a pension pay-day if the person’s annual permissible income in that fortnight equals or exceeds the person’s annual rate of income in that fortnight, and the amount of that credit amount is 1/26 of the person’s annual permissible income.

“(1c) A social security pensioner who is a member of a social security couple has a credit amount for the purposes of this section in relation to a fortnight beginning on a pension payday if the person’s spouse’s annual permissible income in that fortnight equals or exceeds the person’s spouse’s annual rate of income in that fortnight, and the amount of that credit amount is 1/26 of the person’s spouse’s annual permissible income.

“(1d) A social security pensioner who is a member of a social security-veterans couple has a credit amount for the purposes of this section in relation to a fortnight beginning on a pension pay-day if the person’s spouse’s annual permissible income (within the meaning of section 49b of the Veterans’ Entitlements Act 1986) in that fortnight equals or exceeds the person’s spouse’s annual rate of income within the meaning of that section in that fortnight and the amount of that credit amount is 1/26 of that annual permissible income of the spouse.

“(1e) For the purposes of this section, where a social security pensioner who is a member of a pensioner couple becomes entitled to a payment for remunerative work undertaken by the person during a particular fortnight:

(a) only half of the payment is taken to be income of the person; and

(b) half of the payment is taken to be income of the person’s spouse.

“(1f) For the purposes of this section, where the member of a social security-veterans couple who is not a social security pensioner becomes entitled to a payment for remunerative work undertaken by the member during a particular fortnight, half of the payment is taken to be income of the member’s spouse.”.

(d) by omitting from paragraphs (3) (b) and (c) “week” and substituting “fortnight”;

(e) by inserting in subsection (4) “(7) (b) or” after “33”.

Commencement: 1 October 1990

13. After section 12a of the Principal Act the following section is inserted in Division 1 of Part 1:

Personal care support schemes

“12aaa. The Minister may, in writing signed by the Minister, declare that a scheme for the provision of personal care support services is an approved scheme for the purposes of this Act.”.

Commencement: Day of Royal Assent

Accruing return investments

14. Section 12c of the Principal Act is amended:

(a) by omitting from subsection (1) “, or makes” and substituting “or acquired, or makes or acquires”;

Commencement: Day of Royal Assent

(b) by adding at the end of subsection (1) “, or acquired, by the person”;

Commencement: Day of Royal Assent

(c) by inserting in subsection (2) “or acquires,” after “makes,”;

Commencement: Day of Royal Assent

(d) by inserting in paragraph (2) (b) “, or acquired, by the person” after “made”;

Commencement: Day of Royal Assent

(e) by adding at the end of subsection (2) “, or acquired, by the person”;

Commencement: Day of Royal Assent

(f) by inserting in subsection (3) “or acquired,” after “made,”;

Commencement: Day of Royal Assent

(g) by inserting in paragraph (3) (b) “, or acquired, by the person” after “made”;

Commencement: Day of Royal Assent

(h) by omitting from subsection (3) “becomes entitled to receive” (first occurring) and substituting “realises the investment and receives”;

Commencement: Day of Royal Assent

(j) by inserting after subsection (3) the following subsections:

“(3a) For the purposes of subsection (3), a person realises an investment if, and only if:

(a) all or part of the amount invested is withdrawn; or

(b) all or part of the return on the investment is paid to another person; or

(c) the investment matures; or

(d) the investment is assigned by the person to another person; or

(e) the investment is disposed of by the person otherwise than in the way referred to in paragraph (d).

“(3b) For the purposes of subsection (3), where a person assigns or otherwise disposes of an investment, the person is taken to receive by way of a return on the investment the amount of the return at the date of the disposal.

“(3c) For the purposes of subsection (3), where a person realises an investment in circumstances where the return on the investment is paid to another person, the return is taken to be received by the person realising the investment.

“(3d) For the purposes of subsection (3), where a person’s investment matures, the person is taken to receive by way of return on the investment the amount of the return at the date of the maturity.”;

Commencement: Day of Royal Assent

(k) by omitting from subsection (4) “section 12b” and substituting “subsection 3 (1)”;

Commencement: 19 December 1989

(m) by omitting subsection (5) and substituting the following subsection:

“(5) A person receives an amount for the purposes of subsection (3) if the person receives an amount under an arrangement of the kind referred to in the definition of ‘accruing return investment’ in subsection 3 (1) to the extent that subsection (1) or (2) does not apply to the receipt.”.

Commencement: Day of Royal Assent

Market-linked investments

15. Section 12d of the Principal Act is amended:

(a) by inserting in subsection (1) “or acquires” after “makes”;

(b) by inserting in paragraph (1) (a) “, or acquired, by the person” after “made”;

(c) by adding at the end the following subsections:

“(3) Where a person:

(a) made or acquired a market-linked investment before 9 September 1988; and

(b) either:

(i) realised the investment before the commencement of this subsection; or

(ii) realises the investment after that commencement;

so as to receive an amount by way of return on that investment;

the person is taken, for the purposes of this Act, to receive one fifty-second of that amount as income of the person during each week in the period of 12 months commencing on the day on which the person receives the amount.

“(4) For the purposes of subsection (3), a person realises an investment if, and only if:

(a) all or part of the amount invested is withdrawn; or

(b) all or part of the return on the investment is paid to another person; or

(c) the investment matures; or

(d) the investment is assigned by the person to another person; or

(e) the investment is disposed of by the person otherwise than in the way referred to in paragraph (d).

“(5) For the purposes of subsection (3), where a person assigns or otherwise disposes of an investment, the person is taken to receive by way of a return on the investment the amount of the return at the date of the disposal.

“(6) For the purposes of subsection (3), where a person realises an investment in circumstances where the return on the investment is paid to another person, the return is taken to be received by the person realising the investment.

“(7) For the purposes of subsection (3), where a person’s investment matures, the person is taken to receive by way of return on the investment the amount of the return at the date of the maturity.”.

Commencement: Day of Royal Assent

Special provisions about certain investments made or acquired before 9 September 1988

16. Section 12g of the Principal Act is amended:

(a) by inserting in paragraph (1) (a) “or acquired” after “made”;

(b) by inserting in subsection (1) “, or acquired, by the person” after “made” (last occurring);

(c) by inserting in paragraph (2) (b) “, or acquired, by the person” after “made” (wherever occurring).

Commencement: Day of Royal Assent

Determinations of entitlement of persons holding market-linked investments

17. Section 12j of the Principal Act is amended by inserting in subsection (1) “or acquired” after “made” (second occurring).

Commencement: Day of Royal Assent

Treatment of costs of investments

18. Section 12k of the Principal Act is amended by inserting “, or acquired,” after “made” in the definition of “investment costs” in subsection (3).

Commencement: Day of Royal Assent

Certain capital amounts taken to be received over 12 months

19. Section 12l of the Principal Act is amended:

(a) by omitting from subsection (1) “being an amount of a capital nature”;

(b) by inserting before paragraph (1) (a) the following paragraph:

“(aa) income by way of periodic payments;”;

(c) by inserting in paragraph (1) (c) “, or acquired, by the person” after “made”; and

(d) by omitting subsection (2) and substituting the following subsection:

“(2) A person receives an amount for the purposes of subsection (1) if the person receives an amount under an arrangement of the kind referred to in the definition of ‘accruing

return investment’ in subsection 3 (1) to the extent that subsection 12c (1) or (2) does not apply to the receipt.”.

Commencement: Day of Royal Assent

Secrecy

20. Section 19 of the Principal Act is amended:

(a) by inserting in subsection (2) “(whether alive or dead)” after “person” (second occurring);

(b) by omitting subsection (4e);

(c) by inserting after subsection (5a) the following subsection:

“(5b) Where a person:

(a) solicits the disclosure of protected information from an officer; and

(b) in doing so:

(i) makes a representation that the person knows is untrue; or

(ii) makes a representation:

(a) about whose truth the person is reckless; and

(b) that is untrue;

the person is guilty of an offence, whether or not any protected information is actually disclosed.”;

(d) by inserting in subsection (15) “(5a), after “subsection”.

