Social Security Legislation Amendment (Budget and Other Measures) Act 1996 (Cth)

Social Security Legislation Amendment (Budget and Other Measures) Act 1996

Act No. 84 of 1996 as amended

This compilation was prepared on 19 July 2005

[This Act was amended by Act No. 100 of 2005]

Amendment from Act No. 100 of 2005

[Schedule 2 (item 26) amended heading to item 27 of Schedule 5

Schedule 2 (item 26) commenced immediately after 20 March 1997]

Prepared by the Office of Legislative Drafting and Publishing,

Attorney‑General’s Department, Canberra

Contents

An Act to amend the law relating to social security, and for related purposes

[Assented to 23 December 1996]

The Parliament of Australia enacts:

1Short title

This Act may be cited as the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

2Commencement

1. (1)

   Subject to subsections (2), (3), (4), (5), (6), (7) and (8), this Act commences on the day on which it receives the Royal Assent.

2. (2)

   Schedules 3, 6 and 19, Parts 1, 2 and 5 of Schedule 5 and Part 1 of Schedule 21 commence on 1 January 1997.

3. (3)

   Schedules 8, 9, 10, 11, 12 and 17, Parts 3 and 4 of Schedule 5 and Part 2 of Schedule 21 commence on 20 March 1997.

4. (4)

   Schedules 1, 2, 14, 15 and 16 commence on 1 July 1997.

5. (5)

   Schedules 4 and 7 and Part 3 of Schedule 21 commence on 20 September 1997.

6. (6)

   Schedule 18 and Part 4 of Schedule 21 commence on 1 October 1997.

7. (7)

   Schedule 13 is taken to have commenced on 1 July 1995.

8. (8)

   Schedule 20 is taken to have commenced on 1 July 1996, immediately after the commencement of Schedule 12 to the Social Security Legislation Amendment (Carer Pension and Other Measures) Act 1995.

3Schedule(s)

Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Amendment of the Social Security Act 1991 to increase the flexibility of carer pension

1

Subparagraph 198(2)(c)(i)

Omit “42”, substitute “52”.

2

Paragraph 198(2AA)(b)

Omit “education or employment”, insert “education, unpaid voluntary work or paid employment”.

3

Paragraph 198(2AA)(c)

Omit “10”, substitute “20”.

Schedule 2Amendments to change references in certain Acts from “carer pension” to “carer payment”

Social Security Act 1991

1. 1

   Subsection 17(1) (at the end of paragraph (n) of the definition of former payment type)

   Add:

   1. ; or (o)

      a carer pension under this Act as previously in force.

2

Part 2.5 (heading)

Repeal the heading, substitute:

Part 2.5—Carer payment

3

Division 1 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 1—Qualification for and payability of carer payment

4

Division 2 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 2—Claim for carer payment

5

Division 4 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 4—Rate of carer payment

6

Division 5 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 5—Payment of carer payment

7

Division 6 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 6—Protection of carer payment

1. 8

   Subdivision A of Division 9 of Part 2.5 (heading)

   Repeal the heading, substitute:

Subdivision A—Continuation of carer payment

9

Division 8A of Part 2.13A (heading)

Repeal the heading, substitute:

Division 8A—Carer payment recipients

10

References to “carer pension”

Each of the following sections is amended by omitting “carer pension” (wherever occurring) and substituting “carer payment”:

sections 7, 17, 23, 48, 139, 140, 198, 198C, 198F, 198H, 198J, 198K, 198L, 198M, 198N, 198Q, 199, 200, 201, 201A, 201B, 202, 203, 206, 206AA, 206A, 206B, 206C, 208, 209, 210, 211, 212, 213, 214, 215, 216, 218, 219, 220, 221, 221A, 221B, 222, 223, 223A, 225, 225AA, 225A, 225B, 226, 227, 227A, 228, 228A, 229, 230, 231, 231A, 231AA, 231B, 232, 233, 234, 235, 236, 236A, 237, 240, 246, 247, 259, 303, 369, 665ZFA, 1064, 1067A, 1115, 1133, 1163, 1170, 1187, 1210, 1212, 1223, 1223A and 1223B.

Note 1: The heading to each of the following sections is altered by omitting “carer pension” and substituting “carer payment”:

sections 198, 199, 200, 210, 211, 220, 223, 225AA, 235, 236, 240 and 665ZFA.

Note 2: The heading to section 1064 is altered by omitting “and carer pensions” and substituting “pensions and carer payment”.

Note 3: The heading to subsection 201(2) is altered by omitting “carer pension” and substituting “carer payment”.

Data-matching Program (Assistance and Tax) Act 1990

1. 11

   Subsection 3(1) (subparagraph (c)(v) of the definition of personal assistance)

   Repeal the subparagraph, substitute:

   1. (v)

      carer’s pension, carer pension or carer payment;

Student and Youth Assistance Act 1973

12

References to “carer pension”

Each of the following provisions is amended by omitting “carer pension” (wherever occurring) and substituting “carer payment”:

sections 229, 231 and 233 and Schedule 2.

Income Tax Assessment Act 1936

13

Section 24AB (Index of payments)

Omit “carer pension”, substitute “carer payment”.

14

Subsection 24ABA(1)

Omit “carer pension”, substitute “carer payment”.

15

Subsection 24ABF(1)

Omit “carer pension”, substitute “carer payment”.

Note: The heading to section 24ABF is replaced by the heading “Carer payment”.

Childcare Rebate Act 1993

16

Section 29

Omit “carer pension”, substitute “carer payment”.

Schedule 3Abolition of the minimum rate of payment to under 18 year old sickness allowance, newstart allowance and youth training allowance recipientsPart 1Amendment of the Social Security Act 1991 relating to newstart allowance and sickness allowance

1

Point 1067-G8

Repeal the point.

2

Point 1067-G11

Repeal the point, substitute:

Reduction for parental assets

1. 1067-G11

   A person’s reduction for parental assets is:

   1. (a)

      if the person’s combined parental assets value does not exceed the parental assets value limit—nil; or

   2. (b)

      if the person’s combined parental assets value exceeds the parental assets value limit—the person’s maximum payment rate.

      Note: The parental assets value is indexed annually in line with CPI increases (see sections 1191 to 1194).

3

Point 1067-G22

Repeal the point.

4

Section 1190 (Indexed and Adjusted Amounts Table, item 43)

Repeal the item.

5

Subsection 1191(1) (CPI Indexation Table, item 29)

Repeal the item.

Part 2Amendment of the Social Security Act 1991 relating to sickness allowance

6

Point 1067E-A1 (method statement, steps 7 to 10)

Repeal the steps, substitute:

Step 7. If the value of the person’s assets is more than the person’s assets value limit, then sickness allowance is not payable to the person and the following steps are to be disregarded.

Step 8. If the person is not independent and the parental income test applies to the person (see points 1067E-F2 and 1067E-F3 in Module F below), work out the reduction for parental income using that Module and take the reduction away from the maximum payment rate;

the result is called the parental income test reduced rate.

Step 9. If the parental income test reduced rate is nil, then sickness allowance is not payable to the person and the following steps are to be disregarded.

Step 10. Apply the income test using Module G below to work out the person’s income reduction.

Step 11. The rate of allowance is worked out by taking the person’s ordinary income reduction away from:

1. (a)

   if the person is not independent and Step 8 did not apply to the person because of points 1067E-F2 and 1067E-F3 (other than paragraph (g) of point 1067E-F3)—the maximum payment rate; or

2. (b)

   if the person is not independent and paragraph (g) of point 1067E-F3 applied to the person—the maximum payment rate; or

3. (c)

   if the person is not independent and Step 8 applied to the person but Step 9 did not—the parental income test reduced rate; or

4. (d)

   if the person is independent—the maximum payment rate;

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

7

Point 1067E-A1 (method statement, note)

Repeal the note, substitute:

1. Note:

   If a person’s rate is reduced under Step 8 or 11, 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 first, then rent assistance).

8

Section 1190 (Indexed and Adjusted Amounts Table, item 35A)

Repeal the item.

9

Subsection 1191(1) (CPI Indexation Table, item 23A)

Repeal the item.

Part 3Amendment of the Student and Youth Assistance Act 1973 relating to youth training allowance

1. 10

   Part 2 of Schedule 1 (Module A, point A1, method statement, steps 7 to 10)

   Repeal the steps, substitute:

   Step 7. If the value of the person’s assets is more than the person’s assets value limit, then youth training allowance is not payable to the person and the following steps are to be disregarded.

   Step 8. If the person is not independent and the parental income test applies to the person (see points F2 and F3 in Module F below), work out the reduction for parental income using that Module and take the reduction away from the maximum payment;

   the result is called the parental income test reduced rate.

   Step 9. If the parental income test reduced rate is nil, then youth training allowance is not payable to the person and the following steps are to be disregarded.

   Step 10. Apply the income test using Module G below to work out the person’s income reduction.

   Step 11. The rate of allowance is worked out by taking the person’s ordinary income reduction away from:

   1. (a)

      if the person is not independent and Step 8 did not apply to the person because of points F2 and F3 (other than paragraph (g) of point F3)—the maximum payment rate; or

   2. (b)

      if the person is not independent and paragraph (g) of point F3 applied to the person—the maximum payment rate; or

   3. (c)

      if the person is not independent and Step 8 applied to the person but Step 9 did not—the parental income test reduced rate; or

   4. (d)

      if the person is independent—the maximum payment rate;

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

2. 11

   Part 2 of Schedule 1 (Module A, point A1, method statement, note)

   Repeal the note, substitute:

   1. Note:

      If a person’s rate is reduced under Step 8 or 11, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 257 (maximum basic rate first, then rent assistance).

12

Section 251 (Indexed Amounts Table, item 4)

Repeal the item.

13

Section 252 (CPI Indexation Table, item 4)

Repeal the item.

Schedule 4Amendments to allow increased voluntary work participation for unemployed people

Social Security Act 1991

1

Section 603AA

Repeal the section, substitute:

603AARelief from activity test—people engaged in voluntary work

1. (1)

   Subject to subsection (3), a person who has reached 50 years is taken to satisfy the activity test in respect of a period (the relevant period) if the person:

   1. (a)

      is engaged in approved full‑time unpaid voluntary work for an approved organisation for at least 32 hours in the period; or

   2. (b)

      is engaged, for at least 40 hours in the period in a combination of:

      1. (i)

         approved unpaid voluntary work for an approved organisation; and

      2. (ii)

         suitable paid work for another person.

2. (2)

   Subject to subsection (3), a person who:

   1. (a)

      is under 50 years; and

   2. (b)

      has received income support payments in respect of a continuous period of at least 3 months but less than 12 months immediately before the start of the relevant period (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection);

is taken to satisfy the activity test in respect of a period (the relevant period) if:

1. (c)

   the person is engaged in approved full‑time unpaid voluntary work for an approved organisation for at least 32 hours in the period; and

2. (d)

   the period occurs during the 12 months after the person commenced receiving income support payments (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection); and

3. (e)

   the person has not already undertaken approved full‑time unpaid voluntary work with one or more approved organisations in more than 6 periods during the 12 months referred to in paragraph (d).

1. (3)

   Neither subsections (1) nor (2) apply to a person in respect of a day in a relevant period if, in respect of the person, having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that the subsection is not to apply to the person in respect of that day.

2. (4)

   For the purposes of subsections (1) and (2):

   1. (a)

      approved voluntary unpaid work, either full‑time or otherwise, is work that has been approved by the Secretary for the purposes of this section; and

   2. (b)

      an approved organisation is an organisation that has been approved by the Secretary for the purposes of this section.

Student and Youth Assistance Act 1973

1. 2

   Subsection 58(1) (definition of approved organisation)

   Repeal the definition.

3

Section 59

Repeal the section.

4

Section 77

Repeal the section, substitute:

77Relief from activity test—people engaged in voluntary work

1. (1)

   This section applies to a person who has received income support payments in respect of a continuous period of at least 3 months but less than 12 months immediately before the start of the relevant period (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection).

