Student Assistance (Youth Training Allowance) Amendment Act 1994 (Cth)

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Student Assistance (Youth Training Allowance)

Amendment Act 1994

No. 183 of 1994

TABLE OF PROVISIONS

Section

1. Short title etc.

2. Commencement

3. Title

4. Short title

5. Interpretation

6. Repeal of section

7. Binding of the Crown

8. Insertion of new sections:

5B. Secretary to have general administration

5C. Principles of administration

9. Benefits under the AUSTUDY scheme

10. Advances on account of benefit

11. Secretary to give student notice of entitlement

12. Payments to stop if student ceases to be eligible for financial supplement

13. What happens if student fails to notify change in circumstances

14. Payments to stop if student is found never to have been eligible for financial supplement

TABLE OF PROVISIONS—continued

Section

15. What happens if financial supplement was paid because of provision of false or misleading information

16. Death of student

17. Notice and a certificate to Commissioner

18. Explanation of Division

19. What happens if a decision of Secretary is set aside or varied

20. Repeal of Part 5

21. Recovery of certain overpayments by offsetting

22. Late payment charge and interest in relation to overpayment of a benefit

23. Determination that late payment interest not to be payable in relation to certain periods

24. Recovery of certain overpayments from third parties

25. Write off and waiver of certain overpayments etc.

26. Repeal of section

27. Repeal of sections

28. Obligation to notify happening of certain events

29. Offences

30. Proceedings against corporations

31. Evidentiary certificates

32. Repeal of sections

33. Appropriation

34. Repeal of section

35. Regulations

36. Addition of new Parts and Schedules:

PART 8—YOUTH TRAINING ALLOWANCE

Division 1Interpretation

57. Application of Part 1.2 of the Social Security Act

58. Interpretation

59. Approval of voluntary organisations (activity test)

60. Calculation of amount of pharmaceutical allowance paid

61. Transferee to youth training allowance

62. Tables, notes etc. form part of section

63. Payments are period-based

64. Qualification for, or payability of, youth training allowance

Division 2Qualification for, and payability of youth training allowance

Subdivision A—Basic qualifications

65. Qualification for youth training allowance

66. Effect of incapacity on qualification

67. Youth training allowance may continue to end of payment period

68. People may be treated as unemployed

69. Unemployment due to industrial action

70. Assurance of support

71. Move to area of lower employment prospects

72. Liquid assets test waiting period

73. Registration by Commonwealth Employment Service

74. Prospective determinations for some claimants

Subdivision B—Activity test

75. Activity test

76. Relief from activity test—general

77. Relief from activity test—people engaged in voluntary work

78. Relief from activity test—special circumstances

Subdivision C—Youth Training Activity Agreements

79. Youth Training Activity Agreements—requirement

TABLE OF PROVISIONS—continued

80. Youth Training Activity Agreements—terms

81. Youth Training Activity Agreements—failure to negotiate

82. Youth Training Activity Agreements—self-employment

83. Youth Training Activity Agreements—group enterprises and co-operative enterprises

84. Agreements entered into before 20 March 1995

Subdivision D—Situations in which allowance not payable (general)

85. Youth training allowance not payable in certain circumstances

86. Provision of tax file number

87. Provision of partner's tax file number

88. Full-time students

89. Multiple entitlement exclusion

90. Commonwealth funded employment program exclusion

91. Provisional commencement day

92. Start of youth training allowance

Subdivision E—Situations in which allowance not payable (waiting periods)

93. Unused annual leave waiting period

94. Notional leave period

95. Duration of unused annual leave waiting period

96. Ordinary waiting period

97. Duration of ordinary waiting period

98. Education leavers waiting period

99. Duration of education leavers waiting period—non-secondary school leavers

100. Duration of education leavers waiting period—secondary school leavers

101. Newly arrived residents waiting period

102. Duration of newly arrived residents waiting period

Subdivision F—Situations in which allowance not payable (activity test breaches)

103. Removal from allowance for failure to satisfy activity test

104. Removal from allowance for failure to enter into activity agreement

105. Removal from allowance for failure to comply with activity agreement

106. Unemployment due to voluntary act

107. Unemployment due to misconduct

108. Refusal of offer of employment

109. Activity test deferment periods

110. Start of activity test deferment periods

111. Application of activity test deferment periods before claims for youth training allowance

112. Waiting periods

113. Effect of sections 110, 111 and 112.

Subdivision G—Situations in which allowance not payable (administrative breaches)

114. Secretary may require a person to attend the Department of Social Security or the Commonwealth Employment Service etc.

