Social Security Legislation Amendment Act (No. 4) 1991 (Cth)

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Social Security Legislation Amendment Act

(No. 4) 1991

No. 194 of 1991

TABLE OF PROVISIONS

PART 1—PRELIMINARY

Section

1. Short title etc.

2. Commencement

3. Application

PART 2—AMENDMENT OF THE SOCIAL SECURITY ACT 1991

Division 1Indexation of earnings credit limit

4. Earnings credit account balance

5. Indexed and adjusted amounts

6. CPI Indexation Table

Division 2Rent assistance

7. Rate of job search allowances (under 18) and sickness allowance (under 18)

8. Rate of job search allowance (18 or over) and newstart allowance and sickness allowance (18 or over)

Division 3Compensation recovery

9. General effect of Part

10. Rate reduction of certain pensions, benefits and allowances where periodic compensation payments received

11. Person may have to repay amount where both periodic compensation payments and pension, benefit or allowance payments have been received

Section

Division 4Limit rate payable to certain partnered persons

12. Rate of pharmaceutical allowance

13. Rate of age, disability support (over 20), wife and carer pensions (people who are not blind)

14. Maximum basic rate

15. Rate of remote area allowance

16. Rate of age and disability support (over 20) pensions (blind people)

17. Maximum basic rate

18. Rate of remote area allowance

19. Rate of remote area allowance

20. Rate of disability support pension (people under 21 who are not blind)

21. Maximum basic rate

22. Rate of remote area allowance

23. Rate of disability support pension (people under 21 who are blind)

24. Maximum basic rate

25. Rate of remote area allowance

26. Method of calculating rate

27. Rate of benefit where benefit not payable to partner

28. Maximum basic rate

29. Omission of Module

30. Effect of parental assets and income on maximum payment rate

31. Effect of ordinary income on maximum payment rate

32. Effect of maintenance income on maximum payment rate

33. Rate of remote area allowance

34. Method of calculating rate

35. Rate of benefit where benefit not payable to partner

36. Maximum basic rate

37. Omission of Module

38. Effect of ordinary income on maximum payment rate

39. Effect of maintenance income on maximum payment rate

40. Rate of remote area allowance

41. Indexed and adjusted amounts

42. CPI Indexation Table

43. Adjustment of disability support pension (under 21 and child) MBRs

44. Adjustment of disability support pension (under 21 and no child) MBRs

45. Adjustment of certain pharmaceutical allowance rates

46. Schedule 1A—insertion of new clauses:

41. Members of couples (changes made on 12 March 1992)

42. Modifications of Pension Rate Calculator A (changes made on 12 March 1992)

43. Modifications of Pension Rate Calculator B (changes made on 12 March 1992)

44. Modifications of Pension Rate Calculator C (changes made on 12 March 1992)

45. Modifications of Pension Rate Calculator D (changes made on 12 March 1992)

46. Modifications of Pension Rate Calculator E (changes made on 12 March 1992)

47. Modifications of Benefit Rate Calculator A (changes made on 12 March 1992)

48. Modifications of Benefit Rate Calculator B (changes made on 12 March 1992)

49. Modifications of pharmaceutical allowance rates (changes made on 12 March 1992)

Division 5Pharmaceutical allowance and advance pharmaceutical allowance

47. Pharmaceutical allowances definitions

48. Repeal of Parts 2.22 and 2.23 and substitution of new Parts:

Section

PART 2.22—PHARMACEUTICAL ALLOWANCE

Division 1—Qualification for and payability of pharmaceutical allowance

1061A. Qualification for pharmaceutical allowance

1061B. Pharmaceutical allowance not payable in some circumstances

Division 2Rate of pharmaceutical allowance

1061C. Rate of pharmaceutical allowance

1061D. Limitation of amount of pharmaceutical allowance

Division 3Payment of pharmaceutical allowance

1061E. Payment of pharmaceutical allowance

PART 2.23—ADVANCE PHARMACEUTICAL ALLOWANCE

Division 1—Qualification for and payability of advance pharmaceutical allowance

1061F. Qualification for advance pharmaceutical allowance

1061G. Advance pharmaceutical allowance not payable in some circumstances

Division 2Claim for advance pharmaceutical allowance

1061H. Need for a claim

1061J. Form of claim

1061JA. Lodgment of claim

1061JB. Proper claim

Division 3Amount of advance pharmaceutical allowance

1061JC. Amount of advance pharmaceutical allowance

1061JD. Reduction in amount of advance pharmaceutical allowance

49. Repeal of Part 2.23

50. Indexed and adjusted amounts

51. CPI Indexation Table

52. Rounding off indexed amounts

53. Repeal of section 1206B

Division 6Prepayment debts

54. General effect of Chapter

55. Debts due to the Commonwealth

56. Insertion of new section:

1223AA. Debts arising from prepayments

Division 7Financial hardship farmers

57. Index of definitions

58. Assets test definitions

59. General definitions

60. Insertion of new sections:

26. Financial hardship farmer—certificate

27. Unrealisable assets of financial hardship farmer—certificate

61. Qualification for job search allowance

62. Effect of incapacity on qualification

63. Job search allowance may continue to end of payment period

64. Registration by CES

Section

65. Provisional commencement day

66. Qualification for newstart allowance

67. Effect of incapacity on qualification

68. Registration by CES

69. Provisional commencement day

70. Application of financial hardship rules—benefits

71. Non-reviewable decisions

72. Insertion of new section:

1298B. The Secretary and the Secretary to the Department of Primary Industries and Energy may agree on administrative arrangements

PART 3—FURTHER AMENDMENTS

73. Amendments of the Principal Act

74. Amendments of other Acts

75. New international agreements with Ireland and Portugal

PART 4—AGREEMENT ON SOCIAL SECURITY BETWEEN THE UK AND AUSTRALIA

76. Agreement on social security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Australia

SCHEDULE 1

AMENDMENT OF THE SOCIAL SECURITY ACT 1991

SCHEDULE 2

AMENDMENT OF THE SOCIAL SECURITY ACT 1991

SCHEDULE 3

AMENDMENT OF THE SOCIAL SECURITY ACT 1991 RELATING TO PENALTIES

SCHEDULE 4

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO COMPENSATION RECOVERY

SCHEDULE 5

AMENDMENTS OF OTHER ACTS

SCHEDULE 6

NEW INTERNATIONAL AGREEMENTS

Social Security Legislation Amendment Act

(No. 4) 1991

No. 194 of 1991

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

related purposes

[Assented to 13 December 1991]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title etc.

1.(1) This Act may be cited as the Social Security Legislation Amendment Act (No. 4) 1991.

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

Commencement

2.(1) The following provisions commence on the day on which this Act receives the Royal Assent:

(a) Part 1;

(b) Division 6 of Part 2;

(c) Part 3;

(d) Part 4;

(e) Part 2 of Schedule 1;

(f) Part 3 of Schedule 2;

(g) Schedule 3;

(h) Part 1 of Schedule 5;

(i) Schedule 6.

(2) Division 1 of Part 2 commences on 1 July 1992.

(3) Divisions 2 and 3 of Part 2 and Part 2 of Schedule 4 commence on 20 March 1992.

(4) Division 4 of Part 2 and Part 6 of Schedule 2 commence on 12 March 1992.

(5) Division 5 of Part 2 (other than section 49) and Part 5 of Schedule 2 commence, or are taken to have commenced, on 1 January 1992.

(6) Section 49 commences on 1 January 1994.

(7) Division 7 of Part 2 is taken to have commenced on 1 December 1991.

(8) Part 1 of Schedule 1 and Part 1 of Schedule 2 are taken to have commenced on 1 July 1991.

(9) Part 3 of Schedule 1 commences on a day to be fixed by Proclamation, being a day not earlier than the day on which the Agreement on Social Security between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland dated 1 October 1990 comes into force for Australia, and not later than 3 months after that day.