Commencement: Day of Royal Assent

Interpretation

21. Section 20 of the Principal Act is amended by inserting after paragraph (a) of the definition of “remote area” in subsection (1) the following paragraphs:

“(aa) those parts of Australia referred to in Part II of that Schedule that are further than 250 kilometres by the shortest practicable surface route from the nearest urban centre with a census population (within the meaning of that Act) of 2,500 or more;

(ab) those places in Australia that, for the purposes of that Act, are treated as if they were in a part of Australia referred to in paragraph (a) or (aa);”.

Commencement: 1 January 1991

Rate of pension

22. Section 33 of the Principal Act is amended by omitting subsection (4a).

Commencement: 20 September 1990

Indexation of certain rates

23. Section 34 of the Principal Act is amended by omitting subsections (5e), (5f), (5g) and (5h).

Commencement: 20 March 1991

Calculation of income in respect of children

24. Section 35 of the Principal Act is amended:

(a) by inserting in paragraphs (1) (a) and (b) “an aboriginal study assistance scheme,” before “the AUSTUDY scheme”;

(b) by adding at the end the following subsection:

“(3) In this section:

‘aboriginal study assistance scheme’ means:

(a) the ABSTUDY Scheme; or

(b) the Aboriginal Overseas Study Assistance Scheme; or

(c) a scheme prescribed for the purposes of this definition.”.

Commencement: Day of Royal Assent

Rent assistance

25. Section 36 of the Principal Act is amended by omitting from paragraph (1) (a) “$1,040” and substituting “$1,300”.

Commencement: 20 March 1991

Carer’s pension

26. Section 39 of the Principal Act is amended:

(a) by omitting from paragraph (1) (a) “in a home of the person and of the other person;” and substituting “; and”;

(b) by omitting paragraph (b) and substituting the following paragraph:

“(b) the other person is a severely handicapped person who is in receipt of a prescribed pension; and”.

(c) by inserting after paragraph (b) the following paragraph:

“(ba) the person and the other person live in the same home or in adjacent homes; and”;

Commencement: 1 January 1991

27. After section 42 of the Principal Act the following section is inserted in Part IV:

Provision of tax file numbers

“42a. (1) An age pension, invalid pension, wife’s pension or carer’s pension that a person is qualified to receive is not to be paid to the person:

(a) where:

(i) the person is in Australia; and

(ii) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s tax file number; and

(iii) the person does not comply with the requirement within 28 days; or

(b) where:

(i) the person is married; and

(ii) the person’s spouse is in Australia; and

(iii) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s spouse’s tax file number; and

(iv) the person does not comply with the requirement within 28 days.

“(2) Subsection (1) is satisfied in relation to a person’s tax file number if:

(a) the Secretary is given a declaration by the person in a form approved by the Secretary; and

(b) the declaration states either:

(i) that the person has a tax file number but does not know what it is and has asked the Commissioner of Taxation to inform him or her of the number; or

(ii) that an application by the person for a tax file number is pending; and

(c) where subparagraph (b) (i) applies—the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

(i) whether the person has a tax file number; and

(ii) if so—the tax file number; and

(d) where subparagraph (b) (ii) applies—the person has given the Secretary a document authorising the Commissioner 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

(e) the Commissioner of Taxation has not told the Secretary that the person has no tax file number or that an application by the person for a tax file number has been refused; and

(f) where the declaration states that an application by the person for a tax file number is pending—the application has not been withdrawn.

“(3) The Secretary may waive the requirement for a statement of the qualified person’s spouse’s tax file number if satisfied that the person:

(a) does not know that number; and

(b) can obtain none of the following from the spouse:

(i) that number;

(ii) the statement of that number;

(iii) a declaration by the spouse under paragraph (2) (a).”.

Commencement: 1 January 1991

Rent assistance

28. Section 50 of the Principal Act is amended by omitting from paragraph (1) (a) “$1,040” and substituting “$1,300”.

Commencement: 20 March 1991

Tax file numbers

29. Section 52b of the Principal Act is repealed.

Commencement: 1 January 1991

30. After section 58b of the Principal Act the following section is inserted in Part VI:

Provision of tax file numbers

“58c. (1) A widowed person’s allowance that a person is qualified to receive is not to be paid to the person where:

(a) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s tax file number; and

(b) the person does not comply with the requirement within 28 days.

“(2) Subsection (1) is satisfied in relation to a person’s tax file number if:

(a) the Secretary is given a declaration by the person in a form approved by the Secretary; and

(b) the declaration states either:

(i) that the person has a tax file number but does not know what it is and has asked the Commissioner of Taxation to inform him or her of the number; or

(ii) that an application by the person for a tax file number is pending; and

(c) where subparagraph (b) (i) applies—the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

(i) whether the person has a tax file number; and

(ii) if so—the tax file number; and

(d) where subparagraph (b) (ii) applies—the person has given the Secretary a document authorising the Commissioner 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

(e) the Commissioner of Taxation has not told the Secretary that the person has no tax file number or that an application by the person for a tax file number has been refused; and

(f) where the declaration states that an application by the person for a tax file number is pending—the application has not been withdrawn.”.

Commencement: 1 January 1991

Entitlement of parent or guardian on death of dependent child

31. Section 69 of the Principal Act is amended by inserting after subsection (5) the following subsection:

“(5a) Where:

(a) a person dies; and

(b) but for the death, an amount would have been payable to the person under this section in respect of the death of a child; and

(c) where the person died before the child—the amount is not payable to another person; and

(d) within 3 months after the death of the child, the person’s spouse lodges a claim for the payment of the amount;

that amount is payable to the person’s spouse.”.

Commencement: 1 December 1990

Entitlement of estate of deceased pensioner

32. Section 70 of the Principal Act is amended:

(a) by inserting after subsection (2) the following subsection:

“(2a) Where:

(a) a family pensioner who is not a member of a pensioner couple dies; and

(b) but for the death, an amount would have been payable to the pensioner under section 69;

that amount is payable to such person as the Secretary thinks appropriate.”;

(b) by inserting in subsection (3) the following definition:

‘family pensioner’ means a person who is in receipt of:

(a) a pension or allowance referred to in paragraph (a), (b), (c) or (d) of the definition of ‘prescribed pension’ in subsection 3 (1); or

(b) an allowance under Part IX;”.

Commencement: 1 December 1990

Rate of allowance

33. Section 74 of the Principal Act is amended by omitting from paragraph (2) (c) “$20” and substituting “$25”.

Commencement: 20 March 1991

Reduction of rate by reference to taxable income

34. Section 74b of the Principal Act is amended by omitting from subsections (5) and (6) all words after “taken to be” and substituting “a debt due to the Commonwealth”.

Commencement: 1 January 1991

Tax file numbers

35. Section 77a of the Principal Act is repealed.

Commencement: Day of Royal Assent

Qualification for family allowance

36. Section 82 of the Principal Act is amended:

(a) by omitting from subsection (3) “resident” (wherever occurring) and substituting “inhabitant”;

(b) by inserting after subsection (3) the following subsection:

“(4) In subsection (3):

‘Australian inhabitant’ means:

(a) an Australian resident; or

(b) the holder of a PRC (temporary) entry permit under regulations made under the Migration Act 1958; or

(c) the holder of a refugee (temporary) entry permit under those regulations.”.

Commencement: 1 August 1990

Entitlement to receive family allowance ceases after 3 years absence of recipient or child

37. Section 83 of the Principal Act is amended by omitting subsections (1) and (2) and substituting the following subsections:

“(1) Where a person:

(a) left, or leaves, Australia on or after 18 May 1986; and

(b) continues to be absent from Australia for more than 3 years;

the person is not qualified to receive family allowance in respect of a child at any time after the first 3 years of the absence while the person remains absent from Australia.

“(2) Where a child:

(a) either:

(i) left, or leaves, Australia; or

(ii) was, or is, born outside Australia;

on or after 18 May 1986; and

(b) continues to be absent from Australia for more than 3 years;

a person is not qualified to receive family allowance in respect of that child at any time after the first 3 years of the absence while the child remains absent from Australia.”.