115. Removal from allowance for failure to comply with notification requirements

116. Administrative breach deferment periods

117. Start of administrative breach deferment periods

118. Waiting periods

TABLE OF PROVISIONS—continued

119. Effect of sections 117 and 118

Subdivision H—Other situations in which allowance not payable

120. Removal from allowance for failure to continue Commonwealth Employment Service registration

121. Seasonal workers

122. Move to area of lower employment prospects

123. Youth training allowance not payable while person in gaol or in psychiatric confinement following criminal charge

124. Double benefit payment on release from gaol or from psychiatric confinement following a criminal charge

Division 3Claim for youth training allowance

125. Need for a claim

126. Form of claim

127. Lodgment of claim

128. Claimant must be Australian resident and in Australia

129. Claim may be withdrawn

130. Secretary may request claimant to give statement of claimant's tax file number

131. Secretary may request claimant to give statement of partner's tax file number

Division 4Determination of claim

132. Secretary to determine claim

133. Grant of claim

134. Date of effect of determination

Division 5Rate of youth training allowance

135. How to work out a person's youth training allowance rate

136. Youth training supplement

Division 6Payment of youth training allowance

137. Start of youth training allowance

138. Instalments

139. Instalments for period less than a fortnight

140. Rounding off instalment

141. Instalments to be paid to person or nominee

142. Payment into bank account etc.

143. If allowance payday would fall on public holiday etc.

144. Payment of allowance after death

Division 7—Protection of youth training allowance

145. Youth training allowance to be absolutely inalienable

146. Effect of garnishee or attachment order

Division 8Recipient obligations

147. Secretary may request recipient to give statement of recipient's tax file number

148. Secretary may request recipient to give statement of partner's tax file number

149. Secretary may require notice of the happening of an event or a change in circumstances

TABLE OF PROVISIONS—continued

150. Secretary may require recipient to give particular information relevant to payment of youth training allowance

Division 9Continuation, variation and termination

Subdivision A—General

151. Continuing effect of determination

Subdivision B—Automatic termination

152. Automatic termination—transfer to social security pension or benefit

153. Automatic termination—recipient complying with section 149 notification obligations

154. Automatic termination—recipient not complying with section 149 notification obligations

155. Automatic termination—failure to provide section 150 statement

Subdivision C—Automatic rate reduction

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

157. Automatic rate reduction—recipient not complying with section 149 notification obligations

158. Automatic rate reduction—failure to tell Department of payment for remunerative work if earnings credit account balance available

