Social Security Legislation Amendment (Youth Allowance) Act 1998 (Cth)

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Social Security Legislation Amendment (Youth Allowance) Act 1998

No. 18, 1998

Social Security Legislation Amendment (Youth Allowance) Act 1998

No. 18, 1998

An Act to amend the Social Security Act 1991

Contents

Social Security Legislation Amendment (Youth Allowance) Act 1998

No. 18, 1998

An Act to amend the Social Security Act 1991

[Assented to 17 April 1998]

The Parliament of Australia enacts:

1Short title

This Act may be cited as the Social Security Legislation Amendment (Youth Allowance) Act 1998.

2Commencement

  1. (1)

    Subject to subsections (2) and (3), this Act commences on 1 July 1998.

  2. (2)

    If Part 8 of the Student and Youth Assistance Act 1973 has not been repealed (with effect on or before 1 July 1998) by another Act, this Act commences immediately after the repeal of that Part, by another Act, takes effect.

(3)

Subsections 543A(2A) and (2B) in item 6 of Schedule 1 commence on 1 January 1999.

3Application

Subsection 543A(2) does not apply to a person who last left school more than 12 months before the commencement of this Act.

4Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 1Youth allowance

Social Security Act 1991

1

Section 3 (index)

Insert the following entries in their appropriate alphabetical position, determined on a letter-by-letter basis:

educational institution

23(1)

undertaking full‑time study

23(1), 541B

Youth Allowance Activity Agreement

23(1), 544A(5)

Youth Training Activity Agreement

23(1)

2

Subsection 23(1)

Insert:

educational institution means an education institution within the meaning of subsection 3(1) of the Student and Youth Assistance Act 1973.

3

Subsection 23(1)

Insert:

undertaking full‑time study has the meaning given in section 541B.

4

Subsection 23(1)

Insert:

Youth Allowance Activity Agreement has the meaning given by subsection 544A(5).

5

Subsection 23(1)

Insert:

Youth Training Activity Agreement has the meaning it was given under subsection 79(4) of the Student and Youth Assistance Act 1973 immediately before the commencement of the Social Security Legislation Amendment (Youth Allowance) Act 1998.

6

Before Part 2.12

Insert:

Part 2.11Youth allowance

Division 1Qualification for youth allowance

Subdivision ABasic qualifications

540Qualification for youth allowance—general rule

Subject to this Subdivision, a person is qualified for a youth allowance in respect of a period if, throughout the period:

  1. (a)

    the person either:

    1. (i)

      satisfies the activity test (see Subdivision B); or

    2. (ii)

      is not required to satisfy the activity test (see Subdivision C); and

  2. (b)

    the person is of youth allowance age (see Subdivision D); and

  3. (c)

    the person satisfies any requirements relating to Youth Allowance Activity Agreements that apply to the person under Subdivision E; and

  4. (d)

    the person satisfies the residency requirements that apply to the person under Subdivision F.

    Note 1: Subdivision G provides for prospective qualification for youth allowance.

    Note 2: Division 2 sets out situations in which youth allowance is not payable even if the person qualifies for it.

540AQualification for youth allowance—claimants for disability support pension

General rule

  1. (1)

    Subject to this Subdivision, a person is qualified for a youth allowance in respect of a period if:

    1. (a)

      throughout the period, the person either:

      1. (i)

        satisfies the activity test (see Subdivision B); or

      2. (ii)

        is not required to satisfy the activity test (see Subdivision C); and

    2. (b)

      throughout the period, the person is of youth allowance age (see Subdivision D); and

    3. (c)

      the person made a claim for disability support pension at or before the start of the period and the claim was not determined before the end of the period; and

    4. (d)

      the Secretary is satisfied that, throughout the period, the person suffers from a medical condition that had a significant adverse effect on the person’s ability to work or study; and

    5. (e)

      throughout the period, the person satisfies the residency requirements that apply to the person under Subdivision F; and

    6. (f)

      the person satisfies any one of the conditions in subsection (2).

Conditions for qualification

  1. (2)

    The conditions referred to in paragraph (1)(f) are:

    1. (a)

      a condition that the person was an Australian resident when the significant adverse effect of the medical condition on the person’s ability to work or study first occurred; and

    2. (b)

      a condition that at the start of the period the person had 10 years qualifying Australian residence or had a qualifying residence exemption for a social security benefit or youth training allowance; and

    3. (c)

      a condition that:

      1. (i)

        the person was born outside Australia; and

      2. (ii)

        when the significant adverse effect of the medical condition first occurred the person was not an Australian resident but was a dependent child of an Australian resident; and

      3. (iii)

        the person became an Australian resident while a dependent child of an Australian resident.

      Note 1: Subdivision G provides for prospective qualification for youth allowance.

      Note 2: Division 2 sets out situations in which youth allowance is not payable even if the person qualifies for it.

540BQualification for youth allowance—transferee from social security pension

If:

  1. (a)

    a person was receiving a social security pension; and

  2. (b)

    the person claims a youth allowance within 14 days after the day on which the last instalment of the person’s pension was paid; and

  3. (c)

    the person becomes qualified for a youth allowance at some time during the 14 day period but after the first day of that period;

the person is taken to be qualified for a youth allowance for the whole of the 14 day period.

540CQualification for youth allowance may continue to end of payment period

If:

  1. (a)

    a person is receiving a youth allowance; and

  2. (b)

    apart from this section, the person would cease on a particular day to be qualified for the allowance because the person has attained the maximum age for youth allowance; and

  3. (c)

    the day falls in, but is not the last day of, a period for which an instalment of youth allowance is payable to the person;

the person continues to be qualified for the allowance until the end of that period.

Subdivision BActivity test

541Activity test

General

  1. (1)

    Subject to section 541A and subsection (3) of this section, a person satisfies the activity test in respect of a period if:

    1. (a)

      the person satisfies the Secretary that, throughout the period, the person is undertaking full‑time study (see section 541B); or

    2. (b)

      the person satisfies the Secretary that, throughout the period, the person is actively seeking, and willing to undertake, paid work (other than paid work that is unsuitable for the person); or

    3. (c)

      the person takes reasonable steps, throughout the period, to comply with the terms of a Youth Allowance Activity Agreement applying to the person; or

    4. (d)

      the person takes reasonable steps to comply, throughout the period, with a requirement of the Secretary notified to the person under subsection (2).

      Note 1: See section 541D on paid work that is unsuitable.

      Note 2: See section 541F on taking reasonable steps.

Notices of particular requirements

  1. (2)

    If the Secretary is of the opinion that, throughout the period, the person should do one or more of the following:

    1. (a)

      undertake particular paid work other than paid work that is unsuitable for the person;

    2. (b)

      participate in an approved program of work for unemployment payment;

    3. (c)

      participate in one or more of the following:

      1. (i)

        a course of vocational training;

      2. (ii)

        a labour market program;

      3. (iii)

        a rehabilitation program;

      4. (iv)

        another course;

    approved by the Secretary that is likely, in the Secretary’s opinion, to improve the person’s prospects of obtaining suitable paid work, or to help the person in seeking suitable paid work;

    1. (d)

      if the person lives in an area where:

      1. (i)

        there is no locally accessible labour market; and

      2. (ii)

        there is no locally accessible vocational training course or labour market program;

    participate in an activity suggested by the person and approved by the Secretary;

the Secretary may, subject to section 541E, by notice in writing given to the person, inform the person that the person is required to act in accordance with the Secretary’s opinion.

Note: See section 541D on paid work that is unsuitable, and section 541E on situations in which a person cannot be required to participate in an approved program of work for unemployment payment.

  1. (2A)

    A notice under subsection (2) must inform the person to whom it is given of the effect of failure by the person to comply with the requirement set out in the notice.

Full‑time employees etc.

  1. (3)

    A person cannot be taken to satisfy the activity test if the person:

    1. (a)

      is employed on a full‑time basis as an apprentice or trainee under an industrial instrument and has a training agreement (however described) with a training authority (by whatever name called) of a State or Territory; or

    2. (b)

      is employed in full‑time paid work for at least:

      1. (i)

        35 hours per week; or

      2. (ii)

        such lesser period per week as is, in the Secretary’s opinion, the normal number of hours per week that constitutes full‑time work in the industry in which the person is employed; or

    3. (c)

      is, in the Secretary’s opinion, involved to a substantial degree in the operation of a family business and, in the Secretary’s opinion, should not be taken to satisfy the activity test.

Industrial instruments

  1. (4)

    In paragraph (3)(a):

industrial instrument means an award or agreement (however described) that:

  1. (a)

    is made under or recognised by a law of the Commonwealth or of a State or Territory that:

    1. (i)

      regulates the relationships between employers and employees; or

    2. (ii)

      provides for the prevention or settlement of disputes between employers and employees; and

  2. (b)

    concerns the relationship between an employer and the employer’s employees, or provides for the prevention or settlement of a dispute between an employer and the employer’s employees.

541AFailure to satisfy the activity test

A person cannot be taken to satisfy the activity test in respect of a period if:

  1. (a)

    the person fails to take reasonable steps to comply, throughout the period, with a requirement of the Secretary under subsection 541(2); or

  2. (b)

    the person fails to take reasonable steps, throughout the period, to comply with the terms of a Youth Allowance Activity Agreement applying to the person; or

  3. (c)

    the person refuses or fails, without reasonable excuse, to attend a job interview; or

  4. (d)

    the person voluntarily ceases, without reasonable excuse, to take part in, or is dismissed for misconduct from, a labour market program; or

  5. (e)

    the person refuses or fails to commence, or to complete, an approved program of work for unemployment payment that the person is required to undertake; or

  6. (f)

    the person refuses or fails to comply with the conditions of such a program; or

  7. (g)

    the person fails to comply with a notice to the person under subsection 541C(1); or

  8. (h)

    the person contravenes subsection 541C(2).

    Note: See section 541F on taking reasonable steps.

541BUndertaking full‑time study

General

  1. (1)

    For the purposes of this Act, a person is undertaking full‑time study if:

    1. (a)

      the person:

      1. (i)

        is enrolled in a course of education at an educational institution; or

      2. (ii)

        was enrolled in the course and satisfies the Secretary that he or she intends, and has (since no longer being enrolled) always intended, to re‑enrol in the course when re‑enrolments in the course are next accepted; or

      3. (iii)

        was enrolled in the course and satisfies the Secretary that he or she intends, and has (since no longer being enrolled) always intended, to enrol in another course of education (at the same or a different educational institution) when enrolments in the other course are next accepted; and

    2. (b)

      the person:

      1. (i)

        is enrolled in respect of, or (if subparagraph (a)(ii) or (iii) applies) intends to enrol in respect of; and

      2. (ii)

        is undertaking, or (if subparagraph (a)(ii) or (iii) applies) intends to undertake;

    at least three-quarters of the normal amount of full‑time study in respect of the course in question (see subsections (2) to (4)); and

    1. (c)

      the course in question is an approved course of education or study (see subsection (5)); and

    2. (d)

      in the Secretary’s opinion, the person is making satisfactory progress towards completing the course.

Meaning of normal amount of full‑time study

  1. (2)

    For the purposes of paragraph (1)(b), the normal amount of full‑time study in respect of a course is:

    1. (a)

      if the course is a designated course of study within the meaning of Chapter 4 of the Higher Education Funding Act 1988—the standard student load determined in respect of the course by the institution in question under subsection 39(2) of that Act; or

    2. (b)

      if the course is not such a designated course and the institution defines an amount of full‑time study that a full‑time student should typically undertake in respect of the course—the amount so defined; or

    3. (c)

      otherwise—an amount of full‑time study equivalent to the average amount of full‑time study that a person would have to undertake for the duration of the course in order to complete the course in the minimum amount of time needed to complete it.