2. (2)

   Subject to subsection (3), a person to whom this section applies is taken to satisfy the activity test in respect of a period (the relevant period) if:

   1. (a)

      the person is engaged in approved full-time unpaid voluntary work for an approved organisation for at least 32 hours in the period; and

   2. (b)

      the period occurs during the 12 months after the person commenced receiving income support payments (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection); and

   3. (c)

      the person has not already undertaken full-time unpaid voluntary work with one or more approved organisations in more than 6 periods during the 12 month period referred to in paragraph (b).

3. (3)

   Subsection (2) does not apply to a person in respect of a day in a relevant period if, in respect of the person, having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that the subsection is not to apply to the person in respect of that day.

4. (4)

   For the purposes of subsection (2):

   1. (a)

      approved full-time voluntary unpaid work is work that has been approved by the Secretary for the purposes of this section; and

   2. (b)

      an approved organisation is an organisation that has been approved by the Secretary for the purposes of this section.

Schedule 5Amendments to tighten the activity test administration and simplify the penalty periods that apply to newstart allowance and youth training allowancePart 1Amendments to clarify provisions relating to employer statements

Social Security Act 1991

1

Subsections 601(1A) to (1E) (inclusive)

Repeal the subsections, substitute:

1. (1A)

   The Secretary may notify a person (other than a person who is not required to satisfy the activity test) who is receiving a newstart allowance that the person must take reasonable steps to apply for a particular number of advertised job vacancies in the period specified in the notice.

2. (1B)

   If a person refuses or fails to comply with a notice issued under subsection (1A), the person fails to satisfy the activity test in respect of the period specified in the notice.

3. (1C)

   The person must give the Secretary a written statement from each employer whose job vacancy the person applied for that confirms that the person applied for that job vacancy.

4. (1D)

   The statement from the employer must be in a form approved by the Secretary.

5. (1E)

   Subsection (1C) does not apply to a person if the Secretary is satisfied that there are special circumstances in which it is not reasonable to expect the person to give the statement referred to in that subsection.

6. (1F)

   If a person contravenes subsection (1C), the person fails to satisfy the activity test.

Student and Youth Assistance Act 1973

2

Subsections 75(2) to (6) (inclusive)

Repeal the subsections, substitute:

1. (2)

   The Secretary may notify a person (other than a person who is not required to satisfy the activity test) who is receiving a youth training allowance that the person must take reasonable steps to apply for a particular number of advertised job vacancies in the period specified in the notice.

2. (3)

   If a person refuses or fails to comply with a notice under subsection (2), the person fails to satisfy the activity test in respect of the period specified in the notice.

3. (4)

   The person must give the Secretary a written statement from each employer whose job vacancy the person applied for that confirms that the person applied for that job vacancy.

4. (5)

   The statement from the employer must be in a form approved by the Secretary.

5. (6)

   Subsection (4) does not apply to a person if the Secretary is satisfied that there are special circumstances in which it is not reasonable to expect the person to give the statement referred to in that subsection.

6. (6A)

   If a person contravenes subsection (4), the person fails to satisfy the activity test.

Part 2Amendments to clarify the meaning of unsuitable work

Social Security Act 1991

3

Subsection 601(2A)

Omit “For”, substitute “Subject to subsection (2AA), for”.

4

At the end of paragraph 601(2A)(a)

Add “and no training will be provided by the employer”.

5

Paragraph 601(2A)(b)

Repeal the paragraph, substitute:

1. (b)

   it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

6

Paragraph 601(2A)(h)

Repeal the paragraph, substitute:

1. (h)

   the work would require enlistment in the Defence Force or the Reserve Forces; or

2. (i)

   the work requires the person to move from a home in a place to a home in another place and subsection (2AB) applies to the person; or

3. (j)

   for any other reason, the work is unsuitable for the person.

7

At the end of section 601

Add:

1. (7)

   In this section:

Reserve Forces means:

1. (a)

   the Australian Naval Reserve; or

2. (b)

   the Naval Emergency Reserve Forces; or

3. (c)

   the Australian Army Reserve; or

4. (d)

   the Australian Airforce Reserve; or

5. (e)

   the Airforce Emergency Reserve; or

6. (f)

   the Army Individual Emergency Reserve.

Student and Youth Assistance Act 1973

8

At the end of paragraph 75(8)(a)

Add “and no training will be provided by the employer”.

9

Paragraph 75(8)(b)

Repeal the paragraph, substitute:

1. (b)

   it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

10

Paragraph 75(8)(h)

Repeal the paragraph, substitute:

1. (h)

   the work would require enlistment in the Defence Force or the Reserve Forces; or

2. (i)

   for any other reason, the work is unsuitable for the person.

11

At the end of section 84

Add:

1. (16)

   In this section:

Reserve Forces means:

1. (a)

   the Australian Naval Reserve; or

2. (b)

   the Naval Emergency Reserve Forces; or

3. (c)

   the Australian Army Reserve; or

4. (d)

   the Australian Airforce Reserve; or

5. (e)

   the Airforce Emergency Reserve; or

6. (f)

   the Army Individual Emergency Reserve.

Employment Services Act 1994

12

Subsection 42(1)

Omit “For”, substitute “Subject to subsection (2A), for”.

13

At the end of paragraph 42(1)(a)

Add “and no training will be provided by the employer”.

14

Paragraph 42(1)(b)

Repeal the paragraph, substitute:

1. (b)

   it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

15

Paragraph 42(1)(h)

Repeal the paragraph, substitute:

1. (h)

   the work would require enlistment in the Defence Force or the Reserve Forces; or

2. (i)

   the work requires the person to move from a home in a place to a home in another place and subsection (2B) applies to the person; or

3. (j)

   for any other reason, the work is unsuitable for the person.

16

At the end of section 42

Add:

1. (5)

   In this section:

Reserve Forces has the same meaning as in subsection 601(7) of the Social Security Act 1991.

Part 3Amendments relating to activity test deferment periods and administrative breach rate reduction periods

Social Security Act 1991

17

Section 3

Omit:

administrative breach deferment period subsection 23(1)

18

Section 3

Omit:

deferment period subsection 23(1)

19

Section 3

Omit:

discretionary deferment period subsection 23(1)

20

Section 3

Omit:

JSA automatic deferment period subsection 23(1)

21

Section 3

Omit:

JSA discretionary deferment provision subsection 23(1)

22

Section 3

Omit:

NS allowance automatic deferment provision

subsection 23(1)

23

Section 3

Omit:

NS allowance discretionary deferment provision

subsection 23(1)

1. 24

   Subsection 23(1) (definition of activity test deferment period)

   Repeal the definition, substitute:

   activity test deferment period means one or more of the following periods:

   1. (a)

      a period worked out under section 630A as in force before, on or after the commencement of this definition;

   2. (b)

      a period worked out under section 109 of the Student and Youth Assistance Act 1973 as in force before, on or after the commencement of this definition;

   3. (c)

      a period worked out under section 546A of this Act as in force before the commencement of this definition.

2. 25

   Subsection 23(1) (definition of administrative breach deferment period)

   Repeal the definition.

3. 26

   Subsection 23(1) (definition of deferment period)

   Repeal the definition.

4. 27

   Subsection 23(1) (definition of discretionary deferment provision)

   Repeal the definition.

5. 28

   Subsection 23(1) (definition of JSA automatic deferment provision)

   Repeal the definition.

6. 29

   Subsection 23(1) (definition of JSA discretionary deferment provision)

   Repeal the definition.

7. 30

   Subsection 23(1) (definition of NS allowance automatic deferment provision)

   Repeal the definition.

8. 31

   Subsection 23(1) (definition of NS allowance discretionary deferment provision)

   Repeal the definition.

9. 32

   Subsection 23(1) (definition of partner allowance automatic deferment provision)

   Repeal the definition.

10. 33

    Subsection 23(1) (definition of youth training allowance automatic deferment provision)

    Repeal the definition.

34

Subsection 23(1)

Insert:

administrative breach rate reduction period means either or both of the following periods:

1. (a)

   a period that applies under section 644B;

2. (b)

   a period that applies under section 136A of the Student and Youth Assistance Act 1973.

35

After paragraph 608(1)(i)

Insert:

1. (ia)

   the person fails to comply with a notification requirement under section 656, 657, 658 or 1304 (see section 631); or

36

Subparagraphs 608(1)(j)(iv) and (viii)

Repeal the subparagraphs.

37

Subsection 615(1)

After “(2A)”, insert “, (2B)”.

38

After subsection 615(2A)

Insert:

Provisional commencement day where newstart allowance ceases to be payable because of an administrative breach

1. (2B)

   If:

   1. (a)

      a person receives a newstart allowance; and

   2. (b)

      newstart allowance ceases to be payable to the person because of section 630C or 631; and

   3. (c)

      payment of the newstart allowance is cancelled or automatically terminated; and

   4. (d)

      the person lodges a claim for a newstart allowance within 14 days of the date of effect of the cancellation or automatic termination referred to in paragraph (c);

the person’s provisional commencement day is the day after the date of effect of the cancellation or automatic termination.

39

Subsection 615(3)

Omit “If”, substitute “Subject to subsection (3A), if”.

40

After subsection 615(3)

Insert:

1. (3A)

   If:

   1. (a)

      a person is receiving a newstart allowance; and

   2. (b)

      newstart allowance ceases to be payable to the person because of section 630C or 631; and

   3. (c)

      payment of the newstart allowance to the person is cancelled or automatically terminated; and

   4. (d)

      the person registers with the CES within 14 days after the day on which the newstart allowances ceases to be payable; and

   5. (e)

      the person claims a newstart allowance within 14 days after registering with the CES;

then, the person’s provisional commencement day is 15 days after the date of effect of the cancellation or automatic termination.

41

Paragraph 628(b)

Repeal the paragraph, substitute:

1. (b)

   the Secretary is not satisfied that the person’s voluntary act was reasonable;

42

Section 630

Repeal the section, substitute:

630Refusal of job offer

If the Secretary is satisfied that the person has refused or failed, without reasonable excuse, to accept a suitable offer of employment, newstart allowance is not payable to the person for the activity test deferment period.

43

Subsection 630A(1)

Omit “subsections (2) and (3), if an automatic deferment provision of this Subdivision applies to a person”, substitute “subsection (2), if an activity test deferment period applies to a person under this Part”.

44

Subsection 630A(1)

Repeal the note.

45

Subsection 630A(2)

Repeal the subsection, substitute:

1. (2)

   If:

   1. (a)

      an activity test deferment period applies to a person under this Part at a particular time; and

   2. (b)

      one or more activity test deferment periods had applied to the person within the period of 3 years before that time;

the deferment period is 6 weeks plus:

1. (c)

   in respect of a period (if any) referred to in paragraph (b) of this subsection that was fixed under subsection (1), the number of weeks fixed under that subsection; and

2. (d)

   in respect of each of a period (if any) referred to in that paragraph, a further 6 weeks.

46

Subsection 630A(3)

Repeal the subsection.

47

Subsection 630A(4)

Repeal the subsection.

48

Subsection 630A(5)

Repeal the subsection.

49

Subsection 630A(12)

Omit “an automatic deferment provision or a discretionary deferment provision”, substitute “an activity test deferment period”.

50

Subsection 630B(1)

Omit “an automatic deferment provision of this Subdivision applies to a person”, substitute “an activity test deferment period applies to a person under this Part”.

51

Subsection 630B(3)

Omit “automatic deferment provision”, substitute “activity test deferment period”.

52

Subsection 630B(3)

Omit “subject to a deferment period”, substitute “subject to an activity test deferment period”.

53

Subsection 630B(4)

Omit “automatic deferment provision”, substitute “activity test deferment period”.

54

Paragraph 630B(6)(b)

Omit “a deferment period”, substitute “an activity test deferment period”.

55

Subsection 630B(6) (note)

Omit “, automatic deferment provision and deferment period”.