(10) Part 4 of Schedule 1 commences, or is taken to have commenced, immediately after the commencement of section 57 of the Social Security Legislation Amendment Act (No. 3) 1991.

(11) Part 2 of Schedule 2 and Part 1 of Schedule 4 are taken to have commenced on 12 November 1991.

(12) Part 4 of Schedule 2 commences, or is taken to have commenced, immediately after the commencement of Part 3 of the Schedule to the Social Security Legislation Amendment Act (No. 3) 1991.

(13) Part 2 of Schedule 5 is taken to have commenced immediately after the commencement of the Data-matching Program (Assistance and Tax) Act 1990.

Application

3.(1) The amendments made by sections 4, 5 and 6 apply to instalments of social security pension that fall due on or after 2 July 1992.

(2) The amendments made by sections 54, 55 and 56 apply to instalments of social security benefit that fall due on or after 1 December 1991.

(3) The amendments made to sections 1067 and 1068 of the Principal Act in Part 2 of Schedule 1 apply to payments of ABSTUDY allowance received on or after the day on which this Act receives the Royal Assent.

PART 2—AMENDMENT OF THE SOCIAL SECURITY ACT 1991

Division 1Indexation of earnings credit limit

Earnings credit account balance

4: Section 1115 of the Principal Act is amended:

(a) by inserting after point 1115-A2 the following Note:

"Note: the individual earnings credit account limit is indexed annually in line with CPI increases (see sections 1191 to 1194).";

(b) by inserting after point 1115-A4 the following Note:

"Note: the joint earnings credit account limit is indexed annually in line with CPI increases (see sections 1191 to 1194).".

Indexed and adjusted amounts

5. Section 1190 of the Principal Act is amended by inserting after item 23B the following items:

"

Earnings credit

23C.

Upper limit for individual earnings credit account balance

individual earnings credit limit

[Section 1115 — point 1115–A2]

23D.

Upper limit for joint earnings credit account balance

joint earnings credit limit

[Section 1115 — point 1115–A4]".

CPI Indexation Table

6. Section 1191 of the Principal Act is amended by inserting after item 17B in the table in subsection (1) the following items:

"

Earnings credit

17C.

individual earnings credit limit

1 July

March

most recent March quarter before reference quarter

$50.00

17D.

joint earnings credit limit

1 July

March

most recent March quarter before reference quarter

$100.00

Division 2Rent assistance

Rate of job search allowance (under 18) and sickness allowance (under 18)

7. Section 1067 of the Principal Act is amended:

(a) by omitting subparagraph 1067-F5(c)(iii) and substituting the following subparagraph:

"(iii) the person ceased to receive that other social security benefit not more than:

(A) if the rate being worked out is a rate of job search allowance—6 weeks before commencing to receive that allowance; or

(B) if the rate being worked out is a rate of sickness allowance—4 weeks before commencing to receive that allowance.";

(b) by omitting from paragraph 1067-F7(c) all words from and including "start more than" and substituting:

"starts:

(i) if the rate being worked out is a rate of job search allowance—more than 6 weeks after the end of the immediately preceding waiting period; or

(ii) if the rate being worked out is a rate of sickness allowance—more than 4 weeks after the end of the immediately preceding waiting period.";

(c) by omitting from point 1067-F9 all words after "waiting" and substituting the following:

"period ended:

(a) if the rate being worked out is a rate of job search allowance—more than 6 weeks before that time; or

(b) if the rate being worked out is a rate of sickness allowance—more than 4 weeks before that time.".

Rate of job search allowance (18 or over) and newstart allowance and sickness allowance (18 or over)

8. Section 1068 of the Principal Act is amended:

(a) by omitting subparagraph 1068-F7(d)(iii) and substituting the following subparagraph:

"(iii) the person ceased to receive that other social security benefit not more than:

(A) if the rate being worked out is a rate of job search allowance—6 weeks before commencing to receive that allowance; or

(B) if the rate being worked out is a rate of newstart allowance—13 weeks before commencing to receive that allowance; or

(C) if the rate being worked out is a rate of sickness allowance—4 weeks before commencing to receive that allowance;";

(b) by omitting from paragraph 1068-F9(c) all words from and including "start more than" and substituting:

"starts:

(i) if the rate being worked out is a rate of job search allowance—more than 6 weeks after the end of the immediately preceding waiting period; or

(ii) if the rate being worked out is a rate of newstart allowance—more than 13 weeks after the end of the immediately preceding waiting period; or

(iii) if the rate being worked out is a rate of sickness allowance—more than 4 weeks after the end of the immediately preceding waiting period.";

(c) by omitting from point 1068-F11 all words after "waiting" and substituting the following:

"period ended:

(a) if the rate being worked out is a rate of job search allowance—more than 6 weeks before that time; or

(b) if the rate being worked out is a rate of newstart allowance—more than 13 weeks before that time; or

(c) if the rate being worked out is a rate, of sickness allowance—more than 4 weeks before that time.".

Division 3Compensation recovery

General effect of Part

9. Section 1163 of the Principal Act is amended:

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

"(ia) sole parent pension;";

(b) by inserting after subparagraph (1)(b)(i) the following subparagraph:

"(ia) sole parent pension;";

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

"(7) A sole parent pension will only be affected under this Part if:

(a) the compensation is received on or after 20 March 1992; and

(b) the claim for the pension was made on or after 20 March 1992.".

Rate reduction of certain pensions, benefits and allowances where periodic compensation payments received

10. Section 1168 of the Principal Act is amended:

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

"(b) the person is qualified for:

(i) disability support pension; or

(ii) sole parent pension; or

(iii) social security benefit; or

(iv) rehabilitation allowance payable in place of one of those; or

(v) special needs disability support pension;

for the periodic payments period; and

(c) the person was not, at the time of the event that gave rise to the entitlement of the person, or the person's partner, to the compensation, qualified for a pension, benefit or allowance referred to in paragraph (b);";

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

"(c) the person's partner is qualified for:

(i) disability support pension; or

(ii) sole parent pension; or

(iii) social security benefit; or

(iv) rehabilitation allowance payable in place of one of those; or

(v) wife pension; or

(vi) carer pension because of caring for the person; or

(vii) special needs disability support pension; or

(viii) special needs wife pension;";

(c) by inserting in columns 3 and 4 of the Reduction Table in subsection (3) "SPP" after "DSP" (wherever occurring);

(d) by inserting in the Key to the Reduction Table in subsection (3) "SPP=sole parent pension" after "DSP=disability support pension".

Person may have to repay amount where both periodic compensation payments and pension, benefit or allowance payments have been received

11. Section 1170 of the Principal Act is amended:

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

"(b) the person receives payments of:

(i) disability support pension; or

(ii) sole parent pension; or

(iii) social security benefit; or

(iv) rehabilitation allowance payable in place of one of those; or

(v) special needs disability support pension;

for the periodic payments period; and

(c) the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, receiving a pension, benefit or allowance referred to in paragraph (b); and

(d) those pension, benefit or allowance payments have not been reduced under section 1168;";

(b) by inserting in columns 3 and 4 of the Recoverable Amount Table in subsection (2) "SPP" after "DSP" (wherever occurring);

(c) by inserting in the Key to the Recoverable Amount Table in subsection (2) "SPP=sole parent pension" after "DSP=disability support pension".

Division 4Limit rate payable to certain partnered persons

Rate of pharmaceutical allowance

12. Section 1061C of the Principal Act is amended:

(a) by omitting item 2 from the Pharmaceutical Allowance Rate Table in subsection (1);

(b) by omitting from item 3 in the Pharmaceutical Allowance Rate Table in subsection (1) "(partner getting social security pension or benefit)";

(c) by renumbering items 3, 4 and 5 in the Pharmaceutical Allowance Rate Table in subsection (1) as items 2, 3 and 4;

(d) by omitting subsection (2).