Commencement: Day of Royal Assent

Family allowance not payable in respect of certain student children

38. Section 84 of the Principal Act is amended:

(a) by omitting from paragraph (2) (b) “the rate of which is increased by reference to the child”;

(b) by inserting in paragraph (2) (c) “74a,” before “74b”;

Commencement: Day of Royal Assent

Income test for family allowances

39. Section 85 of the Principal Act is amended:

(a) by omitting from subsection (3) “Subject to subsection (4), where” and substituting “Where”;

(b) by omitting from subsection (3) all words after paragraph (b) and substituting “family allowance is not payable to the person.”;

(c) by omitting from subsection (3aa) all words after paragraph (c) and substituting “family allowance is not payable to the person.”;

(d) by omitting from subsection (3a) “subsections (4) and (5)” and substituting “subsection (4)”;

(e) by omitting from subsection (3a) all words after paragraph (b) and substituting “family allowance is not payable to the person.”;

(f) by omitting subsections (4) and (5) and substituting the following subsection:

“(4) This section does not affect a person’s entitlement to family allowance in respect of a child where, because of the child there is a payment to the person of:

(a) double orphan’s pension; or

(b) child disability allowance; or

(c) a prescribed pension at a rate which includes an amount in respect of the child.”.

Commencement: 1 January 1991

Provision of tax file numbers

40. Section 91a of the Principal Act is amended by omitting from subsection (1) “, being an allowance the claim for which was lodged after the commencement of this section,”.

Commencement: 1 January 1991

Tax file numbers

41. Section 91b of the Principal Act is repealed.

Commencement: 1 January 1991

Application of family allowance

42. Section 93 of the Principal Act is amended by inserting “education,” after “maintenance,”.

Commencement: 1 January 1991

43. After section 116b of the Principal Act the following section is inserted:

Persons with certain assets not qualified for unemployment benefit

“116c. (1) Where paragraph 125 (1) (c) or (d) or subsection 128 (2) applies to a person, this section does not apply to that person.

“(2) Where, on the day on which a person lodges a claim for unemployment benefit, the value of the person’s liquid assets exceeds the person’s maximum reserve, the person is not qualified to receive an unemployment benefit during the 4 weeks commencing on the day on which the person became unemployed.

“(3) Where:

(a) on the day on which a person becomes unemployed, the value of the person’s liquid assets exceeds the person’s maximum reserve; and

(b) the person lodges a claim for unemployment benefit;

the person is not qualified to receive an unemployment benefit during the 4 weeks commencing on that day.

“(4) Where subsection (2) or (3) applies to a person, then, for the purposes of paragraph 125 (1) (a), (aa), (b), (e) or (ea) and despite subsection 125 (2), the person:

(a) is taken to have become unemployed; and

(b) where the person lodged the claim for benefit before the end of the 4 weeks of disqualification—is taken to have made the claim;

at the end of those 4 weeks.

“(5) Where the Secretary is satisfied that the application of the 4 weeks waiting period required by this section will cause undue long

term disadvantage or significant hardship to a person, the Secretary may:

(a) waive the 4 weeks waiting period; and

(b) authorise payment of the benefit to the person.

“(6) Where a person:

(a) became incapacitated for work; and

(b) because of section 117aa was not qualified to receive sickness benefit during the 4 weeks commencing on the day on which the person became incapacitated; and

(c) during those 4 weeks ceased to be incapacitated; and

(d) during those 4 weeks registered as being unemployed by the Commonwealth Employment Service; and

(e) within 14 days after the day on which the person registered, lodged a claim for unemployment benefit;

then:

(f) for the purposes of subsections (2) and (3), the person is taken to have become unemployed on the day on which the person became incapacitated; and

(g) for the purposes of subsections (4) and (7), the 4 weeks of disqualification are the 4 weeks referred to in paragraph (b).

“(7) For the purposes of subsection 116 (3), the 4 weeks of disqualification is taken to be a waiting period within the meaning of that subsection.

“(8) For the purposes of this section, the liquid assets of a person’s spouse or of a person and the person’s spouse are taken to be liquid assets of the person.

“(9) Where:

(a) during the 4 weeks immediately before a person lodged a claim for unemployment benefit, the person or the person’s spouse transferred liquid assets to a person of any age who is the natural or adopted child of the person or of the person’s spouse; and

(b) either:

(i) the person transferring receives no consideration or inadequate consideration, in money or money’s worth for transferring; or

(ii) the Secretary is satisfied that the purpose, or the dominant purpose, of transferring, was to enable the claimant to obtain unemployment benefit;

then, for the purposes of this section, the transfer is taken not to have occurred.

“(10) In this section:

‘liquid assets’, in relation to a person, means cash, and readily realisable property, of the person and includes:

(a) the person’s shares and debentures in a public company within the meaning of the Companies Act 1981; and

(b) amounts deposited with, or lent to, a bank or other financial institution by the person, whether or not the amount can be withdrawn or repaid immediately; and

(c) amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person;

but does not include an amount that is a qualifying eligible termination payment for the purposes of Subdivision aa of Part III of the Income Tax Assessment Act 1936;

‘maximum reserve’, in relation to a person, means:

(a) in the case of an unmarried person without a dependent child— $5,000; or

(b) in the case of any other person—$10,000.”.

Commencement: 1 February 1991

44. After section 117 of the Principal Act the following section is inserted:

Persons with certain assets not qualified for sickness benefit

“117aa. (1) Where subsection 125 (5) or 128 (1) applies to a person, this section does not apply to that person.

“(2) Where, on the day on which a person lodges a claim for sickness benefit, the value of the person’s liquid assets exceeds the person’s maximum reserve, the person is not qualified to receive a sickness benefit during the 4 weeks commencing on the day on which the person became incapacitated for work.

“(3) Where:

(a) on the day on which a person becomes incapacitated for work, the value of the person’s liquid assets exceeds the person’s maximum reserve; and

(b) the person lodges a claim for sickness benefit;

the person is not qualified to receive a sickness benefit during the 4 weeks commencing on that day.

“(4) Where subsections (2) or (3) applies to a person, then, for the purposes of paragraphs 125 (3) (a) and (b) and despite subsection 125 (4), the person:

(a) is taken to have become incapacitated for work; and

(b) where the person lodged the claim for benefit before the end of the 4 weeks of disqualification—is taken to have made the claim;

at the end of those 4 weeks.

“(5) Where a person:

(a) became unemployed; and

(b) because of section 116c was not qualified to receive an unemployment benefit during the 4 weeks commencing on the day on which the person became unemployed; and

(c) during those 4 weeks became incapacitated for work; and

(d) within those 4 weeks lodged a claim for sickness benefit;

then:

(e) for the purposes of subsections (2) and (3), the person is taken to have become incapacitated for work on the day on which the person became unemployed; and

(f) for the purposes of subsections (4) and (6), the 4 weeks of disqualification are the 4 weeks referred to in paragraph (b).

“(6) For the purposes of subsection 117 (3), the 4 weeks of disqualification is taken to be a waiting period within the meaning of that subsection.

“(7) For the purposes of this section, the liquid assets of a person’s spouse or of a person and the person’s spouse are taken to be liquid assets of the person.

“(8) Where:

(a) during the 4 weeks immediately before a person lodged a claim for sickness benefit, the person or the person’s spouse transferred liquid assets to a person of any age who is the natural or adopted child of the person or of the person’s spouse; and

(b) either:

(i) the person transferring receives no consideration or inadequate consideration, in money or money’s worth for transferring; or

(ii) the Secretary is satisfied that the purpose, or the dominant purpose, of transferring, was to enable the claimant to obtain sickness benefit;

then, for the purposes of this section, the transfer is taken not to have occurred.

“(9) In this section:

‘liquid assets’ has the same meaning as in section 116c;

‘maximum reserve’, in relation to a person, means:

(a) in the case of an unmarried person without a dependent child— $5,000; or

(b) in the case of any other person—$10,000.”.

Commencement: 1 February 1991

Rate of unemployment and sickness benefit

45. Section 118 of the Principal Act is amended:

(a) by inserting in subsection (2a) “or (2aa)” after “subsection (2)”;

(b) by inserting in subsection (3) “or (2aa)” after “subsection (2)” (first occurring);

(c) by inserting in subsection (3) “or (2aa), as the case may be” after “subsection (2)” (second occurring);

(d) by inserting in subsection (3) “or (2aa), as the case may be,” after “subsection (2)” (third occurring);

(e) by omitting subsection (5a).

Commencement: 20 September 1990

Entitlement to unemployment or sickness benefits etc.