159. Changes to payments by computer following automatic termination or reduction

Subdivision D—Determinations

160. Rate increase determination

161. Rate reduction determination

162. Cancellation or suspension determination

163. Cancellation or suspension for failure to comply with section 150, 343 or 344 notice

164. Changes to payments by computer

165. Resumption of payment after cancellation or suspension

Subdivision E—Date of effect of determination

166. Date of effect of favourable determination

167. Date of effect of adverse determination

Division 10Bereavement payments on death of partner

168. Qualification for payments under this Division

169. Continued payment of partner's pension or benefit

170. Lump sum payable in some circumstances

171. Adjustment of person's youth training allowance rate

172. Effect of death of person entitled to payments under this Division

173. Matters affecting payments under this Division

Division 11General provisions relating to the ordinary income test

Subdivision A—Ordinary income concept

174. Ordinary income is generally total gross income (not net income after deductions) from all sources

175. Ordinary income from a business—treatment of trading stock

TABLE OF PROVISIONS-continued

176. Permissible reductions—business income

Subdivision B—Investment income—General

177. Structure

178. Certain capital amounts not covered by Subdivisions C to F taken to be received over 12 months

Subdivision C—Managed investments and listed securities

179. Investments to which this Subdivision applies

180. How investment returns are taken into account in working out rate of youth training allowance

181. How investment losses are taken into account in working out rate of youth training allowance

182. Returns and losses on investment products

183. Annualised rate of return or loss on investment product

184. Investment and disposal costs

185. Actual return on investments not treated as ordinary income

Subdivision D—Investments taken into account on realisation

186. Investments made before 1 January 1988 with friendly societies or if no immediate return

187. How investment losses are taken into account in working out rate of youth training allowance

188. Market-linked investments made or acquired before 9 September 1988

189. Special provisions about certain investments made before 9 September 1988

190. How investment losses are taken into account in working out rate of youth training allowance

191. Withdrawal from superannuation fund

192. How investment losses are taken into account in working out rate of youth training allowance

193. Limit on reduction of ordinary income for losses

Subdivision E—Superannuation fund investments

194. Provisions affecting superannuation fund investments

Subdivision F—Immediate annuities and superannuation pensions

195. Immediate annuities

196. Superannuation pensions

Subdivision G—Available money and deposit money

197. Structure of Subdivision G

198. Basic concept—income money and interest received

199. Income money that does not attract interest

200. Income money that attracts low interest

201. Other deposit money

202. Certain money to be disregarded

203. Assumed rate of interest on income money

Subdivision H—Interest attributed to money on loan

204. Application of this Subdivision

205. Structure of Subdivision

TABLE OF PROVISIONS—continued

206. Basic concepts—loan and interest

207. Loans that do not attract interest

208. Loans that attract a low rate of interest

209. Other loans

210. Certain loans to be disregarded

211. Assumed loan rate of interest

Subdivision I—Income attributed to deprived assets

212. Application of this Subdivision

213. Income attributed to deprived assets

214. Assumed property rate

Subdivision J—Disposal of ordinary income

215. Disposal of ordinary income

216. Amount of disposition

217. Disposal of ordinary income—individuals

218. Disposal of ordinary income—members of couples

219. Treatment of transactions that constitute both a disposal of ordinary income and a disposal of assets

220. Dispositions more than 5 years old to be disregarded

Subdivision K—Earnings credits

221. Earnings credit balance may be set-off against ordinary income from remunerative work

222. Earnings credit account

223. Earnings credit account balance

Division 12Compensation recovery

Subdivision A—General

224. General effect of Division

225. Certain lump sums to be treated as though they were received as periodic payments

226. Effect of certain State and Territory laws

Subdivision B—Enforcement of compensation rights

227. Secretary may require person to take action to obtain compensation

Subdivision C—Receipt of compensation

228. Youth training allowance not payable during lump sum preclusion period

229. Person may have to repay amount if both lump sum and youth training allowance payments have been received

230. Lump sum compensation not counted as ordinary income

231. Rate reduction if periodic compensation payments received

232. Rate reduction under income test and this Division

233. Person may have to repay amount if both periodic compensation payments and allowance payments have been received

234. Periodic compensation payments not counted as ordinary income

Subdivision D—Compensation payers

235. Secretary may send preliminary notice to potential compensation payer

TABLE OF PROVISIONS—continued

236. Potential compensation payer must tell Department of liability

237. Secretary may send recovery notice to compensation payer

238. Preliminary notice or recovery notice suspends liability to pay compensation

239. Compensation payer's payment to Commonwealth discharges liability to compensation recipient

240. Offence to make compensation payment after receiving preliminary notice or recovery payment

Subdivision E—Insurers

241. Secretary may send preliminary notice to insurer

242. Insurer must tell Department of liability

243. Secretary may send recovery notice to insurer

244. Preliminary notice or recovery notice to insurer suspends both insurer's and compensation payer's liability

245. Insurer's payment to Commonwealth discharges liability

246. Offence to make compensation payment after receiving preliminary notice or recovery notice

Subdivision F—Miscellaneous

247. Secretary may give recovery notice either to compensation payer or to insurer but not to both

248. Secretary may disregard some payments

249. Division to bind Crown

Division 13—Indexation

Subdivision A—Preliminary

250. Analysis of Division

251. Indexed amounts

Subdivision B—Indexation

252. CPI Indexation Table

253. Indexation of amounts

254. Indexation factor

255. Rounding off indexed amounts

256. Adjustment of certain pharmaceutical rates

Division 14—Miscellaneous

257. Application of asset and income test reductions and compensation reductions for income tax purposes

Division 15—Overpayments and debt recovery

