Social Security Matched Savings Scheme (Income Management) Payment (Qualification) Principles 2010 (Cth)

Social Security Matched Savings Scheme (Income Management) Payment (Qualification) Principles 2010

Social Security Act 1991

I, JENNY MACKLIN, Minister for Families, Housing, Community Services and Indigenous Affairs, acting under subsection 1061WG(3) of the Social Security Act 1991 and on behalf of the Minister for Education and the Minister for Employment and Workplace Relations, make these Principles.

Dated   29^th July   2010

J Macklin

Minister for Families, Housing, Community Services and Indigenous Affairs

Part 1      Preliminary

1. Name of Principles

These Principles are the Social Security Matched Savings Scheme (Income Management) Payment (Qualification) Principles 2010.

1. Commencement

These Principles commence on 9 August 2010.

1. Interpretation

1. In these Principles:

Act means the Social Security Act 1991.

concluding savings period means the period of 6 weeks that occurs immediately before the end of the qualifying savings period.

financial institution has the meaning given by subsection 23(1) of the Act.

independent record, in relation to an account, means a document prepared by, or provided by, the financial institution with which the account is held.

joint account, in relation to a person, means an account that is held by the person jointly or in common with one or more other people.

outstanding claim means a claim, made under Division 1 of Part 3 of the Social Security (Administration) Act 1999, for a matched savings scheme (income management) payment, that has not been determined under section 36 of that Act.

Note 1:   The terms first amount, qualifying savings amount and second amount are defined in subsection 1061WG(4) of the Act.

Note 2:   For account, see subsection 23(1) of the Act.

1. For these Principles, an account is the person’s account if it is held in the person’s name (regardless of whether it is held by the person alone, or is a joint account).

1. Purpose

These Principles set out the decision-making principles that the Secretary must comply with in deciding whether he or she is satisfied, as mentioned in paragraph 1061WG(1)(b) of the Act, that a person who has made a claim for a matched savings scheme (income management) payment:

(a)has maintained a pattern of regular savings throughout the qualifying savings period; and

(b)has a qualifying savings amount.

Part 2             Decision-Making Principles

1. Duration of qualifying savings period

1. The Secretary must work out, in accordance with subsection (2), the duration of the period that constitutes the qualifying savings period in relation to the person.

1. The duration of the qualifying savings period is to be worked out by having regard to:

(a)the date nominated by the person as the beginning of the period; and

(b)the date nominated by the person as the end of the period.

Note:   The qualifying savings period must be a period of at least 13 consecutive weeks, beginning after the person has commenced the approved course mentioned in paragraph 1061WG(1)(a) of the Act – see subparagraph 1061WG(1)(b)(i) of the Act.

1. Savings ― accounts with financial institutions

The Secretary must be satisfied:

(a)that the savings in respect of which the person (the first person) has made their claim for a matched savings scheme (income management) payment are held in no more than one account; and

(b)if the savings are held in a joint account:

(i)      that no matched savings scheme (income management) payment has been paid to any person (including the first person) in respect of any money held in the joint account; and

(ii)     that there is no outstanding claim, made by a person other than the first person, for a matched savings scheme (income management) payment in respect of any money held in the joint account.

1. Savings ― verification of deposits and withdrawals

The Secretary must be satisfied that the person has provided an independent record of the total number, and quantum, of deposits, and withdrawals (if any), that have been made, during the qualifying savings period (worked out under section 5), from the person’s account.

1. Quantum of the first amount

1. The Secretary must work out, for subsection 1061WG(4) of the Act, the first amount (the amount of the person’s savings at the beginning of the qualifying savings period), having regard to:

(a)the amount nominated by the person as the first amount; and

(b)the amount that the independent record mentioned in section 7 indicates was in the person’s account at the beginning of the qualifying savings period.

1. For subsection (1), in working out the first amount, the Secretary must not have regard to:

(a)fees or charges (if any) payable in relation to the account before the beginning of the qualifying savings period (the first day) that have not been deducted from the account by the first day; and

(b)interest earned on the account (if any) before the first day that has not been credited to the account by the first day.

1. Quantum of the second amount

1. The Secretary must work out, for subsection 1061WG(4) of the Act, the second amount (the amount of the person’s savings at the end of the qualifying savings period), having regard to:

(a)the amount nominated by the person as the second amount; and

(b)the amount that the independent record mentioned in section 7 indicates was in the person’s account at the end of the qualifying savings period.

1. For subsection (1), in working out the first amount, the Secretary must not have regard to:

(a)fees or charges (if any) payable in relation to the account before the end of the qualifying savings period (the last day) that have not been deducted from the account by the last day; and

(b)interest earned on the account (if any) before the last day that has not been credited to the account by the last day.

Note:  The qualifying savings amount is the difference between the second amount and the first amount – see subsection 1061WG(4) of the Act.

1. Incidence of deposits

The Secretary must be satisfied, having regard to the independent record mentioned in section 7, that the amount that has been deposited to the person’s account during the concluding savings period does not constitute more than 50 percent of the qualifying savings amount (worked out in accordance with subsection 1061WG(4) of the Act and sections 8 and 9 of these Principles).