Alternative meaning of normal amount of full‑time study

  1. (3)

    For the purposes of paragraph (1)(b), and without limiting subsection (2), the normal amount of full‑time study in respect of a course is an average, taken over the duration of the period for which the person in question is enrolled in the course, of 20 contact hours per week.

Meaning of satisfactory progress

  1. (3A)

    In forming an opinion about whether a person is making satisfactory progress for the purpose of paragraph (1)(d), the Secretary is to have regard to the guidelines.

  2. (3B)

    The Minister, by determination in writing:

    1. (a)

      is to set guidelines for the exercise of the Secretary’s discretion under subsection (3A); and

    2. (b)

      may revoke or vary those guidelines.

  3. (3C)

    Guidelines made for the purpose of subsection (3A) are disallowable instruments.

First fortnight of classes

  1. (4)

    A person is taken, for the purposes of paragraph (1)(b), to be enrolled in and undertaking the normal amount of full‑time study during the period:

    1. (a)

      starting on the first day of classes in a semester; and

    2. (b)

      ending on the Friday of the second week of classes in the semester;

if the person is enrolled in and undertakes at least three-quarters of the normal amount of full‑time study (within the meaning of subsection (2) or (3)) on at least one day in the period.

Meaning of approved course of education or study

  1. (5)

    For the purposes of paragraph (1)(c), the course is an approved course of education or study if it is a course that the Employment Minister has determined, under paragraph 7(1)(c) of the Student and Youth Assistance Act 1973, to be:

    1. (a)

      a secondary course or a tertiary course; or

    2. (b)

      a part of a secondary course or a part of a tertiary course;

for the purposes of section 7 of that Act.

Note: For educational institution see subsection 23(1).

541CRequiring a person to apply for job vacancies

General

  1. (1)

    The Secretary may notify a person in writing (other than a person who is undertaking full‑time study) that the person must take reasonable steps to apply for a particular number of advertised job vacancies in the period stated in the notice, being a period of not less than 14 days.

    Note: See section 541F on taking reasonable steps.

Statements confirming job applications

  1. (2)

    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 the job vacancy.

Form of statements

  1. (3)

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

Exemption from giving the Secretary statements

  1. (4)

    Subsection (2) 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.

541DUnsuitable paid work

What is unsuitable paid work

  1. (1)

    For the purposes of section 541, particular paid work is unsuitable for a person if, and only if, in the Secretary’s opinion:

    1. (a)

      the person lacks the particular skills, experience or qualifications that are needed to perform the work and no training will be provided by the employer; or

    2. (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

    3. (c)

      performing the work in the conditions in which the work would be performed would constitute a risk to health or safety and would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or

    4. (d)

      the work would involve the person being self‑employed; or

    5. (e)

      the work would be covered by an industrial award but the employer would only employ the person if the person agreed to become a party to an agreement reducing or abolishing rights that the award confers on employees; or

    6. (f)

      the work would not be covered by an industrial award and the remuneration for the work would be lower than the minimum applicable rate of remuneration for comparable work that is covered by an industrial award; or

    7. (g)

      commuting between the person’s home and the place of work would be unreasonably difficult; or

    8. (ga)

      the place of work is not accessible by public transport services and the person does not have access to alternative transport facilities and could not reasonably be expected to travel to the place of work; or

    9. (h)

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

    10. (ha)

      the work requires the person to move from a home in one place to a home in another place; or

    11. (i)

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

When commuting is unreasonably difficult

  1. (2)

    For the purposes of paragraph (1)(g), commuting is not unreasonably difficult if:

    1. (a)

      the sole or principal reason for the difficulty is that the commuting involves a journey, either from the person’s home to the place of work or from the place of work to the person’s home, that does not normally exceed 90 minutes in duration; or

    2. (b)

      in the Secretary’s opinion a substantial number of people living in the same area as the person regularly commute to their places of work in circumstances similar to those of the person.

Effect of subsection (2)

  1. (3)

    Subsection (2) does not limit the Secretary’s discretion to form the opinion that, for the purposes of paragraph (1)(g), commuting is not unreasonably difficult.

Remuneration for work

  1. (4)

    A reference in subsection (1) to remuneration for work is a reference to any income derived from the work that is income from personal exertion.

    Note: For income from personal exertion see subsection 8(1).

541EProvisions relating to participation in an approved program of work for unemployment payment

Situations in which participation in an approved program of work for unemployment payment cannot be required

  1. (1)

    The Secretary must not notify a person under subsection 541(2) that the person is required to participate in an approved program of work for unemployment payment if:

    1. (a)

      the person is under 18 years of age; or

    2. (b)

      the person is undertaking full-time study; or

    3. (c)

      because of the application of one or more Modules of the Youth Allowance Rate Calculator in section 1067G, the person is receiving a youth allowance at a rate that has been reduced; or

    4. (d)

      in the Secretary’s opinion:

      1. (i)

        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

      2. (ii)

        performing the work in the conditions in which the work would be performed would constitute a risk to health or safety or would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or

    5. (e)

      the program of work requires the person to move from a home in one place to a home in another place.

Secretary may give notice

  1. (2)

    If, after the Secretary has notified the person that the person is required to participate in an approved program of work for unemployment payment, the Secretary:

    1. (a)

      is satisfied that the person is undertaking full-time study; or

    2. (b)

      is satisfied that the person is a person to whom paragraph (1)(c) applies; or

    3. (c)

      forms the opinion that subparagraph (1)(d)(i) or (ii) applies in relation to the performance of that work by the person;

the Secretary may, by notice in writing given to the person, inform the person that the requirement to participate in the program is revoked and, upon his or her so doing, the requirement is taken to have been revoked with effect from the day of that notification.

Effect of participation in an approved program of work for unemployment payment

  1. (3)

    A person is not to be taken, merely by participating in an approved program of work for unemployment payment in accordance with a requirement of the Secretary under subsection 541(2), to be:

    1. (a)

      an employee within the meaning of section 9 of the Occupational Health and Safety (Commonwealth Employees) Act 1991; or

    2. (b)

      an employee within the meaning of section 5 of the Safety, Rehabilitation and Compensation Act 1988; or

    3. (c)

      an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992; or

    4. (d)

      an employee for the purposes of the Workplace Relations Act 1996.

541FWhat are reasonable steps

For the purposes of this Subdivision, a person takes reasonable steps to comply with:

  1. (a)

    a requirement of the Secretary notified to the person under subsection 541(2); or

  2. (b)

    the terms of a Youth Allowance Activity Agreement; or

  3. (c)

    a notice to the person under subsection 541C(1);

(as the case requires) unless the Secretary is satisfied that the person has not attempted in good faith and to the best of his or her ability to comply with the requirement.

Subdivision CExemptions from the activity test

542Situations in which a person is not required to satisfy the activity test

For the purposes of this Part, a person is not required to satisfy the activity test in respect of a period if, throughout the period:

  1. (a)

    the person has a temporary incapacity exemption under section 542A; or

  2. (b)

    the person has a pre‑natal exemption or a post‑natal exemption under section 542D; or

  3. (c)

    the person has a remote area exemption under section 542E; or

  4. (d)

    the person has an unpaid voluntary work exemption under section 542F; or

  5. (e)

    the person has a training camp exemption under section 542G; or

  6. (f)

    the person has a special circumstances exemption under section 542H.

542ATemporary incapacity exemption

General

  1. (1)

    Subject to subsection (2) of this section and sections 542B and 542C, a person has a temporary incapacity exemption if:

    1. (a)

      throughout the period the person:

      1. (i)

        if the person is undertaking full‑time study—does not have the capacity to undertake the course of education in respect of which he or she is undertaking full‑time study; or

      2. (ii)

        in any other case—is incapacitated for work;

    because of sickness or an accident; and

    1. (b)

      the incapacity is caused wholly, or virtually wholly, by a medical condition arising from the sickness or accident; and

    2. (c)

      the incapacity is, or is likely to be, of a temporary nature; and

    3. (d)

      the person has, whether before or after the commencement of this section, given the Secretary a certificate of a medical practitioner, in a form approved by the Secretary, stating:

      1. (i)

        the medical practitioner’s diagnosis; and

      2. (ii)

        the medical practitioner’s prognosis; and

      3. (iii)

        that the person is incapacitated for study or work (as the case requires); and

      4. (iv)

        the period for which the person is incapacitated for study or work (as the case requires); and

    4. (e)

      the Secretary is satisfied that the incapacity has not been brought about with a view to obtaining an exemption from the activity test.

Claimants for disability support pension

  1. (2)

    This section does not apply to a person who is qualified for a youth allowance under section 540A.

Definition of work

  1. (3)

    In this section:

work, in relation to a person, means work (whether full‑time, part‑time, permanent or casual) that:

  1. (a)

    if the person was employed at the time the sickness or accident in question occurred—the person has contracted to perform under a contract of employment that:

    1. (i)

      the person had immediately before the person becomes incapacitated; and

    2. (ii)

      continues after the person becomes incapacitated; and

  2. (b)

    if the person was not employed at that time—the person is reasonably capable of performing;

being work that is for at least 8 hours per week at award wages or above.

542BFailure to attend interview etc. may result in cessation of temporary incapacity exemption

General

  1. (1)

    A person ceases to have a temporary incapacity exemption if:

    1. (a)

      the Secretary is of the opinion that the person should:

      1. (i)

        contact a particular officer of the Department; or

      2. (ii)

        attend an interview at a particular place; or

      3. (iii)

        complete a questionnaire; or

      4. (iv)

        attend a medical, psychiatric or psychological examination; and

    2. (b)

      the Secretary gives the person a written notice stating that the person is required, within a period stated in the notice, being a period of not less than 14 days, to:

      1. (i)

        contact the officer; or

      2. (ii)

        attend the interview; or

      3. (iii)

        complete the questionnaire; or

      4. (iv)

        attend the examination; or

      5. (v)

        if the person has undergone an examination—give the Secretary a report on the examination in the approved form; and

    3. (c)

      the Secretary is satisfied that it is reasonable for this section to apply to the person; and

    4. (d)

      the person does not take reasonable steps to comply with the requirement.

Contents of notice

  1. (2)

    A notice under paragraph (1)(b) must inform the person to whom it is given of the effect of failure by the person to take reasonable steps to comply with the requirement set out in the notice.

What are reasonable steps

  1. (3)

    For the purposes of paragraph (1)(d), a person takes reasonable steps to comply with a requirement under subsection (1) unless the Secretary is satisfied that the person has not attempted in good faith and to the best of his or her ability to comply with the requirement.

542CTime limit for temporary incapacity exemptions

General

  1. (1)

    A person ceases to have a temporary incapacity exemption if the person’s maximum exemption period ends.

Maximum exemption period

  1. (2)

    Subject to this section, a person’s maximum exemption period is:

    1. (a)

      if the person has, whether before or after the commencement of this section, given the Secretary a medical certificate for the purpose of enabling the Secretary to decide whether the person was required to satisfy the activity test—the lesser of the following periods:

      1. (i)

        the period stated in the certificate as the period for which the person would be incapacitated for work or study;

      2. (ii)

        the period of 13 weeks that started or starts on the first day of the period so stated in the certificate; or

    2. (b)

      otherwise—the period of 4 weeks that started or starts on the day determined by the Secretary to have been the day on which the person’s incapacity for work or study began.