Subdivision A—Effect of Division

258. General effect of Division

Subdivision B—Amounts recoverable under this Part

259. Application overseas

260. Debts due to the Commonwealth

261. Debts arising under this Part

262. Debts arising from prepayments

263. Debt arising from AAT stay orders

TABLE OF PROVISIONS—continued

264. Debts arising from automatic termination (transfer to social security pension or benefit)

265. Debt arising from automatic rate reductions because of partner starting to receive allowance, pension or benefit

266. Debts arising from recipient's contravention of Part

267. Person other than payee obtaining payment of a cheque

268. Debts arising from conviction of person for involvement in contravention of Part by debtor

269. Data-matching Program (Assistance and Tax) Act debts

270. Compensation debts

271. Compensation payer and insurance debts

272. Compensation arrears debts

273. Assurance of support debts

274. Overpayments and debts arising under other Acts and schemes

275. Interest payable on debt for failure to enter agreement to pay debt

276. Interest payable on debt for breach of agreement to pay debt

277. Penalty interest rate

278. Guidelines on the penalty interest charge scheme

279. Debt from failure to comply with garnishee notice

Subdivision C—Methods of recovery

280. Application of sections dealing with deductions

281. Deductions from debtor's allowance

282. Legal proceedings

283. Garnishee notice

284. Secretary may allow payment of debt by instalments

285. Deductions by consent from allowance of person who is not the debtor

Subdivision D—Non-recovery of debts

286. Meaning of 'debt'

287. Secretary may write off debt

288. Application

289. Waiver of whole of a debt

290. Waiver of part of a debt

291. Determination that penalty interest not payable in relation to particular periods

Division 16—Miscellaneous

Subdivision A—Offences

292.Operation of Subdivision

293. False statement in connection with claims

294. False statement—to deceive or to affect rates

295. False statement or document

296. Payment knowingly obtained if not payable

297. Payment knowingly obtained through fraud etc.

298. Conduct by directors, servants or agents

Subdivision B—Collection of tax

299. Payment to Commissioner of Taxation—section 218 of Income Tax Assessment Act

300. Judicial notice to be taken of certain matters

301. Evidence

PART 9—REVIEW OF DECISIONS

Division 1—Internal review

302. Application of Division

TABLE OF PROVISIONS—continued

303. Secretary may review decisions

304. Application for review

305. Secretary may continue payment pending outcome of application for review

306. Powers of Secretary or authorised review officer if application for review

307. Certain determinations not to be revived

308. Notification of further rights of review

Division 2Review by Social Security Appeals Tribunal

309. Application of Division

310. SSAT objectives

311. Application for review by SSAT

312. Application requirement for certain decisions

313. Non-reviewable decisions

314. Secretary may continue payment pending outcome of application for review

315. Automatic payment if review sought of decision concerning terms of agreement

316. SSAT review powers

317. SSAT review powers (Youth Training Activity Agreement decision)

318. Date of effect of SSAT decisions

319. Date of effect of SSAT decision (Youth Training Activity Agreement decision)

320. Application requirements

321. Variation of decision before review completed

322. Parties to SSAT review

Division 3—Right to review by Administrative Appeals Tribunal

323. Application of Division

324. Review of SSAT decision by AAT

325. Variation of decision before AAT review completed

326. Review of SSAT decision on application by the Secretary

Division 4Modification of the Administrative Appeals Tribunal Act 1975

327. Modification of the Administrative Appeals Tribunal Act

328. Statement of reasons for decision

329. Notice of application for review

330. Parties to review by the AAT

331. Lodging documents with the AAT

332. Power of the AAT to obtain additional statements

333. Operation and implementation of the decision under review

334. Power of the AAT if party fails to appear

PART 10—ADMINISTRATION

Division 1—General administration

335. Government policy statements

336. The Secretary and National Convener may agree on administrative arrangements

337. The Secretary and the Secretary to the Department of Social Security may agree on administrative arrangements for Parts 8, 9 and 10

338. Delegation

339. Authorised review officers

340. Decisions to be in writing

TABLE OF PROVISIONS—continued

Section

341. Notice of decisions

Division 2—information gathering

342. Application

343. General power to obtain information

344. Power to obtain information from a person who owes a debt to the Commonwealth

345. Power to obtain information about a person who owes a debt to the Commonwealth

346. Power to obtain information to verify claims etc.

347. Provisions relating to requirements

348. State/Territory law does not affect obligations to provide information

349. End-of-employment statement by employer

Division 3Confidentiality

350. Operation of section 12ZU unaffected

351. Protection of personal information

352. Offence—unauthorised access to protected information

353. Offence—unauthorised use of protected information

354. Protection extends to court, tribunal etc. proceedings

355. Secretary's certificate

356. Guidelines for exercise of Secretary's certificate power

357. Offence—soliciting disclosure of protected information

358. Making untrue representations for purpose of soliciting disclosure of protected information

359. Offences—offering to supply protected information

360. Officer's oath or declaration

361. Freedom of Information Act not affected

SCHEDULE 1

CALCULATION OF RATE OF YOUTH TRAINING ALLOWANCE

PART 1—INTERPRETATION

PART 2—MODULES

SCHEDULE 2

PENSIONS, BENEFITS AND ALLOWANCES

SCHEDULE 3

FRINGE BENEFITS

SCHEDULE 4

CALCULATION OF EARNINGS CREDIT ACCOUNT BALANCE

37. Transitional provision—acts and decisions of authorised persons and prescribed officers taken to be acts and decisions of Secretary

38. Transitional provision—internal review of student assistance benefit decision

39. Transitional provision—review of student assistance benefit decision not yet heard by SART

TABLE OF PROVISIONS—continued

Section

40. Transitional provision—review of student assistance benefit decision part-heard by SART

41. Transitional provision—members of SART to become members of SSAT

Student Assistance (Youth Training Allowance)

Amendment Act 1994

No. 183 of 1994

An Act to amend the Student Assistance Act 1973

[Assented to 23 December 1994]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the Student Assistance (Youth Training Allowance) Amendment Act 1994.