56

Subsection 630BA(1)

Repeal the subsection, substitute:

1. (1)

   Subject to subsection (2) and section 630BB, if:

   1. (a)

      at a time when the person was not qualified for a newstart allowance, an event occurred that would have resulted in an activity test deferment period applying to the person under this Part had the person made a claim for a newstart allowance; and

   2. (b)

      before the end of that period (assuming that the period had commenced on the day on which the event occurred), the person made a claim for a newstart allowance;

the activity test deferment period is taken to have commenced on the day after the day on which the event occurred.

57

Subsection 630BA(3)

Repeal the subsection and the note, substitute:

1. (3)

   Subject to section 630BB, if:

   1. (a)

      at a time when the person was not qualified for a newstart allowance, an event occurred that would have resulted in an activity test deferment period applying to the person under this Part had the person made a claim for a newstart allowance; and

   2. (b)

      the person made a claim for a newstart allowance after the end of that period (assuming that the period had commenced on the day on which the event occurred);

then:

1. (c)

   the activity test deferment period is taken to have commenced and to have ended before the claim was made; and

2. (d)

   the Secretary is not obliged to give the person a written notice under subsection 630B(1) in respect of the activity test deferment period.

58

Subsection 630BB(1)

Omit “Subdivision”, substitute “Part”.

59

Subsection 630BB(1)

Omit “deferment period” (last occurring), substitute “activity test deferment period”.

60

Paragraphs 630BB(2)(a) and (b)

Omit “deferment period”, substitute “activity test deferment period”.

61

Section 630BC

Repeal the section, substitute:

630BCEffect of sections 630B, 630BA, 630BB

For the avoidance of doubt, sections 630B, 630BA and 630BB do not prevent a newstart allowance ceasing to be payable in circumstances that do not involve the application of an activity test deferment period under this Part.

62

Subsection 630C(1)

Omit “a newstart allowance is not payable to the person”, substitute “subsection (1A) applies to the person”.

63

After subsection 630C(1)

Insert:

1. (1A)

   If this subsection applies to a person:

   1. (a)

      a newstart allowance is not payable to the person; and

   2. (b)

      if, at a later time, a newstart allowance becomes payable to the person—an administrative breach rate reduction period applies to the person.

64

Subsection 630C(3)

Repeal the subsection, substitute:

1. (3)

   The Secretary may determine that:

   1. (a)

      a newstart allowance is payable to a person that was not payable under paragraph (1A)(a); and

   2. (b)

      an administrative breach rate reduction period does not apply to a person under paragraph (1A)(b);

if the Secretary is satisfied that the person had a reasonable excuse for not complying with the requirement under subsection (1).

65

Subsections 630C(4) and (4A)

Repeal the subsections.

66

Section 631

Repeal the section, substitute:

631Administrative breach rate reduction period to apply to persons who fail to comply with notification requirements

If a person refuses or fails, without reasonable excuse, to comply with a requirement made of the person under section 656, 657, 658 or 1304:

1. (a)

   a newstart allowance is not payable to the person; and

2. (b)

   if, at a later time, a newstart allowance becomes payable to the person—an administrative breach rate reduction period applies to the person.

   Note: For administrative breach rate reduction period see section 644B.

67

Sections 631A, 631B, 631C and 631D

Repeal the sections.

68

At the end of section 641

Add:

1. (2)

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

   1. (a)

      the person is qualified, or is expected to be qualified, for a newstart allowance; and

   2. (b)

      the allowance would be payable apart from:

      1. (i)

         the application of a waiting period; or

      2. (ii)

         the application of an activity test deferment period; or

      3. (iii)

         the application of an administrative breach rate reduction period where the administrative breach rate reduction reduces the rate of newstart allowance payable to the person to nil.

69

Before section 643

Insert:

Subdivision A—Rate of newstart allowance

70

After section 644A

Insert in Division 4:

Subdivision B—Administrative breach reductions in the rate of newstart allowance

644BAdministrative breach rate reduction periods

If an administrative breach rate reduction period applies to a person under this Part, the period applicable to the person is 13 weeks.

644CCommencement of administrative breach rate reduction periods

1. (1)

   If an administrative breach rate reduction period applies to a person under this Part, the Secretary must give to the person a written notice informing the person of the commencement of the administrative breach rate reduction period applicable to the person.

2. (2)

   Subject to subsections (3), (4) and (6) and sections 644D and 644E, the administrative breach rate reduction period commences on the day on which the notice is given to the person.

3. (3)

   Subject to sections 644D and 644E, if, at the time of the application of the administrative breach rate reduction period, the person is already subject to an administrative breach rate reduction period (the pre‑existing reduction period) that has not yet ended, the administrative breach rate reduction period referred to in subsection (1) commences on the day after the day on which the pre‑existing reduction period ends.

4. (4)

   If, at the time of the application of the administrative breach rate reduction period, the person is already subject to more than one pre‑existing reduction period that has not ended, the reference in subsection (3) to the day on which the pre‑existing reduction period ends is a reference to the day on which the last occurring of those pre‑existing reduction periods ends.

5. (5)

   Subsections (3) and (4) apply in respect of a pre‑existing reduction period whether or not it has commenced, and whether or not it is the subject of a notice under this section.

6. (6)

   Subject to sections 644D and 644E, if:

   1. (a)

      on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have commenced, newstart allowance ceases to be payable to the person; and

   2. (b)

      it has not ceased to be payable because of the application of an administrative breach rate reduction period;

the administrative breach rate reduction period referred to in subsection (1) commences on the day on which the newstart allowance ceases to be payable to the person.

Note: For administrative breach rate reduction period see section 644B.

644DAdministrative breach rate reduction periods—interaction with activity test deferment periods

1. (1)

   If, under this Part, an administrative breach rate reduction period that applies to a person would (apart from this subsection) commence at the same time as, or during, an activity test deferment period that applies to the person, the reduction period is taken to commence immediately after the end of the deferment period.

2. (2)

   If an activity test deferment period that applies to a person commences during an administrative breach rate reduction period that applies to the person:

   1. (a)

      the reduction period is taken to be suspended for the duration of the deferment period; and

   2. (b)

      the remainder of the reduction period continues immediately after the end of the deferment period.

3. (3)

   If an activity test deferment period applies to the person and another activity test deferment period commences immediately after the end of that deferment period, a reference in subsection (1) or (2) to the end of that deferment period is taken to be a reference to the end of the other deferment period.

   Note: For activity test deferment period see subsection 23(1).

644EWaiting periods

1. (1)

   If, under this Part, an administrative breach rate reduction period that applies to a person would (apart from this subsection) commence at the same time as, or during, a waiting period that applies to the person, the reduction period is taken to commence immediately after the end of the waiting period.

2. (2)

   If a waiting period that applies to a person commences during an administrative breach rate reduction period that applies to the person:

   1. (a)

      the reduction period is taken to be suspended for the duration of the waiting period; and

   2. (b)

      the remainder of the reduction period continues immediately after the end of the waiting period.

3. (3)

   If a waiting period applies to the person and:

   1. (a)

      another waiting period commences during that waiting period and continues after the end of that waiting period; or

   2. (b)

      another waiting period commences immediately after the end of that waiting period;

a reference in subsection (1) or (2) to the end of that waiting period is taken to be a reference to the end of the other waiting period.

1. (4)

   A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 598.

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

644FEffect of sections 644D and 644E

For the avoidance of doubt, sections 644D and 644E do not prevent a newstart allowance ceasing to be payable in circumstances that do not involve the application of an administrative breach rate reduction period.

644GAdministrative breach rate reduction period not to apply in certain circumstances

Despite any other provision of this Part, an administrative breach rate reduction period does not apply if:

1. (a)

   a person receives a newstart allowance; and

2. (b)

   newstart allowance ceases to be payable to the person because of section 630C or 631; and

3. (c)

   payment of the newstart allowance is cancelled or automatically terminated; and

4. (d)

   the person lodges a claim for a newstart allowance more than 14 days after the date of effect of the cancellation or automatic termination referred to in paragraph (c).

644HRate of newstart allowance where administrative breach rate reduction applies

1. (1)

   If:

   1. (a)

      an administrative breach rate reduction period applies to a person under this Part; and

   2. (b)

      the person qualifies for a newstart allowance; and

   3. (c)

      a newstart allowance is payable to the person;

the person’s rate of newstart allowance for the administrative breach rate reduction period is worked out as follows:

Newstart allowance rate calculator for administrative breach rate reduction period

This is how to work out a person’s rate of newstart allowance for an administrative breach rate reduction period that applies to the person.

Method statement

Step 1. Work out the person’s maximum basic rate of newstart allowance specified in:

1. (a)

   Table B of Module B of Part 3.5 (Benefit Rate Calculator A); or

2. (b)

   Table B of Module B of Part 3.6 (Benefit Rate Calculator B);

the result is called the maximum payment rate.

Step 2. Work out the rate reduction amount in accordance with subsection (2).

Step 3. Take the rate reduction amount away from the rate of benefit worked out in accordance with Benefit Rate Calculator A in section 1067 or Benefit Rate Calculator B in section 1068, as the case requires:

the result is called the administrative breach reduced rate.

1. Note:

   An administrative breach reduced rate may be a nil rate.

1. (2)

   A person’s rate reduction amount is worked out as follows:

71

Paragraph 660(2)(a)

Omit “660F, 660E or 660FAA”, substitute “660F or 660E”.

72

Section 660FAA

Repeal the section.

73

After subsection 771HA(3)

Insert:

Person subject to an administrative breach rate reduction period

1. (4)

   If an administrative breach rate reduction period applies to a person under Part 2.12 or under Part 8 of the Student and Youth Assistance Act 1973, the person is not qualified for partner allowance throughout the period.

74

Section 771HO

Repeal the section.

75

Subparagraph 1241(1)(b)(ii)

Omit “deferment period”, substitute “activity test deferment period”.

76

Subparagraph 1251(1)(b)(ii)

Omit “deferment period”, substitute “activity test deferment period”.

Student and Youth Assistance Act 1973

1. 77

   Subsection 58(1) (definition of activity test deferment period)

   Repeal the definition, substitute:

   activity test deferment period has the same meaning as in the Social Security Act.

2. 78

   Subsection 58(1) (definition of administrative breach deferment period)

   Repeal the definition.

3. 79

   Subsection 58(1) (definition of automatic deferment period)

   Repeal the definition.

4. 80

   Subsection 58(1) (definition of deferment period)

   Repeal the definition.

5. 81

   Subsection 58(1) (definition of youth training allowance automatic deferment provision)

   Repeal the definition.

82

Subsection 58(1)

Insert:

administrative breach rate reduction period has the same meaning as in the Social Security Act.

83

After paragraph 85(1)(j)

Insert:

1. (ja)

   the person fails to comply with a notification requirement under section 148, 149, 150 or 343 (see section 115); or

84

Paragraph 85(1)(l)

Repeal the paragraph.

85

Subparagraph 85(1)(m)(iv)

Repeal the subparagraph.

86

After subsection 91(2)

Insert:

Provisional commencement day where youth training allowance ceases to be payable because of an administrative breach

1. (2B)

   If:

   1. (a)

      a person receives a youth training allowance; and

   2. (b)

      youth training allowance ceases to be payable to the person because of section 114 or 115; and

   3. (c)

      payment of the youth training allowance is cancelled or automatically terminated; and

   4. (d)

      the person lodges a claim for a youth training allowance within 14 days after the date of effect of the cancellation or automatic termination referred to in paragraph (c);

the person’s provisional commencement day is the day after the date of effect of the cancellation or automatic termination.

87

Subsection 91(3)

Omit “If”, substitute “Subject to subsection (3A), if”.

88

After subsection 91(3)

Insert:

1. (3A)

   If:

   1. (a)

      a person is receiving a youth training allowance; and

   2. (b)

      youth training allowance ceases to be payable to the person because of section 114 or 115; and

   3. (c)

      payment of the youth training allowance to the person is cancelled or automatically terminated; and

1. 1. (d)

      the person registers with the CES within 14 days after the day on which the youth training allowances ceases to be payable; and

   2. (e)

      the person claims a youth training allowance within 14 days after registering with the CES;

then, the person’s provisional commencement day is 15 days after the date of effect of the cancellation or automatic termination.

