Social Security (Rewrite) Amendment Act 1991 (Cth)

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Social Security (Rewrite) Amendment Act 1991

No. 116 of 1991

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

[Assented to 27 June 1991]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the Social Security (Rewrite) Amendment Act 1991.

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

Commencement

2. This Act commences immediately after the Social Security (Rewrite) Transition Act 1991 and the Social Security (Job Search and Newstart) Amendment Act 1991 commence.

Incorporation of amendments made in the Budget Sittings 1990

3. The Principal Act is amended as set out in Schedule 1 to this Act.

Schedule of minor amendments of the Principal Act

4. The Principal Act is amended as set out in Schedule 2.

Replacement of International Agreement with the United Kingdom

5. Schedule 2 to the Principal Act is repealed and the Schedule set out in Schedule 3 to this Act is substituted.

Replacement of International Agreement with New Zealand

6. Schedule 4 to the Principal Act is repealed and the Schedule set out in Schedule 4 to this Act is substituted.

New International Agreement with Malta

7. The Principal Act is amended by adding at the end the Schedule set out in Schedule 5 to this Act.

Consequential amendments

8. The Acts referred to in Schedule 6 are amended as set out in that Schedule.

SCHEDULE 1 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO INCORPORATE AMENDMENTS MADE IN THE BUDGET SITTINGS 1990

Section 3:

  1. (a)

    Omit from the Index “resident of a retirement village”, substitute “retirement village resident”.

  1. (b)

    Insert in the Index the following entries:

“Aboriginal study assistance scheme

23 (1)

account

23 (1)

advance pensioner A

19a (2)

advance pensioner B

19a (4)

available money

8 (1)

continuing advance pensioner A

19a (3)

eligible 1947 Act pensioner

19a (5)

eligible 1991 Act pensioner

19a (6)

deposit money

8 (1)

financial institution

23 (1)

income money

1099b (1)

inhabitant of Australia

23 (1)

liquid assets

19a (1)

multiple entitlement exclusion date of effect provision

1223a (3)

pharmaceutical benefit

19a (1)

partner automatic rate adjustment provision

1223b (2)”.

Subsection 8 (1):

Insert the following definitions:

‘available money’, in relation to a person, means money that:

  1. (a)

    is held by or on behalf of the person; and

  2. (b)

    is not deposit money of the person; and

    1. (c)

      is not money to which Division 1b of Part 3.10 (income from loans) applies;

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

After paragraph 8 (8) (h):

Insert:

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

After paragraph 8 (8) (k):

Insert:

“(ka) where:

SCHEDULE 1—continued

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

(ii) the person has insurance which requires the insurer to make payments to the creditor when the person is unemployed or ill or in other specified circumstances; and

(iii) payments are made to the creditor under the insurance;

a payment so made;”.

Paragraph 8 (8) (s):

Omit the paragraph, substitute:

“(s) a payment received by a trainee in part-time training under a program included in programs known as the Labour Force Programs, if the trainee is also receiving a social security or service pension;”.

Subsection 8 (8):

Add at the end:

“(zg) a payment received by the person for serving, or being summoned to serve, on a jury;

(zh) a payment received by the person for expenses as a witness, other than an expert witness, before a court, tribunal or commission;

(zi) a payment towards the cost of personal care support services for the person, being a payment made under a scheme approved under section 35a.”.

Subparagraph 11 (4) (a) (ii):

Omit the subparagraph, substitute:

“(ii) either:

  1. (a)

    the person’s right or interest in the home gives the person reasonable security of tenure in the home; or

  2. (b)

    the person has a granny flat interest in the home and is a person to whom subsection 1150 (2) applies; and”.

Subparagraph 11 (4) (b) (ii):

Omit the subparagraph, substitute:

“(ii) either:

  1. (a)

    the person’s right or interest, or the partner’s right or interest, in the home gives the person, or the person’s partner, reasonable security of tenure in the home; or

  2. (b)

    the person has a granny flat interest in the home and is a person to whom subsection 1151 (2), 1152 (2), 1152 (5), 1153 (2), 1154 (2), 1155 (2), 1156 (2) or 1157 (2) applies; and”.

SCHEDULE 1 continued

Paragraph 11 (7) (b):

Omit the paragraph, substitute:

“(b) where the person is residing in a nursing home, the period of 2 years from the beginning of that residence;

(c) any period during which:

(i) the person is residing in a nursing home; and

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

(d) where:

(i) the person is residing in a nursing home; and

(ii) the person’s partner dies while residing in a nursing home; and

(iii) the person’s partner had resided in the nursing home for less than 2 years;

the period of 2 years from the beginning of that residence; and

(e) where:

(i) the person is residing in a nursing home; and

(ii) the person’s partner dies while not residing in a nursing home;

the period of 2 years from the partner’s death.

Note: for ‘residing in a nursing home’, see subsection 13 (8).” .

After paragraph 14 (1) (a):

Insert:

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

(ab) those places in Australia that, for the purposes of the Income Tax Assessment Act, are treated by the Commissioner for Taxation as being in a part of Australia referred to in paragraph (aa).”.

After section 19:

Insert:

Pharmaceutical allowance and advance pharmaceutical supplement definitions

“19a. (1) In Parts 2.22 and 2.23 of this Act, unless the contrary intention appears:

‘liquid assets’, in relation to a person, means:

SCHEDULE 1—continued

  1. (a)

    any cash held by, or on behalf of, the person; or

    1. (b)

      any amount deposited with or lent to a bank, building society, credit union or other financial institution (whether or not the amount can be withdrawn by, or paid to, the person immediately);

‘pharmaceutical benefit’ means a drug or medicinal preparation in relation to which Part VII of the National Health Act 1953 applies because of section 85 of that Act.

“(2) A person is an advance pensioner A if:

  1. (a)

    the person was an eligible 1947 Act pensioner on 8 November 1990; and

  1. (b)

    the person is an eligible 1991 Act pensioner.

Note 1: for ‘eligible 1947 Act pensioner’ see subsection (5) below.

Note 2: for ‘eligible 1991 Act pensioner’ see subsection (6) below.

“(3) A person is a continuing advance pensioner A if:

  1. (a)

    the person was an eligible 1947 Act pensioner on 8 November 1990; and

  1. (b)

    the person is an eligible 1991 Act pensioner; and

  2. (c)

    in the Secretary’s opinion:

    (i) the person does not have liquid assets of more than $1,000; and

    (ii) the person’s ordinary income is not more than $10 per week if the following are disregarded:

    (a) payments under this Act;

    (b) payments under the Veterans’ Entitlements Act;

    (c) payments of any benefit that the person is entitled to receive under the law of a foreign country if the amount of those payments reduces the person’s social security pension rate by an equivalent amount;

    (d) periodic payments by way of compensation if Part 3.14 applies to those payments;

Note 1: for ‘eligible 1947 Act pensioner’ see subsection (5) below.

Note 2: for ‘eligible 1991 Act pensioner’ see subsection (6) below.

Note 3: for ‘liquid assets’ see subsection (1) above.

“(4) A person is an advance pensioner B if:

(a) the person either:

(i) became an eligible 1947 Act pensioner after 8 November 1990 and before 1 July 1991; or

(ii) becomes an eligible 1991 Act pensioner after 30 June 1991 and before 1 January 1992; and

  1. (b)

    the person is an eligible 1991 Act pensioner; and

  2. (c)

    in the Secretary’s opinion:

SCHEDULE 1—continued

(i) the person does not have liquid assets of more than $1,000; and

(ii) the person’s ordinary income is not more than $10 per week if the following are disregarded:

(a) payments under this Act;

(b) payments under the Veterans’ Entitlements Act;

(c) payments of any benefit that the person is entitled to receive under the law of a foreign country if the amount of those payments reduces the person’s social security pension rate by an equivalent amount;

(d) periodic payments by way of compensation if Part 3.14 applies to those payments.

Note 1: for ‘eligible 1947 Act pensioner’ see subsection (5) below.

Note 2: for ‘eligible 1991 Act pensioner’ see subsection (6) below.

Note 3: for ‘liquid assets’ see subsection (1) above.

“(5) A person is an eligible 1947 Act pensioner if:

(a) the person is receiving:

(i) an age, invalid, wife’s, carer’s, sole parent’s or class B widow’s pension under the 1947 Act; or

(ii) a widowed person’s, sheltered employment or rehabilitation allowance under the 1947 Act; and

(b) the person’s pension or allowance rate:

(i) is not reduced under the 1947 Act on the basis of the person’s income, maintenance income or property; or

(ii) is reduced under the 1947 Act but only:

(a) under Part XVII of the 1947 Act because of the receipt of periodic payments by way of compensation; or

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

“(6) A person is an eligible 1991 Act pensioner if:

  1. (a)

    the person is receiving a social security pension; and

  2. (b)

    the person’s social security pension rate:

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

    (ii) is reduced under this Act but only:

    1. (a)

      under Part 3.14 because of the receipt of periodic payments by way of compensation; or

    2. (b)

      by an amount equivalent to the amount of benefit to which the person is entitled under the law of a foreign country.