Extension where paragraph 542A(1)(d) certificate given

  1. (3)

    If:

    1. (a)

      a person has a temporary incapacity exemption; and

    2. (b)

      the person has, whether before or after the commencement of this section, given the Secretary a certificate of a medical practitioner that states the matters listed in paragraph 542A(1)(d) and is in accordance with the form approved under that paragraph; and

    3. (c)

      the Secretary is satisfied that the person’s incapacity for work or study will continue after the end of the person’s maximum exemption period;

the Secretary may extend the person’s maximum exemption period by a period that is not more than the lesser of the following periods:

  1. (d)

    a period equal to the period stated in the certificate as the period for which the person would be incapacitated for work or study;

  2. (e)

    13 weeks.

Extension where paragraph 542A(1)(d) certificate given after end of maximum exemption period

  1. (4)

    If:

    1. (a)

      a person had a temporary incapacity exemption; and

    2. (b)

      within 14 days after the end of the person’s maximum exemption period, the person gives the Secretary a certificate of a medical practitioner that states the matters listed in paragraph 542A(1)(d) and is in accordance with the form approved under that paragraph; and

    3. (c)

      the Secretary is satisfied that the person’s incapacity for work or study has continued after the end of the person’s maximum exemption period and that the incapacity will continue;

the Secretary may extend the maximum exemption period by a period of not more than the lesser of the following periods:

  1. (d)

    a period equal to the period stated in the certificate as the period for which the person would be incapacitated for work or study;

  2. (e)

    13 weeks.

Extension where other written evidence given

  1. (5)

    If:

    1. (a)

      a person has a temporary incapacity exemption; and

    2. (b)

      the person gives the Secretary written evidence (other than a certificate referred to in paragraph (3)(b)) that the person’s incapacity for work or study will continue after the end of the person’s maximum exemption period; and

    3. (c)

      the Secretary is satisfied that:

      1. (i)

        the person’s circumstances make it unreasonable to expect the person to obtain a certificate referred to in paragraph (3)(b) before the end of the maximum exemption period; and

      2. (ii)

        the person’s incapacity for work or study will continue after the end of the person’s maximum exemption period;

the Secretary may extend the person’s maximum exemption period by not more than 4 weeks.

Extension where other written evidence given after end of maximum exemption period

  1. (6)

    If:

    1. (a)

      a person had a temporary incapacity exemption; and

    2. (b)

      within 14 days after the end of the person’s maximum exemption period, the person gives the Secretary written evidence (other than a certificate referred to in paragraph (4)(b)) that the person’s incapacity for work or study will continue after the end of the person’s maximum exemption period; and

    3. (c)

      the Secretary is satisfied that:

      1. (i)

        the person’s circumstances make it unreasonable to expect the person to obtain a certificate referred to in paragraph (4)(b); and

      2. (ii)

        the person’s incapacity for work or study has continued after the end of the person’s maximum exemption period and that the incapacity will continue;

the Secretary may extend the maximum exemption period by a period of not more than 4 weeks from the end of the previous maximum exemption period.

Extension where paragraph 542A(1)(d) certificate not considered in a timely manner

  1. (7)

    If:

    1. (a)

      a person has a temporary incapacity exemption; and

    2. (b)

      the person has, whether before or after the commencement of this section, given the Secretary a certificate referred to in paragraph (3)(b) before the end of the person’s maximum exemption period; and

    3. (c)

      before the end of the person’s maximum exemption period, the Secretary does not satisfy himself or herself that the person’s incapacity for work or study will continue after the end of that period; and

    4. (d)

      the sole or dominant cause of the Secretary failing so to satisfy himself or herself is an act or omission of an officer of the Department;

the Secretary may extend the person’s maximum exemption period by not more than 4 weeks.

542DPre‑natal and post‑natal exemptions

Pre‑natal exemption

  1. (1)

    A pregnant woman has a pre‑natal exemption for the period that starts 6 weeks before the woman’s expected date of confinement and ends on the day on which the woman gives birth to the child (whether or not the child is born alive).

Post‑natal exemption

  1. (2)

    If a woman gives birth to a child (whether or not the child is born alive), the woman has a post‑natal exemption for the period that starts on the day on which she gives birth to the child and ends 6 weeks after that day.

542ERemote area exemption

General

  1. (1)

    Subject to subsection (2), a person has a remote area exemption in respect of a period if the Secretary considers that:

    1. (a)

      it would be reasonable to assume that, at the end of a period, a person is present in an area where:

      1. (i)

        there is no locally accessible labour market; and

      2. (ii)

        there is no locally accessible vocational training course or labour market program; and

    2. (b)

      it would also be reasonable to assume that the person is throughout the period:

      1. (i)

        unemployed; and

      2. (ii)

        capable of undertaking paid work that in the Secretary’s opinion is suitable to be undertaken by the person; and

      3. (iii)

        willing to undertake paid work that in the Secretary’s opinion is suitable to be undertaken by the person; and

    3. (c)

      having regard to all the relevant factors, including:

      1. (i)

        the location of offices of the Department; and

      2. (ii)

        difficulties with transport and communication; and

      3. (iii)

        the educational and cultural background of the person;

    it would be unreasonable to expect the person to satisfy the activity test in order to be qualified for youth allowance for the period.

    Note: The activity test is dealt with in Subdivision B.

Effect of subsection 541(2) notices

  1. (2)

    This section does not apply if the person has been notified of a requirement under subsection 541(2) in relation to the period.

542FUnpaid voluntary work exemption

General

  1. (1)

    Subject to subsection (2), a person has an unpaid voluntary work exemption in respect of a 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 person was 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 section) in respect of a continuous period of at least 3 months immediately before the start of the period referred to in paragraph (a); and

    3. (c)

      the person has not already undertaken full‑time unpaid voluntary work with one or more approved organisations in more than 6 months during the 12 month period ending immediately before the start of the period referred to in paragraph (b).

Availability of employment

  1. (2)

    Subsection (1) does not apply to a person in respect of a day in a period if, 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 subsection (1) should not apply in relation to the day.

Definitions

  1. (3)

    In this section:

approved full‑time unpaid voluntary work means work that:

  1. (a)

    has been approved by the Secretary for the purposes of this section; or

  2. (b)

    was, before the commencement of the Social Security Legislation Amendment (Youth Allowance) Act 1998, approved by the Employment Secretary under subsection 77(4) of the Student and Youth Assistance Act 1973.

approved organisation means an organisation that:

  1. (a)

    has been approved by the Secretary for the purposes of this section; or

  2. (b)

    was, before the commencement of the Social Security Legislation Amendment (Youth Allowance) Act 1998, approved by the Employment Secretary under subsection 77(4) of the Student and Youth Assistance Act 1973.

542GTraining camp exemption

A person has a training camp exemption if the person is attending a training camp as a member of:

  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 Air Force Reserve; or

  5. (e)

    the Air Force Emergency Force; or

  6. (f)

    the Army Individual Emergency Reserve.

    Note: Section 545B relieves people attending these training camps from the requirement of being in Australia to qualify for youth allowance.

542HSpecial circumstances exemption

General

  1. (1)

    Subject to subsections (2) and (3), a person has a special circumstances exemption in respect of a period if:

    1. (a)

      the Secretary is satisfied that special circumstances, beyond the person’s control, exist; and

    2. (b)

      the Secretary is satisfied that in those circumstances it would be unreasonable to expect the person to satisfy the activity test for that period.

Meaning of special circumstances

  1. (1A)

    In making a decision under subsection (1), the Secretary is to have regard to the guidelines.

  2. (1B)

    The Minister, by determination in writing:

    1. (a)

      is to set guidelines for the exercise of the Secretary’s discretion under subsection (1A); and

    2. (b)

      may revoke or vary those guidelines.

  3. (1C)

    Guidelines made for the purpose of subsection (1A) are disallowable instruments.

Duration of period

  1. (2)

    The period referred to in subsection (1) is not to be more than 13 weeks.

Duration where a number of determinations made

  1. (3)

    If:

    1. (a)

      the Secretary makes more than one decision under subsection (1); and

    2. (b)

      the periods to which the decisions relate form a continuous period;

the continuous period is not to be more than 13 weeks, unless the Secretary decides otherwise, having regard to the continued existence, or likely continued existence, of the special circumstances on which the last preceding decision was based.

Subdivision DYouth allowance age

543Youth allowance age

For the purposes of this Part, a person is of youth allowance age if the person:

  1. (a)

    has attained the minimum age for youth allowance (see section 543A); and

  2. (b)

    has not yet attained the maximum age for youth allowance (see section 543B).

543AMinimum age for youth allowance

General

  1. (1)

    Subject to this section, the person has attained the minimum age for youth allowance if the person:

    1. (a)

      is at least 16 years old; or

    2. (b)

      is 15 years old and is independent.

      Note: For independent see section 1067A.

Persons not yet 18 years old

  1. (2)

    If the person is not yet 18 years old, the person is taken not to have attained the minimum age for youth allowance unless:

    1. (a)

      the person has completed the final year of secondary school, or an equivalent level of education; or

    2. (b)

      the person is undertaking full‑time study; or

    3. (ba)

      the person has agreed to enter into a Youth Allowance activity agreement; or

    4. (c)

      the Secretary has determined in writing that the person is exempt from the requirements of this subsection.

  2. (2A)

    Notwithstanding subsection (2) but subject to subsection (2B), a person who is not yet 18 years old is taken to have attained the minimum age for youth allowance if the person does not have the capacity to undertake full-time study or training because the person:

    1. (a)

      is ill or has had an accident and the incapacity is, or is likely to be, of a temporary nature; or

    2. (b)

      has a physical, psychiatric or intellectual disability, or a learning difficulty such as attention deficit disorder; or

    3. (c)

      is pregnant and the expected date of confinement is within 6 weeks; or

    4. (d)

      has given birth within the previous 6 weeks; or

    5. (e)

      has been in full-time employment for 6 weeks or more within the last 13 weeks; or

    6. (f)

      has been refused enrolment and no other education or training place is available within a reasonable distance; or

    7. (g)

      is required to provide full-time care for a family member who is incapacitated due to illness or accident and the incapacity is, or is likely to be, of a temporary nature; or

    8. (h)

      has suffered a personal crisis such as the death of an immediate family member, a marriage breakup, family dislocation or physical, emotional or sexual abuse; or

    9. (i)

      is homeless and unable to obtain stable accommodation; or

    10. (j)

      has suffered a major disruption of their home such as fire damage, flooding, earthquake damage, vandalism or burglary; or

    11. (k)

      suffers from alcohol or drug abuse sufficient to cause intermittent or temporary absences from full-time study or training; or

    12. (l)

      is engaged in part-time work, education, training or a combination of these for not less than 20 hours per week; or

    13. (m)

      is a refugee whose capacity to undertake full-time education is reduced because:

      1. (i)

        the person has suffered torture, imprisonment or other traumatic circumstances; or

      2. (ii)

        lacks sufficient English skills; or

      3. (iii)

        is recently arrived and lacks stable accommodation; or

    14. (n)

      is the subject of a community service or juvenile justice order which reduces the person’s capacity to engage in full-time education; or

    15. (o)

      will become 18 years old within three months; or

    16. (p)

      is in case management approved by the Secretary or, where no case management place is available to the person, is suitable for and agrees to undertake case management; or

    17. (q)

      is in other circumstances which, in the opinion of the Secretary, make it unreasonable for the person to be in full-time education or training.