(2) In this Act, "Principal Act" means the Student Assistance Act 19731.

Commencement

2. This Act commences on 1 January 1995.

Title

3. The title of the Principal Act is amended by inserting "and young people" after "students".

Short title

4. Section 1 of the Principal Act is amended by inserting "and Youth"after "Student".

Interpretation

5. Section 3 of the Principal Act is amended:

(a) by omitting the definition of "officer" from subsection (1) and substituting the following definition:

" 'officer' means a person performing duties, or exercising powers or functions, under or in relation to this Act and, in relation to a provision of Division 3 of Part 10, includes:

(a) a person who has been such a person; and

(b) a person who is or has been appointed or employed by the Commonwealth and who, as a result of that appointment or employment, may acquire or has acquired information concerning a person under this Act; and

(c) a person who, although not appointed or employed by the Commonwealth, performs or did perform services for the Commonwealth and who, as a result of performing those services, may acquire or has acquired information concerning a person under this Act;";

(b) by omitting from subsection (1) the definitions of "authorised person" and "prescribed officer";

(c) by inserting in subsection (1) the following definitions:

" 'protected information' means information about a person that is held in the records of the Department of Employment, Education and Training or of the Department of Social Security;

'student assistance benefit' means a payment under:

(a) the AUSTUDY scheme; or

(b) the Student Financial Supplement Scheme; or

(c) a current or former special educational assistance scheme;".

Repeal of section

6. Section 4 of the Principal Act is repealed.

Binding of the Crown

7. Subsection 5(1) of the Principal Act is repealed and the following subsection is substituted:

"(1) This Act other than:

(a) Part 8 but subject to section 249; and

(b) Part 9, in so far as it relates to youth training allowance: and

(c) Part 10, in so far as it relates to youth training allowance but subject to subsection 342(2);

binds the Crown in all its capacities.".

Insertion of new sections

8. After section 5A of the Principal Act the following sections are inserted in Part 1:

Secretary to have general administration

"5B. The Secretary is, subject to any directions of the Minister, to have the general administration of this Act.

Principles of administration

"5C. In administering this Act, the Secretary is to have regard to:

(a) the desirability of achieving the following results:

(i) the ready availability to members of the public of advice and information services relating to benefits under this Act;

(ii) the ready availability of publications containing clear statements about entitlements under this Act and procedural requirements;

(iii) the delivery of services under this Act in a fair, courteous, prompt and cost-efficient manner:

(iv) a process of monitoring and evaluating delivery of programs with an emphasis on the impact of programs on people who receive benefits under this Act;

(v) the establishment of procedures to ensure that abuses of the schemes for benefits under this Act are minimised; and

(b) the special needs of disadvantaged groups in the community; and

(c) the need to be responsive to Aboriginally and to cultural and linguistic diversity; and

(d) the importance of the systems of review of decisions under this Act: and

(e) the need to apply government policy in accordance with the law and with due regard to relevant decisions of the Administrative Appeals Tribunal and the Social Security Appeals Tribunal.

Note: In administering this Act, the Secretary is also bound by the Privacy Act 1988 and by the provisions of this Act concerning confidentiality—see Division 3 of Part 10.".

Benefits under the AUSTUDY scheme

9. Section 7 of the Principal Act is amended by omitting from subsection (1) "an authorised person" and substituting "the Secretary".

Advances on account of benefit

10. Section 11 of the Principal Act is amended by omitting "An authorised person" and substituting "The Secretary".

Secretary to give student notice of entitlement

11. Section 12F of the Principal Act is amended:

(a) by omitting from subsection (1) "An authorised person" and substituting "The Secretary";

(b) by omitting from subsection (2) "an authorised person" and substituting "the Secretary";

(c) by omitting from subsection (3) "an authorised person" and substituting "the Secretary".

Payments to stop if student ceases to be eligible for financial supplement

12. Section 12R of the Principal Act is amended:

(a) by omitting from subsection (1) "an authorised person" and substituting "the Secretary";

(b) by omitting from subsection (1) "the authorised person" and substituting "the Secretary";

(c) by omitting from subsection (2) "the authorised person" and substituting "the Secretary".