Rate of age, disability support (over 20), wife and carer pensions (people who are not blind)

13. Section 1064 of the Principal Act is amended by omitting subsection (3).

Maximum basic rate

14. Point 1064-B1 of Pension Rate Calculator A in section 1064 of the Principal Act is amended:

(a) in Table B:

(i) by omitting item 2;

(ii) by omitting from item 3 "(partner getting pension or benefit)";

(iii) by renumbering items 3 and 4 as items 2 and 3;

(b) by omitting from Note 1 "(partner getting neither pension nor benefit)", "partnered (partner getting pension or benefit)".

Rate of remote area allowance

15. Point 1064-H2 of Pension Rate Calculator A in section 1064 of the Principal Act is amended in Table H:

(a) by omitting from item 2 "—partner receiving remote area allowance";

(b) by omitting item 3;

(c) by renumbering item 4 as item 3.

Rate of age and disability support (over 20) pensions (blind people)

16. Section 1065 of the Principal Act is amended by omitting subsection (2).

Maximum basic rate

17. Point 1065-B1 of Pension Rate Calculator B in section 1065 of the Principal Act is amended:

(a) in Table B:

(i) by omitting item 2;

(ii) by omitting from item 3 "(partner getting pension or benefit)";

(iii) by renumbering items 3 and 4 as items 2 and 3;

(b) by omitting from Note 1 to Table B "(partner getting neither pension nor benefit)", "partnered (partner getting pension or benefit)".

Rate of remote area allowance

18. Point 1065-E2 of Pension Rate Calculator B in section 1065 of the Principal Act is amended in Table E:

(a) by omitting from item 2 "—partner eligible to receive remote area allowance";

(b) by omitting item 3;

(c) by renumbering item 4 as item 3.

Rate of remote area allowance

19. Point 1066-H2 of Pension Rate Calculator C in section 1066 of the Principal Act is amended in Table H:

(a) by omitting from item 2 "—partner receiving remote area allowance";

(b) by omitting item 3;

(c) by renumbering item 4 as item 3.

Rate of disability support pension (people under 21 who are not blind)

20. Section 1066A of the Principal Act is amended by omitting subsection (4).

Maximum basic rate

21. Point 1066A-B1 of Pension Rate Calculator D in section 1066A of the Principal Act is amended:

(a) in Table B:

(i) by omitting from item 5 "(partner getting neither pension nor benefit)";

(ii) by omitting from item 6 "(partner getting neither pension nor benefit)";

(iii) by omitting item 7;

(iv) by omitting item 8;

(v) by renumbering items 9 and 10 as items 7 and 8;

(b) by omitting from Note 1 to Table B "(partner getting neither pension nor benefit)", "partnered (partner getting pension or benefit)".

Rate of remote area allowance

22. Point 1066A-I2 of Pension Rate Calculator D in section 1066A of the Principal Act is amended in Table I:

(a) by omitting from item 2 "—partner receiving remote area allowance";

(b) by omitting item 3;

(c) by renumbering item 4 as item 3.

Rate of disability support pension (people under 21 who are blind)

23. Section 1066B of the Principal Act is amended by omitting subsection (3).

Maximum basic rate

24. Point 1066B-B1 of Pension Rate Calculator E in section 1066B of the Principal Act is amended:

(a) in Table B:

(i) by omitting from item 5 "(partner getting neither pension nor benefit)";

(ii) by omitting from item 6 "(partner getting neither pension nor benefit)";

(iii) by omitting item 7;

(iv) by omitting item 8;

(v) by renumbering items 9 and 10 as items 7 and 8;

(b) by omitting from Note 1 to Table B "(partner getting neither pension nor benefit)", "partnered (partner getting pension or benefit)".

Rate of remote area allowance

25. Point 1066B-F2 of Pension Rate Calculator E in section 1066B of the Principal Act is amended in Table F:

(a) by omitting from item 2 "—partner eligible to receive remote area allowance";

(b) by omitting item 3;

(c) by renumbering item 4 as item 3.

Method of calculating rate

26. Point 1067-A1 of Benefit Rate Calculator A in section 1067 of the Principal Act is amended in the Method Statement:

(a) by omitting Step 3;

(b) by omitting from Step 6 "1 to 5" and substituting "1 to 4";

(c) by renumbering Steps 4 to 12 as Steps 3 to 11;

(d) by omitting from Note 1 "Step 8 or Step 12" and substituting "Step 7 or Step 11".

Rate of benefit where benefit not payable to partner

27. Point 1067-A2 of Benefit Rate Calculator A in section 1067 of the Principal Act is amended by omitting "Module D does not apply.".

Maximum basic rate

28. Point 1067-B1 of Benefit Rate Calculator A in section 1067 of the Principal Act is amended:

(a) in Table B of point 1067-B1:

(i) by omitting from item 3 "(partner getting neither pension nor benefit)";

(ii) by omitting item 4;

(iii) by renumbering item 5 as item 4;

(b) by omitting from Note 1 to Table B "(partner getting neither pension nor benefit)", "partnered (partner getting pension or benefit)";

(c) by omitting Note 6 to Table B;

(d) by renumbering Note 7 as Note 6.

Omission of Module

29. Module D of Benefit Rate Calculator A in section 1067 of the Principal Act is omitted.

Effect of parental assets and income on maximum payment rate

30. Point 1067-G1 of Benefit Rate Calculator A in section 1067 of the Principal Act is amended by omitting from the Note "Steps 7, 8 and 12" and substituting "Steps 6, 7 and 11".

Effect of ordinary income on maximum payment rate

31. Point 1067-H1 of Benefit Rate Calculator A in section 1067 of the Principal Act is amended by omitting from Note 2 "Steps 9 to 12" and substituting "Steps 8 to 11".

Effect of maintenance income on maximum payment rate

32. Point 1067-J1 of Benefit Rate Calculator A in section 1067 of the Principal Act is amended by omitting from the Note "Steps 10 to 12" and substituting "Steps 9 to 11".

Rate of remote area allowance

33. Point 1067-K3 of Benefit Rate Calculator A in section 1067 of the Principal Act is amended:

(a) in Table K:

(i) by omitting from item 2 "remote area allowance payable to partner" and substituting "partner is not a benefit increase partner";

(ii) by omitting items 4 and 6;

(iii) by renumbering item 5 as item 4;

(b) by omitting from Note 2 to Table K of point 1067-K3 "item 5" and substituting "item 4".

Method of calculating rate

34. Point 1068-A1 of Benefit Rate Calculator B in section 1068 of the Principal Act is amended:

(a) in the Method Statement:

(i) by omitting Step 3;

(ii) by omitting from Step 6 "Steps 1 to 5" and substituting "Steps 1 to 4";

(iii) by renumbering Steps 4 to 10 as Steps 3 to 9;

(b) by omitting from Note 1 "Step 10" and substituting "Step 9".

Rate of benefit where benefit not payable to partner

35. Point 1068-A2 of Benefit Rate Calculator B in section 1068 of the Principal Act is amended by omitting from point 1068-A2 "Module D does not apply.".

Maximum basic rate

36. Point 1068-B1 of Benefit Rate Calculator B in section 1068 of the Principal Act is amended:

(a) in Table B of point 1068-B1:

(i) by omitting from item 6 "(partner getting neither pension nor benefit)";

(ii) by omitting from item 7 "(partner getting neither pension nor benefit)";

(iii) by omitting items 8 and 9;

(iv) by renumbering items 10 and 11 as items 8 and 9;

(b) by omitting from Note 1 "(partner getting neither pension nor benefit)", "partnered (partner getting pension or benefit)";

(c) by omitting from Note 4 ", 8 and 10" and substituting "and 8";

(d) by omitting Note 6;

(e) by renumbering Note 7 as Note 6;

(f) by omitting from Note 7 "or 8".