SCHEDULE 1—continued

“(7) For the purposes of this Act, a person has a pharmaceutical benefit purchase for a member of the person’s family if the person or the person’s partner buys a pharmaceutical benefit for:

  1. (a)

    the person; or

  2. (b)

    the partner; or

  3. (c)

    a dependant of the person; or

  4. (d)

    a dependant of the partner.”.

Subsection 23 (1):

(a) Omit the definition of “assurance of support debt”, substitute:

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

  1. (a)

    job search allowance under Part 2.11 of this Act; or

  2. (b)

    newstart allowance under Part 2.12 of this Act; or

  3. (c)

    special benefit under Part 2.15 of this Act; or

    1. (d)

      unemployment benefit under section 116 of the 1947 Act; or

    2. (e)

      job search allowance under section 117a of the 1947 Act; or

  4. (f)

    special benefit under section 129 of the 1947 Act;”.

(b) Omit the definition of “major disaster”, substitute:

‘major disaster’ means a disaster in respect of which a declaration is in force under section 36;”.

(c) Insert the following definitions:

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

‘Aboriginal study assistance scheme’ means:

  1. (a)

    the ABSTUDY Scheme; or

  2. (b)

    the Aboriginal Overseas Study Assistance Scheme; or

  3. (c)

    a scheme prescribed for the purposes of this definition;

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

‘inhabitant of Australia’ means:

  1. (a)

    an Australian resident; or

    1. (b)

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

    2. (c)

      the holder of a PRC (temporary) entry permit under those regulations;”.

SCHEDULE 1—continued

Subsection 23 (10a):

Omit “disqualification” (wherever occurring), substitute “waiting”.

Subsection 23 (10b):

Omit “and 598”, substitute “, 598 and 668a”.

After section 35:

Insert:

“35a. The Minister may, in writing, determine that a scheme for the provision of personal care support is an approved scheme for the purposes of this Act.”.

Paragraph 36 (1) (a):

Omit “or”, substitute “and”.

Paragraph 36 (1) (b):

Omit “significant”, substitute “severe and widespread”.

Subsection 36 (2):

Omit “one that is caused by humans”, substitute “otherwise”.

Section 36:

Add at the end:

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

After paragraph 44 (1) (a):

Insert:

“(aa) the person has not provided a tax file number for the person (see section 46a) or the person’s partner (see section 46b); or”.

After section 46:

Insert:

Provision of person’s tax file number

“46a. (1) An age pension is not payable to a person if:

  1. (a)

    the person is required under section 51a or 67a to give the Secretary a written statement of the person’s tax file number; and

  2. (b)

    at the end of the period of 28 days after the requirement is made, the person has neither:

    (i) given the Secretary a written statement of the person’s tax file number; nor

    (ii) given the Secretary a declaration by the person in a form

SCHEDULE 1—continued

approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the person’s declaration states that the person:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform the person of the person’s tax file number; and

(b) the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the person has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the person has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the person’s declaration states that an application by the person for a tax file number is pending; and

  2. (b)

    the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

    (i) if a tax file number is issued to the person—the tax file number; or

    (ii) if the application is refused—that the application has been refused; or

    (iii) if the application is withdrawn—that the application has been withdrawn; and

  3. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

Provision of partner’s tax file number

“46b. (1) Subject to subsection (4), an age pension is not payable to a person if:

  1. (a)

    the person is a member of a couple; and

    1. (b)

      the person is required under section 51b or 67b to give the Secretary a written statement of the tax file number of the person’s partner; and

    2. (c)

      at the end of the period of 28 days after the requirement is made the person has neither:

      (i) given the Secretary a written statement of the partner’s tax file number; nor

SCHEDULE 1—continued

(ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the partner’s declaration states that the partner:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the partner has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the partner’s declaration states that an application by the partner for a tax file number is pending; and

  2. (b)

    the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

    (i) if a tax file number is issued to the partner—the tax file number; or

    (ii) if the application is refused—that the application has been refused; or

    (iii) if the application is withdrawn—that the application has been withdrawn; and

  3. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

“(4) The Secretary may waive the requirement for a statement of the partner’s tax file number if the Secretary is satisfied that:

  1. (a)

    the person does not know the partner’s tax file number; and

  2. (b)

    the person can obtain none of the following from the partner:

    (i) the partner’s tax file number;

    (ii) a statement of the partner’s tax file number;

    (iii) a declaration by the partner under subparagraph (1) (c) (ii).”.

Section 47:

Repeal the section, substitute:

SCHEDULE 1—continued

Multiple entitlement exclusion

“47. (1) An age pension is not payable to a person if the person is already receiving a service pension.

“(2) If:

  1. (a)

    a person is receiving an age pension; and

    1. (b)

      another social security pension or a service pension becomes payable to the person;

the age pension is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: ‘social security pension’ includes sheltered employment and rehabilitation allowances.

Note 3: for the day on which the age pension ceases to be payable see section 71a.”.

After section 51:

Insert in Division 2:

Secretary may require claimant to give statement of claimant’s tax file number

“51a. If a claimant for an age pension is in Australia, the Secretary may require the claimant to give the Secretary a written statement of the claimant’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 46a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the claimant about the claimant’s tax file number and an authority by the claimant to the Commissioner of Taxation to give the Secretary certain information about the claimant’s tax file number: see subsections 46a (2) and (3).

Secretary may require claimant to give statement of partner’s tax file number

“51b. If:

  1. (a)

    a claimant for an age pension is a member of a couple; and

  2. (b)

    the claimant’s partner is in Australia;

the Secretary may require the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 46b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 46b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 46b (4).”.

Section 61:

Repeal the section, substitute:

Payment to person

“61. A person’s age pension is, subject to section 62, to be paid to that person.”.

SCHEDULE 1—continued

Section 63:

Repeal the section, substitute:

Payment into bank account etc.

“63. (1) Subject to subsection (6), age pension payable to a person is to be paid, at the intervals that the Secretary specifies, to the credit of a bank account, credit union account or building society account.

“(2) The account must be an account nominated and maintained by the person to whom the age pension is payable.

“(3) The account may be an account that is maintained by a person to whom the age pension is payable either alone or jointly or in common with another person.

“(4) Where a person to whom age pension is payable has not nominated an account for the purposes of subsection (1), then, subject to subsection (6), that pension is not to be paid.

“(5) Where:

(a) a person is not being paid age pension because of subsection (4); and

(b) the person nominates an account for the purposes of subsection (1);

the pension (including any amounts that would have been paid but for subsection (4)) is to be paid under subsection (1).

“(6) The Secretary may direct that the whole or a part of an amount of age pension that is payable to a person may be paid to the person in a different way from that provided for by subsection (1).

“(7) If the Secretary gives a direction under subsection (6), the age pension is to be payable in accordance with the direction.”.

Before section 68:

Insert in Division 7:

Secretary may require recipient to give statement of recipient’s tax file number

“67a. If a recipient of an age pension is in Australia, the Secretary may require the recipient to give the Secretary a written statement of the recipient’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 46a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the recipient about the recipient’s tax file number and an authority by the recipient to the Commissioner of Taxation to give the Secretary certain information about the recipient’s tax file number: see subsections 46a (2) and (3).

SCHEDULE 1—continued

Secretary may require recipient to give statement of partner’s tax file number

“67b. If:

  1. (a)

    an age pension recipient is a member of a couple; and

  2. (b)

    the recipient’s partner is in Australia;

the Secretary may require the recipient to give the Secretary a written statement of the tax file number of the recipient’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 46b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 46b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 46b (4).”.

Paragraph 71 (1) (c):

Insert “71a,” before “72”.

Paragraph 71 (2) (a):

Insert “73a,” before “74”.

Before section 72:

Insert in Subdivision B:

Automatic termination—transfer to new payment type

“71a. If:

  1. (a)

    a person is receiving an age pension; and

    1. (b)

      another social security pension or a social security benefit or a service pension becomes payable to the person;

the age pension ceases to be payable to the person immediately before the day on which the other pension or benefit becomes payable to the person.”.

Before section 74:

Insert in Subdivision C:

Automatic rate reduction—partner starting to receive pension or benefit

“73a. If:

  1. (a)

    a person is receiving an age pension; and

  2. (b)

    the person’s partner starts to receive:

    (i) a social security pension or benefit; or

    (ii) a service pension; and

    (c) the person’s age pension rate is reduced because of the partner’s receipt of that pension or benefit;

the age pension becomes payable to the person at the reduced rate on the day on which the partner starts to receive that pension or benefit.”.