46. Section 119 of the Principal Act is amended by omitting subsections (5e) to (5m) (inclusive).

Commencement: 20 March 1991

Rent assistance

47. Section 120 of the Principal Act is amended by omitting “$20” from the definition of “threshold amount” in subsection (1) and substituting “$25”.

Commencement: 20 March 1991

Special arrangement for victims of major disasters

48. Section 122ba of the Principal Act is repealed.

Commencement: 22 August 1990

When benefits payable

49. Section 125 of the Principal Act is amended:

(a) by inserting after paragraph (1) (a) the following paragraph:

“(aa) in a case where none of the later paragraphs of this subsection applies and the Secretary is satisfied that the person would suffer severe financial hardship if the benefit were paid under paragraph (a)—from and including the day on which the person became unemployed or the day on which the person made a claim for the benefit, whichever was the later; and”;

(b) by inserting in subsection (2aa) “(aa),” after “Paragraph (1)”;

(c) by omitting from subsection (4) “If” and substituting “Subject to section 117aa, if”.

Commencement: 1 February 1991

Provision of tax file numbers

50. Section 125a of the Principal Act is amended:

(a) by inserting after subsection (1) the following subsection:

“(1a) An unemployment benefit or a sickness benefit that a person is qualified to receive under Division 2 is not to be paid, or continue to be paid, to the person where:

(a) the person is married; and

(b) the person’s spouse is in Australia; and

(c) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s spouse’s tax file number; and

(d) the person does not comply with the requirement within 28 days.”;

(b) by omitting from subsection (2) all words before paragraph (b) and substituting the following:

“(2) Subsection (1) or (1a) is satisfied in relation to a person’s tax file number if:

(a) the Secretary is given:

(i) in the case of subsection (1)—an employment declaration by the person; or

(ii) in the case of subsection (1a)—a declaration by the person in a form approved by the Secretary; and”;

(c) by adding at the end the following subsection:

“(3) The Secretary may waive the requirement for a statement of the qualified person’s spouse’s tax file number if satisfied that the person:

(a) does not know that number; and

(b) can obtain none of the following from the spouse:

(i) that number;

(ii) a statement of that number;

(iii) a declaration by the spouse under paragraph (2) (a).”.

Commencement: 1 January 1991

51. After section 125a of the Principal Act the following section is inserted:

Provision of tax file numbers—special benefit

“125b. (1) A special benefit that a person is qualified to receive is not to be paid to the person:

(a) where:

(i) the Secretary requires the person to give the Secretary,

in writing, a statement of the person’s tax file number; and

(ii) the person does not comply with the request within 28 days; or

(b) where:

(i) the person is married; and

(ii) the person’s spouse is in Australia; and

(iii) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s spouse’s tax file number; and

(iv) the person does not comply with the requirement within 28 days.

“(2) Subsection (1) is satisfied in relation to a person’s tax file number if:

(a) the Secretary is given a declaration by the person in a form approved by the Secretary; and.

(b) the declaration states either:

(i) that the person has a tax file number but does not know what it is and has asked the Commissioner of Taxation to inform him or her of the number; or

(ii) that an application by the person for a tax file number is pending; and

(c) where subparagraph (b) (i) applies—the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

(i) whether the person has a tax file number; and

(ii) if so—the tax file number; and

(d) where subparagraph (b) (ii) applies—the person has given the Secretary a document authorising the Commissioner 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

(e) the Commissioner of Taxation has not told the Secretary that the person has no tax file number or that an application by the person for a tax file number has been refused; and

(f) where the declaration states that an application by the person for a tax file number is pending—the application has not been withdrawn.

“(3) The Secretary may waive the requirement for a statement of the qualified person’s spouse’s tax file number if satisfied that the person:

(a) does not know that number; and

(b) can obtain none of the following from the spouse:

(i) that number;

(ii) the statement of that number;

(iii) a declaration by the spouse under paragraph (2) (a).”.

Commencement: 1 January 1991

Education leavers

52. Section 127 of the Principal Act is amended by omitting from subsection (1) “course of education of at least 6 month’s duration on a full time basis” and substituting “full-time course of education of at least 6 month’s duration”.

Commencement: Day of Royal Assent

Special benefit

53. Section 129 of the Principal Act is amended by omitting paragraph (3) (a) and substituting the following paragraph:

“(a) the person is:

(i) an Australian resident; or

(ii) a citizen of New Zealand who is exempted under section 106 of the Migration Act 1958 from the requirement for entry permits; or

(iii) a person to whom refugee status within the meaning of that Act has been granted; or

(iv) an applicant for that status who has been advised by the Department of Immigration, Local Government and Ethnic Affairs that he or she has a substantial claim to that status; or

(v) the holder of a PRC (temporary) entry permit, under regulations made under that Act; or

(vi) an applicant for a permit referred to in subparagraph (v) who has been advised by the Department of Immigration, Local Government and Ethnic Affairs that he or she is eligible for the permit; and”.

Commencement: 1 August 1990

Rate of special benefit

54. Section 130 of the Principal Act is amended:

(a) by omitting subsection 130 (2a); and

(b) by omitting from subsection (3) the definition of “major disaster”.

Commencement: 22 August 1990

Benefit not payable to full-time students

55. Section 136 of the Principal Act is amended:

(a) by omitting paragraph (1) (b) and substituting the following paragraph:

“(b) the person is enrolled, otherwise than in compliance with a requirement made of the person under section 170, in a full-time course of education or of vocational training.”;

(b) by omitting subsection (2) and substituting the following subsections:

“(2) Subject to subsection (2aa), for the purposes of paragraph (1) (b), a person who enrols in a course is taken to be so enrolled from the day on which the person commences it until the day on which the person:

(a) completes it; or

(b) abandons it; or

(c) serves notice on its provider that the person:

(i) wishes to withdraw from it; or

(ii) wishes to withdraw from such number of subjects that the person’s course will no longer be a full-time one.

“(2aa) For the purposes of paragraph (1) (b), a person who enrols in a course is not taken to be so enrolled during periods of deferment.”;

(c) by omitting from paragraph (2a) (a) “course of education on a full time basis” and substituting “full-time course of education”.

Commencement: Day of Royal Assent

Tax file numbers

56. Section 138a of the Principal Act is repealed.

Commencement: 1 January 1991

57. After section 143 of the Principal Act the following section is inserted:

Provision of tax file numbers

“143a. (1) A sheltered employment allowance that a person is qualified to receive is not to be paid to the person:

(a) where:

(i) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s tax file number; and

(ii) the person does not comply with the request within 28 days; or

(b) where:

(i) the person is married; and

(ii) the person’s spouse is in Australia; and

(iii) the Secretary requires the person to give the Secretary, in writing, a “statement of the person’s spouse’s tax file number; and

(iv) the person does not comply with the requirement within 28 days.

“(2) Subsection (1) is satisfied in relation to a person’s tax file number if:

(a) the Secretary is given a declaration by the person in a form approved by the Secretary; and

(b) the declaration states either:

(i) that the person has a tax file number but does not know what it is and has asked the Commissioner of Taxation to inform him or her of the number; or

(ii) that an application by the person for a tax file number is pending; and

(c) where subparagraph (b) (i) applies—the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

(i) whether the person has a tax file number; and

(ii) if so—the tax file number; and

(d) where subparagraph (b) (ii) applies—the person has given the Secretary a document authorising the Commissioner 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

(e) the Commissioner of Taxation has not told the Secretary that the person has no tax file number or that an application by the person for a tax file number has been refused; and

(f) where the declaration states that an application by the person for a tax file number is pending—the application has not been withdrawn.

“(3) The Secretary may waive the requirement for a statement of the qualified person’s spouse’s tax file number if satisfied that the person:

(a) does not know that number; and

(b) can obtain none of the following from the spouse:

(i) that number;

(ii) the statement of that number;

(iii) a declaration by the spouse under paragraph (2) (a).”.

Commencement: 1 January 1991

58. After section 148 of the Principal Act the following section is inserted in Part XV:

Provision of tax file numbers

“148a. (1) A mobility allowance that a person is qualified to receive is not to be paid to the person:

(a) where:

(i) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s tax file number; and

(ii) the person does not comply with the request within 28 days; or

(b) where:

(i) the person is married; and

(ii) the person’s spouse is in Australia; and

(iii) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s spouse’s tax file number; and

(iv) the person does not comply with the requirement within 28 days.