What happens if student fails to notify change in circumstances

13. Section 12S of the Principal Act is amended:

(a) by omitting from subsection (1) "a prescribed officer" and substituting "the Secretary";

(b) by omitting from subsection (1) "the prescribed officer" and substituting "the Secretary";

(c) by omitting from subsection (2) "the prescribed officer" and substituting "the Secretary";

(d) by omitting from paragraph (2)(a) "an authorised person" and substituting "the Secretary".

Payments to stop if student is found never to have been eligible for financial supplement

14. Section 12T of the Principal Act is amended:

(a) by omitting from paragraph (1)(b) "an authorised person" and substituting "the Secretary";

(b) by omitting from subsection (1) "the authorised person" and substituting "the Secretary";

(c) by omitting from subsection (2) "the authorised person" and substituting "the Secretary".

What happens if financial supplement was paid because of provision of false or misleading information

15. Section 12U of the Principal Act is amended:

(a) by omitting from subsection (1) "a prescribed officer" and substituting "the Secretary";

(b) by omitting from subsection (1) "the prescribed officer" and substituting "the Secretary";

(c) by omitting from subsection (2) "the prescribed officer" and substituting "the Secretary".

Death of student

16. Section 12V of the Principal Act is amended by omitting from subsection (1) "an authorised person" and substituting "the Secretary".

Notice and a certificate to Commissioner

17. Section 12ZH of the Principal Act is amended by omitting from subsection (3) "arrange for a prescribed officer to".

Explanation of Division

18. Section 12ZV of the Principal Act is amended by omitting from paragraph (b) "by authorised persons or prescribed officers*' and substituting "by the Secretary".

What happens if a decision of Secretary is set aside or varied

19. Section 12ZX of the Principal Act is amended by omitting "an authorised person or a prescribed officer" and substituting "the Secretary".

Repeal of Part 5

20. Part 5 of the Principal Act is repealed.

Recovery of certain overpayments by offsetting

21. Section 38 of the Principal Act is amended:

(a) by omitting from subsection (2) "a prescribed officer" and substituting "the Secretary";

(b) by omitting from subsection (4) "a prescribed officer" and substituting "the Secretary";

(c) by omitting from paragraph (4)(b) "the prescribed officer" and substituting "the Secretary"; .

(d) by omitting from subsection (5) "a prescribed officer" and substituting "the Secretary".

Late payment charge and interest in relation to overpayment of a benefit

22. Section 40 of the Principal Act is amended:

(a) by omitting from subsection (1A) "a prescribed officer" and substituting "the Secretary";

(b) by omitting from subsection (5) "paragraph 43(2)(c)" and substituting "section 284 as applied under subsection 43(2)";

(c) by omitting from subsection (6) "a prescribed officer" and substituting "the Secretary".

Determination that late payment interest not to be payable in relation to certain periods

23. Section 41 of the Principal Act is amended:

(a) by omitting from subsection (1) "Minister or a prescribed officer" and substituting "Secretary";

(b) by omitting from subsection (4) "Minister or the prescribed officer" and substituting "Secretary";

(c) by omitting subsection (7).

Recovery of certain overpayments from third parties

24. Section 42 of the Principal Act is amended:

(a) by omitting from subsection (3) "A prescribed officer" and substituting "The Secretary";

(b) by omitting from subsection (6) "The prescribed officer" and substituting "The Secretary";

(c) by omitting from paragraph (9)(a) "a prescribed officer" and substituting "the Secretary";

(d) by omitting from subsection (13) "a prescribed officer" and substituting "the Secretary";

(e) by omitting from paragraph (13)(b) "the prescribed officer" and substituting "the Secretary";

(f) by omitting from subsection (14) "a prescribed officer" and substituting "the Secretary".

Write off and waiver of certain overpayments etc.

25. Section 43 of the Principal Act is amended by omitting subsections (2) to (6) and substituting the following subsections:

"(2) Section 284 and Subdivision D of Division 15 of Part 8 apply to recoverable amounts referred to in subsection (1) in the same way as that section and that Subdivision apply to debts recoverable by the Commonwealth under Subdivision B of Division 15 of that Part.

"(3) In the application of Subdivision D of Division 15 of Part .8 to recoverable amounts referred to in subsection (1), that Subdivision has effect as if the reference in subsection 289(5) to $200 were a reference to $50.".