Omission of Module

37. Module D of Benefit Rate Calculator B in section 1068 of the Principal Act is omitted.

Effect of ordinary income on maximum payment rate

38. Point 1068-G1 of Benefit Rate Calculator B in section 1068 of the Principal Act is amended by omitting from Note 2 "Steps 7 to 10" and substituting "Steps 6 to 9".

Effect of maintenance income on maximum payment rate

39. Point 1068-H1 of Benefit Rate Calculator B in section 1068 of the Principal Act is amended by omitting from the Note "Steps 8 to 10" and substituting "Steps 7 to 9".

Rate of remote area allowance

40. Point 1068-J3 of Benefit Rate Calculator B in section 1068 of the Principal Act is amended:

(a) in Table J:

(i) by omitting from item 2 "remote area allowance payable to partner" and substituting "partner is not a benefit increase partner";

(ii) by omitting items 4 and 6;

(iii) by renumbering item 5 as item 4;

(b) by omitting from Note 2 "item 5" and substituting "item 4".

Indexed and adjusted amounts

41. Section 1190 of the Principal Act is amended:

(a) in column 4 of item 2 of the Indexed and Adjusted Amounts Table:

(i) by omitting "column 3A—items 1 to 5" and substituting "column 3A—all amounts";

(ii) by omitting "column 3B—items 3, 4, 5, 7, 9 and 11" and substituting "column 3B—items 3, 4, 5, 7 and 9";

(b) in column 4 of item 3 of the Indexed and Adjusted Amounts

Table by omitting "column 3B—items 1, 2, 6, 8 and 10" and substituting "column 3B—items 1, 2, 6 and 8";

(c) by omitting items 46 and 47 of the Indexed and Adjusted Amounts Table and substituting the following item:

"46

Rate of pharmaceutical allowance for a person with a partner

PA 'partnered' (item 2) rate

[Section 1061C—Table—column 3—item 2]";

(d) by omitting from columns 4 and 5 of item 48 "item 4" and substituting "item 3";

(e) by omitting from columns 4 and 5 of item 49 "item 5" and substituting "item 4".

CPI Indexation Table

42. Section 1191 of the Principal Act is amended:

(a) by omitting from column 2 in item 31 of the CPI Indexation Table in subsection (1) "item 3" and substituting "item 2";

(b) by omitting from column 2 in item 32 of the CPI Indexation Table in subsection (1) "item 5" and substituting "item 4".

Adjustment of disability support pension (under 21 and child) MBRs

43. Section 1198A of the Principal Act is amended:

(a) by omitting from the Adjustment of DSP (under 21 and child) MBR Table items 5, 10, 15 and 20;

(b) by renumbering items 1 to 20 in that Table as items 1 to 16.

Adjustment of disability support pension (under 21 and no child) MBRs

44. Section 1198B of the Principal Act is amended:

(a) by omitting from the Adjustment of DSP (under 21 and no child) MBR Table items 5, 10, 15 and 20;

(b) by renumbering items 1 to 20 in that Table as items 1 to 16.

Adjustment of certain pharmaceutical allowance rates

45. Section 1206A of the Principal Act is amended:

(a) by omitting paragraph (b);

(b) by omitting "item 3" (wherever occurring) and substituting "item 2".

Schedule 1A

46. Schedule 1A of the Principal Act is amended:

(a) by omitting from paragraph 31(d) "items 3 and 4" and substituting "item 3";

(b) by omitting from paragraph 31(e) "items 6 and 8" and substituting "item 6";

(c) by inserting after clause 40 the following clauses:

Members of couples (changes made on 12 March 1992)

"41.(1) This clause applies to a person if:

(a) immediately before 12 March 1992:

(i) the person was receiving a social security pension or a social security benefit; and

(ii) the person was a member of a couple; and

(iii) the person's partner:

(A) was not receiving a social security pension; and

(B) was not receiving a social security benefit; and

(C) was not receiving a service pension; and

(b) the clause has not ceased to apply to the person.

"(2) This clause ceases to apply to a person if:

(a) the person ceases to receive that pension or benefit; or

(b) the rate of pension or benefit that would be payable to the person if this clause applied is less than the rate that would otherwise be payable; or

(c) the person ceases to be a member of that couple; or

(d) the person's partner receives:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension.

"(3) If this clause applies to a person, the rate of the person's pension or benefit is to be calculated by using the appropriate Pension or Benefit Rate Calculator as if:

(a) Pension Rate Calculator A were modified as specified in clause 42; and

(b) Pension Rate Calculator B were modified as specified in clause 43; and

(c) Pension Rate Calculator C were modified as specified in clause 44; and

(d) Pension Rate Calculator D were modified as specified in clause 45; and

(e) Pension Rate Calculator E were modified as specified in clause 46; and

(f) Benefit Rate Calculator A were modified as specified in clause 47; and

(g) Benefit Rate Calculator B were modified as specified in clause 48.

Modifications of Pension Rate Calculator A (changes made on 12 March 1992)

"42. If clause 41 and Pension Rate Calculator A in section 1064 apply to a person, the rate of the person's pension is to be calculated as if:

(a) point 1064-B1 were omitted and the following point were substituted:

Maximum basic rate

'1064-B1. A person's maximum basic rate is $7,841.60 per year ($301.60 per fortnight).';

(b) point 10C4-H2 were omitted and the following point were substituted:

Rate of remote area allowance

'1064-H2. The rate of remote area allowance payable to a person is worked out using Table H. The rate is the amount in column 1 plus an additional amount in column 3 for each pension or benefit increase child of the person.

TABLE H

REMOTE AREA ALLOWANCE

column 1

basic allowance

per year

column 2

basic allowance

per fortnight

column 3

additional allowance

per year

column 4

additional allowance

per fortnight

$364.00

$14.00

$182.00

$7.00

Modifications of Pension Rate Calculator B (changes made on 12 March 1992)

"43. If clause 41 and Pension Rate Calculator B in section 1065 apply to a person, the rate of the person's pension is to be calculated as if:

(a) point 1065-B1 were omitted and the following point were substituted:

Maximum basic rate

'1065-B1. A person's maximum basic rate is $7,841.60 per year ($301.60 per fortnight).';

(b) point 1065-E2 were omitted and the following point were substituted:

Rate of remote area allowance

'1065-E2. The rate of remote area allowance payable to a person is worked out using Table E. The rate is the amount in column 1 plus an additional amount in column 3 for each pension or benefit increase child of the person.

TABLE E

REMOTE AREA ALLOWANCE

column 1

basic allowance

per year

column 2

basic allowance

per fortnight

column 3

additional allowance

per year

column 4

additional allowance

per fortnight

$364.00

$14.00

$182.00

$7.00

Modifications of Pension Rate Calculator C (changes made on 12 March 1992)

"44. If clause 41 and Pension Rate Calculator C in section 1066 apply to a person, the rate of the person's pension is to be calculated as if point 1066-H2 were omitted and the following point were substituted:

Rate of remote area allowance

'1066-H2. The rate of remote area allowance payable to a person is worked out using Table H. The rate is the amount in column 1 plus an additional amount in column 3 for each pension or benefit increase child of the person.

TABLE H

REMOTE AREA ALLOWANCE

column 1

basic allowance

per year

column 2

basic allowance

per fortnight

column 3

additional allowance

per year

column 4

additional allowance

per fortnight

$364.00

$14.00

$182.00

$7.00

Modifications of Pension Rate Calculator D (changes made on 12 March 1992)

"45. If clause 41 and Pension Rate Calculator D in section 1066A apply to a person, the rate of the person's pension is to be calculated as if point 1066A-I2 were omitted and the following point were substituted:

Rate of remote area allowance

'1066A-I2. The rate of remote area allowance payable to a person is worked out using Table I. The rate is the amount in column 1 plus an additional amount in column 3 for each pension or benefit increase child of the person.