“(2) Subsection (1) is satisfied in relation to a person’s tax file number if:

(a) the Secretary is given a declaration by the person in a form approved by the Secretary; and

(b) the declaration states either:

(i) that the person has a tax file number but does not know what it is and has asked the Commissioner of Taxation to inform him or her of the number; or

(ii) that an application by the person for a tax file number is pending; and

(c) where subparagraph (b) (i) applies—the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

(i) whether the person has a tax file number; and

(ii) if so—the tax file number; and

(d) where subparagraph (b) (ii) applies—the person has given the Secretary a document authorising the Commissioner 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

(e) the Commissioner of Taxation has not told the Secretary that the person has no tax file number or that an application by the person for a tax file number has been refused; and

(f) where the declaration states that an application by the person for a tax file number is pending—the application has not been withdrawn.

“(3) The Secretary may waive the requirement for a statement of the qualified person’s spouse’s tax file number if satisfied that the person:

(a) does not know that number; and

(b) can obtain none of the following from the spouse:

(i) that number;

(ii) the statement of that number;

(iii) a declaration by the spouse under paragraph (2) (a).”.

Commencement: 1 January 1991

59. After section 151 of the Principal Act the following section is inserted in Part XVI:

Provision of tax file numbers

“151aa. (1) A rehabilitation allowance that a person is qualified to receive is not to be paid to the person:

(a) where:

(i) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s tax file number; and

(ii) the person does not comply with the request within 28 days; or

(b) where:

(i) the person is married; and

(ii) the person’s spouse is in Australia; and

(iii) the Secretary requires the person to give the Secretary, in writing, a statement of the person’s spouse’s tax file number; and

(iv) the person does not comply with the requirement within 28 days.

“(2) Subsection (1) is satisfied in relation to a person’s tax file number if:

(a) the Secretary is given a declaration by the person in a form approved by the Secretary; and

(b) the declaration states either:

(i) that the person has a tax file number but does not know what it is and has asked the Commissioner of Taxation to inform him or her of the number; or

(ii) that an application by the person for a tax file number is pending; and

(c) where subparagraph (b) (i) applies—the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

(i) whether the person has a tax file number; and

(ii) if so—the tax file number; and

(d) where subparagraph (b) (ii) applies—the person has given the Secretary a document authorising the Commissioner 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

(e) the Commissioner of Taxation has not told the Secretary that the person has no tax file number or that an application by the person for a tax file number has been refused; and

(f) where the declaration states that an application by the person for a tax file number is pending—the application has not been withdrawn.

“(3) The Secretary may waive the requirement for a statement of the qualified person’s spouse’s tax file number if satisfied that the person:

(a) does not know that number; and

(b) can obtain none of the following from the spouse:

(i) that number;

(ii) the statement of that number;

(iii) a declaration by the spouse under paragraph (2) (a).”.

Commencement: 1 January 1991

Heading to Part XVIa

60. The heading to Part XVIa is amended by inserting “AND ALLOWANCE” after “SUPPLEMENT”.

Commencement: 1 November 1990

Interpretation

61. Section 151a of the Principal Act is amended:

(a) by omitting “from payments under this Act or the Veterans’

Entitlements Act 1986 of more than $10 per week;” from subparagraph (b) (ii) of the definition of “advance pensioner B” and substituting:

“from:

(a) payments under this Act or the Veterans’ Entitlements Act 1986; or

(b) payments of any benefit that the person is entitled to receive under the law of a foreign country the amount of which reduces by an equivalent amount pension or allowance payable under this Act; or

(c) periodic payments by way of compensation, being payments to which Part XVII applies;

of more than $10 per week.”;

(b) by omitting “from payments under this Act, or the Veterans’ Entitlements Act 1986, of more than $10 per week;” from paragraph (b) of the definition of “continuing advance pensioner A” and substituting:

“from:

(i) payments under this Act or the Veterans’ Entitlements Act 1986; or

(ii) payments of any benefit that the person is entitled to receive under the law of a foreign country the amount of which reduces by an equivalent amount pension or allowance payable under this Act; or

(iii) periodic payments by way of compensation, being payments to which Part XVII applies;

of more than $10 per week.”;

(c) by omitting “is not reduced under this Act on the basis of the person’s income, maintenance income or property;” from paragraph (b) of the definition of “eligible pensioner” and substituting:

“is:

(i) not reduced under this Act on the basis of the person’s income, maintenance income or property; or

(ii) so reduced but only:

(a) under Part XVII because of the receipt of periodic payments by way of compensation; or

(b) by an amount equivalent to the amount of benefit to which the person is entitled under the law of a foreign country;”;

(d) by omitting the definition of “disqualified advance pensioner”;

(e) by inserting the following definitions:

‘allowance pensioner’ means a person who:

(a) is in receipt of:

(i) an age pension; or

(ii) an invalid pension; or

(iii) a carer’s pension; or

(iv) a class B widow’s pension; or

(v) a wife’s pension; or

(vi) a sole parent’s pension; or

(vii) a widowed person’s allowance; or

(viii) a sheltered employment allowance; or

(ix) a rehabilitation allowance; or

(x) a sickness benefit; or

(xi) a job search allowance; and

(b) is not a prescribed person within the meaning of section 251a;

and includes a special allowance pensioner;

‘pharmaceutical allowance’ means the allowance payable under section 151ha;

‘special allowance pensioner’ means a person who:

(a) is in receipt of an unemployment benefit or a special benefit; and

(b) is over 60 years of age; and

(c) has been in receipt of:

(i) any pension or benefit under this Act; or

(ii) a service pension under the Veterans’ Entitlements Act 1986;

continuously for at least 6 months; and

(d) is not a prescribed person within the meaning of section 251a;”.

Commencement: 1 November 1990

62. After section 151a of the Principal Act the following section is inserted:

Entitlements under Part limited to residents of Australia

“151ab. (1) Notwithstanding any other provision of this Part, a person is not qualified to receive a pharmaceutical supplement or an advance pharmaceutical supplement on a pay-day during the supplement period on which he or she:

(a) is not an Australian resident; or

(b) is absent from Australia.

“(2) Where, because of subsection (1), an advance pensioner A is not qualified to receive an advance pharmaceutical supplement payable under section 151f, then:

(a) the pensioner is never qualified to receive an advance pharmaceutical supplement payable under section 151g; and

(b) subsection 151j (1) does not affect the person’s qualification to receive a pharmaceutical supplement under section 151b.

“(3) Notwithstanding any other provision of this Part, a person is not qualified to receive a pharmaceutical allowance on a pay-day on which he or she:

(a) is not an Australian resident; or

(b) is absent from Australia.”.

Commencement: 1 November 1990

63. After section 151h of the Principal Act the following sections are inserted:

Qualifications for pharmaceutical allowance

“151ha. Subject to sections 151hb, 151k and 151l, an allowance pensioner is qualified to receive a pharmaceutical allowance.

Pharmaceutical allowance only payable after supplement period

“151hb. Persons are only qualified to receive pharmaceutical allowances after the supplement period.

Rate of pharmaceutical allowance

“151hc. (1) The rate of pharmaceutical allowance for an unmarried person is $2.50 per week.

“(2) Subject to subsection (3), the rate of pharmaceutical allowance for a married person is $1.25 per week.

“(3) Where paragraph 33 (1) (a) or subsection 33 (2) or 118 (1b) applies to a married person, the rate of pharmaceutical allowance payable to the person is $2.50 per week.

Payment of pharmaceutical allowance

“151hd. A person’s pharmaceutical allowance is payable on each day after the supplement period on which a pension, allowance or benefit because of which the person is an allowance pensioner is paid to or in respect of the person and on which the person is qualified for the allowance.”.

Commencement: 1 November 1990

Pharmaceutical supplements in addition to advance pharmaceutical supplements

64. Section 151j of the Principal Act is amended by omitting from subsection (2) “9” and substituting “19”.

Commencement: 1 November 1990

Rate increases not to apply to advance pensioners A during advance payment period

65. Section 151k of the Principal Act is amended:

(a) by omitting subsection (1) and substituting the following subsection:

“151k. (1) If an advance pensioner A has received at least one advance pharmaceutical supplement under section 151g, then pharmaceutical allowance is not payable to the pensioner during the pensioner’s advance payment period.”;

(b) by omitting “8 November 1990” from paragraph (a) of the definition of “advance payment period” in subsection (2) and substituting “20 March 1991”.