SCHEDULE 1—continued

Section 91:

Add at the end:

“(3) If:

  1. (a)

    a person is receiving an age pension; and

  2. (b)

    the person is a member of a couple; and

  3. (c)

    the person dies; and

  4. (d)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision B in relation to the death of a dependent child; or

    (ii) would have been so qualified if the person had not died; and

    (e) the person’s partner claims the payments referred to in paragraph (d) within 3 months after the death of the child;

there is payable to the partner an amount equal to the sum of the following amounts:

(f) the difference between:

(i) the amount of age pension that would have been payable to the person under section 89 if the person had not died; and

(ii) the amount of age pension that would have been payable to the person apart from Subdivision B for the same period if the person had not died;

(g) any lump sum that would have been payable to the person under section 90 if the person had not died.

“(4) If:

  1. (a)

    a person is receiving an age pension; and

  2. (b)

    the person is not a member of a couple; and

  3. (c)

    the person dies; and

  4. (d)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision B in relation to the death of a dependent child; or

(ii) would have been so qualified if the person had not died;

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the sum of the following amounts:

(e) the difference between:

(i) the amount of age pension that would have been payable to the person under section 89 if the person had not died; and

(ii) the amount of age pension that would have been payable to the person apart from Subdivision B for the same period if the person had not died;

SCHEDULE 1—continued

(f) any lump sum that would have been payable to the person under section 90 if the person had not died.”.

Section 92:

Add at the end:

“Note: if a person qualifies for fringe benefits in accordance with this Division, the person will also qualify for pharmaceutical allowance under Part 2.22..

After paragraph 95 (1) (c):

Insert:

“(ca) the person has not provided a tax file number for the person (see section 97a) or the person’s partner (see section 97b); or”.

Section 97:

Add at the end:

Claim resulting from a major disaster

“(4) If a person:

  1. (a)

    claims a disaster relief payment; and

  2. (b)

    is qualified for the payment; and

    1. (c)

      as a result of the major disaster to which the payment relates, claims an invalid pension within 14 days of claiming the disaster relief payment;

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

After section 97:

Insert:

Provision of person’s tax file number

“97a. (1) An invalid pension is not payable to a person if:

  1. (a)

    the person is required under section 103a or 120a to give the Secretary a written statement of the person’s tax file number; and

  2. (b)

    at the end of the period of 28 days after the requirement is made, the person has neither:

    (i) given the Secretary a written statement of the person’s tax file number; nor

    (ii) given the Secretary a declaration by the person in a form approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the person’s declaration states that the person:

(i) has a tax file number but does not know what it is; and

SCHEDULE 1—continued

(ii) has asked the Commissioner of Taxation to inform the person of the person’s tax file number; and

(b) the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the person has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the person has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the person’s declaration states that an application by the person for a tax file number is pending; and

  2. (b)

    the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

    (i) if a tax file number is issued to the person—the tax file number; or

    (ii) if the application is refused—that the application has been refused; or

    (iii) if the application is withdrawn—that the application has been withdrawn; and

  3. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

Provision of partner’s tax file number

“97b. (1) Subject to subsection (4), an invalid pension is not payable to a person if:

  1. (a)

    the person is a member of a couple; and

    1. (b)

      the person is required under section 103b or 120b to give the Secretary a written statement of the tax file number of the person’s partner; and

    2. (c)

      at the end of the period of 28 days after the requirement is made the person has neither:

      (i) given the Secretary a written statement of the partner’s tax file number; nor

      (ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the partner’s declaration states that the partner:

(i) has a tax file number but does not know what it is; and

SCHEDULE 1—continued

(ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the partner has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the partner’s declaration states that an application by the partner for a tax file number is pending; and

  2. (b)

    the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

    (i) if a tax file number is issued to the partner—the tax file number; or

    (ii) if the application is refused—that the application has been refused; or

    (iii) if the application is withdrawn—that the application has been withdrawn; and

  3. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

“(4) The Secretary may waive the requirement for a statement of the partner’s tax file number if the Secretary is satisfied that:

  1. (a)

    the person does not know the partner’s tax file number; and

  2. (b)

    the person can obtain none of the following from the partner:

    (i) the partner’s tax file number;

    (ii) a statement of the partner’s tax file number;

    (iii) a declaration by the partner under subparagraph (1) (c) (ii).”.

Section 98:

Repeal the section, substitute:

Multiple entitlement exclusion

“98. (1) An invalid pension is not payable to a person if the person is already receiving a service pension.

“(2) If:

(a) a person is receiving an invalid pension; and

SCHEDULE 1—continued

(b) another social security pension or a social security benefit or service pension becomes payable to the person;

the invalid pension is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: ‘social security pension’ includes sheltered employment and rehabilitation allowances and ‘social security benefit’ includes job search and newstart allowances.

Note 3: for the day on which the invalid pension ceases to be payable see section 124a.”.

After section 103:

Insert in Division 2:

Secretary may require claimant to give statement of claimant’s tax file number

“103a. If a claimant for an invalid pension is in Australia, the Secretary may require the claimant to give the Secretary a written statement of the claimant’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 97a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the claimant about the claimant’s tax file number and an authority by the claimant to the Commissioner of Taxation to give the Secretary certain information about the claimant’s tax file number: see subsections 97a (2) and (3).

Secretary may require claimant to give statement of partner’s tax file number

“103b. If:

  1. (a)

    a claimant for an invalid pension is a member of a couple; and

  2. (b)

    the claimant’s partner is in Australia;

the Secretary may require the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 97b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 97b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 97b (4).”.

Section 114:

Repeal the section, substitute:

Payment to person

“114. A person’s invalid pension is, subject to section 115, to be paid to that person.”.

Section 116:

Repeal the section, substitute:

SCHEDULE 1—continued

Payment into bank account etc.

“116. (1) Subject to subsection (6), invalid pension payable to a person is to be paid, at the intervals that the Secretary specifies, to the credit of a bank account, credit union account or building society account.

“(2) The account must be an account nominated and maintained by the person to whom the invalid pension is payable.

“(3) The account may be an account that is maintained by a person to whom the invalid pension is payable either alone or jointly or in common with another person.

“(4) Where a person to whom invalid pension is payable has not nominated an account for the purposes of subsection (1), then, subject to subsection (6), that pension is not to be paid.

“(5) Where:

(a) a person is not being paid invalid pension because of subsection (4); and

(b) the person nominates an account for the purposes of subsection (1);

the pension (including any amounts that would have been paid but for subsection (4)) is to be paid under subsection (1).

“(6) The Secretary may direct that the whole or a part of an amount of invalid pension that is payable to a person may be paid to the person in a different way from that provided for by subsection (1).

“(7) If the Secretary gives a direction under subsection (6), the invalid pension is to be payable in accordance with the direction.”.

Before section 121:

Insert in Division 8:

Secretary may require recipient to give statement of recipient’s tax file number

“120a. If a recipient of an invalid pension is in Australia, the Secretary may require the recipient to give the Secretary a written statement of the recipient’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 97a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the recipient about the recipient’s tax file number and an authority by the recipient to the Commissioner of Taxation to give the Secretary certain information about the recipient’s tax file number: see subsections 97a (2) and (3).

Secretary may require recipient to give statement of partner’s tax file number

“120b. If:

(a) an invalid pension recipient is a member of a couple; and

SCHEDULE 1—continued

(b) the recipient’s partner is in Australia;

the Secretary may require the recipient to give the Secretary a written statement of the tax file number of the recipient’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 97b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 97b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 97b (4).”.

Paragraph 124 (1) (c):

Insert “124a,” before “125”.

Paragraph 124 (2) (a):

Insert “126a,” before “127”.

Before section 125:

Insert in Subdivision B:

Automatic termination—transfer to new payment type

“124a. If:

  1. (a)

    a person is receiving an invalid pension; and

    1. (b)

      another social security pension or a social security benefit or service pension becomes payable to the person;

the invalid pension ceases to be payable to the person immediately before the day on which the other pension or benefit becomes payable to the person.”.

Before section 127:

Insert in Subdivision C:

Automatic rate reduction—partner starting to receive pension or benefit

“126a. If:

  1. (a)

    a person is receiving an invalid pension; and

  2. (b)

    the person’s partner starts to receive:

    (i) a social security pension or benefit; or

    (ii) a service pension; and

    (c) the person’s invalid pension rate is reduced because of the partner’s receipt of that pension or benefit;

the invalid pension becomes payable to the person at the reduced rate on the day on which the partner starts to receive that pension or benefit.”.