TABLE I

REMOTE AREA ALLOWANCE

column 1

basic allowance per year

column 2

basic allowance per fortnight

column 3

additional allowance per year

column 4

additional allowance per fortnight

$364.00

$14.00

$182.00

$7.00

Modifications of Pension Rate Calculator E (changes made on 12 March 1992)

"46. If clause 41 and Pension Rate Calculator E in section 1066B apply to a person, the rate of the person's pension is to be calculated as if point 1066B-F2 were omitted and the following point were substituted:

Rate of remote area allowance

'1066B-F2. The rate of remote area allowance payable to a person is worked out using Table F. The rate is the amount in column 1 plus an additional amount in column 3 for each pension or benefit increase child of the person.

TABLE F

REMOTE AREA ALLOWANCE

column 1

basic allowance per year

column 2

basic allowance per fortnight

column 3

additional allowance per year

column 4

additional allowance per fortnight

$364.00

$14.00

$182.00

$7.00

Modifications of Benefit Rate Calculator A (changes made on 12 March 1992)

"47. If clause 41 and Benefit Rate Calculator A in section 1067 apply to a person, the rate of the person's pension is to be calculated as if:

(a) point 1067-A1 were omitted and the following point were substituted:

Method of calculating rate

' 1067-A1. The rate of benefit is a fortnightly rate.

Method statement

Step 1.

Work out the person's maximum basic rate using MODULE B below.

Step 2.

Work out any additional payment for a partner using MODULE C below.

Step 3.

Work out any supplementary amount in respect of the person using MODULE D below.

Step 4.

Work out any applicable additional amount for dependent children using MODULE E below.

Step 5.

If the person has a dependent child or is a member of a couple, work out any applicable additional amount for rent using MODULE F below.

Step 6.

Add up the amounts obtained in Steps 1 to 5: the result is called the maximum payment rate.

Step 7.

If the parental means test applies to the person (see points 1067-G2 to 1067-G7), work out the reduction for parental assets and income using MODULE G below.

Step 8.

Take the reduction for parental assets and income away from the maximum payment rate: the result is called the parental means test reduced rate.

Step 9.

Apply the ordinary income test using MODULE H below to work out the reduction for ordinary income.

Step 10.

Apply the maintenance income test using MODULE J below to work out the reduction for maintenance income.

Step 11.

Add up the reductions for ordinary income and maintenance income: the result is called the total income reduction.

Step 12.

The rate of benefit is worked out by taking the total income reduction away from:

(a) if the parental means test does not apply to the person—the maximum payment rate; or

(b) if the parental means test applies to the person— the parental means test reduced rate;

and adding any amount payable by way of remote area allowance (see MODULE K below).

Note: if a person's rate is reduced under Step 8 or Step 12, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1207 (maximum basic rate and additional amount for partner first, then rent assistance and finally child amounts).

(b) after Module C the following Module were inserted:

'MODULE D—SUPPLEMENTARY AMOUNT FOR MEMBER OF COUPLE IN SOME CIRCUMSTANCES

Interim total of members of couples in which partner receives neither pension nor benefit not to fall below comparable "single" MBR

'1067-D1. A supplementary amount is to be added to the person's maximum basic rate if:

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

(b) the person's partner:

(i) is not receiving a social security pension; and

(ii) is not receiving a service pension; and

(iii) is not receiving a social security benefit; and

(iv) is not receiving an AUSTUDY allowance; and

(v) is not receiving an ABSTUDY allowance; and

(c) either:

(i) no amount is to be added to the person's maximum basic rate under point 1067-C1; or

(ii) the amount to be added to the person's maximum basic rate under point 1067-C1 is reduced under point 1067-C4; and

(d) the person's interim total is less than the comparable "single" MBR for the person.

Note 1: for "interim total" see point 1067-D2 below.

Note 2: for "comparable 'single' MBR" see point 1067-D3 below.

Interim total

'1067-D2. A person's interim total is the sum of the person's maximum basic rate and the amount (if any) to be added under Module C.

Comparable 'single' MBR

'1067-D3. A comparable "single" MBR for a person is:

(a) if the person has a dependent child—the rate specified under column 3A against item 1 in Table B in point 1067-B1; or

(b) if the person does not have a dependent child—the rate specified under column 3B against item 2 in Table B in point 1067-B1.

Rate of supplementary amount

'1067-D4. The supplementary amount is the difference between the person's interim total and the comparable "single" MBR for the person.';

(c) point 1067-K3 were omitted and the following point were substituted:

Rate of remote area allowance

'1067-K3. The rate of remote area allowance payable to a person is worked out using Table K. The rate is the amount in column 1 plus an additional amount in column 2 for each pension or benefit increase child of the person.

TABLE K

REMOTE AREA ALLOWANCE

column 1

basic allowance

column 2

additional allowance for each pension or benefit increase child

$14.00

$7.00

Modifications of Benefit Rate Calculator B (changes made on 12 March 1992)

"48. If clause 41 and Benefit Rate Calculator B in section 1068 apply to a person, the rate of the person's pension is to be calculated as if:

(a) point 1068-A1 were omitted and the following point were substituted:

Interim total

'1068-A1. The rate of benefit is a fortnightly rate.

Method statement

Step 1.

Work out the person's maximum basic rate using MODULE B below.

Step 2.

Work out any additional payment for a dependent partner using MODULE C below.

Step 3.

Work out any supplementary amount in respect of the person using MODULE D below.

Step 4.

Work out any applicable additional amount for children using MODULE E below.

Step 5.

Work out any applicable additional amount for rent using MODULE F below.

Step 6.

Add up the amounts obtained in Steps 1 to 5: the result is called the maximum payment rate.

Step 7.

Apply the ordinary income test using MODULE G below to work out the reduction for ordinary income.

Step 8.

Apply the maintenance income test using MODULE H below to work out the reduction for maintenance income.

Step 9.

Add up the reductions for ordinary income and maintenance income: the result is called the total income reduction.

Step 10.

The rate of benefit is the difference between:

(a) the maximum payment rate; and

(b) the total income reduction;

plus any amount payable by way of remote area allowance (see MODULE J below).

Note: if a person's rate is reduced under Step 10, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1207 (maximum basic rate and additional amount for partner first, then rent assistance and finally child amounts).'.

(b) after Module C the following Module were inserted:

'MODULE D—SUPPLEMENTARY AMOUNT FOR MEMBER OF COUPLE IN SOME CIRCUMSTANCES

Interim total of members of couples in which partner receives neither pension nor benefit not to fall below comparable "single" MBR

'1068-D1. A supplementary amount is to be added to a person's maximum basic rate if:

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

(b) the person's partner:

(i) is not receiving a social security pension; and

(ii) is not receiving a service pension; and

(iii) is not receiving a social security benefit; and

(iv) is not receiving an AUSTUDY allowance; and

(v) is not receiving an ABSTUDY allowance; and

(c) either:

(i) no amount is to be added to the person's maximum basic rate under point 1068-C1; or

(ii) the amount to be added to the person's maximum basic rate under point 1068-C1 is reduced under point 1068-C5; and

(d) the person's interim total is less than the comparable "single" MBR for the person.

Note 1: for "interim total" see point 1068-D2 below.

Note 2: for "comparable 'single' MBR" see point 1068-D3 below.

Interim total

'1068-D2. A person's interim total is the sum of the person's maximum basic rate and the amount (if any) to be added under Module C.