  3. (2B)

    A person who is taken to have attained the minimum age for youth allowance on any of the grounds mentioned in subsection (2A) is eligible to receive youth allowance:

    1. (a)

      in respect of grounds mentioned in paragraphs (2A)(c) or (d)—for 6 weeks; or

    2. (b)

      in respect of grounds mentioned in paragraphs (2A)(h) or (j)—for 2 weeks; or

    3. (c)

      in respect of grounds mentioned in paragraph (2A)(l)—for as long as the work, education or training lasts; or

    4. (d)

      in any other case, for up to 13 weeks or such longer period as the Secretary approves.

Independent persons

  1. (3)

    For the purposes of this section, the person cannot be taken to be independent unless the person:

    1. (a)

      has reached the minimum school leaving age for the State or Territory in which the person is living; or

    2. (b)

      is the subject of a formal exemption from attending school granted by the education authority of that State or Territory.

543BMaximum age for youth allowance

General

  1. (1)

    Subject to subsection (2), the person has attained the maximum age for youth allowance if:

    1. (a)

      the person is not undertaking full‑time study and is at least 21 years old; or

    2. (b)

      the person:

      1. (i)

        is undertaking full-time study in respect of a course of education that is to last for less than 12 months; and

      2. (ii)

        was, immediately before starting the course of education, receiving newstart allowance; and

      3. (iii)

        is at least 21 years old; or

    3. (c)

      the person is undertaking full-time study and is at least 25 years old.

Continuance of full‑time study after turning 25

  1. (2)

    If the person is at least 25 years old, the person is taken not to have attained the maximum age for youth allowance if the person:

    1. (a)

      was receiving youth allowance immediately before turning 25; and

    2. (b)

      is undertaking full‑time study in respect of a course of education that the person had commenced before turning 25.

Subdivision EYouth Allowance Activity Agreements

544Requirements relating to Youth Allowance Activity Agreements

General

  1. (1)

    The requirements that apply to a person relating to Youth Allowance Activity Agreements in respect of a period are as follows:

    1. (a)

      the person must enter into a Youth Allowance Activity Agreement in relation to the period when the person is required by the Secretary under section 544A to do so; and

    2. (b)

      while the agreement is in force, the person must take reasonable steps, to the satisfaction of the Secretary, to comply with the terms of the agreement; and

      Note: See subsection (2) on taking reasonable steps.

    3. (c)

      at all times when the person is a party to the agreement, the person must be prepared to enter into another such agreement instead of the existing agreement if required to do so by the Secretary.

What are reasonable steps

  1. (2)

    For the purposes of paragraph (1)(b), a person is taking reasonable steps to comply with the terms of a Youth Allowance Activity Agreement unless the Secretary is satisfied that the person has not attempted in good faith and to the best of his or her ability to comply with the requirement.

544AYouth Allowance Activity Agreements—requirement

Requirement to enter into agreement

  1. (1)

    Subject to this section, if a person is claiming or receiving a youth allowance, the Secretary may require the person to enter into a Youth Allowance Activity Agreement.

Persons who have temporary incapacity exemptions

  1. (2)

    A person who:

    1. (a)

      has a temporary incapacity exemption under section 542A; or

    2. (b)

      has a pre‑natal exemption or a post‑natal exemption under section 542D; or

    3. (c)

      is qualified for a youth allowance under section 540A;

is not to be required to enter into a Youth Allowance Activity Agreement.

Requirement to enter another agreement

  1. (3)

    The Secretary may require a person who has entered into a Youth Allowance Activity Agreement to enter into another such agreement instead of the existing one.

Notice of requirement

  1. (4)

    The Secretary is to give a person who is required to enter into a Youth Allowance Activity Agreement a notice in writing of:

    1. (a)

      the requirement; and

    2. (b)

      the places and times, being places and times which are reasonable in all the circumstances, at which the agreement is to be negotiated; and

    3. (c)

      the effect of failure by the person to comply with the requirement set out in the notice.

Form of agreement

  1. (5)

    A Youth Allowance Activity Agreement is a written agreement, in a form approved by the Secretary. The agreement is between the person and the Secretary.

544BYouth Allowance Activity Agreements—terms

Approved activities

  1. (1)

    A Youth Allowance Activity Agreement with a person is to require the person to undertake one or more of the following activities approved by the Secretary:

    1. (a)

      a job search;

    2. (b)

      a vocational training course;

    3. (c)

      training that would help in searching for work;

    4. (d)

      paid work experience;

    5. (e)

      measures designed to eliminate or reduce any disadvantage the person has in the labour market;

    6. (f)

      subject to subsection (7)—an approved program of work for unemployment payment;

    7. (g)

      subject to section 544D—development of self‑employment;

    8. (h)

      subject to section 544E—development of and/or participation in group enterprises or co‑operative enterprises;

    9. (i)

      participation in a labour market program conducted by the Department;

    10. (j)

      participation in a rehabilitation program;

    11. (k)

      a course of education;

    12. (l)

      an activity proposed by the person (such as unpaid voluntary work proposed by the person).

Secretary’s approval

  1. (2)

    The terms of an agreement (including the description of the activities that the person is to be required to undertake) are to be approved by the Secretary.

Secretary’s considerations concerning approval of terms

  1. (3)

    In considering whether to approve the terms of an agreement with a person, the Secretary is to have regard to the person’s capacity to comply with the proposed agreement and the person’s needs.

Capacity to comply with agreement, and person’s needs

  1. (4)

    In having regard to a person’s capacity to comply with an agreement and the person’s needs, the Secretary is to take into account:

    1. (a)

      the person’s education, experience, skills, age and physical condition; and

    2. (b)

      the state of the labour market in the area where the person lives; and

    3. (c)

      the training opportunities available to the person; and

    4. (d)

      any matters that the Secretary considers relevant in the circumstances.

Variation, suspension, cancellation and review

  1. (5)

    An agreement with a person:

    1. (a)

      may be varied or suspended by the Secretary; and

    2. (b)

      if another Youth Allowance Activity Agreement is made with the person—may be cancelled by the Secretary; and

    3. (c)

      may be reviewed from time to time by the Secretary at the request of either party to the agreement.

Circumstances preventing or affecting compliance

  1. (6)

    The party to an agreement other than the Secretary must tell the Secretary of any circumstances preventing or affecting the party’s compliance with the agreement.

Situations in which participation in an approved program of work for unemployment payment cannot be required

  1. (7)

    A Youth Allowance Activity Agreement with a person must not require the person to participate in an approved program of work for unemployment payment if:

    1. (a)

      the person is under 18 years of age; or

    2. (b)

      the person is undertaking full-time study; or

    3. (c)

      because of the application of one or more Modules of the Youth Allowance Rate Calculator in section 1067G, the person would receive or is receiving a youth allowance at a rate that has been reduced; or

    4. (d)

      in the Secretary’s opinion:

      1. (i)

        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

      2. (ii)

        performing the work in the conditions in which the work would be performed would constitute a risk to health or safety or would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or

    5. (e)

      the program of work requires the person to move from a home in one place to a home in another place.

      Note: For approved program of work for unemployment payment see subsection 23(1).

Effect of participation in an approved program of work for unemployment payment

  1. (8)

    A person is not to be taken, merely by participating in an approved program of work for unemployment payment in accordance with the terms of a Youth Allowance Activity Agreement under this section, to be:

    1. (a)

      an employee within the meaning of section 9 of the Occupational Health and Safety (Commonwealth Employees) Act 1991; or

    2. (b)

      an employee within the meaning of section 5 of the Safety, Rehabilitation and Compensation Act 1988; or

    3. (c)

      an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992; or

    4. (d)

      an employee for the purposes of the Workplace Relations Act 1996.

544CYouth Allowance Activity Agreements—failure to negotiate

Failure to enter agreement

  1. (1)

    If:

    1. (a)

      a person has been given notice under subsection 544A(4) of a requirement to enter into a Youth Allowance Activity Agreement; and

    2. (b)

      the Secretary is satisfied, because of the person’s failure to:

      1. (i)

        attend the negotiation of the agreement; or

      2. (ii)

        respond to correspondence about the agreement; or

      3. (iii)

        agree to terms of the agreement proposed by the Secretary;

    or for any other reason, that the person is unreasonably delaying entering into the agreement:

then:

  1. (c)

    the Secretary may give the person notice that the person is taken to have failed to enter the agreement; and

  2. (d)

    if the notice is given—the person is taken to have so failed.

    Note: Refusal to enter into an agreement is a failure to satisfy the requirements under section 544 relating to Youth Allowance Activity Agreements, which disqualifies a person from youth allowance (see section 540).

Form of notice

  1. (2)

    A notice under paragraph (1)(c) must:

    1. (a)

      be in writing; and

    2. (b)

      set out the reasons for the decision to give the notice; and

    3. (c)

      include a statement describing the rights of the person to apply for the review of the decision.

544DYouth Allowance Activity Agreements—self‑employment

Person previously received allowance

  1. (1)

    A Youth Allowance Activity Agreement must not require a person to undertake as an activity any development of self‑employment unless:

    1. (a)

      at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving any of the following:

      1. (i)

        a youth allowance;

      2. (ii)

        a youth training allowance;

      3. (iii)

        a newstart allowance; and

    2. (b)

      the Secretary is satisfied that the activity:

      1. (i)

        will be commercially viable 12 months after the person begins the activity; and

      2. (ii)

        is likely to provide the person with sustainable full‑time employment that will provide the person with a level of income at least equivalent to the person’s maximum basic rate worked out under Module B of the Youth Allowance Rate Calculator in section 1067G.

Time limitation

  1. (2)

    A Youth Allowance Activity Agreement must not require a person to undertake as an activity any development of self‑employment if:

    1. (a)

      the person is to undertake the activity for more than 12 months; or

    2. (b)

      subject to subsection (3), the person has previously been subject to a requirement under that or any other Youth Allowance Activity Agreement to undertake the same activity or a similar activity; or

    3. (c)

      at any time during the 6 months immediately before the time at which the activity is to start, the person has been subject to a requirement under:

      1. (i)

        that or any other Youth Allowance Activity Agreement or a Youth Training Activity Agreement; or

      2. (ii)

        a Newstart Activity Agreement;

    to undertake as an activity other development of self‑employment.

Exception

  1. (3)

    Paragraph (2)(b) does not apply if the Secretary determines in writing that there are special circumstances that justify inclusion of the activity in the Youth Allowance Activity Agreement.

Certain activities excluded

  1. (4)

    This section does not apply to an activity to which a paragraph of subsection 544B(1) other than paragraph 544B(1)(g) or (h) applies.

544EYouth Allowance Activity Agreements—group enterprises and co‑operative enterprises

Person previously received allowance, and activity will be commercially viable

  1. (1)

    A Youth Allowance Activity Agreement must not require a person to undertake as an activity any development of a group enterprise or co‑operative enterprise unless:

    1. (a)

      at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving any of the following:

      1. (i)

        a youth allowance;

      2. (ii)

        a youth training allowance;

      3. (iii)

        a newstart allowance; and

    2. (b)

      the Secretary is satisfied that the activity:

      1. (i)

        will be commercially viable 12 months after the person begins the activity; and

      2. (ii)

        is likely to provide the person with sustainable full‑time employment that will provide the person with a level of income at least equivalent to the person’s maximum basic rate worked out under Module B of the Youth Allowance Rate Calculator in section 1067G.