89

Paragraph 106(b)

Repeal the paragraph, substitute:

1. (b)

   the Secretary is not satisfied that the person’s voluntary act was reasonable;

90

Section 108

Repeal the section, substitute:

108Refusal of job offer

If the Secretary is satisfied that a person has refused or failed, without reasonable excuse, to accept a suitable offer of employment, youth training allowance is not payable to the person for the activity test deferment period.

Note: See section 136A for the length of activity test deferment periods and section 136B for the commencement of activity test deferment periods.

91

Subsection 109(1)

Omit “subsections (2) and (3), if a youth training allowance automatic deferment provision of this Subdivision applies to a person”, substitute “subsection (2), if an activity test deferment period applies to a person under this Part”.

92

Subsection 109(1)

Repeal the note.

93

Subsection 109(2)

Repeal the subsection, substitute:

1. (2)

   If:

   1. (a)

      an activity test deferment period applies to a person under this Part at a particular time; and

   2. (b)

      one or more activity test deferment periods had applied to the person within the period of 3 years before that time;

the deferment period is 6 weeks plus:

1. (c)

   in respect of a period (if any) referred to in paragraph (b) of this subsection that was fixed under subsection (1), the number of weeks fixed under that subsection; and

2. (d)

   in respect of each of a period (if any) referred to in that paragraph, a further 6 weeks.

94

Subsection 109(3)

Repeal the subsection.

95

Subsection 109(4)

Repeal the subsection.

96

Subsection 109(5)

Repeal the subsection.

97

Subsection 109(8)

Omit “an automatic deferment provision or a discretionary deferment provision”, substitute “an activity test deferment period”.

98

Subsection 110(1)

Omit “a youth training automatic deferment provision of this Subdivision applies to a person”, substitute “an activity test deferment period applies to a person under this Part”.

99

Subsection 110(3)

Omit “automatic deferment period”, substitute “activity test deferment period”.

100

Subsection 110(3)

Omit “subject to a deferment period”, substitute “subject to an activity test deferment period”.

101

Subsection 110(4)

Omit “automatic deferment provision”, substitute “activity test deferment period”.

102

Paragraph 110(6)(b)

Omit “a deferment period”, substitute “an activity test deferment period”.

103

Subsection 110(6) (note)

Omit “, automatic deferment provision and deferment period”.

104

Subsection 111(1)

Repeal the subsection, substitute:

1. (1)

   Subject to subsection (2) and section 112, if:

   1. (a)

      at a time when the person was not qualified for a youth training allowance, an event occurred that would have resulted in an activity test deferment period applying to the person under this Part had the person made a claim for a youth training allowance; and

   2. (b)

      before the end of that period (assuming that the period had commenced on the day on which the event occurred), the person made a claim for a youth training allowance;

the activity test deferment period is taken to have commenced on the day after the day on which the event occurred.

105

Subsection 111(3)

Repeal the subsection and the note, substitute:

1. (3)

   Subject to section 112, if:

   1. (a)

      at a time when the person was not qualified for a youth training allowance, an event occurred that would have resulted in an activity test deferment period applying to the person under this Part had the person made a claim for a youth training allowance; and

   2. (b)

      the person made a claim for a youth training allowance after the end of that period (assuming that the period had commenced on the day on which the event occurred);

then:

1. (c)

   the activity test deferment period is taken to have commenced and to have ended before the claim was made; and

2. (d)

   the Secretary is not obliged to give the person a written notice under subsection 110(1) in respect of the activity test deferment period.

106

Subsection 112(1)

Omit “deferment period” (last occurring), substitute “activity test deferment period”.

107

Paragraphs 112(2)(a) and (b)

Omit “deferment period”, substitute “activity test deferment period”.

108

Section 113

Repeal the section, substitute:

113Effect of sections 110, 111 and 112

For the avoidance of doubt, sections 110, 111 and 112 do not prevent a youth training allowance ceasing to be payable in circumstances that do not involve the application of an activity test deferment period under this Part.

109

Subsection 114(1)

Omit “a youth training allowance is not payable to the person”, substitute “subsection (1A) applies to the person”.

110

After subsection 114(1)

Insert:

1. (1A)

   If this subsection applies to a person:

   1. (a)

      a youth training allowance is not payable to the person; and

   2. (b)

      if, at a later time, a youth training allowance becomes payable to the person—an administrative breach rate reduction period applies to the person.

111

Subsection 114(2)

Repeal the subsection, substitute:

Reasonable excuse for not complying

1. (2)

   The Secretary may determine that:

   1. (a)

      a youth training allowance is payable to a person that was not payable under paragraph (1A)(a); and

   2. (b)

      an administrative breach rate reduction period does not apply to a person under paragraph (1A)(b);

if the Secretary is satisfied that the person had a reasonable excuse for not complying with the requirement under subsection (1).

112

Subsections 114(3) and (4)

Repeal the subsections.

113

Section 115

Repeal the section, substitute:

115Administrative breach rate reduction period to apply to persons who fail to comply with notification requirements

If a person refuses or fails, without reasonable excuse, to comply with a requirement made of the person under section 148, 149, 150 or 343, an administrative breach rate reduction period applies to the person.

Note: For administrative breach rate reduction period see section 136A.

114

Sections 116, 117, 118 and 119

Repeal the sections.

115

At the end of section 133

Add:

1. (2)

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

   1. (a)

      the person is qualified or is expected to be qualified, for a youth training allowance; and

   2. (b)

      the allowance would be payable, apart from the application of:

      1. (i)

         a waiting period; or

      2. (ii)

         the application of an activity test deferment period; or

      3. (iii)

         the application of an administrative breach rate reduction period where the administrative breach rate reduction reduces the rate of youth training allowance payable to the person to nil.

116

Before section 135

Insert:

Subdivision A—Rate of youth training allowance

117

After section 136

Insert in Division 4:

Subdivision B—Administrative breach reductions in the rate of youth training allowance

136AAdministrative breach rate reduction periods

If an administrative breach rate reduction period applies to a person under this Part, the period applicable to the person is 13 weeks.

136BCommencement of administrative breach rate reduction periods

1. (1)

   If an administrative breach rate reduction period applies to a person under this Part, the Secretary must give to the person a written notice informing the person of the commencement of the administrative breach rate reduction period applicable to the person.

2. (2)

   Subject to subsections (3), (4) and (6) and sections 136C and 136D, the administrative breach rate reduction period commences on the day on which the notice is given to the person.

3. (3)

   Subject to sections 136C and 136D, if, at the time of the application of the administrative breach rate reduction period, the person is already subject to an administrative breach rate reduction period (the pre‑existing reduction period) that has not yet ended, the administrative breach rate reduction period referred to in subsection (1) commences on the day after the day on which the pre‑existing reduction period ends.

4. (4)

   If, at the time of the application of the administrative breach rate reduction period, the person is already subject to more than one pre‑existing reduction period that has not ended, the reference in subsection (3) to the day on which the pre‑existing reduction period ends is a reference to the day on which the last occurring of those pre‑existing reduction periods ends.

5. (5)

   Subsections (3) and (4) apply in respect of a pre‑existing reduction period whether or not it has commenced, and whether or not it is the subject of a notice under this section.

6. (6)

   Subject to sections 136C and 136D, if:

   1. (a)

      on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have commenced, youth training allowance ceases to be payable to the person; and

   2. (b)

      it has not ceased to be payable because of the application of an administrative breach rate reduction period;

the administrative breach rate reduction period referred to in subsection (1) commences on the day on which the youth training allowance ceases to be payable to the person.

Note: For administrative breach rate reduction period see subsection 136B.

136CAdministrative breach rate reduction periods—interaction with activity test deferment periods

1. (1)

   If, under this Part, an administrative breach rate reduction period that applies to a person would (apart from this subsection) commence at the same time as, or during, an activity test deferment period that applies to the person, the reduction period is taken to commence immediately after the end of the deferment period.

2. (2)

   If an activity test deferment period that applies to a person commences during an administrative breach rate reduction period that applies to the person:

   1. (a)

      the reduction period is taken to be suspended for the duration of the deferment period; and

   2. (b)

      the remainder of the reduction period continues immediately after the end of the deferment period.

3. (3)

   If an activity test deferment period applies to the person and another activity test deferment period commences immediately after the end of that deferment period, a reference in subsection (1) or (2) to the end of that deferment period is taken to be a reference to the end of the other deferment period.

   Note: For activity test deferment period see subsection 58(1).

136DWaiting periods

1. (1)

   If, under this Part, an administrative breach rate reduction period that applies to a person would (apart from this subsection) commence at the same time as, or during, a waiting period that applies to the person, the reduction period is taken to commence immediately after the end of the waiting period.

2. (2)

   If a waiting period that applies to a person commences during an administrative breach rate reduction period that applies to the person:

   1. (a)

      the reduction period is taken to be suspended for the duration of the waiting period; and

   2. (b)

      the remainder of the reduction period continues immediately after the end of the waiting period.

3. (3)

   If a waiting period applies to the person and:

   1. (a)

      another waiting period commences during that waiting period and continues after the end of that waiting period; or

   2. (b)

      another waiting period commences immediately after the end of that waiting period;

a reference in subsection (1) or (2) to the end of that waiting period is taken to be a reference to the end of the other waiting period.

1. (4)

   A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 72.

   Note: For waiting period see subsection 58(1).

136EEffect of sections 136C and 136D

For the avoidance of doubt, sections 136C and 136D do not prevent a youth training allowance ceasing to be payable in circumstances that do not involve the application of an administrative breach rate reduction period.

136FAdministrative breach rate reduction period not to apply in certain circumstances

Despite any other provision of this Part, an administrative breach rate reduction period does not apply if:

1. (a)

   a person receives a youth training allowance; and

2. (b)

   youth training allowance ceases to be payable to the person because of section 114 or 115; and

3. (c)

   payment of the youth training allowance is cancelled or automatically terminated; and

4. (d)

   the person lodges a claim for a youth training allowance more than 14 days after the date of effect of the cancellation or automatic termination referred to in paragraph (c).

136GRate of youth training allowance where administrative breach rate reduction applies

1. (1)

   If:

   1. (a)

      an administrative breach rate reduction period applies to a person under this Part; and

   2. (b)

      the person qualifies for a youth training allowance; and

   3. (c)

      a youth training allowance is payable to the person;

the person’s rate of youth training allowance for the administrative breach rate reduction period is worked out as follows:

Youth training allowance rate calculator for administrative breach rate reduction period

This is how to work out a person’s rate of youth training allowance for an administrative breach rate reduction period that applies to the person.

Method statement

Step 1. Work out the person’s maximum basic rate of youth training allowance specified in Table B of Module B of Schedule 1;

the result is called the maximum payment rate.

Step 2. Work out the rate reduction amount in accordance with subsection (2).

Step 3. Take the rate reduction amount away from the rate of youth training allowance worked out in accordance with Schedule 1;

the result is called the administrative breach reduced rate.

1. Note:

   An administrative breach reduced rate may be a nil rate.

1. (2)

   A person’s rate reduction amount is worked out as follows:

118

Paragraph 151(2)(a)

Omit “156, 157 or 158”, substitute “156 or 157”.

119

Section 158

Repeal the section.

Employment Services Act 1994

120

Section 28 (note)

Repeal the note, substitute:

Note: This means that newstart allowance or youth training allowance would cease to be payable to the person and an administrative breach rate reduction period would apply to the person unless the person had a reasonable excuse for not complying with the request.

121

Section 31 (note)

Repeal the note, substitute:

Note: This means that newstart allowance or youth training allowance would cease to be payable to the person and an administrative breach rate reduction period would apply to the person unless the person had a reasonable excuse for not complying with the request.

122

Section 46(5)

Repeal the note, substitute:

Note: This means that newstart allowance or youth training allowance would cease to be payable to the and an administrative breach rate reduction period would apply to the person unless the person had a reasonable excuse for not complying with the request.

Part 4Amendments to make certain conduct subject to an activity test deferment period

Social Security Act 1991

123

After section 601

Insert:

601ACertain actions deemed to be failure to satisfy activity test

1. (1)

   If a person, who is subject to the activity test in respect of a period, refuses or fails, without reasonable excuse, to attend a job interview, the person is taken to fail the activity test.