Repeal of section

26. Section 44 of the Principal Act is repealed.

Repeal of sections

27. Sections 45 to 47 of the Principal Act are repealed.

Obligation to notify happening of certain events

28. Section 48 of the Principal Act is amended by inserting "other than Part 8" after "Act".

Offences

29. Section 49 of the Principal Act is amended:

(a) by inserting "other than Part 8" after "Act" (wherever occurring):

(b) by omitting from subsection (3) "a prescribed officer"" and substituting "the Secretary"".

Proceedings against corporations

30. Section 50 of the Principal Act is amended:

(a) by omitting from subsection (1) "this Act or the regulations"' and substituting "this Act (other than Part 8) or regulations made for the purposes of this Act (other than Part 8)":

(b) by omitting from subsection (2) "this Act and the regulations"" and substituting "this Act (other than Part 8) and regulations made for the purposes of this Act (other than Part 8)".

Evidentiary certificates

31. Section 51 of the Principal Act is amended.

(a) by omitting from subsection (1) "a prescribed officer" (twice occurring), and substituting "the Secretary":

(b) by inserting in paragraph (1)(a) "other than Part 8" after "Act":

(c) by omitting from subsection (2) "by a prescribed officer" and substituting "by the Secretary";

(d) by omitting from paragraph (2)(h) "an authorised person or a prescribed officer" and substituting "the Secretary";

(e) by omitting from subsection (3) "a prescribed officer" and substituting "the Secretary".

Repeal of sections

32. Sections 52, 53 and 54 of the Principal Act are repealed.

Appropriation

33. Section 55A of the Principal Act is amended by inserting after subsection (1A) the following subsection:

"(1B) The following payments are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly:

(a) payments under Part 8 (other than section 136);

(b) payments to a person under the Social Security Act 1991 the making of which is dependent upon the person being qualified for youth training allowance under Part 8.".

Repeal of section

34. Section 55B of the Principal Act is repealed.

Regulations

35. Section 56 of the Principal Act is amended by omitting paragraph (c).

Addition of new Parts and Schedules

36. After Part 7 of the Principal Act the following Parts and Schedules are added:

"PART 8—YOUTH TRAINING ALLOWANCE

"Division 1Interpretation

Application of Part 1.2 of the Social Security Act

"57.(1) Subject to subsection (4), the provisions of Part 1.2 of the Social Security Act apply for the purposes:

(a) of this Part; and

(b) of Parts 9 and 10 in so far as those Parts apply to youth training allowance.

"(2) Without limiting the generality of subsection (1), if a provision of Part 1.2 of the Social Security Act applies only for the purposes of a particular provision or particular provisions of that Act, then, subject to subsection (4), the first-mentioned provision also applies for the purposes of any provision:

(a) of this Part; or

(b) of Part 9 or 10 in so far as that Part applies to youth training allowance;

that corresponds to that particular provision or those particular provisions of the Social Security Act.

"(3) In applying a provision of Part 1.2 of the Social Security Act under subsection (1) or (2) for the purposes:

(a) of this Part or a provision of this Part; or

(b) of Part 9 or 10, or a provision of Part 9 or 10. in so far as that Part applies to youth training allowance:

this Part, and Parts 9 and 10 in so far as they so apply, are to be treated as if they were incorporated in the Social Security Act.

"(4) A provision of Part 1.2 of the Social Security Act only applies under subsection (1) or (2) in so far as it is not inconsistent:

(a) with this Part; and

(b) with Parts 9 and 10 in so far as those Parts apply to youth training allowance.

Interpretation

Definitions

"58.(1) In this Part, unless the contrary intention appears:

'activity test determent period' has the same meaning as in the Social Security Act but includes a period worked out under section 109 of this Act in relation to the application of a youth training allowance automatic deferment provision included in Subdivision F of Division 2 of this Part:

'administrative breach deferment period' has the same meaning as in the Social Security Act but includes a period worked out under section 116 of this Act in relation to the application of a youth training allowance automatic deferment provision included in Subdivision G of Division 2 of this Part:

'approved organisation' means an organisation approved under section 59 or under section 28 of the Social Security Act:

'assurance of support debt' means a debt due and payable by a person to the Commonwealth, or a liability of a person to the Commonwealth, because of the operation of Part 5 of the Migration (1993) Regulations in respect of the payment to another person of youth training allowance:

'automatic deferment provision' means:

(a) a youth training allowance automatic deferment provision; or

(b) a JSA automatic deferment provision; or

(c) an NS allowance automatic deferment provision; or

(d) section 126 of the Social Security Act;

'available money' has the same meaning as in the Social Security Act but does not include money to which Subdivision G of Division 11 of this Part applies;