SCHEDULE 1—continued

Section 144:

Add at the end:

“(3) If:

  1. (a)

    a person is receiving an invalid pension; and

  2. (b)

    the person is a member of a couple; and

  3. (c)

    the person dies; and

  4. (d)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision B in relation to the death of a dependent child; or

    (ii) would have been so qualified if the person had not died; and

    (e) the person’s partner claims the payments referred to in paragraph (d) within 3 months after the death of the child;

there is payable to the partner an amount equal to the sum of the following amounts:

(f) the difference between:

(i) the amount of invalid pension that would have been payable to the person under section 142 if the person had not died; and

(ii) the amount of invalid pension that would have been payable to the person apart from Subdivision B for the same period if the person had not died;

(g) any lump sum that would have been payable to the person under section 143 if the person had not died.

“(4) If:

  1. (a)

    a person is receiving an invalid pension; and

  2. (b)

    the person is not a member of a couple; and

  3. (c)

    the person dies; and

  4. (d)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision B in relation to the death of a dependent child; or

    (ii) would have been so qualified if the person had not died;

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the sum of the following amounts:

(e) the difference between:

(i) the amount of invalid pension that would have been payable to the person under section 142 if the person had not died; and

(ii) the amount of invalid pension that would have been

SCHEDULE 1—continued

payable to the person apart from Subdivision B for the same period if the person had not died;

(f) any lump sum that would have been payable to the person under section 143 if the person had not died.”.

Section 145:

Add at the end:

Note: if a person qualifies for fringe benefits in accordance with this Division, the person will also qualify for pharmaceutical allowance under Part 2.22.”.

After paragraph 148 (1) (b):

Insert:

“(ba) the person has not provided a tax file number for the person (see section 150a) or the person’s partner (see section 150b); or”.

Section 150:

Add at the end:

Claim resulting from a major disaster

“(4) If a person:

  1. (a)

    claims a disaster relief payment; and

  2. (b)

    is qualified for the payment; and

    1. (c)

      as a result of the major disaster to which the payment relates, claims a wife pension within 14 days of claiming the disaster relief payment;

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

After section 150:

Insert:

Provision of person’s tax file number

“150a. (1) A wife pension is not payable to a person if:

  1. (a)

    the person is required under section 155a or 171a to give the Secretary a written statement of the person’s tax file number; and

  2. (b)

    at the end of the period of 28 days after the requirement is made, the person has neither:

    (i) given the Secretary a written statement of the person’s tax file number; nor

    (ii) given the Secretary a declaration by the person in a form approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

SCHEDULE 1—continued

(a) the person’s declaration states that the person:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform the person of the person’s tax file number; and

(b) the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the person has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the person has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the person’s declaration states that an application by the person for a tax file number is pending; and

  2. (b)

    the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

    (i) if a tax file number is issued to the person—the tax file number; or

    (ii) if the application is refused—that the application has been refused; or

    (iii) if the application is withdrawn—that the application has been withdrawn; and

  3. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

Provision of partner’s tax file number

“150b. (1) Subject to subsection (4), a wife pension is not payable to a person if:

  1. (a)

    the person is required under section 155b or 171b to give the Secretary a written statement of the tax file number of the person’s partner; and

  2. (b)

    at the end of the period of 28 days after the requirement is made the person has neither:

    (i) given the Secretary a written statement of the partner’s tax file number; nor

    (ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the partner’s declaration states that the partner:

SCHEDULE 1—continued

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the partner has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the partner’s declaration states that an application by the partner for a tax file number is pending; and

  2. (b)

    the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

    (i) if a tax file number is issued to the partner—the tax file number; or

    (ii) if the application is refused—that the application has been refused; or

    (iii) if the application is withdrawn—that the application has been withdrawn; and

  3. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

“(4) The Secretary may waive the requirement for a statement of the partner’s tax file number if the Secretary is satisfied that:

  1. (a)

    the person does not know the partner’s tax file number; and

  2. (b)

    the person can obtain none of the following, from the partner:

    (i) the partner’s tax file number;

    (ii) a statement of the partner’s tax file number;

    (iii) a declaration by the partner under subparagraph (1) (b) (ii).”.

Section 151:

Repeal the section, substitute:

Multiple entitlement exclusion

“151. (1) A wife pension is not payable to a person if the person is already receiving a service pension.

“(2) If:

SCHEDULE 1—continued

  1. (a)

    a person is receiving a wife pension; and

    1. (b)

      another social security pension or a social security benefit or service pension becomes payable to the person;

the wife pension is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: ‘social security pension’ includes sheltered employment and rehabilitation allowances and ‘social security benefit’ includes job search and newstart allowances.

Note 3: for the day on which the wife pension ceases to be payable see section 175a.”.

After section 155:

Insert in Division 2:

Secretary may require claimant to give statement of claimant’s tax file number

“155a. If a claimant for a wife pension is in Australia, the Secretary may require the claimant to give the Secretary a written statement of the claimant’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 150a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the claimant about the claimant’s tax file number and an authority by the claimant to the Commissioner of Taxation to give the Secretary certain information about the claimant’s tax file number: see subsections 150a (2) and (3).

Secretary may require claimant to give statement of partner’s tax file number

“155b. If the partner of a claimant for a wife pension is in Australia, the Secretary may require the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 150b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner pf Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 150b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 150b (4).” .

Section 165:

Repeal the section, substitute:

Payment to person

“165. A person’s wife pension is, subject to section 166, to be paid to that person.”.

Section 167:

Repeal the section, substitute:

SCHEDULE 1—continued

Payment into bank account etc.

“167. (1) Subject to subsection (6), wife pension payable to a person is to be paid, at the intervals that the Secretary specifies, to the credit of a bank account, credit union account or building society account.

“(2) The account must be an account nominated and maintained by the person to whom the wife pension is payable.

“(3) The account may be an account that is maintained by a person to whom the wife pension is payable either alone or jointly or in common with another person.

“(4) Where a person to whom wife pension is payable has not nominated an account for the purposes of subsection (1), then, subject to subsection (6), that pension is not to be paid.

“(5) Where:

(a) a person is not being paid wife pension because of subsection (4); and

(b) the person nominates an account for the purposes of subsection (1);

the pension (including any amounts that would have been paid but for subsection (4)) is to be paid under subsection (1).

“(6) The Secretary may direct that the whole or a part of an amount of wife pension that is payable to a person may be paid to the person in a different way from that provided for by subsection (1).

“(7) If the Secretary gives a direction under subsection (6), the wife pension is to be payable in accordance with the direction.”.

Before section 172:

Insert in Division 7:

Secretary may require recipient to give statement of recipient’s tax file number

“171a. If a recipient of a wife pension is in Australia, the Secretary may require the recipient to give the Secretary a written statement of the recipient’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 150a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the recipient about the recipient’s tax file number and an authority by the recipient to the Commissioner of Taxation to give the Secretary certain information about the recipient’s tax file number: see subsections 150a (2) and (3).

Secretary may require recipient to give statement of partner’s tax file number

“171b. If the partner of a wife pension recipient is in Australia, the Secretary may require the recipient to give the Secretary a written statement of the tax file number of the recipient’s partner.

SCHEDULE 1 continued

Note 1: for the consequences of a failure to comply with the requirement see section 150b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 150b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 150b (4).” .

Paragraph 175 (1) (c):

Insert “175a, 175b,” before “176”.

Before section 176:

Insert in Subdivision B:

Automatic termination—transfer to new payment type

“175a. If:

  1. (a)

    a person is receiving a wife pension; and

    1. (b)

      another social security pension or a social security benefit or service pension becomes payable to the person;

the wife pension ceases to be payable to the person immediately before the day on which the other pension or benefit becomes payable to the person.

Automatic termination—transfer of partner to new payment type

“175b. If:

  1. (a)

    a person is receiving a wife pension; and

    1. (b)

      a social security pension, a social security benefit or a service pension becomes payable to the person’s partner; and

    2. (c)

      because the pension or benefit referred to in paragraph (b) becomes payable to the partner, an age pension, invalid pension or rehabilitation allowance ceases to be payable to the partner;

the wife pension ceases to be payable to the person immediately before the day on which the pension or benefit referred to in paragraph (b) becomes payable to the partner.”.

After section 195:

Insert:

“Subdivision DDeath of recipient

Death of recipient

“195a. If:

  1. (a)

    a person is receiving a wife pension; and

  2. (b)

    the person dies; and

  3. (c)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision C in relation to the death of a dependent child; or

SCHEDULE 1—continued

(ii) would have been so qualified if the person had not died; and

(d) the person’s partner claims the payments referred to in paragraph (c) within 3 months after the death of the child;

there is payable to the partner an amount equal to the sum of the following amounts:

(e) the difference between:

(i) the amount of wife pension that would have been payable to the person under section 194 if the person had not died; and

(ii) the amount of wife pension that would have been payable to the person apart from Subdivision C for the same period if the person had not died;

(f) any lump sum that would have been payable to the person under section 195 if the person had not died.”.