Comparable 'single' MBR

'1068-D3. The comparable "single" MBR for a person is:

(a) if the person has a dependent child—the rate specified under column 3A against item 1 in Table B in point 1067-B1 of Benefit Rate Calculator A; or

(b) if the person does not have a dependent child—the rate specified under column 3B against:

(i) in the case of a person who has turned 18 but not 21— item 1; or

(ii) in the case of a person who has turned 21—item 3; in Table B of point 1068-B1 of this Benefit Rate Calculator.

Rate of supplementary amount

'1068-D4. The supplementary amount is the difference between the person's interim total and the comparable "single" MBR for the person.'.

(c) point 1068-J3 were omitted and the following point substituted:

Rate of remote area allowance

'1068-J3. The rate of remote area allowance payable to a person is worked out using Table J. The rate is the amount in column 1 plus an additional amount in column 2 for each pension or benefit increase child of the person.

TABLE J

REMOTE AREA ALLOWANCE

column 1

basic allowance

column 2

additional allowance for each pension or benefit increase child

$14.00

$7.00

Modifications of pharmaceutical allowance rates (changes made on 12 March 1992)

"49.(1) This clause applies to a person if:

(a) immediately before 12 March 1992:

(i) the person was receiving pharmaceutical allowance; and

(ii) the person was a member of a couple; and

(iii) the person's partner:

(A) was not receiving a social security pension; and

(B) was not receiving a social security benefit; and

(C) was not receiving a service pension; and

(b) this clause has not ceased to apply to the person.

"(2) This clause ceases to apply to a person if:

(a) the person ceases to be qualified for pharmaceutical allowance; or

(b) the rate of pharmaceutical allowance that would be payable to the person if this clause applied is less than the rate that would otherwise be payable; or

(c) the person ceases to be a member of that couple; or

(d) the person's partner receives:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension.

"(3) If this clause applies to a person, the rate of the person's pharmaceutical allowance is to be calculated as if the Pharmaceutical Allowance Rate Table in section 1061C were omitted and the following Table substituted:

PHARMACEUTICAL ALLOWANCE RATE TABLE

column 1

Item

column 2

person's family situation

column 3

rate per fortnight

1.

Not member of a couple

$5.20

2.

Partnered (partner getting neither social security pension nor benefit)

$5.20

3.

Partnered (partner getting social security pension or benefit)

$2.60

4.

Member of an illness separated or respite care couple

$5.20

5.

Partnered (partner getting service pension)

$2.60

"(4) If item 5 in the Table applies to a person, item 2 does not apply to the person.".

Division 5Pharmaceutical allowance and advance pharmaceutical allowance

Pharmaceutical allowance definitions

47. Section 19A of the Principal Act is amended:

(a) by omitting from subsection (1) the definition of "liquid assets";

(b) by omitting subsections (2), (3), (4), (5), (6) and (7).

48. Parts 2.22 and 2.23 of the Principal Act are repealed and the following Parts are substituted:

"PART 2.22—PHARMACEUTICAL ALLOWANCE

"Division 1Qualification for and payability of pharmaceutical allowance

Qualification for pharmaceutical allowance

"1061A.(1) A person is qualified for a pharmaceutical allowance if:

(a) the person is receiving a social security pension; or

(b) the person is receiving job search allowance and:

(i) the person has not turned 18; and

(ii) the person is incapacitated for work; and

(iii) subsection 514(2) applies to the person; or

(c) the person is receiving job search allowance and:

(i) the person has turned 18; and

(ii) the person is incapacitated for work; and

(iii) subsection 514(3) applies to the person; or

(d) the person is receiving newstart allowance and:

(i) the person is incapacitated for work; and

(ii) either subsection 594(2) or (3) applies to the person; or

(e) the person is receiving sickness allowance.

"(2) A person is qualified for a pharmaceutical allowance if the person:

(a) is receiving job search allowance, newstart allowance or special benefit; and

(b) has turned 60; and

(c) has been receiving:

(i) a social security pension or benefit; or

(ii) a service pension;

continuously for at least 6 months.

Pharmaceutical allowance not payable in some circumstances

"1061B.(1) Even though a person is qualified for a pharmaceutical allowance, the allowance is not payable to the person if on that payday:

(a) the person is not an Australian resident; or

(b) the person is absent from Australia; or

(c) the person has received an advance pharmaceutical allowance:

(i) under Part 2.23 of this Act; or

(ii) under Division 2 of Part VIIA of the Veterans' Entitlements Act;

and the person's advance payment period has not ended.

"(2) Even though a person has qualified for a pharmaceutical allowance, the allowance is not payable to the person if:

(a) the person is receiving pharmaceutical allowance under the Veterans' Entitlements Act; or

(b) the person is a member of a couple and the person's partner:

(i) is eligible for pharmaceutical allowance under the Veterans' Entitlements Act; and

(ii) is not receiving a service pension.

"(3) For the purposes of subsection (1), a person's advance payment period:

(a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

(b) ends after the number of paydays worked out using the following formula have elapsed:

amount of advance

allowance rate

where:

'amount of advance' is the amount of the advance pharmaceutical allowance paid to the person;

'allowance rate' is the rate at which pharmaceutical allowance would be payable to the person on the day on which the advance pharmaceutical allowance is paid if the person were paid pharmaceutical allowance on that day.

"(4) In subsection (3):

'advance pharmaceutical allowance' includes advance pharmaceutical allowance under Division 2 of Part VIIA of the Veterans' Entitlements Act;

'pharmaceutical allowance' includes pharmaceutical allowance under Division 1 of Part VIIA of the Veterans' Entitlements Act.

Note: for 'Veterans' Entitlements Act' and 'service pension' see subsection 23(1).

"Division 2Rate of pharmaceutical allowance

Rate of pharmaceutical allowance

"1061C.(1) The rate of pharmaceutical allowance is worked out using the following Table:

PHARMACEUTICAL ALLOWANCE RATE TABLE

column 1

item

column 2

person's family situation

column 3

rate per fortnight

1.

Not member of a couple

$5.20

2.

Partnered (partner getting neither social security pension nor benefit)

$5.20

3.

Partnered (partner getting social security pension or benefit)

$2.60

4.

Member of an illness separated or respite care couple

$5.20

5.

Partnered (partner getting service pension)

$2.60

Note: the amounts in column 3 are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and section 1206A).

"(2) If item 5 applies to a person, item 2 does not apply to the person.

Limitation of amount of pharmaceutical allowance

"1061D.(1) If a person receives advance pharmaceutical allowance during a calendar year, the total amount paid to the person for that year by way of:

(a) pharmaceutical allowance; and

(b) advance pharmaceutical allowance;

is not to exceed the person's pharmaceutical payments limit for that year.

"(2) A person's pharmaceutical payments limit for the year is the total amount of pharmaceutical allowance that the person would have received during the year if the person had not received any advance pharmaceutical allowance.

"(3) In this section:

'advance pharmaceutical allowance' includes advance pharmaceutical allowance under Division 2 of Part VIIA of the Veterans' Entitlements Act;

'pharmaceutical allowance' includes pharmaceutical allowance under Division 1 of Part VIIA of the Veterans' Entitlements Act.

Note: for 'Veterans' Entitlements Act' see subsection 23(1).

"Division 3Payment of pharmaceutical allowance

Payment of pharmaceutical allowance

"1061E. If:

(a) a pharmaceutical allowance is payable to a person; and

(b) the person is receiving a social security pension or benefit;

the pharmaceutical allowance is to be paid to the person on each payday for the pension or benefit.

"PART 2.23—ADVANCE PHARMACEUTICAL ALLOWANCE

"Division 1Qualification for and payability of advance pharmaceutical allowance

Qualification for advance pharmaceutical allowance

"1061F.(1) A person is qualified for an advance pharmaceutical allowance if:

(a) the person is receiving a social security pension; and

(b) the Secretary is satisfied that the person's ordinary income is not more than $20.00 per fortnight.