Person previously received allowance, and activity will provide work experience

  1. (2)

    A Youth Allowance Activity Agreement must not require a person to undertake as an activity any participation in a group enterprise or co‑operative enterprise unless:

    1. (a)

      at all times during the 6 months immediately before the undertaking of the activity the person has been, or will have been, receiving any of the following:

      1. (i)

        a youth allowance;

      2. (ii)

        a youth training allowance;

      3. (iii)

        a newstart allowance; and

    2. (b)

      the Secretary is satisfied that the activity is likely to provide the person with skills, training or work experience that will help the person to obtain paid employment providing a level of income at least equal to the person’s maximum basic rate worked out under Module B of the Youth Allowance Rate Calculator in section 1067G.

Agreement not to require certain group activity

  1. (3)

    A Youth Allowance Activity Agreement must not require a person to undertake as an activity any development of, or participation in, a group enterprise or co‑operative enterprise if:

    1. (a)

      the person is to undertake the activity for more than 12 months; or

    2. (b)

      the person has previously been subject to a requirement under that or any other Youth Allowance Activity Agreement to undertake the same activity or a similar activity; or

    3. (c)

      at any time during the 6 months immediately before the time at which the activity is to start, the person has been subject to a requirement under:

      1. (i)

        that or any other Youth Allowance Activity Agreement or a Youth Training Activity Agreement; or

      2. (ii)

        a Newstart Activity Agreement;

to undertake as an activity other development of, or participation in, a group enterprise or co‑operative enterprise.

Exception

  1. (4)

    This section does not apply to an activity to which a paragraph of subsection 544B(1), other than paragraph 544B(1)(g) or (h), applies.

Subdivision FResidency

545Requirements relating to residency

The requirements that apply to a person relating to residency in respect of a period are that, throughout the period, the person:

  1. (a)

    is an Australian resident; and

  2. (b)

    subject to this Subdivision, is in Australia.

545ATemporary absence overseas seeking medical treatment

For the purposes of paragraph 545(b), if:

  1. (a)

    a person has a temporary incapacity exemption under section 542A; and

  2. (b)

    the person is temporarily absent from Australia; and

  3. (c)

    the person is absent in order to seek medical treatment of a kind that is not available in Australia;

the person is taken to be in Australia during:

  1. (d)

    if the period is not more than 13 weeks—the whole of the period; or

  2. (e)

    if the period is more than 13 weeks—the first 13 weeks of the period.

545BOverseas training camps

Paragraph 545(b) does not apply to a person if the person is attending a training camp outside Australia as a member of:

  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 Air Force Reserve; or

  5. (e)

    the Air Force Emergency Force; or

  6. (f)

    the Army Individual Emergency Reserve.

545CAbsence overseas of persons undertaking full‑time study

General

  1. (1)

    Paragraph 545(b) does not apply to a person if the person is undertaking full‑time study and:

    1. (a)

      is absent from Australia for the purpose of undertaking part of the studies for the course of education in respect of which the person is undertaking full-time study; or

    2. (b)

      is absent from Australia, for any other purpose, for not more than 26 weeks.

Temporary return to Australia

  1. (2)

    If the person:

    1. (a)

      returns to Australia after having been outside Australia (whether before or after the commencement of this section) for more than 13 weeks; and

    2. (b)

      leaves Australia before the end of 13 weeks after he or she so returned to Australia;

the person is taken, for the purposes of paragraph (1)(b), to have continued to be absent from Australia throughout the period from the time of the return to the time when the person so left Australia.

Subdivision GMiscellaneous

546Prospective determinations for some allowance recipients

Recipients may qualify in advance in some cases

  1. (1)

    A person is qualified for youth allowance for a period if:

    1. (a)

      the person is receiving youth allowance; and

    2. (b)

      the Secretary considers at the start of the period that:

      1. (i)

        the person may reasonably be expected to satisfy the qualification requirements for youth allowance (see Subdivision A) during the period; and

      2. (ii)

        it is reasonable to expect that youth allowance will be payable to the person for the period; and

      3. (iii)

        the person will comply with this Act during the period; and

    3. (c)

      the person is not indebted at the start of the period to the Commonwealth under or as a result of:

      1. (i)

        this Act; or

      2. (ii)

        the Student and Youth Assistance Act 1973 as in force immediately before the commencement of this section; and

    4. (d)

      one or more of subsections (3), (5), (6) and (7) apply to the person at the start of the period.

Guidelines for the purposes of paragraph (1)(b)

  1. (2)

    The Minister:

    1. (a)

      must determine in writing guidelines for making decisions under paragraph (1)(b); and

    2. (b)

      may revoke or vary the determination.

If the Minister revokes a determination, the Minister must determine guidelines that take effect immediately after the revocation. A determination is a disallowable instrument.

Recipients who have Case Management Activity Agreements

  1. (3)

    This subsection applies to a person who has a Case Management Activity Agreement with a case manager if the Secretary has decided (either on the recommendation of the case manager or on the Secretary’s own initiative) not to give the person recipient statement notices under section 561C at intervals of a fortnight or less.

Definitions

  1. (4)

    In subsection (3), Case Management Activity Agreement and case manager have the meanings that they have in the Employment Services Act 1994.

Recipients satisfying the activity test

  1. (5)

    This subsection applies to a person who:

    1. (a)

      satisfies the activity test under paragraph 541(2)(c) (except by undertaking particular paid work as provided for in paragraph 541(2)(a)); or

    2. (b)

      satisfies the activity test under subsection 601(4) by taking reasonable steps to comply with a Newstart Activity Agreement that requires the person to undertake full‑time unpaid voluntary work proposed by the person and approved by the Secretary.

Recipients not required to satisfy the activity test

  1. (6)

    This subsection applies to a person who:

    1. (a)

      has a temporary incapacity exemption under section 542A; or

    2. (b)

      has a pre-natal exemption or a post-natal exemption under section 542D; or

    3. (c)

      has an unpaid voluntary work exemption under section 542F.

Recipients the Secretary considers should be qualified

  1. (7)

    This subsection applies to a person if the Secretary considers that the person should be qualified for youth allowance for the period because of one or more of the following:

    1. (a)

      the place where the person lives;

    2. (b)

      the person’s recent employment history;

    3. (c)

      the state of the labour market;

    4. (d)

      any other reason that the Secretary considers relevant.

Division 2Situations in which youth allowance is not payable

Subdivision AThe basic rules

547Situations in which youth allowance is not payable

A youth allowance is not payable to a person who is qualified for youth allowance:

  1. (a)

    before the person’s provisional commencement day (see Subdivision B); or

  2. (b)

    while the person is subject to a waiting period (see Subdivision C); or

  3. (c)

    while an activity test non‑payment period applies to the person (see Subdivision D); or

  4. (d)

    while the person is subject to an administrative exclusion (see Subdivision E); or

  5. (e)
  1. while the person is subject to an alternative support exclusion (see Subdivision F); or

  2. (f)

    while the person is subject to an employment-related exclusion (see Subdivision G); or

  3. (g)

    while the person’s youth allowance rate would be nil.

    Note 1: A youth allowance is not payable if the person is in gaol or is undergoing psychiatric confinement because the person has been charged with committing an offence (see Division 2 of Part 3.13).

    Note 2: A youth allowance is not payable to a person if the person is subject to a compensation preclusion period (see Part 3.14).

Subdivision BProvisional commencement day

548Provisional commencement day—basic rule

Subject to this Subdivision, a person’s provisional commencement day is the day on which the person claims a youth allowance.

548AProvisional commencement day—person who has a temporary incapacity exemption

General

  1. (1)

    Subject to this Subdivision (other than section 548), the provisional commencement day of a person who has a temporary incapacity exemption under section 542A is the day on which the person became incapacitated.

Claim more than 5 weeks after incapacity—incapacity not reason for delayed claim

  1. (2)

    If:

    1. (a)

      the person claims youth allowance more than 5 weeks after the day on which the person becomes incapacitated; and

    2. (b)

      the Secretary is not satisfied that the incapacity is the sole or dominant cause of the failure to claim the allowance within 5 weeks after that day;

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

Claim more than 5 weeks after incapacity—incapacity reason for delayed claim

  1. (3)

    If:

    1. (a)

      the person claims youth allowance more than 5 weeks after the day on which the person becomes incapacitated; and

    2. (b)

      the Secretary is satisfied that the incapacity is the sole or dominant cause for the failure to claim the allowance within 5 weeks after that day;

the person’s provisional commencement day is the day determined by the Secretary.

Day determined for purposes of subsection (3)

  1. (4)

    The day determined under subsection (3):

    1. (a)

      must not be more than 4 weeks before the day on which the person lodges the claim for the allowance; and

    2. (b)

      if the person is subject to a waiting period—must not be earlier than the first day after the end of the waiting period.

548BProvisional commencement day—claimant for disability support pension

  1. (1)

    Subject to subsection (2), the provisional commencement day of a person who is qualified for youth allowance under section 540A is the day on which the person made the claim for disability support pension mentioned in paragraph 540A(1)(c).

  2. (2)

    If the person’s claim for disability support pension is rejected, the person’s provisional commencement day is to be worked out in accordance with the other provisions of this Subdivision.

548CProvisional commencement day—initial incorrect or inappropriate claim followed by claim for youth allowance

  1. (1)

    Subject to section 548D, if:

    1. (a)

      a person makes a claim (initial claim) for:

      1. (i)

        a social security pension, a social security benefit (other than a youth allowance) or a service pension; or

      2. (ii)

        a pension, allowance, benefit or other payment that is similar in character to a youth allowance under an Act other than this Act or under a program administered by the Commonwealth; and

    2. (b)

      on the day on which the person makes the initial claim, the person is qualified for youth allowance; and

    3. (c)

      the person afterwards makes a claim for youth allowance; and

    4. (d)

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

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

  1. (2)

    Subject to section 548D, if:

    1. (a)

      a claim is made for family payment in respect of a person (initial claim); and

    2. (b)

      on the day on which the initial claim is made, the person is qualified for youth allowance; and

    3. (c)

      the person afterwards makes a claim for youth allowance; and

    4. (d)

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

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

548DProvisional commencement day—transferee to youth allowance

Basic rule

  1. (1)

    Subject to subsection (2), if a person:

    1. (a)

      is a transferee to a youth allowance; and

    2. (b)

      claims the youth allowance within 14 days after the transfer day;

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

Temporary incapacity exemption

  1. (2)

    If a person:

    1. (a)

      is a transferee to youth allowance; and

    2. (b)

      has a temporary incapacity exemption under section 542A; and

    3. (c)

      claims the youth allowance within 4 weeks after the person’s transfer day;

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

Note: For transferee to a youth allowance and transfer day see subsections 23(6) and (7).

548EProvisional commencement day—application of section 551C or reduction of rate to nil

If:

  1. (a)

    a person receives a youth allowance; and

  2. (b)

    either:

    1. (i)

      the person is subject to an administrative exclusion because of the application of section 551C; or

    2. (ii)

      an administrative breach rate reduction period under Subdivision C of Division 5 applies to the person and the person’s administrative breach reduced rate is a nil rate;

  3. (c)

    payment of the allowance is cancelled or automatically terminated; and

  4. (d)

    the person lodges a claim for a youth 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.