   Note: For the consequences of failing the activity test see section 624.

2. (2)

   If a person, who is subject to the activity test in respect of a period, voluntarily ceases, without reasonable excuse, to take part in, or is dismissed for misconduct from, a labour market program, the person is taken to fail the activity test.

   Note: For the consequences of failing the activity test see section 624.

124

After subparagraph 608(1)(j)(iii)

Insert:

1. (iv)

   the person has refused or failed to provide information in relation to the person’s income from remunerative work (see paragraph 630AA(a)); or

2. (iva)

   the person has knowingly or recklessly provided false or misleading information in relation to the person’s income from remunerative work; or

125

After section 630

Insert:

630AAFailure to provide information etc.

If a person:

1. (a)

   refuses or fails, without reasonable excuse, to provide information in relation to the person’s income from remunerative work; or

2. (b)

   knowingly or recklessly provides false or misleading information in relation to the person’s income from remunerative work;

when required to do so under a provision of this Act, a newstart allowance is not payable to the person for the activity test deferment period.

126

After section 630BC

Insert in Subdivision F of Division 1 of Part 2.12:

630BDWhere one event may give rise to both an activity test deferment period and an administrative breach rate reduction period

If, but for this section, an event would result in an activity test deferment period and an administrative breach rate reduction period applying to a person under the provisions of this Act, only the provision imposing the activity test deferment period is to apply to the person.

127

After subparagraph 729(2)(d)(v)

Insert:

1. (va)

   section 630AA (failing to provide information);

128

After subparagraph 729(2)(db)(v)

Insert:

1. (va)

   section 108A of that Act (failing to provide information);

Student and Youth Assistance Act 1973

129

After section 75

Insert:

75ACertain actions deemed to be failure to satisfy activity test

1. (1)

   If a person, who is subject to the activity test in respect of a period, refuses or fails, without reasonable excuse, to attend a job interview, the person is taken to fail the activity test.

   Note: For the consequences of failing the activity test see section 103.

2. (2)

   If a person, who is subject to the activity test in respect of a period, voluntarily ceases, without reasonable excuse, to take part in, or is dismissed for misconduct from, a labour market program, the person is taken to fail the activity test.

   Note: For the consequences of failing the activity test see section 103.

130

After subparagraph 85(1)(m)(iii)

Insert:

1. (iiia)

   the person has refused or failed to provide information in relation to the person’s income from remunerative work (see paragraph 108A(a)); or

2. (iiib)

   the person has knowingly or recklessly provided false or misleading information in relation to the person’s income from remunerative work; or

131

After section 108

Insert:

108AFailure to provide information etc.

If a person:

1. (a)

   refuses or fails, without reasonable excuse, to provide information in relation to the person’s income from remunerative work; or

2. (b)

   knowingly or recklessly provides false or misleading information in relation to the person’s income from remunerative work;

when required to do so under a provision of this Act, a youth training allowance is not payable to the person for the activity test deferment period.

132

After section 113

Insert in Subdivision F of Division 2 of Part 8:

113AWhere one event would give rise to both an activity test deferment period and an administrative breach rate reduction period

If, but for this section, an event would result in an activity test deferment period and an administrative breach rate reduction period applying to a person under the provisions of this Act, only the provision imposing the activity test deferment is to apply to the person.

Part 5Amendments to extend the non‑payment period for moving to an area of lower employment prospects from 12 to 26 weeks

Social Security Act 1991

1. 133

   Subdivision H of Division 1 of Part 2.12 (heading)

   Repeal the heading, substitute:

Subdivision H—Other situations where allowance not payable

134

Subsection 634(1)

Omit “12 weeks”, substitute “26 weeks”.

Student and Youth Assistance Act 1973

135

Subsection 122(1)

Omit “12 weeks”, substitute “26 weeks”.

Schedule 6Amendments relating to unemployment due to industrial action

Social Security Act 1991

1

At the beginning of subsection 596(3)

Insert “Subject to subsection (4),”.

2

At the end of section 596

Add:

1. (4)

   Where the relevant industrial action or series of industrial actions is in breach of an order, direction or injunction issued by a State industrial authority, the Australian Industrial Relations Commission or the Federal Court, a person is not qualified for a newstart allowance in respect of a period unless that period occurs 6 weeks or more after the relevant industrial action or series of industrial actions has stopped.

1. Note: For State industrial authority see section 4 of the Workplace Relations Act.

3

At the beginning of subsection 660XBE(3)

Insert “Subject to subsection (4),”.

4

At the end of section 660XBE

Add:

1. (4)

   Where the relevant industrial action or series of industrial actions is in breach of an order, direction or injunction issued by a State industrial authority, the Australian Industrial Relations Commission or the Federal Court, a person is not qualified for a mature age allowance in respect of a period unless that period occurs 6 weeks or more after the relevant industrial action or series of industrial actions has stopped.

   Note: For State industrial authority see section 4 of the Workplace Relations Act.

5

At the beginning of subsection 771HB(3)

Insert “Subject to subsection (4),”.

6

At the end of section 771HB

Add:

1. (4)

   Where the relevant industrial action or series of industrial actions is in breach of an order, direction or injunction issued by a State industrial authority, the Australian Industrial Relations Commission or the Federal Court, a person is not qualified for a partner allowance in respect of a period unless that period occurs 6 weeks or more after the relevant industrial action or series of industrial actions has stopped.

   Note: For State industrial authority see section 4 of the Workplace Relations Act.

Student and Youth Assistance Act 1973

7

At the beginning of subsection 69(3)

Insert “Subject to subsection (4),”.

8

At the end of section 69

Add:

1. (4)

   Where the relevant industrial action or series of industrial actions is in breach of an order, direction or injunction issued by a State industrial authority, the Australian Industrial Relations Commission or the Federal Court, a person is not qualified for a youth training allowance in respect of a period unless that period occurs 6 weeks or more after the relevant industrial action or series of industrial actions has stopped.

   Note: For State industrial authority see section 4 of the Workplace Relations Act.

Schedule 7Amendments relating to waiting periodsPart 1Replacement of the unused annual leave waiting period with an income maintenance period

Social Security Act 1991

1. 1

   Subsection 23(1) (definition of unused annual leave)

   Repeal the definition.

2. 2

   Subsection 23(1) (definition of unused annual leave waiting period)

   Repeal the definition.

3. 3

   Subsection 23(1) (paragraph (a) of the definition of waiting period)

   Repeal the paragraph.

4. 4

   Subsection 23(1) (paragraph (fb) of the definition of waiting period)

   Repeal the paragraph.

5. 5

   Subsection 23(1) (paragraph (h) of the definition of waiting period)

   Repeal the paragraph.

6. 6

   Subsection 23(1) (paragraph (m) of the definition of waiting period)

   Repeal the paragraph.

7

Subsection 23(1)

Insert:

income maintenance period has the meaning given in points 1067-H5G, 1067E-G6G, 1068-G7AG or 1068A-D8B.

8

Subsection 23(10)

Omit “an unused annual leave waiting period or”.

9

Subsection 23(10) (note 1)

Repeal the note.

10

Paragraph 608(1)(f)

Repeal the paragraph.

11

Subsection 616(2) (note 2, paragraph (a))

Repeal the paragraph.

12

Subsection 616(2) (note 3)

Repeal the note.

13

Subsection 616A(2) (note 1, paragraph (a))

Repeal the paragraph.

14

Subsection 616A(3) (note 1)

Repeal the note.

15

Subsection 616A(5) (note 1)

Repeal the note.

16

Sections 617, 618 and 619

Repeal the sections.

17

Paragraph 621(1)(b)

Repeal the paragraph.

18

Subsection 621(2)

Repeal the subsection.

19

Paragraph 621(5)(b)

Repeal the paragraph, substitute:

1. (b)

   because of sections 96 and 97 of the Student and Youth Assistance Act 1973 (ordinary waiting period), youth training allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

   1. (i)

      if the person is not disqualified for youth training allowance under section 72 of that Act (liquid assets test)—the person’s youth training allowance provisional commencement day; or

   2. (ii)

      if the person is disqualified for youth training allowance under section 72 of that Act (liquid assets test)—the day after the day on which the person’s youth training allowance liquid assets waiting period ends; and

20

Subsection 621(6)

Repeal the subsection.

21

Paragraph 621(7)(b)

Repeal the paragraph, substitute:

1. (b)

   because of sections 693 and 694 (ordinary waiting period), sickness allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

   1. (i)

      if the person is not disqualified for sickness allowance under section 676 (liquid assets test)—the person’s sickness allowance provisional commencement day; or

   2. (ii)

      if the person is disqualified for sickness allowance under section 676 (liquid assets test)—the day after the day on which the person’s sickness allowance liquid assets waiting period ends; and

22

Subparagraph 641(2)(b)(iii)

Repeal the subparagraph, substitute:

1. (iii)

   an administrative breach rate reduction period applies and the administrative breach rate reduction reduces the rate of newstart allowance payable to the person to nil; or

2. (iv)

   an income maintenance period applies.

23

Paragraph 677(1)(g)

Repeal the paragraph.

24

Subsection 688(2) (note 1, paragraph (a))

Repeal the paragraph.

25

Subsection 688(3) (note 1)

Repeal the note.

26

Subsection 688(6)

Repeal the note.

27

Subsection 694(5)

Repeal the subsection.

28

Paragraph 694(6)(b)

Repeal the paragraph, substitute:

1. (b)

   because of sections 620 and 621 (ordinary waiting period), newstart allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

   1. (i)

      if the person is not disqualified for newstart allowance under section 598 (liquid assets test)—the person’s newstart allowance provisional commencement day; or

   2. (ii)

      if the person is disqualified for newstart allowance under section 598 (liquid assets test)—the day after the day on which the person’s newstart allowance liquid assets waiting period ends; and

29

Paragraph 694(7)(b)

Repeal the paragraph, substitute:

1. (b)

   because of sections 96 and 97 of the Student and Youth Assistance Act 1973 (ordinary waiting period), youth training allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

   1. (i)

      if the person is not disqualified for youth training allowance under section 72 of that Act (liquid assets test)—the person’s youth training allowance provisional commencement day; or

   2. (ii)

      if the person is disqualified for youth training allowance under section 72 of that Act (liquid assets test)—the day after the day on which the person’s youth training allowance liquid assets waiting period ends; and

30

Paragraph 909(1)(j)

Repeal the paragraph.

31

Sections 923, 924 and 925

Repeal the sections.

32

Point 1067-H5

Omit “If”, substitute “Subject to points 1067-H5F to 1067-H5R (inclusive), if”.

33

Point 1067-H5F

Repeal the point, substitute:

Roll‑over of lump sum leave payments

1067-H5F

If:

1. (a)

   a person’s employment has been terminated; and

2. (b)

   as a result the person is entitled to a lump sum leave payment from the person’s former employer; and

3. (c)

   the person rolls over the lump sum leave payment into an approved deposit fund, a superannuation fund or a deferred annuity;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of Module H of section 1067.

Certain leave payments taken to be ordinary income

1. 1067-H5G

   Subject to points 1067-H5A to 1067-H5E (inclusive), if a person receives a leave payment (whether as a lump sum payment, as a payment that is a part of a series of regular payments or otherwise), the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period of leave to which the payment relates.

More than one leave payment on a day

1. 1067-H5H

   Subject to points 1067-H5A to 1067-H5E (inclusive), if a person receives more than one leave payment on a day, the income maintenance period is worked out by adding the periods of leave to which the payments relate.

Start of income maintenance period

1. 1067-H5J

   Subject to point 1067-H5K, the income maintenance period starts on the day the person is paid the leave payment.

Commencement of income maintenance period where there is a second leave payment

1. 1067-H5K

   If a person is subject to an income maintenance period (the first period) and the person is paid another leave payment during that period (the second leave payment), the income maintenance period for the second leave payment commences the day after the end of the first period.