Commencement: 1 November 1990

Pharmaceutical allowance not payable to advance pensioners B during advance payment period

66. Section 151l of the Principal Act is amended by omitting subsection (1) and substituting the following subsection:

“151l. (1) If an advance pensioner B has received at least one pharmaceutical supplement under section 151h, then pharmaceutical allowance is not payable to the pensioner during the pensioner’s advance payment period.”.

Commencement: 1 November 1990

Maximum benefit

67. Section 151n of the Principal Act is amended:

(a) by omitting paragraph (1) (b) and substituting:

“(b) pharmaceutical allowances;”;

(b) by omitting paragraph (2) (c) and substituting the following paragraph:

“(c) pharmaceutical allowances;”;

(c) by omitting from paragraph (2) (e) “2-½” and substituting “2.5”.

Commencement: 1 November 1990

68. After Part XVII of the Principal Act the following Part is inserted:

“PART XVIIa—DISASTER RELIEF PAYMENT

Interpretation

“157a. In this Part:

‘major disaster’ means a disaster to which a declaration under section 157b applies.

Declaration of major disaster

“157b. (1) The Minister may, by notice in the Gazette, declare that a disaster, whether naturally occurring or otherwise, that:

(a) caused a significant number of deaths, serious illnesses or serious injuries; and

(b) caused severe and widespread damage to property;

is a major disaster for the purposes of this Part.

“(2) The Minister may, by writing signed by the Minister, delegate to the Secretary the Minister’s powers under subsection (1).”.

Disaster relief payment

“157c. Where:

(a) because of a major disaster:

(i) a person’s principal residence is severely damaged; or

(ii) there is a significant interruption to a person’s source of livelihood; and

(b) when the person was affected by the disaster, he or she:

(i) was a resident of Australia; and

(ii) was not an illegal entrant within the meaning of the Migration Act 1958;

the person is entitled to:

(c) where the person is not in receipt of an income support payment—a disaster relief payment for one fortnight; or

(d) where the person is in receipt of an income support payment— a supplementary payment by way of a disaster relief payment for one fortnight.

Rate of relief payment

“157d. The fortnightly rate of a disaster relief payment is 1/26 of the sum of:

(a) in the case of an unmarried person—the annual rate of pension under Part IV prescribed by paragraph 33 (1) (a):

(i) where the person has a dependent child described in subsection 33 (3)—increased by the amount by which rates are increased under that subsection; and

(ii) where the person has a dependent child or dependent children—further increased by the amount by which pension under Part IV would be increased under subsection 33 (4); and

(b) in the case of a married person—the annual rate of pension under Part IV prescribed by paragraph 33 (1) (b) increased, where the person has a dependent child or dependent children, by the amount by which pension under Part IV would be increased under subsection 33 (4); and

(c) the amount that, if section 36 applied to the person, would be paid to the person under that section.”.

Commencement: 22 August 1990

Claims

69. Section 158 of the Principal Act is amended:

(a) by adding at the end of paragraphs (1) (a), (c), (d) and (e) “or”;

Commencement: 22 August 1990

(b) by inserting after paragraph (1) (g) the following word and paragraph:

“; or (h) a payment under Part XVIIa;”;

Commencement: 22 August 1990

(c) by inserting in subsection (2) “, otherwise than because of section 116c or 117aa,” after “allowance,”.

Commencement: 1 February 1991

Making and lodgment of claims etc.

70. (1) Section 159 of the Principal Act is amended:

(a) by inserting in paragraph (2) (a) “, IX or X” after “Part VI”;

Commencement: 1 December 1990

(b) by inserting after subsection (4) the following subsection:

“(4aaa) Where:

(a) a person who is receiving an allowance under Part IX or X in respect of a child dies; and

(b) a person lodges a claim for an allowance under Part IX or X, as the case may be, in respect of the child within 3 months after the death;

the claim is taken to have been lodged on the day of the death.”;

Commencement: 1 December 1990

(c) by inserting after subsection (4b) the following subsection:

“(4ba) Where:

(a) at any time on or after 1 January 1991 and before 1 April 1991, a child was over 16 and qualified to receive payments under the Assistance for Isolated Children Scheme; and

(b) a person or institution makes a claim for an allowance under Part IX or X in respect of the child before 1 April 1991;

the claim is taken to have been lodged on 1 January 1991 or the day immediately after the last day on which family allowance was paid in respect of the child, whichever is the later.”;

Commencement: 1 January 1991

(d) by inserting after subsection (4c) the following subsection:

“(4ca) Where:

(a) a person lodges:

(i) a claim for an allowance under Part XII; and

(ii) a claim for an allowance under Part IX or X (in this subsection called a ‘family allowance’);

after he or she became qualified to receive the allowances; and

(b) subsection (4c) applies to the claim referred to in subparagraph (a) (i);

the claim for the family allowance is, for the purposes of this Act, taken to have been lodged on:

(c) if the person became qualified to receive the family allowance more than 12 months before the day on which the claim for it was in fact lodged—the day occurring 12 months before that day; or

(d) in any other case—the day on which the person became qualified to receive the family allowance.”;

Commencement: 29 December 1988

(e) by inserting after subsection (4d) the following subsections:

“(4e) A claim for a disaster relief payment under Part XVIIa must not be lodged later than 2 weeks after the day on which the person lodging the claim was affected by the disaster to which the claim relates or after such longer period as the Secretary, for any special reason in any particular case, allows.

then any period of residence in Australia by the contributor to whom that period of insurance was credited shall be deemed to be a period of insurance.

2. For the purposes of this Article, where a period of insurance and a period of residence in Australia coincide, the period of coincidence shall be taken into account once only as a period of insurance.

3. The minimum period of insurance to be taken into consideration for purposes of paragraph 1 shall be 52 paid contributions. However, subject to paragraph 5, where the period of insurance, not being

SCHEDULE 2— continued

less than 52 paid contributions, does not entitle a person to a Maltese benefit, but the period of insurance in Malta and the period of residence in Australia together entitle such person to a Maltese benefit, they shall be taken into account.

4. The provisions of this Article shall not apply in the case of a Two-Thirds Pension (Retirement) or a Survivor’s Pension (Widowhood) unless:

(a) in the case of a Two-Thirds Pension, the person concerned would have paid at least 156 contributions under the legislation of Malta after the 22nd January, 1979; and

(b) in the case of a Survivor’s Pension, the husband of the widow concerned would have paid at least 156 contributions under the legislation of Malta after the 22nd January, 1979.

5. For the purposes of a claim by a person for a contributory widow’s pension the contributor, provided the contributor meets the requirements of subparagraph 1 (b), shall be deemed to have also accumulated a period of residence in Australia for any period for which the claimant accumulated a period of residence in Australia but any period during which the contributor and the claimant both accumulated periods of residence in Australia shall be taken into account once only.

ARTICLE 10

Calculation of Maltese Benefits

1. Where Malta pays non-contributory assistance or pension by virtue of this Agreement, the rate of that benefit shall be determined according to the legislation of Malta.

2. Where a contributory benefit is payable by Malta to a claimant by virtue of this Agreement the rate of that benefit shall be calculated as follows:

(a) in the case of a pension in respect of retirement other than a Two-Thirds Pension, by multiplying the applicable rate of that pension attributable to the claimant by the number of reckonable contributions (not exceeding 2400) on which that pension would have otherwise been calculated under the legislation of Malta and dividing the product by the number of totalised contributions aggregated under Article 9 (not exceeding 2400);

(b) in the case of a Two-Thirds Pension, the rate of that pension shall be calculated according to the following formula:

SCHEDULE 2—continued

but that pension shall not be payable if the formula

gives a result that is less than 15

where:

P.I. = the claimant’s pensionable income or re-assessed pensionable income (as the case may be) according to the legislation of Malta;

C1 = the number of reckonable contributions (not exceeding 1000) during any period prior to the last 10 calendar years immediately before retirement;

C2 = the number of reckonable contributions (not exceeding 500) within the last 10 calendar years immediately before retirement;

T1 = the number of totalised contributions (not exceeding 1000) aggregated under Article 9 during any period prior to the last 10 calendar years immediately before retirement;

T2 = the number of totalised contributions (not exceeding 500) aggregated under Article 9 within the last 10 calendar years immediately before retirement; and

Y = the number of reckonable years (not exceeding 20) prior to the last 10 calendar years immediately before retirement.