548FProvisional commencement day—claim resulting from a major disaster

If a person:

  1. (a)

    claims a disaster relief payment; and

  2. (b)

    is qualified for the payment; and

  3. (c)

    as a result of the major disaster to which the payment relates, claims youth allowance within 14 days after the day on which the person claimed the disaster relief payment;

the person’s provisional commencement day is the day on which he or she was affected by the disaster.

Subdivision CWaiting periods

549Waiting periods

For the purposes of this Part, a person may be subject to the following waiting periods:

  1. (a)

    a liquid assets test waiting period (see sections 549A, 549B and 549C);

  2. (b)

    a newly arrived resident’s waiting period (see sections 549D and 549E).

549ALiquid assets test waiting period

When person subject to liquid assets test waiting period—general

  1. (1)

    Subject to this section, if:

    1. (a)

      the value of a person’s liquid assets is more than the person’s maximum reserve on:

      1. (i)

        the day on which the person becomes qualified for youth allowance; or

      2. (ii)

        the day on which the person claims a youth allowance; and

    2. (b)

      the person is not a transferee to a youth allowance;

the person is subject to a liquid assets test waiting period.

Note 1: For liquid assets and maximum reserve see section 14A.

Note 2: For transferee to a youth allowance see subsections 23(6) and (7).

Exception—person already subject to liquid assets test waiting period in previous 12 months

  1. (2)

    Subsection (1) does not apply to a person if, at any time during the 12 months before:

    1. (a)

      the day on which the person becomes qualified for youth allowance; or

    2. (b)

      the day on which the person claims youth allowance;

the person:

  1. (c)

    was subject to a liquid assets test waiting period under this Part and that period has ended; or

  2. (d)

    has served a liquid assets test waiting period under another Part of this Act; or

  3. (e)

    has served a liquid assets test waiting period under the Student and Youth Assistance Act 1973 as in force immediately before the commencement of this section;

that started during that 12 months.

Exception—waiver for disadvantage or hardship

  1. (3)

    If the Secretary is satisfied that the application of subsection (1) to a person will cause undue long term disadvantage or significant hardship to the person, the Secretary may:

    1. (a)

      waive the application of that subsection to the person; and

    2. (b)

      authorise the payment of a youth allowance to the person.

Exception—certain transferees to youth allowance

  1. (4)

    Subsection (1) does not apply to a person if:

    1. (a)

      the person is a transferee to a youth allowance; and

    2. (b)

      the person claims the youth allowance within 14 days of the transfer day.

Exception— person in formal vocational training in a labour market program etc.

  1. (5)

    Subsection (1) does not apply to a person who:

    1. (a)

      has started:

      1. (i)

        formal vocational training in a labour market program approved by the Secretary; or

      2. (ii)

        a rehabilitation program approved by the Secretary; and

    2. (b)

      has been exempted from the application of that subsection by the Secretary.

549BStart of liquid assets test waiting period

General

  1. (1)

    The liquid assets test waiting period of a person who does not have a temporary incapacity exemption starts on the day on which the person became qualified for youth allowance.

Person has temporary incapacity exemption

  1. (2)

    If a person has a temporary incapacity exemption, the person’s liquid assets test waiting period starts on the day on which the person became incapacitated.

549CLength of liquid assets test waiting period

Number of weeks

  1. (1)

    A person’s liquid assets test waiting period is:

    1. (a)

      if the result obtained under subsection (2) is 13 or more whole weeks—13 weeks; or

    2. (b)

      if the result obtained under subsection (2) is fewer than 13 whole weeks—the number of whole weeks obtained under that subsection.

Working out number of weeks

  1. (2)

    Subject to subsection (3), the number of weeks is worked out by using the following formula:

where:

divisor, in relation to the person, means:

  1. (a)

    if the person is not a member of a couple and does not have a dependent child—$500; or

  2. (b)

    otherwise—$1,000.

liquid assets means the person’s liquid assets on the day referred to in subparagraph 549A(4)(a)(i) or (ii) (as the case requires).

maximum reserve amount means the maximum reserve in relation to the person under subsection 14A(1).

Weeks etc. to be disregarded

  1. (3)

    For the purposes of subsection (2), disregard:

    1. (a)

      any weeks after the person claimed youth allowance during which the person was not qualified for youth allowance; and

    2. (b)

      any fractions of a week.

549DNewly arrived resident’s waiting period

Basic rule

  1. (1)

    Subject to this section, a person is subject to a newly arrived resident’s waiting period if the person:

    1. (a)

      has entered Australia on or after 4 March 1997; and

    2. (b)

      has not been an Australian resident in Australia for a period of, or periods totalling, 104 weeks.

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

Exception—qualifying residence exemption

  1. (2)

    Subsection (1) does not apply to a person who has a qualifying residence exemption for a youth allowance.

    Note: For qualifying residence exemption see subsection 7(6).

Exception—person already subject to waiting period etc.

  1. (3)

    Subsection (1) does not apply to a person if:

    1. (a)

      the person has been subject to:

      1. (i)

        a newly arrived resident’s waiting period under this Act; or

      2. (ii)

        a waiting period under Part 2 of the Student and Youth Assistance Act 1973; or

      3. (iii)

        a newly arrived resident’s waiting period under Part 8 of the Student and Youth Assistance Act 1973 as in force immediately before the commencement of this section; and

    2. (b)

      that period has ended.

549ELength of newly arrived resident’s waiting period

If a person is subject to a newly arrived resident’s waiting period, the period:

  1. (a)

    starts on the day on which the person first entered Australia on or after 4 March 1997; and

  2. (b)

    ends when the person has been an Australian resident in Australia for a period of, or periods totalling, 104 weeks after that day.

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

549FEffect of being subject to 2 waiting periods

For the avoidance of doubt, if a person is subject to 2 waiting periods under this Subdivision, a youth allowance is not payable to the person until both of those waiting periods have ended.

Subdivision DActivity test non‑payment periods

550Third and subsequent activity test breaches lead to activity test non‑payment period

An activity test non‑payment period applies to a person if:

  1. (a)

    the person commits an activity test breach (latest breach); and

  2. (b)

    the latest breach is the third or subsequent activity test breach in the 2 years immediately before the day after the latest breach.

    Note: If the latest breach is the first or second activity test breach in the 2 years before the latest breach, an activity test rate reduction period applies to the person (see Subdivision B of Division 5).

550AActivity test breaches

A person has committed an activity test breach if:

  1. (a)

    the person is required to satisfy the activity test and fails to do so (see Subdivision B of Division 1); or

  2. (b)

    the person fails to satisfy any requirements relating to Youth Allowance Activity Agreements that apply to the person under Subdivision E of Division 1; or

  3. (c)

    the person has refused or failed, without reasonable excuse, to accept a suitable offer of employment; or

  4. (d)

    the person refuses or fails, without reasonable excuse, to provide information in relation to the person’s income from remunerative work when required to do so under this Act; or

  5. (e)

    the person knowingly or recklessly provides false or misleading information in relation to the person’s income from remunerative work when required to do so under this Act; or

  6. (f)

    immediately before becoming qualified for youth allowance:

    1. (i)

      the person was unemployed; and

    2. (ii)

      the person’s unemployment was due, directly or indirectly, to a voluntary act of the person; and

    3. (iii)

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

  7. (g)

    immediately before becoming qualified for youth allowance:

    1. (i)

      the person was unemployed; and

    2. (ii)

      the person’s unemployment was due to the person’s misconduct as a worker.

    Note: An activity test breach may also arise under other sections of this Act and the Student and Youth Assistance Act 1973 as in force immediately before the commencement of this section (see subsection 23(1)).

550BLength of activity test non‑payment period

Basic rule

  1. (1)

    Subject to subsections (2) and (3), the length of an activity test non‑payment period is 8 weeks.

Pre‑existing non‑payment period

  1. (2)

    If, at the time of the commencement of an activity test non‑payment period under this Part, the person is already subject to an activity test non‑payment period (pre‑existing non‑payment period), the pre‑existing non‑payment period is taken to end immediately before the commencement of the activity test non‑payment period under this Part.

Approved program of work for unemployment payment

  1. (3)

    If:

    1. (a)

      an activity test non‑payment period under this Part applies to (or would, apart from this subsection, apply to), a person; and

    2. (b)

      the person starts to participate in an approved program of work for unemployment payment;

the period ceases to apply to the person from and including the day on which the person starts to participate in the program (whether or not the person completes the participation in the program).

Note: For approved program of work for unemployment payment see subsection 23(1).

550CStart of activity test non‑payment period

Notice of start of period

  1. (1)

    Subject to paragraph 550D(2)(d), if an activity test non‑payment period applies to a person under this Part, the Secretary must give the person a written notice telling the person of the start of the period.

  2. (1A)

    A notice under subsection (1) must contain reasons why the activity test non-payment period applies to the person.

General rule

  1. (2)

    Subject to subsection (3) of this section and sections 550D and 550F, the activity test non‑payment period starts on the day on which the notice is given to the person.

Youth allowance ceasing to be payable

  1. (3)

    Subject to sections 550D and 550F, if:

    1. (a)

      on or before the day on which a person’s activity test non‑payment period would (apart from this subsection) have started, youth allowance ceases to be payable to the person; and

    2. (b)

      it has not ceased to be payable because of the application of an activity test non‑payment period;

the activity test non‑payment period starts on the day on which the youth allowance ceases to be payable to the person.

550DApplication of activity test non‑payment period before claims for youth allowance

Claim for youth allowance before end of notional activity test non‑payment period

  1. (1)

    Subject to section 550F, if:

    1. (a)

      at a time when the person was not qualified for a youth allowance, an event occurred that would have resulted in an activity test non‑payment period applying to the person under:

      1. (i)

        paragraph 550A(a) because the person would be taken to have failed the activity test under paragraph 541A(d); or

      2. (ii)

        paragraph 550A(f) or (g) (unemployment due to voluntary act or misconduct);

    had the person made a claim for a youth allowance; and

    1. (b)

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

the activity test non‑payment period is taken to have started on the day after the day on which the event occurred.

Claim for youth allowance after end of notional activity test non‑payment period

  1. (2)

    Subject to section 550F, if:

    1. (a)

      at a time when the person was not qualified for a youth allowance, an event occurred that would have resulted in an activity test non‑payment period applying to the person under:

      1. (i)

        paragraph 550A(a) because the person would be taken to have failed the activity test under paragraph 541A(d); or

      2. (ii)

        paragraph 550A(f) or (g) (unemployment due to voluntary act or misconduct);

    had the person made a claim for a youth allowance; and

    1. (b)

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

then:

  1. (c)

    the activity test non‑payment period is taken to have started 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 550C(1) in respect of the activity test non‑payment period.

550EInteraction with activity test breach rate reduction periods

Application of section

  1. (1)

    This section applies if, under this Part:

    1. (a)

      an activity test non‑payment period applies to a person; and

    2. (b)

      during the whole or a part of that period, the whole or a part of an activity test breach rate reduction period (overlap period) applies to the person.

      Note: An administrative breach rate reduction period may also apply to the person (see section 558C).

Overlap period

  1. (2)

    Subject to subsection (4), the activity test non‑payment period and the activity test breach rate reduction period are to run concurrently during the overlap period.

Which restriction is to apply

  1. (3)

    Subject to section 550F, only the non‑payment restriction relating to the activity test non‑payment period is to apply to the person during the overlap period.

Pre-existing activity test breach rate reduction period

  1. (4)

    If, at the time of the commencement of an activity test non‑payment period under this Part, the person is already subject to an activity test breach rate reduction period (pre‑existing reduction period), the pre‑existing reduction period is taken to end immediately before the commencement of the activity test non‑payment period under this Part.