Leave payments in respect of periods longer than a fortnight

1. 1067-H5L

   Subject to points 1067-H5A to 1067-H5E (inclusive), if:

   1. (a)

      a person receives a leave payment; and

   2. (b)

      the payment is in respect of a period of leave greater than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

1. (c)

   dividing the amount received by the number of days in the period of leave to which the payment relates (the daily rate); and

2. (d)

   multiplying the daily rate by the number of days in the payment fortnight that are also in the period of leave.

Secretary may determine in certain circumstances that the whole or part of an income maintenance period does not apply

1. 1067-H5M

   The Secretary may determine that the whole or any part of an income maintenance period that would, apart from this point, apply to the person, does not apply to the person if the Secretary is satisfied that:

   1. (a)

      the application of the income maintenance period to the person would cause the person severe financial hardship; and

   2. (b)

      the circumstances that would cause the severe financial hardship were not reasonably foreseeable by the person.

When a person receives a leave payment

1. 1067-H5N

   For the purposes of points 1067-H5B, 1067-H5D and 1067‑H5F to 1067-H5M (inclusive), a person (the first person) is taken to receive a leave payment if the payment is made to another person:

   1. (a)

      at the direction of the first person or a court; or

   2. (b)

      on behalf of the first person; or

   3. (c)

      for the benefit of the first person; or

   4. (d)

      the first person waives or assigns the first person’s right to receive the payment.

Single payment in respect of different kinds of leave

1. 1067-H5P

   If a person receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1067‑H5F to 1067-H5N (inclusive), each payment in respect of a different kind of leave is taken to be a separate payment and the income maintenance period in respect of the payment is worked out by adding the periods of leave to which the payments relate.

Definitions

1. 1067-H5Q

   In points 1067-H5F to 1067-H5P (inclusive):

payment fortnight means a fortnight in respect of which a sickness allowance or a newstart allowance, as the case requires, is paid, or would be paid apart from the application of an income maintenance period, to a person.

roll-over, in relation to a lump sum leave payment, has the same meaning as roll‑over in 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.

1. 1067-H5R

   In points 1067-H5A to 1067-H5Q (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.

34

Point 1067-H8

Omit “If”, substitute “Subject to points 1067-H5F to 1067-H5R (inclusive), if”.

35

Point 1067E-G6

Omit “If”, substitute “Subject to points 1067E-G6F to 1067E-G6R (inclusive), if”.

36

Point 1067E-G6F

Repeal the point, substitute:

Roll‑over of lump sum leave payments

1067E-G6F

If:

1. (a)

   a person’s employment has been terminated; and

2. (b)

   as a result the person is entitled to a lump sum leave payment from the person’s former employer; and

3. (c)

   the person rolls over the lump sum leave payment into an approved deposit fund, a superannuation fund or a deferred annuity;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of Module G of section 1067E.

Certain leave payments taken to be ordinary income

1. 1067E-G6G

   Subject to points 1067E-G6A to 1067-H5E (inclusive), if a person receives a leave payment (whether as a lump sum payment, as a payment that is a part of a series of regular payments or otherwise), the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period of leave to which the payment relates.

More than one leave payment on a day

1. 1067E-G6H

   Subject to points 1067E-G6A to 1067E-G6E (inclusive), if a person receives more than one leave payment on a day, the income maintenance period is worked out by adding the periods of leave to which the payments relate.

Start of income maintenance period

1. 1067E-G6J

   Subject to point 1067E-G6K, the income maintenance period starts on the day the person is paid the leave payment.

Commencement of income maintenance period where there is a second leave payment

1. 1067E-G6K

   If a person is subject to an income maintenance period (the first period) and the person is paid another leave payment during that period (the second leave payment), the income maintenance period for the second leave payment commences the day after the end of the first period.

Leave payments in respect of periods longer than a fortnight

1. 1067E-G6L

   Subject to points 1067E-G6A to 1067E-G6E (inclusive), if:

   1. (a)

      a person receives a leave payment; and

   2. (b)

      the payment is in respect of a period of leave greater than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

1. (c)

   dividing the amount received by the number of days in the period of leave to which the payment relates (the daily rate); and

2. (d)

   multiplying the daily rate by the number of days in the payment fortnight that are also in the period of leave.

Secretary may determine in certain circumstances that the whole or part of an income maintenance period does not apply

1. 1067E-G6M

   The Secretary may determine that the whole or any part of an income maintenance period that would, apart from this point, apply to the person, does not apply to the person if the Secretary is satisfied that:

   1. (a)

      the application of the income maintenance period to the person would cause the person severe financial hardship; and

   2. (b)

      the circumstances that would cause the severe financial hardship were not reasonably foreseeable by the person.

When a person receives a leave payment

1. 1067E-G6N

   For the purposes of points 1067E-G6B, 1067E-G6D and 1067E‑G6F to 1067E-G6M (inclusive), a person (the first person) is taken to receive a leave payment if the payment is made to another person:

   1. (a)

      at the direction of the first person or a court; or

   2. (b)

      on behalf of the first person; or

   3. (c)

      for the benefit of the first person; or

   4. (d)

      the first person waives or assigns the first person’s right to receive the payment.

Single payment in respect of different kinds of leave

1. 1067E-G6P

   If a person receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1067E‑G6F to 1067E-G6N (inclusive), each payment in respect of a different kind of leave is taken to be a separate payment and the income maintenance period in respect of the payment is worked out by adding the periods of leave to which the payments relate.

Definitions

1. 1067E-G6Q

   In points 1067E-G6F to 1067E-G6P (inclusive):

payment fortnight means a fortnight in respect of which a sickness allowance is paid, or would be paid apart from the application of an income maintenance period, to a person.

roll-over, in relation to a lump sum leave payment, has the same meaning as roll‑over in 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.

1. 1067E-G6R

   In points 1067E-G6A to 1067E-G6Q (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.

37

Point 1067E-G10

Omit “If”, substitute “Subject to points 1067E-G6F to 1067E-G6R (inclusive), if”.

38

Point 1068-G7

Omit “If”, substitute “Subject to points 1068-G7AF to 1068-G7AR (inclusive), if”.

39

Point 1068-G7AF

Repeal the point, substitute:

Roll‑over of lump sum leave payments

1068-G7AF

If:

1. (a)

   a person’s employment has been terminated; and

2. (b)

   as a result the person is entitled to a lump sum leave payment from the person’s former employer; and

3. (c)

   the person rolls over the lump sum leave payment into an approved deposit fund, a superannuation fund or a deferred annuity;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of Module G of section 1068.

Certain leave payments taken to be ordinary income

1. 1068-G7AG

   Subject to points 1068-G7AA to 1068-G7AE (inclusive), if a person receives a leave payment (whether as a lump sum payment, as a payment that is a part of a series of regular payments or otherwise), the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period of leave to which the payment relates.

More than one leave payment on a day

1. 1068-G7AH

   Subject to points 1068-G7AA to 1068-G7AE (inclusive), if a person receives more than one leave payment on a day, the income maintenance period is worked out by adding the periods of leave to which the payments relate.

Start of income maintenance period

1. 1068-G7AJ

   Subject to point 1068-G7AK, the income maintenance period starts on the day the person is paid the leave payment.

Commencement of income maintenance period where there is a second leave payment

1. 1068-G7AK

   Subject to points 1068-G7AA to 1068-G7AE (inclusive), if a person is subject to an income maintenance period (the first period) and the person is paid another leave payment during that period (the second leave payment), the income maintenance period for the second leave payment commences the day after the end of the first period.

Leave payments in respect of periods longer than a fortnight

1. 1068-G7AL

   Subject to points 1068‑G7AA to 1068‑G7AE (inclusive), if:

   1. (a)

      a person receives a leave payment; and

   2. (b)

      the payment is in respect of a period of leave greater than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

1. (c)

   dividing the amount received by the number of days in the period of leave to which the payment relates (the daily rate); and

2. (d)

   multiplying the daily rate by the number of days in the payment fortnight that are also in the period of leave.

Secretary may determine in certain circumstances that the whole or part of an income maintenance period does not apply

1. 1068-G7AM

   The Secretary may determine that the whole or any part of an income maintenance period that would, apart from this point, apply to the person, does not apply to the person if the Secretary is satisfied that:

   1. (a)

      the application of the income maintenance period to the person would cause the person severe financial hardship; and

   2. (b)

      the circumstances that would cause the severe financial hardship were not reasonably foreseeable by the person.

When a person receives a leave payment

1. 1068-G7AN

   For the purposes of points 1068‑G7AB and 1068‑G7AD to 1068‑G7AM (inclusive), a person (the first person) is taken to receive a leave payment if the payment is made to another person:

   1. (a)

      at the direction of the first person or a court; or

   2. (b)

      on behalf of the first person; or

   3. (c)

      for the benefit of the first person; or

   4. (d)

      the first person waives or assigns the first person’s right to receive the payment.

Single payment in respect of different kinds of leave

1. 1068-G7AP

   If a person receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1068‑G7AF to 1068‑G7AN (inclusive), each payment in respect of a different kind of leave is taken to be a separate payment and the income maintenance period in respect of the payment is worked out by adding the periods of leave to which the payments relate.

Definitions

1. 1068-G7AQ

   In points 1068-G7AF to 1068-G7AP (inclusive):

payment fortnight means a fortnight in respect of which a sickness allowance or a newstart allowance, as the case requires, is paid, or would be paid, apart from the application of an income maintenance period, to a person.

Add:

1230BOverseas application of provisions

Sections 1223, 1224, 1224AA, 1224AB, 1224D, 1225, 1226A, 1227 and 1228 extend to:

1. (a)

   acts, omissions, matters and things outside Australia, whether in a foreign country or not; and

2. (b)

   all persons irrespective of nationality or citizenship.

1230CRecoverable debts

1. (1)

   A debt is recoverable by the Commonwealth by means of:

   1. (a)

      if the person is receiving a social security payment under this Act—deduction from that person’s pension, benefit or allowance; or

   2. (b)

      if section 1234A applies to another person who is receiving a social security payment under this Act—deductions from that other person’s pension, benefit or allowance; or

   3. (c)

      legal proceedings; or

   4. (d)

      garnishee notice.

2. (2)

   In this section:

debt means:

1. (a)

   a debt due to the Commonwealth under section 1135, 1223, 1223AA, 1223AB, 1224, 1224AA, 1224B, 1224C, 1224D, 1224E, 1225, 1226A, 1227, 1229 or 1229A; or

2. (b)

   a debt due to the Commonwealth for which a person is liable because of section 1224AB.

79

Subsection 1233(1)

Omit “1223, 1223AA, 1223AB, 1223A, 1223B, 1224, 1224AA, 1224AB, 1224A, 1224B, 1224C, 1224D, 1224E, 1225, 1226A, 1227 or 1230”, substitute “1230C”.

Student and Youth Assistance Act 1973

80

Subsection 261(8)

Repeal the subsection and the notes.

81

Subsection 262(4)

Repeal the subsection and the notes.

82

Section 263

Omit all the words after “due to the Commonwealth”.

83

Section 263 (notes 2, 3 and 4)

Repeal the notes.

84

Subsection 266(2)

Repeal the subsection and the notes.

85

Subsection 267(2)

Repeal the subsection and the notes.

86

Subsection 268(2)

Repeal the subsection and the notes.

87

Section 269

Repeal the section.

88

Section 270

Omit all the words after “due to the Commonwealth”.

89

Section 270 (notes 2, 3 and 4)

Repeal the notes.

90

Section 272

Omit all the words after “due to the Commonwealth”.

91

Section 272 (notes 2, 3 and 4)

Repeal the notes.

92

Section 273

Repeal the section, substitute:

273Assurance of support debt

If a person is liable to pay an assurance of support debt, the debt is a debt due to the Commonwealth.

Note 1: For assurance of support debt see section 58.

Note 2: If the person does not pay the debt or enter into an agreement to pay it within a certain time, interest may become payable on the debt (see section 275). If the person enters into an agreement to pay the debt and breaches the agreement, interest may become payable on the debt (see section 276).