Section 196:

Add at the end:

“Note: if a person qualifies for fringe benefits in accordance with this Division, the person will also qualify for pharmaceutical allowance under Part 2.22.”.

Paragraphs 198 (1) (a) and (2) (a) and subsection 198 (3):

Omit “pensioner”, substitute “person” (wherever occurring).

Paragraph 198 (1) (b):

Omit the paragraph, substitute:

“(b) lives in a home that is either:

(i) the home of both the person and the severely handicapped person; or

(ii) adjacent to the home of the severely handicapped person; and”.

Subsection 198 (3) (paragraph (c) of definition of “severely handicapped person”):

Omit the paragraph, substitute:

“(c) is receiving a social security pension or benefit or a service pension.”.

After paragraph 199 (1) (b):

Insert:

“(ba) the person has not provided a tax file number for the person (see section 201a) or the person’s partner (see section 201b); or”.

Section 201:

Add at the end:

SCHEDULE 1—continued

Claim resulting from a major disaster

“(4) If a person:

  1. (a)

    claims a disaster relief payment; and

  2. (b)

    is qualified for the payment; and

    1. (c)

      as a result of the major disaster to which the payment relates, claims a carer pension within 14 days of claiming the disaster relief payment;

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

After section 201:

Insert:

Provision of person’s tax file number

“201a. (1) A carer pension is not payable to a person if:

  1. (a)

    the person is required under section 206a or 221a to give the Secretary a written statement of the person’s tax file number; and

  2. (b)

    at the end of the period of 28 days after the requirement is made, the person has neither:

    (i) given the Secretary a written statement of the person’s tax file number; nor

    (ii) given the Secretary a declaration by the person in a form approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the person’s declaration states that the person:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform the person of the person’s tax file number; and

(b) the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the person has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the person has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the person’s declaration states that an application by the person for a tax file number is pending; and

  1. (b)

    the person has given the Secretary a document by the person

SCHEDULE 1—continued

that authorises the Commissioner of Taxation to tell the Secretary:

(i) if a tax file number is issued to the person—the tax file number; or

(ii) if the application is refused—that the application has been refused; or

(iii) if the application is withdrawn—that the application has been withdrawn; and

  1. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

Provision of partner’s tax file number

“201b. (1) Subject to subsection (4), a carer pension is not payable to a person if:

  1. (a)

    the person is a member of a couple; and

    1. (b)

      the person is required under section 206b or 221b to give the Secretary a written statement of the tax file number of the person’s partner; and

    2. (c)

      at the end of the period of 28 days after the requirement is made the person has neither:

      (i) given the Secretary a written statement of the partner’s tax file number; nor

      (ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the partner’s declaration states that the partner:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the partner has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

“(3) The person satisfies this subsection if:

(a) the partner’s declaration states that an application by the partner for a tax file number is pending; and

SCHEDULE 1—continued

(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

(i) if a tax file number is issued to the partner—the tax file number; or

(ii) if the application is refused—that the application has been refused; or

(iii) if the application is withdrawn—that the application has been withdrawn; and

  1. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

“(4) The Secretary may waive the requirement for a statement of the partner’s tax file number if the Secretary is satisfied that:

  1. (a)

    the person does not know the partner’s tax file number; and

  2. (b)

    the person can obtain none of the following from the partner:

    (i) the partner’s tax file number;

    (ii) a statement of the partner’s tax file number;

    (iii) a declaration by the partner under subparagraph (1) (c) (ii).”.

Section 202:

Repeal the section, substitute:

Multiple entitlement exclusion

“202. (1) A carer pension is not payable to a person if the person is already receiving a service pension.

“(2) If:

  1. (a)

    a person is receiving a carer pension; and

    1. (b)

      another social security pension or a social security benefit or service pension becomes payable to the person;

the carer pension is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: ‘social security pension’ includes sheltered employment and rehabilitation allowances and ‘social security benefit’ includes job search and newstart allowances.

Note 3: for the day on which the carer pension ceases to be payable see section 225a.”.

After section 206:

Insert in Division 2:

SCHEDULE 1—continued

Secretary may require claimant to give statement of claimant’s tax file number

“206a. The Secretary may require a claimant for a carer pension to give the Secretary a written statement of the claimant’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 201a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the claimant about the claimant’s tax file number and an authority by the claimant to the Commissioner of Taxation to give the Secretary certain information about the claimant’s tax file number: see subsections 201a (2) and (3).

Secretary may require claimant to give statement of partner’s tax file number

“206b. If:

  1. (a)

    a claimant for a carer pension is a member of a couple; and

  2. (b)

    the claimant’s partner is in Australia;

the Secretary may require the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 201b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 201b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 201b (4).”.

Section 215:

Repeal the section, substitute:

Payment to person

“215. A person’s carer pension is, subject to section 216, to be paid to that person.”.

Section 217:

Repeal the section, substitute:

Payment into bank account etc.

“217. (1) Subject to subsection (6), carer pension payable to a person is to be paid, at the intervals that the Secretary specifies, to the credit of a bank account, credit union account or building society account.

“(2) The account must be an account nominated and maintained by the person to whom the carer pension is payable.

“(3) The account may be an account that is maintained by a person to whom the carer pension is payable either alone or jointly or in common with another person.

SCHEDULE 1—continued

“(4) Where a person to whom carer pension is payable has not nominated an account for the purposes of subsection (1), then, subject to subsection (6), that pension is not to be paid.

“(5) Where:

(a) a person is not being paid carer pension because of subsection (4); and

(b) the person nominates an account for the purposes of subsection (1);

the pension (including any amounts that would have been paid but for subsection (4)) is to be paid under subsection (1).

“(6) The Secretary may direct that the whole or a part of an amount of carer pension that is payable to a person may be paid to the person in a different way from that provided for by subsection (1).

“(7) If the Secretary gives a direction under subsection (6), the carer pension is to be payable in accordance with the direction.”.

Before section 222:

Insert in Division 7:

Secretary may require recipient to give statement of recipient’s tax file number

“221a. The Secretary may require a recipient of a carer pension to give the Secretary a written statement of the recipient’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 201a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the recipient about the recipient’s tax file number and an authority by the recipient to the Commissioner of Taxation to give the Secretary certain information about the recipient’s tax file number: see subsections 201a (2) and (3).

Secretary may require recipient to give statement of partner’s tax file number

“221b. If:

  1. (a)

    a carer pension recipient is a member of a couple; and

  2. (b)

    the recipient’s partner is in Australia;

the Secretary may require the recipient to give the Secretary a written statement of the tax file number of the recipient’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 201b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 201b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 201b (4).”.

Paragraph 225 (1) (c):

Insert “225a, 225b,” before “226”.

SCHEDULE 1—continued

Paragraph 225 (2) (a):

Insert “227a or” before “228”.

Before section 226:

Insert in Subdivision B:

Automatic termination—transfer to new payment type

“225a. If:

  1. (a)

    a person is receiving a carer pension; and

    1. (b)

      another social security pension or a social security benefit or service pension becomes payable to the person;

the carer pension ceases to be payable to the person immediately before the day on which the other pension or benefit becomes payable to the person.

Automatic termination—transfer of partner to new payment type

“225b. If:

  1. (a)

    a person is receiving a carer pension; and

  2. (b)

    the person being cared for is the carer’s partner; and

    1. (c)

      a social security pension, a social security benefit or a service pension becomes payable to the partner; and

    2. (d)

      because the pension or benefit referred to in paragraph (c) becomes payable to the partner, an age pension, invalid pension or rehabilitation allowance ceases to be payable to the partner;

the carer pension ceases to be payable to the person immediately before the day on which the pension referred to in paragraph (c) becomes payable to the partner.”.

Before section 228:

Insert in Subdivision C:

Automatic rate reduction—partner starting, to receive pension or benefit

“227a. If:

  1. (a)

    a person is receiving a carer pension; and

  2. (b)

    the person’s partner starts to receive:

    (i) a social security pension or benefit; or

    (ii) a service pension; and

    (c) the person’s carer pension rate is reduced because of the partner’s receipt of that pension or benefit;

the carer pension becomes payable to the person at the reduced rate on the day on which the partner starts to receive that pension or benefit.”.

SCHEDULE 1—continued

Section 246:

Add at the end:

“(3) If:

  1. (a)

    a person is receiving a carer pension; and

  2. (b)

    the person is a member of a couple; and

  3. (c)

    the person dies; and

  4. (d)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision C in relation to the death of a dependent child; or

    (ii) would have been so qualified if the person had not died; and

    (e) the person’s partner claims the payments referred to in paragraph (d) within 3 months after the death of the child;

there is payable to the partner an amount equal to the sum of the following amounts:

(f) the difference between:

(i) the amount of carer pension that would have been payable to the person under section 244 if the person had not died; and

(ii) the amount of carer pension that would have been payable to the person apart from Subdivision C for the same period if the person had not died;

(g) any lump sum that would have been payable to the person under section 245 if the person had not died.