550FInteraction with waiting periods

Application of section

  1. (1)

    This section applies if, under this Part:

    1. (a)

      an activity test non‑payment period applies to a person; and

    2. (b)

      during the whole or a part of that period, the whole or a part of a waiting period (overlap period) applies to the person.

      Note: An administrative breach rate reduction period may also apply to the person (see section 558C).

Overlap period

  1. (2)

    The non‑payment period and the waiting period are to run concurrently during the overlap period.

Which restriction is to apply

  1. (3)

    Despite any other provision of this Act, only the restriction on payment relating to the waiting period is to apply to the person during the overlap period.

550GEffect of sections 550C, 550D, 550E and 550F

For the avoidance of doubt, sections 550C, 550D, 550E and 550F do not prevent a youth allowance ceasing to be payable in circumstances that do not involve the application of an activity test non‑payment period under this Part.

550HWhere one event may give rise to both an activity test penalty and an administrative breach rate reduction period

  1. Note:

    The person’s ordinary income may be reduced under Module J below (student income bank).

Step 2. If the person is a member of a couple, work out the partner income free area using point 1067G‑H26.

  1. Note:

    The partner income free area is the maximum amount of ordinary income the person’s partner can have without affecting the person’s benefit.

Step 3. Use point 1067G-H27 to work out the person’s partner income excess. (If there is no partner income excess under that point, the person’s partner income excess is taken to be nil.)

Step 4. Use the person’s partner income excess to work out the person’s partner income reduction using point 1067G‑H28.

Step 5. Use point 1067G-H30 to work out the person’s ordinary income excess. (If there is no ordinary income excess under that point, the person’s ordinary income excess is taken to be nil.)

Step 6. Use the person’s ordinary income excess to work out the person’s ordinary income reduction using points 1067G‑H31, 1067G‑H32 and 1067G‑H33.

Step 7. Add the person’s partner income reduction and ordinary income reduction: the result is the person’s income reduction referred to in Step 12 of the Method statement in point 1067G‑A1.

Note 1: For ordinary income see subsection 8(1).

Note 2: The application of the income test is affected by provisions concerning:

(a) the general concept of ordinary income (sections 1072 and 1073);

(b) business income (sections 1074 and 1075);

(c) deemed income from financial assets (sections 1076 to 1084A);

(d) income from retirement funds and annuities (sections 1096 to 1099);

(e) disposal of income (sections 1106 to 1112);

Ordinary income of members of certain couples

  1. 1067G-H2

    If a person is a member of a couple and the person’s partner is receiving a social security pension, a service pension or a rehabilitation allowance, the person’s ordinary income is taken to be one half of the sum of:

    1. (a)

      the amount that would be the person’s ordinary income if he or she were not a member of a couple; and

    2. (b)

      the amount that would be the ordinary income of the person’s partner if the partner were not a member of a couple.

Friendly society amounts

1067G-H3

The ordinary income of a person:

  1. (a)

    who has a temporary incapacity exemption under section 542A; or

  2. (b)

    who is a partner of a person who has a temporary incapacity exemption under that section;

is not to include any amount received from an approved friendly society in respect of the incapacity to which the temporary incapacity exemption relates.

Termination payments

  1. 1067G-H4

    Subject to points 1067G‑H10 to 1067G‑H20 (inclusive), if:

    1. (a)

      a person’s employment has been terminated; and

    2. (b)

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

the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.

Ordinary income to include certain sick leave entitlements

  1. 1067G-H5

    If a person is qualified for youth allowance and has a temporary incapacity exemption under section 542A, the person’s ordinary income is taken to include an amount equal to the amount in respect of sick leave worked out under points 1067G‑H6, 1067G‑H7 and 1067G‑H8.

Sick leave entitlements

1067G-H6

If:

  1. (a)

    a person has sick leave entitlements on a day that the person is incapacitated for work; and

  2. (b)

    the person has the right to claim payment from the person’s employer by way of sick leave payment in respect of that day; and

  3. (c)

    the person’s employer is able to pay the person the person’s sick leave payment in respect of that day; and

  4. (d)

    the person is not receiving a leave payment (other than a sick leave payment) in respect of that day;

the person is, for the purposes of this point, taken to have received a sick leave payment equal to the person’s sick leave entitlements in respect of that day, assuming that the person does not exercise any rights the person may have in relation to the amount to be paid in respect of that day.

Subsequent consecutive applications of point 1067G‑H6

  1. 1067G-H7

    If point 1067G‑H6 has applied to a person in respect of a day, then, for the purposes of any subsequent consecutive applications of the point, the person’s sick leave entitlements are to be taken to be reduced by a day.

Sick leave payments already included in ordinary income

  1. 1067G-H8

    A person’s ordinary income is not to include a payment received by the person in respect of sick leave to the extent that an amount equal to the payment has been included in the person’s ordinary income under point 1067G‑H5.

Granting of allowance after a cancellation

1067G-H9

If:

  1. (a)

    point 1067G‑H5 has applied to a person while the person was qualified for youth allowance and had a temporary incapacity exemption under section 542A; and

  2. (b)

    that allowance has ceased to be payable under Subdivision B of Division 9 of Part 2.11, or has been cancelled under Subdivision E of that Division; and

  3. (c)

    at least 6 weeks after the day on which the youth allowance ceased to be payable or was cancelled, the person is granted youth allowance, and has a temporary incapacity exemption under section 542A, again;

point 1067G‑H5 applies to the person in respect of the person’s sick leave entitlements.

Rolling over lump sum leave payments

1067G-H10

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 this Module.

Certain leave payments taken to be ordinary income

  1. 1067G-H11

    Subject to points 1067G‑H5 to 1067G‑H9 (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 (income maintenance period) equal to the period of leave to which the payment relates.

More than one leave payment on a day

  1. 1067G-H12

    Subject to points 1067G‑H5 to 1067G‑H9 (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. 1067G-H13

    Subject to point 1067G‑H14, the income maintenance period starts on the day the person is paid the leave payment.

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

  1. 1067G-H14

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

Leave payments in respect of periods longer than a fortnight

1067G-H15 Subject to points 1067G‑H5 to 1067G‑H9 (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 (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 a part of an income maintenance period does not apply

  1. 1067G-H16

    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. 1067G-H17

    For the purposes of points 1067G‑H6 to 1067G‑H16 (inclusive), a person (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. 1067G-H18

    If a person receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1067G‑H10 to 1067G‑H17 (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. 1067G-H19

    In points 1067G‑H10 to 1067G‑H18 (inclusive):

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

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

Meaning of leave payment

  1. 1067G-H20

    In points 1067G‑H5 to 1067G‑H19 (inclusive):

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

Ordinary income includes certain periodical payments from relatives

  1. 1067G-H21

    Subject to point 1067G‑H22 (and despite paragraph 8(8)(z)), a person’s ordinary income for the purposes of this Module includes a periodical payment or benefit by way of gift or allowance from the father, mother, son, daughter, brother or sister of the person.

Board and lodging

  1. 1067G-H22

    A person’s ordinary income is not to include a payment to the person for board or lodging provided by the person to the person’s father, mother, son, daughter, brother or sister.

Ordinary income generally taken into account when first earned, derived or received

  1. 1067G-H23

    Subject to points 1067G‑H24 and 1067G‑H25, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

Ordinary income received at intervals longer than one fortnight

  1. 1067G-H24

    Subject to points 1067G‑H10 to 1067G‑H20 (inclusive), if:

    1. (a)

      a person receives a number of ordinary income payments; and

    2. (b)

      each payment is in respect of a period (work period) that is greater than a fortnight; and

    3. (c)

      there is reasonable predictability or regularity as to the timing of the payments; and

    4. (d)

      there is reasonable predictability as to the quantum of the payments;

the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by:

  1. (e)

    dividing the amount received by the number of days in the work period (daily rate); and

  2. (f)

    multiplying the daily rate by the number of days in the fortnight that are also within the work period.

Payment of arrears of periodic compensation payments

1067G-H25

If:

  1. (a)

    at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving youth allowance; and

  2. (b)

    in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by:

  1. (c)

    dividing the amount received by the number of days in the periodic payments period (daily rate); and

  2. (d)

    multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.

    Note: For periodic payments period see section 17.

Partner income free area

  1. 1067G-H26

    The partner income free area for a person is:

    1. (a)

      if the person is not receiving a social security benefit—the amount of income of the person (rounded up to the nearest dollar) beyond which newstart allowance would not be payable to the person if the person were qualified for a newstart allowance; or

    2. (b)

      if the person is receiving a social security benefit—the amount of income of the person (rounded up to the nearest dollar) beyond which that benefit would not be payable to the person.

Partner income excess

1067G-H27

If:

  1. (a)

    a person is a member of a couple; and

  2. (b)

    the person’s partner is not receiving a social security pension, service pension or a rehabilitation allowance; and

  3. (c)

    the partner’s ordinary income exceeds the partner income free area for the partner;

then:

  1. (d)

    the person has a partner income excess; and

  2. (e)

    the person’s partner income excess is the amount by which the partner’s ordinary income exceeds the partner income free area.

Partner income reduction

  1. 1067G-H28

    If a person has a partner income excess, the person’s partner income reduction is an amount equal to 70% of the person’s partner income excess.

    Example:

    Facts: Alice’s partner Martin has an ordinary income of $612. Assume that the partner income free area under point 1067G‑H26 is $462.

    Result: Martin’s ordinary income exceeds the partner income free area. Alice therefore has a partner income excess under point 1067G‑H27 of:

    Alice’s partner income reduction under point 1067G‑H28 is therefore:

Ordinary income free area

  1. 1067G-H29

    A person’s ordinary income free area is:

    1. (a)

      if the person is undertaking full‑time study at any time in the fortnight in respect of which a youth allowance may be payable—$230; or

    2. (b)

      otherwise—$60.

Ordinary income excess

  1. 1067G-H30

    If a person’s ordinary income exceeds the person’s ordinary income free area:

    1. (a)

      the person has an ordinary income excess; and

    2. (b)

      the person’s ordinary income excess is the amount by which the person’s ordinary income exceeds the person’s ordinary income free area.

Ordinary income reduction

  1. 1067G-H31

    If a person has an ordinary income excess, the person’s ordinary income reduction is the sum of:

    1. (a)

      the person’s lower range reduction (if any)(see point 1067G‑H32); and

    2. (b)

      the person’s upper range reduction (if any) (see point 1067G‑H33).

Lower range reduction

  1. 1067G-H32

    The person’s lower range reduction is an amount equal to 50% of the part of the person’s ordinary income excess that does not exceed $80.

Upper range reduction

  1. 1067G-H33

    The person’s upper range reduction is an amount equal to 70% of the part (if any) of the person’s ordinary income excess that exceeds $80.

    Example:

    Facts: Further to the example at the end of point 1067G‑H28, Alice is receiving youth allowance and is not undertaking full-time study. Her ordinary income is $95.

    Result: Alice’s ordinary income free area under point 1067G‑H29 is $60.

    Her ordinary income exceeds her ordinary income free area. She therefore has an ordinary income excess under point 1067G‑H30 of:

    Because her ordinary income excess does not exceed $80:

    (a) her lower range reduction under point 1067G‑H32 is:

    (b) there is no upper range reduction under point 1067G‑H33.