(c) in the case of a pension in respect of invalidity, by multiplying the applicable rate of that pension attributable to the claimant by the number of reckonable contributions (not exceeding 2400) on which that pension would have otherwise been calculated under the legislation of Malta and dividing the product by the number of reckonable totalised contributions aggregated under Article 9 (not exceeding 2400);

(d) in the case of a pension in respect of widowhood other than a Survivor’s Pension by multiplying the applicable rate of that pension attributable to the claimant by the number of reckonable contributions (not exceeding 2400) on which that pension would have otherwise been calculated under the legislation of Malta relating to her late husband and dividing the product by the number of totalised contributions aggregated under Article 9 (not exceeding 2400); and

(e) in the case of a Survivor’s Pension at 5/6 of the rate of pension arrived at in accordance with the provisions of paragraph 2 (b).

3. Any statutory pension additional rates that are applicable to certain benefits covered by this Agreement that are payable under the legislation of Malta, payment of which is also linked to a yearly contribution average, shall be calculated in the same manner as that indicated in paragraph 2, as the case may require.

SCHEDULE 2—continued

4. Where Malta pays a Maltese benefit to a person only by virtue of the Agreement it shall deduct any statutory pension deductions that would be deducted if those pensions were paid solely under the legislation of Malta provided that any service pension for war service or wife’s service pension paid to that person by Australia as defined in and payable under its Veterans’ Entitlement Act 1986 shall not for the purposes of this Agreement or otherwise under the legislation of Malta be treated as a service pension as defined in the legislation of Malta.

5. Any pension arrived at in accordance with paragraphs 2, 3 and 4 shall be rounded up to the nearest whole cent.

6. In this Article ‘reckonable contribution’ and ‘reckonable year’ shall have the meanings given to them in the legislation of Malta.

PART IV

MISCELLANEOUS AND ADMINISTRATIVE PROVISIONS

ARTICLE 11

Lodgement of Documents

1. A claim, notice or appeal concerning a benefit, whether payable by a Party by virtue of this Agreement or otherwise, may be lodged in the territory of either of the Parties in accordance with an Administrative Arrangement made pursuant to Article 15 at any time after the Agreement enters into force.

2. The date on which a claim, notice or appeal referred to in paragraph 1 is lodged with the Competent Institution of the other Party shall be treated, for all purposes concerning the matter to which it relates, as the date of lodgement of that document with the Competent Institution of the first Party.

3. In relation to Australia, the reference in paragraph 2 to an appeal document is a reference to a document concerning an appeal that may be made to an administrative body established by, or administratively for the purposes of, the Social Security Act 1947 of Australia as amended from time to time.

4. In relation to Malta, the reference in paragraph 2 to an appeal document is a reference to a document concerning an appeal that may be made to the Umpire for the purposes of the Social Security Act, 1987 of Malta as amended from time to time.

SCHEDULE 2—continued

ARTICLE 12

Determination of Claims

1. In determining the eligibility or entitlement of a person to a benefit by virtue of this Agreement:

(a) a period as an Australian resident and a period of insurance; and

(b) any event or fact which is relevant to that entitlement,

shall, subject to this Agreement, be taken into account in so far as those periods or those events are applicable in regard to that person no matter when they were accumulated or occurred.

2. The commencement date for payment of a benefit payable by virtue of this Agreement shall be determined in accordance with the legislation of the Party concerned but in no case shall that date be a date earlier than the date on which this Agreement enters into force.

3. Where:

(a) a claim is made for a benefit payable by one of the Parties by virtue of this Agreement; and

(b) there are reasonable grounds for believing that the claimant may also be entitled, whether by virtue of this Agreement or otherwise, to a benefit that is payable by the other Party and that, if paid, would affect the amount of the first-mentioned benefit, that first-mentioned benefit shall not be paid until a claim is duly lodged for payment of the second-mentioned benefit and the first-mentioned benefit shall not continue to be paid if the claim for the second-mentioned benefit is not actively pursued.

4. Where:

(a) a benefit is paid or payable by a Party to a person in respect of a past period;

(b) for all or part of that period, the other Party has paid to that person a benefit under its legislation; and

(c) the amount of the benefit paid by that other Party would have been reduced had the benefit paid or payable by the first Party been paid during that period;

then

(d) the amount that would not have been paid by the other Party had the benefit described in subparagraph (a) been paid throughout that past period shall be a debt due by that person to the other Party; and

(e) the other Party may determine that the amount, or any part, of that debt may be deducted from future payments of a benefit payable by that Party to that person.

SCHEDULE 2— continued

5. Where the first Party has not yet paid the arrears of benefit described in subparagraph 4 (a) to the person:

(a) that Party shall, at the request of the other Party, pay the amount of the debt described in subparagraph 4 (d) to the other Party and shall pay any excess to the person; and

(b) any shortfall in those arrears may be recovered by the other Party under subparagraph 4 (e).

6. The Competent Institution receiving a request under paragraph 5 shall take the action set out in an Administrative Arrangement made pursuant to Article 15, to recoup the amount of the overpayment and to transfer it to the other Competent Institution.

7. A reference in paragraphs 3, 4 and 5 to a benefit, in relation to Australia, means a pension, benefit or allowance that is payable under the Social Security Act 1947 of Australia as amended from time to time, and in relation to Malta, means any pension, benefit, allowance or assistance that is payable under the Social Security Act, 1987 of Malta.

ARTICLE 13

Payment of Benefits

1. The benefits payable by virtue of this Agreement and listed in this paragraph shall be payable within and outside the territories of both Parties:

(a) for Australia:

(i) age pensions;

(ii) invalid pensions;

(iii) wives’ pensions;

(iv) pensions payable to widows who were widowed while both they and their husbands were Australian residents;

(v) class B widows’ pensions; and

(b) for Malta: contributory pensions in respect of retirement, invalidity and widowhood.

2. A pension payable to a widow whether payable by virtue of this Agreement or otherwise, shall be paid by Australia in the territories of both Parties with no limitation by time.

3. If a Party imposes legal or administrative restrictions on the transfer of its currency abroad, both Parties shall adopt measures as soon as practicable to guarantee the rights to payment of benefits derived under this Agreement. Those measures shall operate retrospectively to the time the restrictions were imposed.

4. A party that imposes restrictions described in paragraph 3 shall inform the other Party of those restrictions within one calendar

SCHEDULE 2—continued

month of their imposition and shall adopt the measures described in paragraph 3 within 3 months of the imposition of those restrictions. If the other Party is not so informed or if the necessary measures are not adopted within the set time the other Party may treat such a failure as a material breach of the Agreement for the purposes of Article 60 of the Vienna Convention on the Law of Treaties.

5. A benefit payable by a Party by virtue of this Agreement to a person outside the territory of that Party shall be paid without deduction for government administrative fees and charges for processing and paying that benefit.

6. The payment outside Australia of an Australian benefit that is payable by virtue of this Agreement shall not be restricted by those provisions of the legislation of Australia which prohibit the payment of a benefit to a former Australian resident who returns to Australia becoming again an Australian resident, and lodges a claim for an Australian benefit and leaves Australia within 12 months of the date of that return.

ARTICLE 14

Exchange of Information and Mutual Assistance

1. The Competent Authorities and Competent Institutions responsible for the application of this Agreement:

(a) shall communicate to each other any information necessary for the application of this Agreement or of the Social Security Laws of the Parties;

(b) shall lend their good offices and furnish assistance to one another with regard to the determination or payment of any benefit under this Agreement or the legislation to which this Agreement applies as if the matter involved the application of their own legislation;

(c) shall communicate to each other, as soon as possible, all information about the measures taken by them for the application of this Agreement or about changes in their respective legislation in so far as these changes affect the application of this Agreement; and

(d) at the request of one to the other, assist each other in relation to the implementation of agreements on social security entered into by either of the Parties with third States, to the extent and in the circumstances specified in an Administrative Arrangement made pursuant to Article 15.

2. The assistance referred to in paragraph 1 shall be provided free of charge, subject to any Administrative Arrangement made pursuant to Article 15.