“(4) If:

  1. (a)

    a person is receiving a carer pension; and

  2. (b)

    the person is not a member of a couple; and

  3. (c)

    the person dies; and

  4. (d)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision C in relation to the death of a dependent child; or

(ii) would have been so qualified if the person had not died;

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the sum of the following amounts:

(e) the difference between:

(i) the amount of carer pension that would have been payable to the person under section 244 if the person had not died; and

(ii) the amount of carer pension that would have been payable to the person apart from Subdivision C for the same period if the person had not died;

SCHEDULE 1—continued

(f) any lump sum that would have been payable to the person under section 245 if the person had not died.”.

Section 247:

Add at the end:

“Note: if a person qualified for fringe benefits in accordance with this Division, the person will also qualify for pharmaceutical allowance under Part 2.22.”.

After paragraph 253 (1) (a):

Insert:

“(aa) the person has not provided a tax file number for the person (see section 257a) or the person’s partner (see section 257b); or”.

Section 255:

Add at the end:

Claim resulting from a major disaster

“(4) If a person:

(a) claims a disaster relief payment; and

(b) is qualified for the payment; and

(c) as a result of the major disaster to which the payment relates, claims a sole parent pension within 14 days of claiming the disaster relief payment;

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

After section 257:

Insert:

Provision of person’s tax file number

“257a. (1) A sole parent pension is not payable to a person if:

  1. (a)

    the person is required under section 265a or 283a to give the Secretary a written statement of the person’s tax file number; and

  2. (b)

    at the end of the period of 28 days after the requirement is made, the person has neither:

    (i) given the Secretary a written statement of the person’s tax file number; nor

    (ii) given the Secretary an employment declaration and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the person’s employment declaration states that the person:

(i) has a tax file number but does not know what it is; and

SCHEDULE 1—continued

(ii) has asked the Commissioner of Taxation to inform the person of the person’s tax file number; and

(b) the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the person has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the person has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the person’s employment declaration states that an application by the person for a tax file number is pending; and

  2. (b)

    the person has given the Secretary a document by the person that authorises the Commissioner of Taxation to tell the Secretary:

    (i) if a tax file number is issued to the person—the tax file number; or

    (ii) if the application is refused—that the application has been refused; or

    (iii) if the application is withdrawn—that the application has been withdrawn; and

  3. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the person for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

Provision of partner’s tax file number

“257b. (1) Subject to subsection (4), a sole parent pension is not payable to a person if:

  1. (a)

    the person is a member of a couple; and

    1. (b)

      the person is required under section 265b or 283a to give the Secretary a written statement of the tax file number of the person’s partner; and

    2. (c)

      at the end of the period of 28 days after the requirement is made the person has neither:

      (i) given the Secretary a written statement of the partner’s tax file number; nor

      (ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).

“(2) The person satisfies this subsection if:

(a) the partner’s declaration states that the partner:

(i) has a tax file number but does not know what it is; and

SCHEDULE 1—continued

(ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

(b) the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

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

(ii) if the partner has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

“(3) The person satisfies this subsection if:

  1. (a)

    the partner’s declaration states that an application by the partner for a tax file number is pending; and

  2. (b)

    the person has given the Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Secretary:

    (i) if a tax file number is issued to the partner—the tax file number; or

    (ii) if the application is refused—that the application has been refused; or

    (iii) if the application is withdrawn—that the application has been withdrawn; and

  3. (c)

    the Commissioner of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and

  1. (d)

    the application for a tax file number has not been withdrawn.

“(4) The Secretary may waive the requirement for a statement of the partner’s tax file number if the Secretary is satisfied that:

  1. (a)

    the person does not know the partner’s tax file number; and

  2. (b)

    the person can obtain none of the following from the partner:

    (i) the partner’s tax file number;

    (ii) a statement of the partner’s tax file number;

    (iii) a declaration by the partner under subparagraph (1) (c) (ii).”.

Section 258:

Repeal the section, substitute:

Multiple entitlement exclusion

“258. (1) A sole parent pension is not payable to a person if the person is already receiving a service pension.

“(2) If:

(a) a person is receiving a sole parent pension; and

SCHEDULE 1—continued

(b) another social security pension or a social security benefit or service pension becomes payable to the person;

the sole parent pension is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: ‘social security pension’ includes sheltered employment and rehabilitation allowances and ‘social security benefit’ includes job search and newstart allowances.

Note 3: for the day on which the sole parent pension ceases to be payable see section 287a.

“(3) A sole parent pension is not payable to a woman if:

  1. (a)

    the woman is an armed services widow; and

  2. (b)

    the woman is receiving:

    (i) a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30 (1) of that Act; or

    (ii) a pension under the Seamen’s War Pensions and Allowances Act 1940 at a rate determined under subsection 18 (2) of that Act.

Note: for ‘armed services widow’ see subsection 4 (1).”.

After section 265:

Insert in Division 2:

Secretary may require claimant to give statement of claimant’s tax file number

“265a. If a claimant for a sole parent pension is in Australia, the Secretary may require the claimant to give the Secretary a written statement of the claimant’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 257a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary an employment declaration by the claimant about the claimant’s tax file number and an authority by the claimant to the Commissioner of Taxation to give the Secretary certain information about the claimant’s tax file number: see subsections 257a (2) and (3).

Secretary may require claimant to give statement of partner’s tax file number

“265b. If:

  1. (a)

    a claimant for a sole parent pension is a member of a couple; and

  1. (b)

    the claimant’s partner is in Australia;

the Secretary may require the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 257b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 257b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 257b (4).”.

SCHEDULE 1—continued

Section 275:

Repeal the section, substitute:

Payment to person

“275. A person’s sole parent pension is, subject to section 276, to be paid to that person.”.

Section 277:

Repeal the section, substitute:

Payment into bank account etc.

“277. (1) Subject to subsection (6), sole parent pension payable to a person is to be paid, at the intervals that the Secretary specifies, to the credit of a bank account, credit union account or building society account.

“(2) The account must be an account nominated and maintained by the person to whom the sole parent pension is payable.

“(3) The account may be an account that is maintained by a person to whom the sole parent pension is payable either alone or jointly or in common with another person.

“(4) Where a person to whom sole parent pension is payable has not nominated an account for the purposes of subsection (1), then, subject to subsection (6), that pension is not to be paid.

“(5) Where:

(a) a person is not being paid sole parent pension because of subsection (4); and

(b) the person nominates an account for the purposes of subsection (1);

the pension (including any amounts that would have been paid but for subsection (4)) is to be paid under subsection (1).

“(6) The Secretary may direct that the whole or a part of an amount of sole parent pension that is payable to a person may be paid to the person in a different way from that provided for by subsection (1).

“(7) If the Secretary gives a direction under subsection (6), the sole parent pension is to be payable in accordance with the direction.”.

After section 283:

Insert:

Secretary may require recipient to give statement of recipient’s tax file number

“283a. If a sole parent pension recipient is in Australia, the Secretary may require the recipient to give the Secretary a written statement of the recipient’s tax file number.

SCHEDULE 1—continued

Note 1: for the consequences of a failure to comply with the requirement see section 257a.

Note 2: in some cases the requirement can be satisfied by giving the Secretary an employment declaration by the recipient about the recipient’s tax file number and an authority by the recipient to the Commissioner of Taxation to give the Secretary certain information about the recipient’s tax file number: see subsections 257a (2) and (3).

Secretary may require recipient to give statement of partner’s tax file number

“283b. If:

  1. (a)

    a sole patent pension recipient is a member of a couple; and

  2. (b)

    the recipient’s partner is in Australia;

the Secretary may require the recipient to give the Secretary a written statement of the tax file number of the recipient’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 257b.

Note 2: in some cases the requirement can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information about the partner’s tax file number: see subsections 257b (2) and (3).

Note 3: the Secretary can waive the requirement in some cases: see subsection 257b (4).”.

Paragraph 287 (1) (c):

Insert “287a,” before “288”.

Paragraph 287 (2) (a):

Insert “290a,” before “291”.

Before section 288:

Insert in Subdivision B:

Automatic termination—transfer to new payment type

“287a. If:

  1. (a)

    a person is receiving a sole parent pension; and

    1. (b)

      another social security pension or a social security benefit or service pension becomes payable to the person;

the sole parent pension ceases to be payable to the person immediately before the day on which the other pension or benefit becomes payable to the person.”.