    Her ordinary income reduction under point 1067G‑H31 is therefore $17.50.

    Alice’s income reduction referred to in Step 12 of point 1067G‑A1 is:

Module JStudent income bank

Student income bank

  1. 1067G-J1

    A person’s ordinary income under Module H may be reduced under this Module. This diagram sets out how to work out:

    1. (a)

      whether the person’s ordinary income for a particular fortnight, in respect of which youth allowance may be payable to the person, is to be reduced; and

    2. (b)

      if it is to be reduced, the amount of the reduction.

Application of this Module

  1. 1067G-J2

    This Module applies to a person during a particular fortnight, in respect of which youth allowance may be payable to the person, if the person is undertaking full‑time study (see section 541B) at any time during the fortnight.

Income bank credit

  1. 1067G-J3

    A person’s income bank credit for a particular income bank fortnight of the person is to be worked out as follows:

Method statement

Step 1. Assume that the person’s income bank credit, at the time this Module starts applying to the person, is an opening balance of zero.

Step 2. If, for the person’s first income bank fortnight, the person has an income credit under point 1067G‑J4, add it to the opening balance.

Step 3. For each subsequent income bank fortnight of the person, up to but not including the fortnight in question, either:

  1. (a)

    if the person has an income credit for that fortnight under point 1067G‑J4—add it to the balance of the person’s income bank credit in respect of all the previous fortnights, but not so as to increase the balance beyond $6,000; or

  2. (b)

    if the person has, in respect of that fortnight, drawn from the person’s income bank credit under point 1067G‑J5—deduct from that balance the amount drawn, but not so as to reduce the balance below zero.

The result is the person’s income bank credit for the fortnight in question.

Income credit

  1. 1067G-J4

    For the purposes of point 1067G‑J3, if the amount that would, apart from this Module, be the person’s ordinary income for an income bank fortnight of the person is less than $230:

    1. (a)

      the person has an income credit for that fortnight; and

    2. (b)

      the income credit is an amount equal to the difference between $230 and the first‑mentioned amount.

Drawing from income bank credit

  1. 1067G-J5

    For the purposes of point 1067G‑J3, if the amount that would, apart from this Module, be the person’s ordinary income for an income bank fortnight of the person is greater than $230:

    1. (a)

      the person is taken to have drawn from the person’s income bank credit in respect of that fortnight; and

    2. (b)

      the amount drawn is taken to be an amount equal to the difference between the first‑mentioned amount and $230.

Income bank fortnight

  1. 1067G-J6

    For the purposes of this Module, an income bank fortnight of a person is any fortnight, in respect of which youth allowance may be payable to the person, during the whole or a part of which this Module applies to the person.

Module KRemote area allowance

Remote area allowance—person physically in remote area

  1. 1067G-K1

    An amount by way of remote area allowance is to be added to a person’s rate of youth allowance if:

    1. (a)

      the person’s rate of youth allowance apart from this point is greater than nil; and

    2. (b)

      the person’s usual place of residence is situated in the remote area; and

    3. (c)

      the person is physically present in the remote area.

      Note 1: For remote area see subsection 14(1).

      Note 2: A person may be considered to be physically present in a remote area during temporary absences (see subsection 14(2)).

Rate of remote area allowance

  1. 1067G-K2

    A person’s rate of remote area allowance is worked out using Table K. Work out which family situation in the table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each child of the person, being a child to whom point 1067G‑K8 applies.

Table K—Remote area allowance

Column 1

Item

Column 2

Person’s family situation

Column 3

Basic allowance

Column 4

Additional allowance for each child

1

Not a member of a couple

$17.50

$7.00

2

Partnered

$15.00

$7.00

3

Member of an illness separated couple

$17.50

$7.00

4

Partnered (partner in gaol)

$17.50

$7.00

Note: For member of a couple, partnered, illness separated couple and partnered (partner in gaol) see section 4.

Meaning of remote area allowance

  1. 1067G-K3

    In Table K, remote area allowance means an amount added to a person’s youth allowance by way of remote area allowance.

In remote area

  1. 1067G-K4

    For the purposes of Table K, a person is in the remote area if:

    1. (a)

      the person’s usual place of residence is in the remote area; and

    2. (b)

      the person is physically present in the remote area.

Children must be physically present in Australia

  1. 1067G-K5

    A person’s remote area allowance is not to include additional allowance for a child unless the child is physically present in Australia.

Special rule if partner has a child but is not receiving a pension

1067G-K6

If:

  1. (a)

    an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

  2. (b)

    the person’s partner is not receiving a social security pension or social security benefit; and

  1. (c)

    the person’s partner has a child to whom point 1067G‑K8 applies;

the child is taken, for the purposes of this Module, to be a child of the person, being a child to whom point 1067G‑K8 applies.

Special rule if partner has a child but is not receiving additional allowance for the child

1067G-K7

If:

  1. (a)

    an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

  2. (b)

    the person’s partner has a child to whom point 1067G‑K8 applies; and

  3. (c)

    the person’s partner is not receiving additional allowance for the child;

the child is taken, for the purposes of this Module, to be a child of the person, being a child to whom point 1067G‑K8 applies.

Child to whom this point applies

  1. 1067G-K8

    This point applies to a dependent child in respect of whom family payment is payable at a rate exceeding the minimum family payment rate.

    Note 1: For dependent child see subsections 5(2) to (9).

    Note 2: For minimum family payment rate see subsection 6(1).

Module LTable of pensions, benefits and allowances

Table of pensions, benefits and allowances

Item

Type of pension, benefit and allowance

1

Age pension

(Part 2.2)

2

Service pension (age)

(Section 36 of the Veterans’ Entitlements Act)

3

Defence widow’s pension—if the widow has no dependent children

(Section 70 of the Veterans’ Entitlements Act)

4

War widow’s pension—if the widow has no dependent children

(Section 13 of the Veterans’ Entitlements Act)

5

Bereavement allowance

(Part 2.7)

6

Wife pension—if husband gets age pension

(Part 2.4)

7

Service pension (partner)—if husband gets service pension (age)

(Section 38 of the Veterans’ Entitlements Act)

8

Mature age allowance

(Part 2.12A or 2.12B)

9

Mature age partner allowance

(Part 2.12A or 2.12B)

10

Rehabilitation allowance

(Clause 35 of Schedule 1A)

11

Commonwealth allowance

(New Enterprise Incentive Scheme (NEIS))

12

Carer payment

(Part 2.5)

13

Service pension (carer)

(Section 39 of the Veterans’ Entitlements Act)

14

Defence widow’s pension—if the widow has a dependent child

(Section 70 of the Veterans’ Entitlements Act)

15

Disability support pension

(Part 2.3)

16

Service pension (invalidity)

(Section 37 of the Veterans’ Entitlements Act)

17

Pension PP (single)

(Part 2.10)

18

Widow B pension

(Part 2.8)

19

Tuberculosis allowance

(Section 9 of the Tuberculosis Act 1984)

20

War widow’s pension—if the widow has a dependent child

(Section 13 of the Veterans’ Entitlements Act)

21

Wife pension—if husband gets a disability support pension

(Part 2.4 as in force on 11 November 1991)

22

Wife’s service pension—if husband gets an invalidity service pension

(Section 40 of the Veterans’ Entitlements Act)

23

Newstart allowance

(Part 2.12)

24

Sickness allowance

(Part 2.14)

25

Special benefit

(Part 2.15)

26

Benefit PP (partnered)

(Part 2.10)

27

Commonwealth allowance for full‑time vocational training, except:

(a) AUSTUDY;

(b) an allowance under the Veterans’ Children Education Scheme;

(c) an allowance under:

(i) the Assistance for Isolated Children Scheme; or

(ii) the ABSTUDY Scheme; or

(iii) the Aboriginal Overseas Study Assistance Scheme.

(Student and Youth Assistance Act 1973)

(Part 7 of the Veterans’ Entitlements Act)

9

Point 1068B-A1

Repeal the point, substitute:

Method of calculating rategeneral

  1. 1068B‑A1

    The rate of PP (partnered) is a fortnightly rate. There are 3 ways of working out a person’s rate:

    1. (a)

      one for non‑benefit PP (partnered) (see point 1068B‑A2); and

    2. (b)

      one for benefit PP (partnered) if the person is not a partner of a non-independent YA recipient (see point 1068B‑A3); and

    3. (c)

      one for benefit PP (partnered) if the person is a partner of a non-independent YA recipient (see point 1068B‑A3A).

Use Module B to decide whether parenting payment is a non‑benefit PP (partnered) or a benefit PP (partnered).

Note: For partner of a non-independent YA recipient see subsection 23(1).

10

Point 1068B-A3

After “benefit PP (partnered)”, insert “and the person is not a partner of a non-independent YA recipient”.

11

At the end of point 1068B-A3

Add:

Note: For partner of a non-independent YA recipient see subsection 23(1).

12

After point 1068B-A3

Insert:

Method of calculating ratebenefit PP (partnered) for partner of a non-independent YA recipient

  1. 1068B‑A3A

    If parenting payment is a benefit PP (partnered) and the person is a partner of a non-independent YA recipient, the rate of parenting payment is worked out as follows:

Method statement

Step 1. Work out the person’s maximum basic rate using Module C below.

Step 2. Apply the income test using Module E of the rate calculator in section 1068A to work out the person’s income reduction as if the person was not a member of a couple.

Step 3. Take the income reduction away from the person’s maximum basic rate: the result is the income reduced rate.

  1. Note:

    The result may be a negative amount.

Step 4. Work out the amount per fortnight (if any) of rent assistance (see Module F below).

Step 5. Work out the amount per fortnight (if any) of pharmaceutical allowance (see Module E below).

Step 6. Add up the amounts obtained in Steps 3, 4 and 5: the result is the provisional payment rate. If the result is a negative amount the provisional payment rate is taken to be nil.

Step 7. The rate of benefit PP (partnered) is the difference between:

  1. (a)

    the provisional payment rate; and

  2. (b)

    any advance payment deduction (see Part 3.16A);

plus any amount payable by way of remote area allowance (see Module G).

Note: For partner of a non-independent YA recipient see subsection 23(1).

13

Point 1068B-B1

Omit “The question”, substitute “Subject to point 1068B-B8, the question”.

14

Point 1068B-B1 (note)

Renumber as Note 1.

15

At the end of point 1068B-B1

Add:

Note 2: If the person is a partner of a non-independent YA recipient, use point 1068B-B8 to work out whether parenting payment payable to the person is a non-benefit PP (partnered) or a benefit PP (partnered).

16

Point 1068B-B4

Omit “If the person”, substitute “For the purposes of point 1068B‑B1, if the person”.

17

Point 1068B-B5

Omit “If the person”, substitute “For the purposes of point 1068B‑B1, if the person”.

18

After point 1068B-B7

Insert:

Partner of a non-independent YA recipient

  1. 1068B‑B8

    If the person is a partner of a non-independent YA recipient:

    1. (a)

      parenting payment is a non-benefit PP (partnered) if the value of the person’s assets exceeds what would be the person’s assets value limit under subsection 500Q(2) if the person were not a member of a couple; or

    2. (b)

      parenting payment is a benefit PP (partnered) if the value of the person’s assets does not exceed what would be the person’s assets value limit under that subsection if the person were not a member of a couple.

      Note: For partner of a non-independent YA recipient see subsection 23(1).

[Minister's second reading speech

made in House of Representatives on 2 October 1997

tabled in Senate on 3 December 1997]

(181/97)

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