93

Subsection 275(9)

Omit all the words after “due to the Commonwealth”.

94

Subsection 275(9) (notes 1, 2 and 3)

Repeal the notes.

95

At the end of Subdivision B of Division 15 of Part 8

Add:

279ARecoverable debts

1. (1)

   A debt is recoverable by the Commonwealth by means of:

   1. (a)

      if the person is receiving a youth training allowance—deductions from the person’s youth training allowance; or

   2. (b)

      if section 285 applies to another person who is receiving a youth training allowance—deductions from the other person’s youth training allowance; or

   3. (c)

      legal proceedings; or

   4. (d)

      garnishee notice.

2. (2)

   In this section:

debt means:

1. (a)

   a debt due to the Commonwealth under section 261, 262, 263, 266, 267, 270, 272, 273, 275, 276 or 279; or

2. (b)

   a debt due to the Commonwealth for which a person is liable because of section 268; or

3. (c)

   an amount paid to a person by way of a youth training allowance that is a debt due to the Commonwealth under subsection 11(6) of the Data-matching Program (Assistance and Tax) Act 1990.

96

Subsection 283(1)

Omit “261, 262, 263, 264, 265, 266, 267, 268, 269, 270, 271, 272, 273 or 279”, substitute “279A”.

Part 4Measures relating to waiver of debts

Social Security Act 1991

97

Subsection 1237A(1)

Omit “The Secretary”, insert “Subject to subsection (1A), the Secretary”.

98

After subsection 1237A(1)

Insert:

1. (1A)

   Subsection (1) only applies if:

   1. (a)

      the debt is not raised within a period of 6 weeks from the first payment that caused the debt; or

   2. (b)

      if the debt arose because a person has complied with a notification obligation, the debt is not raised within a period of 6 weeks from the end of the notification period;

whichever is the later.

Student and Youth Assistance Act 1973

99

Subsection 289(1)

Omit “The Secretary”, insert “Subject to subsection (1A), the Secretary”.

100

After subsection 289(1)

Insert:

1. (1A)

   Subsection (1) only applies if:

   1. (a)

      the debt is not raised within a period of 6 weeks from the first payment that caused the debt; or

   2. (b)

      if the debt arose because a person has complied with a notification obligation, the debt is not raised within a period of 6 weeks from the end of the notification period;

whichever is the later.

Part 5Amendments relating to writing off debts

Social Security Act 1991

101

Subsections 1236(1)

Repeal the subsection, substitute:

1. (1)

   Subject to subsection (1A), the Secretary may, on behalf of the Commonwealth, decide to write off a debt, for a stated period or otherwise.

102

Subsection 1236(1A)

Repeal the subsection, substitute:

1. (1A)

   The Secretary may decide to write off a debt under subsection (1) if, and only if:

   1. (a)

      the debt is irrecoverable at law; or

   2. (b)

      the debtor has no capacity to repay the debt; or

   3. (c)

      the debtor’s whereabouts are unknown after all reasonable efforts have been made to locate the debtor; or

   4. (d)

      the debtor is not receiving a social security payment under this Act and it is not cost effective for the Commonwealth to take action to recover the debt.

2. (1B)

   For the purposes of paragraph (1A)(a), a debt is taken to be irrecoverable at law if, and only if:

   1. (a)

      the debt cannot be recovered by means of deductions from a person’s youth training allowance, or legal proceedings, or garnishee notice, because the relevant 6 year period mentioned in section 1231, 1232 or 1233 has elapsed; or

   2. (b)

      there is no proof of the debt capable of sustaining legal proceedings for its recovery; or

   3. (c)

      the debtor is discharged from bankruptcy and the debt was incurred before the discharge and was not incurred by fraud; or

   4. (d)

      the debtor has died leaving no estate or insufficient funds in the debtor’s estate to repay the debt.

3. (1C)

   For the purposes of paragraph (1A)(b), if a debt is recoverable by means of deductions from a person’s social security payment, the person is taken to have a capacity to repay the debt unless recovery by those means would cause the person severe financial hardship.

103

Subsection 1236(2)

Omit “or (1A)”.

104

Section 1236 (note)

Repeal the note.

105

At the end of section 1236

Add:

1. (3)

   Nothing in this section prevents anything being done at any time to recover a debt that has been written off under this section.

Student and Youth Assistance Act 1973

106

Subsections 287(1) and (2)

Repeal the subsections, substitute:

Writing off debts

1. (1)

   Subject to subsection (2), the Secretary may, on behalf of the Commonwealth, decide to write off a debt, for a stated period or otherwise.

Limits on Secretary’s power to write off debts

1. (2)

   The Secretary may decide to write off a debt under subsection (1) if, and only if:

   1. (a)

      the debt is irrecoverable at law; or

   2. (b)

      the debtor has no capacity to repay the debt; or

   3. (c)

      the debtor’s whereabouts are unknown after all reasonable efforts have been made to locate the debtor; or

   4. (d)

      the debtor is not receiving a youth training allowance under this Act and it is not cost effective for the Commonwealth to take action to recover the debt.

Debts irrecoverable at law

1. (2A)

   For the purposes of paragraph (2)(a), a debt is taken to be irrecoverable at law if, and only if:

   1. (a)

      the debt cannot be recovered by means of deductions from a person’s youth training allowance, or legal proceedings, or garnishee notice, because the relevant 6 year period mentioned in section 281, 282 or 283 has elapsed; or

   2. (b)

      there is no proof of the debt capable of sustaining legal proceedings for its recovery; or

   3. (c)

      the debtor is discharged from bankruptcy and the debt was incurred before the discharge and was not incurred by fraud; or

   4. (d)

      the debtor has died leaving no estate or insufficient funds in the debtor’s estate to repay the debt.

Capacity to repay a debt

1. (2B)

   For the purposes of paragraph (2)(b), if a debt is recoverable by means of deductions from a person’s youth training allowance, the person is taken to have a capacity to repay the debt unless recovery by those means would cause the person severe financial hardship.

107

Subsection 287(2)

Omit “or (2)”.

108

Section 287 (note)

Repeal the note.

109

At the end of section 287

Add:

1. (4)

   Nothing in this section prevents anything being done at any time to recover a debt that has been written off under this section.

Schedule 19Amendments of the Social Security Act 1991 to alter the social security entitlements advance payment scheme

1

Paragraphs 1061A(1)(b) and (c)

Repeal the paragraphs, substitute:

1. (b)

   the person has been receiving an income support payment for a continuous period of 3 months immediately before the day on which the person’s application for the advance payment is made; and

2

Subsection 1061A(1) (note 2)

Repeal the note, substitute:

Note 2: For income support payment and social security entitlement see subsection 23(1).

Note 3: For the determination of the continuous period in respect of which a person received an income support payment see section 38B.

3

Subsections 1061A(2) and (3)

Repeal the subsections and the note to subsection (3).

4

Paragraph 1061A(4)(c)

Repeal the paragraph, substitute:

1. (c)

   the person has received the amount of an advance payment in a single lump sum, or has received the first instalment of such an amount, on or after 1 January 1997, and the period of 12 months from the day the lump sum or instalment was paid has not elapsed; or

2. (d)

   the person owes a debt to the Commonwealth (whether arising under this Act or not) that is recoverable under Part 5.2 by means of deductions from the person’s social security payment.

5

Subsection 1061C(2)

Repeal the subsection, substitute:

1. (2)

   The application must specify the amount of advance payment sought.

6

Paragraph 1061EB(3)(b)

After “paid in the”, insert “two”.

7

Section 1061EC

Repeal the section.

8

Sections 1061EE, 1061EF and 1061EG

Repeal the sections, substitute:

1061EEAmount of advance payment—widow allowance, mature age allowance under Part 2.12B or newstart allowance

Application

1. (1)

   The amount of an advance payment of widow allowance, mature age allowance under Part 2.12B or newstart allowance is worked out according to this section.

Amount of advance

1. (2)

   Subject to section 1061EH, the amount of the advance payment is the smallest of the following amounts:

   1. (a)

      the amount of advance payment sought;

   2. (b)

      the maximum amount of advance payment payable to the person as worked out under subsection (3) or (4), as the case requires;

   3. (c)

      $500.

Formula for maximum amount of advance: widow allowance and mature age allowance

1. (3)

   For the purpose of paragraph (2)(b), the maximum amount of advance payment of widow allowance or mature age allowance under Part 2.12B payable to the person is the amount worked out under the following formula:

Formula for maximum amount of advance: newstart allowance

1. (4)

   For the purpose of paragraph (2)(b), the maximum amount of advance payment of newstart allowance payable to the person is the amount worked out under the following formula:

Rounding

1. (5)

   Amounts worked out under subsection (3) or (4) must be rounded to the nearest cent (rounding 0.5 cents upwards).

Meaning of fortnightly payment rate

1. (6)

   For the purposes of the formulae in subsections (3) and (4):

fortnightly payment rate means the fortnightly rate of widow allowance, mature age allowance under Part 2.12B or newstart allowance (as the case requires) payable under the relevant Benefit Rate Calculator to the person on the last payday before the application for the advance payment was made, excluding any amount payable by way of remote area allowance.

Example:

Facts: Veronique has, at all times in the past 4 months, been receiving widow allowance. Her fortnightly payment rate is $200. She applies for an advance payment of $300.

Result: The maximum amount of advance payment payable to Veronique is worked out under subsection (3) as follows:

The smallest of the 3 amounts referred to in subsection (2) is $300. Veronique can therefore be paid an advance payment of $300.

9

Section 1206J

Omit all the words after “worked out”, substitute “by dividing the full amount of the advance payment by 13”.

10

Section 1206J (example)

Repeal the example.

Schedule 20Other technical amendments

Social Security Legislation Amendment (Carer Pension and Other Measures) Act 1995

1

Item 46 of Schedule 12

Omit “Part 3.12B”, substitute “Part 3.16A”.

2

Item 47 of Schedule 12

Omit “Part 3.12B”, substitute “Part 3.16A”.

3

Item 48 of Schedule 12

Omit “Part 3.12B”, substitute “Part 3.16A”.

4

Item 49 of Schedule 12

Omit “Part 3.12B”, substitute “Part 3.16A”.

5

Item 50 of Schedule 12

Omit “Part 3.12B”, substitute “Part 3.16A”.

6

Item 51 of Schedule 12

Omit “Part 3.12B”, substitute “Part 3.16A”.

7

Item 53 of Schedule 12

Omit “Part 3.12B”, substitute “Part 3.16A”.

8

Item 55 of Schedule 12

Omit “After Part 3.12A”, substitute “After Part 3.16”.

9

Item 55 of Schedule 12

Omit “PART 3.12B—ADVANCE PAYMENT DEDUCTIONS”, substitute “Part 3.16A—Advance payment deductions”.

10

Item 61 of Schedule 12 (subclause 90(3) to be added at the end of Schedule 1A to the Social Security Act 1991)

Omit “Part 3.12B”, substitute “Part 3.16A”.

11

Item 61 of Schedule 12 (paragraph 90(4)(a) to be added at the end of Schedule 1A to the Social Security Act 1991)

Omit “Part 3.12B”, substitute “Part 3.16A”.

Schedule 21Application, transitional and saving provisionsPart 1Amendments that commence on 1 January 1997

Social Security Act 1991

1

At the end of Schedule 1A

Add:

96Application and saving provisions: advance payment provisions

1. (1)

   Subject to subclauses (2), (3) and (4), Parts 2.22 and 3.16A of this Act, as amended by the amending Act, apply in relation to:

   1. (a)

      all applications for an advance payment of a social security entitlement made on or after 1 January 1997; and

   2. (b)

      all advance payments of social security entitlements made on or after that day.

2. (2)

   If:

   1. (a)

      a person made an application for an advance payment of a social security entitlement under Part 2.22 of this Act before 1 January 1997; and

   2. (b)

      the application was not determined before that day; and

   3. (c)

      the person was not qualified for the advance payment under this Act, as in force immediately before that day;

Parts 2.22 and 3.16A of this Act, as amended by the amending Act, apply in relation to the application, and to any advance payment of a social security entitlement made pursuant to the application.