Before section 291:

Insert in Subdivision C:

Automatic rate reduction—partner starting to receive pension or benefit

“290a. If:

  1. (a)

    a person is receiving a sole parent pension; and

  2. (b)

    the person’s partner starts to receive:

    (i) a social security pension or benefit; or

    (ii) a service pension; and

SCHEDULE 1—continued

(c) the person’s sole parent pension rate is reduced because of the partner’s receipt of that pension or benefit;

the sole parent pension becomes payable to the person at the reduced rate on the day on which the partner starts to receive that pension or benefit.

Note: this provision may apply if the partner starts to receive the pension or benefit and this affects the application of the ordinary income test, the maintenance income test or the assets test to the person.”.

Section 312:

Add at the end:

“(3) If:

  1. (a)

    a person is receiving a sole parent pension; and

  2. (b)

    the person is a member of a couple; and

  3. (c)

    the person dies; and

  4. (d)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision C in relation to the death of a dependent child; or

    (ii) would have been so qualified if the person had not died; and

    (e) the person’s partner claims the payments referred to in paragraph (d) within 3 months after the death of the child;

there is payable to the partner an amount equal to the sum of the following amounts:

(f) the difference between:

(i) the amount of sole parent pension that would have been payable to the person under section 310 if the person had not died; and

(ii) the amount of sole parent pension that would have been payable to the person apart from Subdivision C for the same period if the person had not died;

(g) any lump sum that would have been payable to the person under section 311 if the person had not died.

“(4) If:

  1. (a)

    a person is receiving a sole parent pension; and

  2. (b)

    the person is not a member of a couple; and

  3. (c)

    the person dies; and

  4. (d)

    the person:

    (i) was qualified at the time of the person’s death for payments under Subdivision C in relation to the death of a dependent child; or

    (ii) would have been so qualified if the person had not died;

SCHEDULE 1—continued

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the sum of the following amounts:

(e) the difference between:

(i) the amount of sole parent pension that would have been payable to the person under section 310 if the person had not died; and

(ii) the amount of sole parent pension that would have been payable to the person apart from Subdivision C for the same period if the person had not died;

(f) any lump sum that would have been payable to the person under section 311 if the person had not died.”.

Section 313:

Add at the end:

“Note: if a person qualifies for fringe benefits in accordance with this Division, the person will also qualify for pharmaceutical allowance under Part 2.22.”.

After paragraph 316 (1) (a):

Insert:

“(aa) the person has not provided a tax file number for the person (see section 320a); or”.

Section 318:

Add at the end:

Claim resulting from a major disaster

“(4) If a person:

  1. (a)

    claims a disaster relief payment; and

  2. (b)

    is qualified for the payment; and

    1. (c)

      as a result of the major disaster to which the payment relates, claims a widowed person allowance within 14 days of claiming the disaster relief payment;

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

Alter section 320:

Insert:

Provision of person’s tax file number

“320a. (1) A widowed person allowance is not payable to a person if:

  1. (a)

    the person is required under section 325a or 340a to give the Secretary a written statement of the person’s tax file number; and

by virtue of this Agreement.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Agreement.

Done in duplicate at Canberra this 31st day of October 1988.

FOR THE GOVERNMENT

OF AUSTRALIA:

BRIAN HOWE

FOR THE GOVERNMENT

OF NEW ZEALAND:

GEOFFREY PALMER

________________

SCHEDULE 5 Section 7

New Schedule 7

SCHEDULE 7 Section 1208

AGREEMENT

between

AUSTRALIA

and

MALTA

ON SOCIAL SECURITY

Australia and Malta,

Wishing to strengthen the existing friendly relations between the two countries, and

Resolved to co-ordinate their social security systems;

Have agreed as follows:

PART 1

GENERAL PROVISIONS

ARTICLE 1

Interpretation

1. In this Agreement, unless the context otherwise requires:

. ‘applicable rate’ means, in relation to Malta, the rate that would otherwise have been payable to a claimant had the number of totalised contributions been all paid or credited under the legislation of Malta;

. ‘benefit’ means, in relation to a Party, a benefit for which provision is made in the legislation of that Party, and includes any additional amount, increase or supplement that is payable, in addition to that benefit, to or in respect of a person who qualifies for that additional amount, increase or supplement under the legislation of that Party;

. ‘Competent Authority’ means, in relation to Australia, the Secretary of the Department of Social Security and, in relation to Malta, the Director of Social Security;

. ‘Competent Institution’ means, in relation to Australia the Competent Authority for Australia and in relation to Malta, the Competent Authority for Malta;

SCHEDULE 5—continued

. ‘legislation’ means, in relation to a Party, the laws specified in Article 2 in relation to that Party;

. ‘period of insurance’ means, the period of contributions or any equivalent period which has been or can be used to acquire the right to a benefit under the legislation of Malta, but does not include any period deemed pursuant to Article 9 to be a period of insurance;

. ‘period of residence in Australia’, in relation to a person, means a period defined as such in the legislation of Australia, but does not include any period deemed pursuant to Article 7 to be a period in which that person was an Australian resident;

. ‘territory’ means, in relation to Australia, Australia as defined in the legislation of Australia and in relation to Malta, Malta as defined in the Constitution of Malta; and

. ‘widow’ means, in relation to Australia, a de jure widow but does not include a woman who is the de facto spouse of a man.

2. In the application by a Party of this Agreement in relation to a person, any term not defined in this Article shall, unless the context otherwise requires, have the meaning assigned to it in the legislation of either Party or, in the event of a conflict of meaning, by whichever of those laws is the more applicable to the circumstances of that person.

ARTICLE 2

Legislative Scope

1. Subject to paragraph 2, this Agreement shall apply to the following laws, as amended at the date of signature of this Agreement, and to any laws that subsequently amend, supplement or replace them:

(a) in relation to Australia: the Social Security Act 1947 in so far as the Act provides for, applies to or affects:

(i) age pensions;

(ii) invalid pensions;

(iii) wives’ pensions; and

(iv) pensions payable to widows; and

(b) in relation to Malta: the Social Security Act, 1987 as it provides for, applies to or affects:

(i) contributory pensions in respect of retirement;

(ii) contributory pensions in respect of invalidity;

(iii) contributory pensions in respect of widowhood; and

(iv) non-contributory assistance and pensions.

2. Notwithstanding the provisions of paragraph 1 the legislation of either Party shall not include any laws made at any time for the

SCHEDULE 5—continued

purpose of giving effect to any reciprocal agreement on Social Security entered into by either Party.

  1. 3.

    This Agreement shall apply to laws which extend the legislation of either Party to new categories of beneficiaries only if the two Parties so agree in a Protocol to this Agreement.

  2. 4.

    In respect of non-contributory assistance and pensions payable under the legislation of Malta, a citizen of Australia shall have the same rights as a citizen of Malta.

ARTICLE 3

Personal Scope

This Agreement shall apply to any person who:

  1. (a)

    is or has been an Australian resident; or

(b)

is or has been an insured person under the legislation of Malta, and, where applicable, to other persons in regard to the rights they derive from the person described above.

ARTICLE 4

Equality of Treatment

Subject to this Agreement, all persons to whom this Agreement applies shall be treated equally by a Party in regard to rights and obligations which arise whether directly under the legislation of that Party or by virtue of this Agreement.

PART II

PROVISIONS RELATING TO

AUSTRALIAN BENEFITS

ARTICLE 5

Residence or Presence in Malta or a Third State

1. Where a person would be qualified under the legislation of Australia or by virtue of this Agreement for a benefit except that he or she is not an Australian resident and in Australia on the date on which he or she lodges a claim for that benefit but he or she:

(a) is an Australian resident or residing in the territory of Malta or a third State with which Australia has concluded an agreement on social security that includes provision for co-operation in the assessment and determination of claims for benefits; and

(b) is in Australia, or the territory of Malta or that third State, that person shall be deemed, for the purposes of lodging that claim, to be an Australian resident and in Australia on that date.

2. Paragraph 1 shall not apply to a claimant for a wife’s pension who has never been an Australian resident.

SCHEDULE 5—continued

ARTICLE 6

Spouse Related Australian Benefits

For the purposes of this Agreement, a person who receives from Australia an Australian benefit due to the fact that the spouse of that person receives, by virtue of this Agreement, another Australian benefit shall be deemed to receive that first-mentioned benefit by virtue of this Agreement.

ARTICLE 7

Totalisation for Australia

1. Where a person to whom this Agreement applies has claimed an Australian benefit under this Agreement and has accumulated:

  1. (a)

    a period as an Australian resident that is less than the period required to qualify him or her, on that ground, under the legislation of Australia for a benefit; and

  2. (b)

    a period of residence in Australia equal to or greater than the minimum period identified in accordance with paragraph 4 for that person,

and has accumulated a period of insurance, then for the purposes of a claim for that Australian benefit, that period of insurance shall be deemed, only for the purposes of meeting any minimum qualifying periods for that benefit set out in the legislation of Australia, to be a period in which that person was an Australian resident.