"(2) For the purposes of this section, a person's ordinary income does not include:

(a) a payment:

(i) that the person is entitled to under the law of a foreign country; and

(ii) that results in the person's social security pension rate being reduced by an amount equal to the amount of the payment; or

(b) a periodic compensation payment to which Part 3.14 applies.

"(3) For the purposes of this section, if a person is a member of a couple the amount of the person's ordinary income is worked out by

adding the couple's ordinary incomes (on a fortnightly basis) and dividing by 2.

Advance pharmaceutical allowance not payable in some circumstances

"1061G.(1) Even though a person is qualified for an advance pharmaceutical allowance, the allowance is not payable to the person on a payday if on that payday:

(a) the person is not an Australian resident; or

(b) the person is absent from Australia.

"(2) Even though a person is qualified for an advance pharmaceutical allowance, the allowance is not payable to the person if:

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

(b) the person's partner:

(i) is eligible for an advance pharmaceutical allowance under the Veterans' Entitlements Act; and

(ii) is not receiving a service pension.

Note: for 'Veterans' Entitlements Act' and 'service pension' see subsection 23 (1).

"(3) If, in a calendar year:

(a) a person is qualified for an advance pharmaceutical allowance; and

(b) the amount of the allowance is reduced under section 1061JD; no further advance pharmaceutical allowance is payable to the person in that calendar year.

"Division 2Claim for advance pharmaceutical allowance

Need for a claim

"1061H.(1) A person who wants to be granted an advance pharmaceutical allowance must make a proper claim for that allowance.

"(2) Subject to subsection 1061JB(3), if:

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

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

the claim is taken not to have been made.

Form of claim

"1061J. To be a proper claim, a claim must be in writing and in a form approved by the Secretary.

Lodgment of claim

"1061JA.(1) To be a proper claim, a claim must be lodged:

(a) at an office of the Department; or

(b) at a place approved for the purposes by the Secretary; or

(c) with a person approved for the purposes by the Secretary.

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

Proper claim

"1061JB.(1) A claim must be a proper claim under subsection (2), (3) or (4) to be a proper claim for the purposes of this Division.

"(2) A claim by a person for advance pharmaceutical allowance to be paid in a calendar year (in this subsection called the 'current year') is a proper claim if:

(a) a social security pension was payable to the person on the last pension payday in the previous calendar year; and

(b) the claim is lodged before the first pension payday in the current year.

"(3) A claim by a person for advance pharmaceutical allowance to be paid in a calendar year is a proper claim if:

(a) the person claims a social security pension in that year; and

(b) the claim is lodged:

(i) at the time when the claim for the pension is lodged; or

(ii) before the claim for the pension is granted.

"(4) A claim by a person for advance pharmaceutical allowance to be paid in a calendar year is a proper claim if:

(a) the person has been qualified for pharmaceutical allowance for a period (in this subsection called the 'qualification period') during the calendar year; and

(b) the amount spent by the person during the qualification period on the purchase of pharmaceutical benefits is equal to or greater than the total amount that has been paid to the person in the calendar year by way of:

(i) pharmaceutical allowance; and

(ii) advance pharmaceutical allowance.

"Division 3Amount of advance pharmaceutical allowance

Amount of advance pharmaceutical allowance

"1061JC. Subject to section 1061JD, the amount of a person's advance pharmaceutical allowance is the amount worked out by multiplying the person's rate of pharmaceutical allowance under section 1061C by 7.

Reduction in amount of advance pharmaceutical allowance

"1061JD. If:

(a) a person is qualified for an advance pharmaceutical allowance; and

(b) the amount worked out under section 1061JC (when added to the amounts of pharmaceutical allowance and advance pharmaceutical allowance that the person has already received for the calendar year under this Act and the Veterans' Entitlements Act) exceeds the person's pharmaceutical payments limit under section 1061D;

the amount of the advance pharmaceutical allowance is to be reduced by the excess.".

Repeal of Part 2.23

49. Part 2.23 of the Principal Act is repealed.

Indexed and adjusted amounts

50. Section 1190 of the Principal Act is amended by omitting items 49, 50, 51 and 52 and substituting the following item:

"49.

Rate of pharmaceutical allowance for a person with a partner where the partner is getting a service pension

PA 'partnered' (item 5) rate

[Section 1061C—Table—column 3—item 5]".

CPI Indexation Table

51. Section 1191 of the Principal Act is amended by omitting item 32 from the CPI Indexation Table in subsection (1) and substituting the following item:

"32.

PA 'partnered' (item 5) rate

20 September

March

most recent March quarter before reference quarter

$0.10

Rounding off indexed amounts

52. Section 1194 of the Principal Act is amended by omitting from subsection 1194(6) "or pharmaceutical payment limit".

Repeal of section 1206B:

53. Section 1206B of the Principal Act is repealed.

Division 6—Prepayment debts

General effect of Chapter

54. Section 1222 of the Principal Act is amended:

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

"Note 1: the debts owed to the Commonwealth under Part 5.2 are:

• section 1223 debts—debts arising under this Act;

• section 1223AA debts—debts arising from prepayments;

• section 1223A debts—debts arising from automatic termination (transfer to new payment type) provisions;

• section 1223B debts—automatic rate reductions because of partner starting to receive pension or benefit;

• section 1224 debts arising because of recipient's contravention of Act;

• section 1224A debts—pension loans scheme;

• section 1225 debts—compensation debts;

• section 1226 debts—compensation payer and insurer debts;

• section 1230 debts—garnishee notice debts.";

(b) by inserting after item 1 in the Recovery Methods Table in subsection (2) the following item:

1A.

1223AA

(debt arising from

prepayment)

Deductions

legal proceedings

garnishee notice

1231

1232

1233

Debts due to the Commonwealth

55. Section 1222A is amended by inserting in the Note " 1223AA," after "1223".

56. The Principal Act is amended by inserting after section 1223 the following section:

Debts arising from prepayments

"1223AA.(1) If:

(a) a person has received a prepayment of social security benefit for a period; and

(b) the amount of the prepayment is more than the amount (if any) (in this subsection called the 'right amount') of social security benefit that would have been payable to the person for the period if:

(i) the prepayment had not been made; and

(ii) the person had not made a false statement or false representation in relation to matters that affect payment for the period; and

(iii) the person had not failed or omitted to comply with a provision of this Act in relation to matters that affect payment for the period;

the difference between the prepayment and the right amount is a debt due to the Commonwealth and recoverable by the Commonwealth by means of:

(c) if the person is receiving a social security benefit under this Act—deductions; or

(d) legal proceedings; or

(e) garnishee notice.

Note 1: for deductions see section 1231.

Note 2: for legal proceedings see section 1232.

Note 3: for garnishee notice see section 1233.

"(2) In this section:

'prepayment' means a payment under section 569, 652, 722 or 755 (prepayment because of public holiday etc.).".

Division 7Financial hardship farmers

Index of definitions

57. Section 3 of the Principal Act is amended:

(a) by inserting in the Index the following entries:

"financial hardship farmer

23(1)

life insurance policy

23(1)

RAS authority

23(1)

Rural Adjustment Scheme

23(1)

section 26 certificate date

23(1)

subsection 11(14) asset

23(1)";

(b) by omitting from the Index the following entry:

"unrealisable asset 11(12), (13)"

and substituting the following entry:

"unrealisable asset 11(12), (13), (14)".

Assets test definitions

58. Section 11 of the Principal Act is amended:

(a) by omitting "and (13)" from the definition of "unrealisable asset" in subsection (1) and substituting ", (13) and (14)";

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

"(14) Without limiting the generality of subsection (12), an asset is an unrealisable asset of a financial hardship farmer if:

(a) the asset is a life insurance policy on the life of the farmer; or

(b) a certificate under subsection 27(1) is in force in respect of the asset.".