1. (3)

   If:

   1. (a)

      a person made an application for an advance payment of a social security entitlement under Part 2.22 of this Act before 1 January 1997; and

   2. (b)

      the application was not determined before that day; and

   3. (c)

      the person was qualified for the advance payment under this Act, as in force immediately before that day;

Parts 2.22 and 3.16A of this Act, as so in force, continue to apply in relation to the application, and to any advance payment of a social security entitlement made pursuant to the application.

1. (4)

   If:

   1. (a)

      a person receives the amount of an advance payment of a social security entitlement in a single lump sum, or the first instalment of such an amount, on or after 1 January 1997; and

   2. (b)

      the relevant application for the advance payment was made before 1 January 1997; and

   3. (c)

      subclause (3) applies in relation to the application;

paragraph 1061A(4)(c) of this Act, as amended by the amending Act, does not apply in relation to any application made by the person for another advance within 12 months from the day the lump sum or instalment was paid.

1. (5)

   In this clause:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

97Application of revised Schedule 1B

1. (1)

   Subject to subclause (2), this Act, as amended by Schedule 13 of the amending Act, applies to claims lodged on or after 1 January 1997.

2. (2)

   Despite section 8 of the Acts Interpretation Act 1901, the amendment made by Schedule 13 to the amending Act, applies in relation to:

   1. (a)

      all medical, psychiatric or psychological examinations attended, or reports required, under subsection 105(1) on or after 1 January 1997; and

   2. (b)

      all legal proceedings, applications for review of decisions, or determinations to the extent that the proceedings, applications or determinations relate to, or involve, a medical, psychiatric or psychological examination referred to in paragraph (a).

3. (3)

   In this clause:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

98Application and transitional provisions: amendments relating to tightening the activity test administration and simplifying the penalty periods that apply to newstart allowance

1. (1)

   Subject to subclauses (2), (3) and (4), this Act, as amended by Parts 3 and 4 of Schedule 5 to the amending Act, applies to events occurring on or after 1 January 1997.

2. (2)

   Subject to subclause (4), if, immediately before 1 January 1997, a person was subject to an activity test deferment period or an administrative breach deferment period that would end on or after 1 January 1997, then, despite the amendments made by Part 3 and 4 of Schedule 5 to the amending Act, this Act, as in force immediately before 1 January 1997 continues to apply to the person in relation to that period.

3. (3)

   If:

   1. (a)

      immediately before 1 January 1997, a person was subject to an administrative breach deferment period that would end on or after 1 January 1997; and

   2. (b)

      an activity test deferment period or an administrative breach rate reduction period applies to the person on or after 1 January 1997;

then, despite the amendments made by Part 3 of Schedule 5 to the amending Act, the activity test deferment period or the administrative rate reduction period commences the day after the end of administrative breach deferment period.

1. (4)

   If:

   1. (a)

      an event occurs before 1 January 1997 that results in a person being subject to an activity test deferment period or an administrative breach deferment period; and

   2. (b)

      the period referred to in paragraph (a) has not commenced before 1 January 1997;

then, this Act applies as if the amendments made by Parts 3 and 4 of Schedule 5 had commenced the day before the event referred to in paragraph (a) occurred.

1. (5)

   In this clause:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

99Application provision: amendments relating to unemployment due to industrial action

This Act, as amended by Schedule 6 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies to all persons who cease industrial action on or after 1 January 1997.

100Application provision: amendments relating to the abolition of the minimum rate of payment to under 18 year old sickness allowance and newstart allowance recipients

This Act, as amended by Parts 1 and 2 of Schedule 3 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies in respect of sickness allowance and newstart allowance for any payment fortnight starting on or after 1 January 1997.

Student and Youth Assistance Act 1973

2

At the end of the Act

Add:

Schedule 5—Application, saving and transitional provisions

1Definitions

Expressions used in this Schedule have the same meanings as in Part 8.

2Application and transitional provisions: amendments relating to tightening the activity test administration and simplifying the penalty periods that apply to youth training allowance

1. (1)

   Subject to subclauses (2), (3) and (4), Part 8 of this Act, as amended by Parts 2 and 4 of Schedule 5 of the amending Act, applies to events occurring on or after 1 January 1997.

2. (2)

   Subject to subclause (4), if, immediately before 1 January 1997, a person was subject to an activity test deferment period or an administrative breach deferment period that would end on or after 1 January 1997, then, despite the amendments made by Part 3 and 4 of Schedule 5 to the amending Act, this Act, as in force immediately before 1 January 1997 continues to apply to the person in relation to that period.

3. (3)

   If:

   1. (a)

      immediately before 1 January 1997, a person was subject to an administrative breach deferment period that would end on or after 1 January 1997; and

1. 1. (b)

      an activity test deferment period or an administrative breach rate reduction period applies to the person on or after 1 January 1997;

then, despite the amendments made by Part 3 of Schedule 5 to the amending Act, the activity test deferment period or the administrative rate reduction period commences the day after the end of administrative breach deferment period.

1. (4)

   If:

   1. (a)

      an event occurs before 1 January 1997 that results in a person being subject to an activity test deferment period or an administrative breach deferment period; and

   2. (b)

      the period referred to in paragraph (a) has not commenced before 1 January 1997;

then, this Act applies as if the amendments made by Parts 3 and 4 of Schedule 5 had commenced the day before the event referred to in paragraph (a) occurred.

1. (5)

   In this clause:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

3Application provision: amendments relating to unemployment due to industrial action

Part 8 of this Act, as amended by Schedule 6 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies to all persons who cease industrial action on or after 1 January 1997.

4Application provision: amendments relating to the abolition of the minimum rate of payment to under 18 year old youth training allowance recipients

Part 8 of this Act, as amended by Part 3 of Schedule 3 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies in respect of youth training allowance for any payment fortnight starting on or after 1 January 1997.

Part 2Amendments that commence on 20 March 1997

Social Security Act 1991

3

At the end of Schedule 1A

Add:

101Application provision: abolition of the earnings credit scheme

This Act, as amended by Schedule 10 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies:

1. (a)

   in respect of social security benefits (other than parenting allowance)—for any payment period (within the meaning of that term in section 42) starting on or after 20 March 1997; or

2. (b)

   in respect of a payday-based payment (within the meaning of that term in section 42)—the first payday that occurs on or after 20 March 1997 and subsequent paydays.

102Application provision: amendments relating to the application of the below threshold deeming rate

This Act, as amended by Schedule 17 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies:

1. (a)

   in respect of social security benefits (other than parenting allowance)—for any fortnight starting on or after 20 March 1997; or

2. (b)

   in respect of a payday-based payment (within the meaning of that term in section 42)—the first payday that occurs on or after 20 March 1997 and subsequent paydays.

Student and Youth Assistance Act 1973

4

At the end of Schedule 5

Add:

5Application provision: abolition of the earnings credit scheme

This Act, as amended by Schedule 10 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies in respect of youth training allowance to any payment period (within the meaning of that term in section 63) starting on or after 20 March 1997.

6Application provision: amendments relating to the application of the below threshold deeming rate

Part 8 of this Act, as amended by Schedule 17 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies in respect of youth training allowance for any fortnight starting on or after 20 March 1997.

Part 3Amendments that commence on 20 September 1997

Social Security Act 1991

5

At the end of Schedule 1A

Add:

103Application provision: income maintenance periods

1. (1)

   This Act, as amended by Part 1 of Schedule 7 to the amending Act, applies in relation to leave payments that are received on or after 20 September 1997.

2. (2)

   For the purposes of this section, a person (the first person) is taken to receive a leave payment if the payment is made to another person:

   1. (a)

      at the direction of the first person or a court; or

   2. (b)

      on behalf of the first person; or

   3. (c)

      for the benefit of the first person; or

the first person waives or assigns the first person’s right to receive the payment.

1. (3)

   In this section:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

leave payment includes payments in respect of sick leave, annual leave, maternity leave, and long service leave.

104Application provision: amendments relating to the liquid assets test waiting period

This Act, as amended by Part 2 of Schedule 7 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies to all claims lodged on or after 20 September 1997.

Student and Youth Assistance Act 1973

6

At the end of Schedule 5

Add:

7Application provision: income maintenance periods

1. (1)

   Part 8 of this Act, as amended by Part 1 of Schedule 7 to the amending Act, applies in relation to leave payments that are received on or after 20 September 1997.

2. (2)

   For the purposes of this section, a person (the first person) is taken to receive a leave payment if the payment is made to another person:

   1. (a)

      at the direction of the first person or a court; or

   2. (b)

      on behalf of the first person; or

   3. (c)

      for the benefit of the first person; or

the first person waives or assigns the first person’s right to receive the payment.

1. (3)

   In this section:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

leave payment includes payments in respect of sick leave, annual leave, maternity leave, and long service leave.

8Application provision: amendments relating to the liquid assets test waiting period

Part 8 of this Act, as amended by Part 2 of Schedule 7 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996, applies to all claims lodged on or after 20 September 1997.

Part 4Amendments that commence on 1 October 1997

Social Security Act 1991

7

At the end of Schedule 1A

Add:

105Application and saving provisions: debts due to the Commonwealth and their recovery

1. (1)

   For the avoidance of doubt, and without affecting the operation of section 8 of the Acts Interpretation Act 1901, Part 2 of Schedule 18 to the amending Act does not:

   1. (a)

      affect the operation of Part 5.2 or 5.3 of this Act before 1 October 1997; or

   2. (b)

      extinguish the amount of any debt due to the Commonwealth arising before 1 October 1997 that was outstanding at the start of that day; or

   3. (c)

      prevent the recovery, on or after 1 October 1997, of any such outstanding amount.

2. (2)

   Sections 1230C and 1236 of this Act, as amended by the amending Act, apply in relation to:

   1. (a)

      debts arising on or after 1 October 1997; and

   2. (b)

      the amounts of debts arising before that day that were outstanding at the start of that day.

3. (3)

   Section 1237A of this Act, as amended by the amending Act, applies in relation to debts arising before, on or after 1 October 1997.

4. (4)

   Despite section 8 of the Acts Interpretation Act 1901, if a legal proceeding or an application for review of a decision:

   1. (a)

      relates to, or otherwise involves, a provision of Part 5.2, 5.3 or 5.4 of this Act; and

   2. (b)

      is not finally determined before 1 October 1997;

the proceeding or application must, if continued, be determined as if it had been instituted on that day, and this Act, as amended by Schedule 18 to the amending Act, applies to the proceeding or application accordingly.

1. (5)

   In this clause:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

Student and Youth Assistance Act 1973

8

At the end of Schedule 5

Add:

9Application and saving provisions: debts due to the Commonwealth and their recovery

1. (1)

   For the avoidance of doubt, and without affecting the operation of section 8 of the Acts Interpretation Act 1901, Part 2 of Schedule 18 to the amending Act does not:

   1. (a)

      affect the operation of Division 15 of Part 8 of this Act, before 1 October 1997; or

   2. (b)

      extinguish the amount of any debt due to the Commonwealth arising before 1 October 1997 that was outstanding at the start of that day; or

   3. (c)

      prevent the recovery, on or after 1 October 1997, of any such outstanding amount.

2. (2)

   Sections 279A and 287 of this Act, as amended by the amending Act, apply in relation to:

   1. (a)

      debts arising on or after 1 October 1997; and

   2. (b)

      the amounts of debts arising before that day that were outstanding at the start of that day.

3. (3)

   Section 289 of this Act, as amended by the amending Act, applies in relation to debts arising before, on or after 1 October 1997.

4. (4)

   Despite section 8 of the Acts Interpretation Act 1901, if a legal proceeding or an application for review of a decision:

   1. (a)

      relates to, or otherwise involves, a provision of Division 15 of Part 8 of this Act; and

   2. (b)

      is not finally determined before 1 October 1997;

the proceeding or application must, if continued, be determined as if it had been instituted on that day, and this Act, as amended by Schedule 18 to the amending Act, applies to the proceeding or application accordingly.

1. (5)

   In this clause:

amending Act means the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.