2. For the purposes of paragraph 1, where a person:

  1. (a)

    has been an Australian resident for a continuous period which is less than the minimum continuous period required by the legislation of Australia for entitlement of that person to a benefit; and

  2. (b)

    has accumulated a period of insurance in two or more separate periods that equals or exceeds in total the minimum period referred to in subparagraph (a),

the total of the periods of insurance shall be deemed to be one continuous period.

  1. 3.

    For all purposes of this Article, where a period by a person as an Australian resident and a period of insurance coincide, the period of coincidence shall be taken into account once only by Australia as a period as an Australian resident.

  2. 4.

    The minimum period of residence in Australia which a person must have accumulated before paragraph 1 applies shall be as follows:

    (a) for the purposes of an Australian benefit that is payable to a person residing outside Australia, the minimum period required

SCHEDULE 5—continued

shall be one year, of which at least 6 months must be continuous; and

(b) for the purposes of an Australian benefit that is payable to an Australian resident, no minimum period shall be required.

  1. 5.

    For the purposes of a claim by a person for a pension payable to a widow, that person shall be deemed to have accumulated a period of insurance for any period for which her spouse accumulated a period of insurance but any period during which the person and her spouse both accumulated periods of insurance shall be taken into account once only.

  2. 6.

    Where a person receives in Malta a contributory pension in respect of retirement by virtue of this Agreement, Australia shall, for the purposes of this Article, regard the period during which that person receives that pension, up to the age of 65, as a period of insurance.

ARTICLE 8

Calculation of Australian Benefits

  1. 1.

    Subject to paragraph 2, where an Australian benefit is payable, whether by virtue of this Agreement or otherwise, to a person who is outside Australia the rate of that benefit shall be determined according to the legislation of Australia but when assessing the income of that person for the purposes of calculating the rate of the Australian benefit only a proportion of any Maltese contributory pension in respect of retirement, invalidity or widowhood which is received by that person shall be regarded as income. That proportion shall be calculated by multiplying the number of whole months accumulated by that person in a period of residence in Australia (not exceeding 300) by the amount of that Maltese benefit and dividing that product by 300.

  2. 2.

    A person referred to in paragraph 1 shall only be entitled to receive the concessional assessment of income described in that paragraph for any period during which the rate of that person’s Australian benefit is proportionalised under the legislation of Australia.

  3. 3.

    Where an Australian benefit is payable, whether by virtue of this Agreement or otherwise to a person who is resident in the territory of Malta, Australia shall disregard, when assessing the income of that person any non-contributory assistance and pension paid to that person by Malta.

  4. 4.

    Subject to the provisions of paragraph 5, where an Australian benefit is payable only by virtue of this Agreement to a person who is in Australia, the rate of that benefit shall be determined by:

    (a) calculating that person’s income according to the legislation of Australia but disregarding in that calculation the Maltese benefit received by that person;

SCHEDULE 5—continued

  1. (b)

    deducting the amount of the Maltese benefit received by that person from the maximum rate of that Australian benefit; and

  2. (c)

    applying to the remaining benefit obtained under subparagraph (b) the relevant rate calculation set out in the legislation of Australia, using as the person’s income the amount calculated under subparagraph (a).

  1. 5.

    Where a married person is, or both that person and his or her spouse are, in receipt of a Maltese benefit or benefits, each of them shall be deemed, for the purpose of paragraph 4 and for the legislation of Australia, to be in receipt of one half of either the amount of that benefit or the total of both of those benefits, as the case may be.

  2. 6.

    If a person would receive an Australian benefit except for the operation of paragraph 5 or except for that person’s failure to claim the benefit, then for the purposes of a claim by that person’s spouse for a payment under the legislation of Australia that person shall be deemed to receive that benefit.

  3. 7.

    The reference in paragraph 6 to a payment under the legislation of Australia to the spouse of a person is a reference to a payment of any benefit, pension or allowance payable under the Social Security Act 1947 as amended from time to time and whether payable by virtue of this Agreement or otherwise.

PART III

PROVISIONS RELATING TO MALTESE BENEFITS

ARTICLE 9

Totalisation for Malta

1. Where this Agreement applies and there is a period of insurance that is:

  1. (a)

    less than the period necessary to give a claimant entitlement to the benefit claimed under the legislation of Malta; and

  2. (b)

    equal to or greater than the minimum period mentioned in paragraph 3 for that benefit,

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

  1. 2.

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

  2. 3.

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

SCHEDULE 5—continued

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

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

  1. (a)

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

  2. (b)

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

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

ARTICLE 10

Calculation of Maltese Benefits

  1. 1.

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

  2. 2.

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

    1. (a)

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

    2. (b)

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

SCHEDULE 5—continued

but that pension shall not be payable if the formula

gives a result that is less than 15

where:

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

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

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

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

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

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

  1. (c)

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

  2. (d)

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

  3. (e)

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

3. Any statutory pension additional rates that are applicable to certain benefits covered by this Agreement that are payable under the legislation of Malta, payment of which is also linked to a yearly

SCHEDULE 5—continued

contribution average, shall be calculated in the same manner as that indicated in paragraph 2, as the case may require.

  1. 4.

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

  2. 5.

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

  3. 6.

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

PART IV

MISCELLANEOUS AND ADMINISTRATIVE PROVISIONS

ARTICLE 11

Lodgement of Documents

  1. 1.

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

  2. 2.

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

  3. 3.

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

  4. 4.

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

SCHEDULE 5—continued

ARTICLE 12

Determination of Claims

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

  1. (a)

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

  1. (b)

    any event or fact which is relevant to that entitlement,

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

  1. 2.

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

3.

Where:

  1. (a)

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

  2. (b)

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

4. Where:

  1. (a)

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

  2. (b)

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

  3. (c)

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

then

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

SCHEDULE 5—continued

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

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

  1. (a)

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

  2. (b)

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

  1. 6.

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

  2. 7.

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

ARTICLE 13

Payment of Benefits

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

(a) for Australia:

(i) age pensions;

(ii) invalid pensions;

(iii) wives’ pensions;

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

(v) class B widows’ pensions; and

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

  1. 2.

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

  2. 3.

    If a Party imposes legal or administrative restrictions on the transfer of its currency abroad, both Parties shall adopt measures as soon as practicable to guarantee the rights to payment of benefits derived

SCHEDULE 5—continued

under this Agreement. Those measures shall operate retrospectively to the time the restrictions were imposed.

  1. 4.

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

  2. 5.

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

  3. 6.

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

ARTICLE 14

Exchange of Information and Mutual Assistance

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

  1. (a)

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

  2. (b)

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

  3. (c)

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

  4. (d)

    at the request of one to the other, assist each other in relation to the implementation of agreements on social security entered into by either of the Parties with third States, to the extent and

SCHEDULE 5—continued

in the circumstances specified in an Administrative Arrangement made pursuant to Article 15.

  1. 2.

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

  2. 3.

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

  3. 4.

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

    1. (a)

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

    2. (b)

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

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

ARTICLE 15

Administrative Arrangement

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

ARTICLE 16

Resolution of Difficulties

  1. 1.

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

  2. 2.

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

  3. 3.

    Any dispute between the Parties concerning the interpretation of this Agreement which has not been resolved or settled by

SCHEDULE 5—continued

consultation in accordance with paragraph 1 or 2 shall, at the request of either Party, be submitted to arbitration.

  1. 4.

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

5.

The arbitrators shall determine their own procedures.

6.

The decision of the arbitrators shall be final and binding.

  1. 7.

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

ARTICLE 17

Review of Agreement

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

PART V—FINAL PROVISIONS

ARTICLE 18

Entry into Force and Termination

  1. 1.

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

  2. 2.

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

  3. 3.

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

  1. (a)

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

    1. (b)

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

by virtue of this Agreement.

SCHEDULE 5—continued

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

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

FOR AUSTRALIA:

Graham Richardson

FOR MALTA:

Louis Galea

SCHEDULE 6 Section 9

CONSEQUENTIAL AMENDMENTS

Health Insurance Act 1973

Subsection 4d (3):

Omit paragraph (a) from the definition of “qualified recipient”, substitute:

“(a) a social security pension (other than a special needs pension) or a social security benefit within the meaning of the Social Security Act 1991; or”.

National Health Act 1953

Subsection 4 (1):

Omit subparagraph (a) (i) from the definition of “social security beneficiary”, substitute:

“(i) a social security pension (other than a special needs pension) or a social security benefit within the meaning of the Social Security Act 1991; or”.

NOTE

1. No. 46, 1991.

[Minister’s second reading speech made in

House of Representatives on 16 May 1991

Senate on 5 June 1991

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