General definitions

59. Section 23 of the Principal Act is amended by inserting in subsection (1) the following definitions:

" 'financial hardship farmer' means a person in respect of whom a certificate under subsection 26(1) is in force;

'life insurance policy', in relation to a financial hardship farmer, includes a life policy within the meaning of the Life Insurance Act 1945;

Note: under the Life Insurance Act 1945, a life policy includes an instrument evidencing a contract which is subject to payment of premiums for a term dependent on the termination or continuance of human life and an instrument securing the grant of an annuity for a term dependent upon human life.

'RAS authority' means an authority of a State or Territory that is responsible for the administration of the Rural Adjustment Scheme on behalf of the State or Territory;

'Rural Adjustment Scheme' means the scheme of assistance established and operated by a State or Territory in accordance with clause 9 of the agreement set out in the Schedule to the States and Northern Territory Grants (Rural Adjustment) Act 1988;

'section 26 certificate date' means the day specified in a certificate issued under subsection 26(1);

'subsection 11(14) asset' means an asset that is unrealisable because of subsection 11(14);".

60. Before section 28 of the Principal Act the following sections are inserted:

Financial hardship farmer—certificate

"26.(1) An RAS authority may certify, in writing, that a person is a financial hardship farmer for the period specified in the certificate.

"(2) The period specified in the certificate:

(a) commences on the day specified in the certificate; and

(b) must be a period of 12 weeks or less.

"(3) The day specified in the certificate:

(a) may be earlier than the day on which the certificate is granted; and

(b) must not be earlier than the day on which the person made the application referred to in subsection (4).

"(4) An RAS authority is not to certify that a person is a financial hardship farmer unless the authority is satisfied that:

(a) under normal circumstances the person or the person's partner contributes a significant part of his or her labour and capital to a farm; and

(b) under normal circumstances the farm provides the person's principal source of income; and

(c) Part С assistance under the Rural Adjustment Scheme has been applied for:

(i) on or after 1 December 1991; and

(ii) before 30 November 1993;

(b) shall not preclude the payment of family allowance under the Social Security Act 1947 of Australia as amended from time to time;

and shall for the purposes of reciprocity in relation to this Agreement be regarded as the Portuguese benefit equivalent to those Australian benefits described as additional pension and mothers' and guardians' allowances for children.

ARTICLE 18

Pensions for Accidents at Work and Occupational Diseases

1. Pensions related to incapacity due to work-related accidents or occupational diseases according to Portuguese legislation shall be paid by the competent Portuguese institution whenever a person is subject to the legislation applied by it at the time the accident occurred or at the date the occupational disease has been contracted if that person has been pursuing an occupational activity likely to cause that disease according to the legislation of that Party.

2. In order to determine the permanent incapacity rate for work-related accidents or occupational diseases under Portuguese legislation, work-related accidents or occupational diseases which qualified a person for a benefit under Australian legislation shall be deemed to have occurred under Portuguese legislation.

PART IV

MISCELLANEOUS PROVISIONS

ARTICLE 19

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 administrative arrangements made pursuant to Article 23 at any time after the Agreement enters into force.

SCHEDULE 6— continued

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. 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 respective legislations.

ARTICLE 20

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 Portuguese insurance period; 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 no reasonable grounds for the claimant not to claim a benefit under the legislation of the other Party, whether by virtue of this Agreement or otherwise;

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. The provisions of paragraph 3 shall in no way affect the rights of a person under the legislation of Portugal to continue to acquire the right to a benefit under that legislation.

5. Where:

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

SCHEDULE 6—continued

(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 on a periodical basis 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.

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

(a) that Party shall, at the request of the other Party, pay the amount of the debt described in subparagraph 5(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 5(e).

7. A reference in paragraph 3, 5 or 6 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 Portugal means any pension, benefit, allowance or advance made by a Competent Institution including overpayments which arise because of the payment of Portuguese and Australian benefits.

ARTICLE 21

Payment of Benefits

1. 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.

2. A Party that imposes restrictions described in paragraph 1 shall inform the other Party of those restrictions within one calendar month of their imposition and shall adopt the measures described in paragraph 1 within three 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 and as

SCHEDULE 6—continued

sufficient justification for termination or suspension of the Agreement between the Parties.

3. 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.

4. 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 22

Exchange of Information and Mutual Assistance

1. The Competent Authorities shall:

(a) advise each other of laws that amend, supplement or replace the legislation of their respective Parties, promptly after the first-mentioned laws are made;

(b) advise each other directly of internal action to implement this Agreement and any Administrative Arrangement adopted for its implementation; and

(c) advise each other of any technical problems encountered when applying the provisions of this Agreement or of any Administrative Arrangement made for its implementation.

2. The Institutions of both Parties shall:

(a) advise each other of any information necessary for the application of this Agreement or of the respective legislation of the Parties concerning all matters within their area of competence arising under this Agreement or under those laws;

(b) assist one another in relation to the determination of any benefit under this Agreement or the respective legislation within the limits of and according to their own laws; and

(c) 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 administrative arrangements made in accordance with Article 23.

3. The assistance referred to in paragraphs 1 and 2 shall be provided free of charge, subject to any Administrative Arrangement made pursuant to Article 23.

SCHEDULE 6—continued

4. Any information about a person which is transmitted in accordance with this Agreement to an Institution shall be protected in the same manner as information obtained under the legislation of that Party.

5. In no case shall the provisions of paragraphs 1, 2 and 3 be construed so as to impose on the Competent Authority or Institution of a Party the obligation:

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

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

7. In this Article the meaning of "legislation" is not confined by any restrictions imposed by Article 2.

ARTICLE 23

Administrative Arrangements

The Competent Authorities of the Parties shall make whatever administrative arrangements are necessary in order to implement this Agreement.

ARTICLE 24

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.

ARTICLE 25

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 agree, their meeting shall be held in the territory of the Party to which that request was made.

SCHEDULE 6—continued

PART V

FINAL PROVISIONS

ARTICLE 26

Entry Into Force and Termination

1. This Agreement shall enter into force on the first day of the month following the finalisation of 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.

DONE in 2 copies at LISBON this THIRTIETH day of APRIL, NINETEEN HUNDRED AND NINETY ONE in the English and Portuguese languages, each text being equally authoritative.

FOR THE GOVERNMENT OF

AUSTRALIA

Graham Richardson

FOR THE GOVERNMENT OF THE REPUBLIC OF PORTUGAL

Jose Albino da Silva Peneda

_____________________________________________________________________________________

NOTE

1. Nos. 46, 68, 69, 70, 73, 74, 115, 116 and 141, 1991.

NOTES ABOUT SECTION HEADINGS

1. On the day on which this Act receives the Royal Assent, the heading to section 519 is amended by omitting "disqualification" and substituting "waiting period".

2. On the day on which this Act receives the Royal Assent, the heading to section 598 is amended by omitting "disqualification" and substituting "waiting period".

NOTES ABOUT SECTION HEADINGS—continued

3. On the day on which this Act receives the Royal Assent, the heading to section 1187 is amended by adding at the end "or Aboriginal Employment Incentive Scheme (AEIS)".

4. On the day on which this Act receives the Royal Assent, the heading to section 1223A is amended by omitting "multiple exclusion date of effect provisions" and substituting "automatic termination (transfer to new payment type)".

5. On the day on which this Act receives the Royal Assent, the heading to section 1236 is amended by omitting "overpayment or".

6. On the day on which this Act receives the Royal Assent, the heading to section 1237 is amended by omitting "overpayment or".

[Minister's second reading speech made in—

House of Representatives on 8 November 1991 a.m.

Senate on 14 November 1991]

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