SCHEDULE 2—continued

3. Unless disclosure is required under the laws of a Party, any information about an individual which is transmitted in accordance with this Agreement to a Competent Authority or a Competent Institution of that Party by a Competent Authority or a Competent Institution of the other Party is confidential and shall be used only for purposes of implementing this Agreement and the legislation to which this Agreement applies.

4. In no case shall the provisions of paragraphs 1 and 3 be construed so as to impose on the Competent Authority or Competent Institution of a Party the obligation:

(a) to carry out administrative measures at variance with the laws or the administrative practice of that Party or the other Party; or

(b) to supply particulars which are not obtainable under the laws or in the normal course of the administration of that Party or the other Party.

5. In the application of this Agreement, the Competent Authority and the Competent Institution of a Party may communicate with the other in the official language of that Party.

ARTICLE 15

Administrative Arrangement

The Competent Authorities of the Parties shall make whatever Administrative Arrangement is necessary from time to time in order to implement this Agreement.

ARTICLE 16

Resolution of Difficulties

1. The Competent Authorities of the Parties shall resolve, to the extent possible, any difficulties which arise in interpreting or applying this Agreement according to its spirit and fundamental principles.

2. The Parties shall consult promptly at the request of either concerning matters which have not been resolved by the Competent Authorities in accordance with paragraph 1.

3. Any dispute between the Parties concerning the interpretation of this Agreement which has not been resolved or settled by consultation in accordance with paragraph 1 or 2 shall, at the request of either Party, be submitted to arbitration.

4. Unless the Parties mutually determine otherwise, the arbitral tribunal shall consist of three arbitrators, of whom each Party shall appoint one and the two arbitrators so appointed shall appoint a third who shall act as president; provided that if the two arbitrators fail to agree, the President of the International Court of Justice shall be requested to appoint the president.

SCHEDULE 2—continued

5. The arbitrators shall determine their own procedures.

6. The decision of the arbitrators shall be final and binding.

7. Unless the Parties otherwise agree, the place of arbitration shall be in the territory of the Party which did not raise the matter in dispute.

ARTICLE 17

Review of Agreement

Where a Party requests the other to meet to review this Agreement, the Parties shall meet for that purpose no later than 6 months after that request was made and, unless the Parties otherwise arrange, their meeting shall be held in the territory of the Party to which that request was made.

PART V—FINAL PROVISIONS

ARTICLE 18

Entry into Force and Termination

1. This Agreement shall enter into force one month after an exchange of notes by the Parties through the diplomatic channel notifying each other that all constitutional or legislative matters as are necessary to give effect to this Agreement have been finalized.

2. Subject to paragraph 3, this Agreement shall remain in force until the expiration of 12 months from the date on which either Party receives from the other a note through the diplomatic channel indicating the intention of the other Party to terminate this Agreement.

3. In the event that this Agreement is terminated in accordance with paragraph 2, the Agreement shall continue to have effect in relation to all persons who:

(a) at the date of termination, are in receipt of benefits; or

(b) prior to the expiry of the period referred to in that paragraph, have lodged claims for, and would be entitled to receive, benefits,

by virtue of this Agreement.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement.

SCHEDULE 2—continued

DONE in duplicate at Canberra this fifteenth day of August 1990.

FOR AUSTRALIA: FOR MALTA:

Graham Richardson Louis Galea”.

NOTES

1. No. 26, 1947, as amended. For previous amendments, see Nos. 38 and 69, 1948; No. 16, 1949; Nos. 6 and 26, 1950; No. 22, 1951; Nos. 41 and 107, 1952; No. 51, 1953; No. 30, 1954; Nos. 15 and 38, 1955; Nos. 67 and 98, 1956; No. 46, 1957; No. 44, 1958; No. 57, 1959; No. 45, 1961; Nos. 1 and 95, 1962; No. 46, 1963; Nos. 3 and 63, 1964; Nos. 57 and 152, 1965; No. 41, 1966; Nos. 10 and 61, 1967; No. 65, 1968; No. 94, 1969; Nos. 2 and 59, 1970; Nos. 16 and 67, 1971; Nos. 1, 14, 53 and 79, 1972; Nos. 1, 26, 48, 103 and 216, 1973; Nos. 2, 23 and 91, 1974; Nos. 34, 56, 101 and 110, 1975; Nos. 26, 62 and 111, 1976; No. 159, 1977; No. 128, 1978; No. 121, 1979 (as amended by Nos. 37 and 98, 1982); No. 130, 1980; Nos. 61 and 170, 1981; No. 159, 1981 (as amended by No. 98, 1982); Nos. 37, 38 and 148, 1982; Nos. 4 and 36, 1983; No. 69, 1983 (as amended by No. 78, 1984); Nos. 46, 78, 93, 120, 134 and 165, 1984; Nos. 24, 52, 95, 127 and 169, 1985; Nos. 5, 28, 33, 106, 130 and 152, 1986; Nos. 77, 88 and 130, 1987; Nos. 13, 35, 58, 75 and 85, 1988; Nos. 133 and 135, 1988 (as amended by Nos. 84 and 164, 1989); Nos. 59, 83, 84, 163 (as amended by No. 164, 1989) and 164, 1989; and Nos. 56 and 80, 84 and 119, 1990.

2. No. 13, 1988, as amended. For previous amendments, see No. 83, 1989.

3. No. 46, 1983 as amended. For previous amendments, see No. 23, 1985; No. 141, 1987; Nos. 38, 133 and 155, 1988; No. 59, 1989; and Nos. 3, 106 and 141, 1990.

4. No. 42, 1974, as amended. For previous amendments, see No. 58, 1975; Nos. 59, 91, 101, 109 and 157, 1976; No. 75, 1977; Nos. 36, 89 and 133, 1978; Nos. 53 and 123, 1979; No. 132, 1980; Nos. 118 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 54 and 139, 1983; Nos. 15, 46, 63, 120, 135 and 165, 1984; Nos. 24, 65, 70, 95 and 167, 1985; Nos. 28, 75 and 94, 1986; Nos. 44, 131, 132 and 141, 1987; Nos. 85, 87, 99 and 155, 1988; No. 95, 1989; and No. 3, 1990.

NOTES—continued

5. No. 95, 1953, as amended. For previous amendments, see No. 68, 1955; Nos. 55 and 95, 1956; No. 92, 1957; No. 68, 1958; No. 72, 1959; No. 16, 1961; No. 82, 1962; No. 77, 1963; No. 37, 1964; Nos. 100 and 146, 1965; No. 44, 1966; Nos. 14 and 100, 1967; No. 100, 1968; No. 102, 1969; No. 41, 1970; No. 85, 1971; No. 114, 1972; Nos. 49 and 202, 1973; No. 37, 1974; Nos. 1, 13 and 93, 1975; Nos. 1, 60, 91, 99, 108, 157 and 177, 1976; Nos. 98 and 100, 1977; Nos. 36, 88, 132 and 189, 1978; Nos. 54, 91 and 122, 1979; Nos. 117 and 131, 1980; Nos. 40, 74, 92, 118, 163 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 35, 54 and 139, 1983; Nos. 46, 63, 72, 120, 135 and 165, 1984; Nos. 24, 53, 65, 70, 95, 127 and 167, 1985; Nos. 28, 75, 94 and 115, 1986; Nos. 22, 44, 72, 118, 131 and 132, 1987; Nos. 79, 87, 99 and 155, 1988; No. 95, 1989; and No. 3, 1990.

6. No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974)); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49, 51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984; No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and 174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51, 109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52, 1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141, 1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988); Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70, 73, 97, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105, 1989); and Nos. 20, 35, 37, 45, 57, 58, 60, 61 and 87, 119 and 135, 1990; and No. 4, 1991.

7. No. 1, 1953, as amended. For previous amendments, see Nos. 28, 39, 40 and 52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75, 1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133, 1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123, 1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and 168, 1985; Nos. 41, 46, 48, 112, 144 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); Nos. 120 and 145, 1987; No. 62, 1987 (as amended by No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as amended by No. 11, 1988); Nos. 95 and 97, 1988; Nos. 105, 107, 124, 163 and 167, 1989; and Nos. 20, 60, 61, 110, 119 and 136, 1990.

[Minister’s second reading speech made in

House of Representatives on 18 October 1990

Senate on 13 November 1990

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