'Commonwealth funded employment program' means a Commonwealth program of funding to a community or group where the funding is based, either wholly or partly, on the number of people in that community or group who are, or are likely to be, qualified for youth training allowance, job search allowance or newstart allowance;

'current figure', as at a particular time and in relation to an amount that is to be indexed under Division 13, means:

(a) if the amount has not yet been indexed under that Division before that time—the amount; or

(b) if the amount has been indexed under that Division before that time—the amount most recently substituted for the amount under that Division before that time;

'deferment period' means an activity test deferment period or an administrative breach deferment period;

'dependent child' has the meaning that would be given to that expression by subsections 5(2) to (9) of the Social Security Act if references in those subsections to a young person were references to a person;

'discretionary deferment provision' means:

(a) a youth training allowance discretionary deferment provision; or

(b) a JSA discretionary deferment provision; or

(c) an NS allowance discretionary deferment provision;

'education leavers waiting period' means an education leavers waiting period under section 98;

'entry contribution' has the same meaning as in section 1147 of the Social Security Act;

'fringe benefits year' means a year beginning on 1 April;

'managed investment' has the same meaning as in the Social Security Act but does not include a loan within the meaning of Subdivision G of Division 11 of this Part;

'net property loss', in relation to a person for an accounting period, means:

(a) if the expenses incurred by the person on rental property during the period are more than the person's gross rental property income for the period—the amount by which those expenses are more than that gross rental property income; or

(b) if the expenses incurred by the person on rental property during the period are not more than the person's gross rental property income for the period—nil;

'newly arrived residents waiting period' means a newly arrived residents waiting period under section 101;

'ordinary waiting period' means an ordinary waiting period under section 96;

'parent',in relation to a person (the 'relevant person'), means (except in Part 2 of Schedule 1):

(a) if the relevant person is not an adopted child—a natural parent of the person; or

(b) if the relevant person is an adopted child—an adoptive parent of the person;

'provisional commencement day' has the meaning given by section 91;

'receiving full-time education' has a meaning affected by subsection (4);

'recipient notification notice' means a notice given by the Secretary under section 149;

'recipient statement notice' means a notice given by the Secretary under section 150;

'registered in allowance category as being unemployed' has the meaning given by subsection (2);

'served the waiting period' has the meaning given by subsection (3);

'Social Security Act' means the Social Security Act 1991;

'this Part' includes the Schedules;

'transferee to the youth training allowance' and 'transfer day' have the meanings given by section 61;

'unused annual leave waiting period' means an unused annual leave waiting period under section 93;

'waiting period' means:

(a) an unused annual leave waiting period; or

(b) an ordinary waiting period; or

(c) an education leavers waiting period; or

(d) a newly arrived residents waiting period;

'Youth Training Activity Agreement' has the meaning given by subsection 79(4);

'youth training allowance automatic deferment provision' means:

(a) subsection 103(1) (failure to satisfy activity test); or

(b) subsection 104(1) (failure to enter into an activity agreement); or

(c) subsection 105(1) (failure to comply with an activity agreement); or

(d) section 106 (unemployment due to voluntary act); or

(e) section 107 (unemployment due to misconduct); or

(f) section 108 (refusal of offer of employment); or

(g) subsection 114(3) (failure to comply with Secretary's requirements); or

(h) subsection 115(1) (failure to comply with notification requirement);

'youth training allowance discretionary deferment provision' means:

(a) subsection 114(1) (failure to comply with Secretary's requirements); or

(b) subsection 120(1) (failure to continue Commonwealth Employment Service registration); or

(c) subsection 121(1) (seasonal workers); or

(d) subsection 122(1) (lower employment prospects).

Registered in allowance category as being unemployed

"(2) A person registered by the Commonwealth Employment Service as being unemployed is registered in an allowance category as being unemployed if the person:

(a) is so registered for the purposes of the Social Security Act; or

(b) is registered in a category approved by the Secretary for the purposes of this Part as being unemployed.

Served the waiting period

"(3) If a person is subject to an unused annual leave waiting period or an ordinary waiting period for youth training allowance, the person is taken to have served the waiting period if, and only if:

(a) the waiting period has ended; and

(b) the person was, throughout the waiting period, qualified for youth training allowance.

Receiving full-time education—education leavers

"(4) If:

(a) a person ceases to receive full-time education at a school, college or university; and

(b) youth training allowance is not payable to the person because of an education leavers waiting period;

the person is taken to be receiving full-time education at a school, college or university during the period for the purposes of this Part (other than sections 98, 99 and 100).

Approval of voluntary organisations (activity test)

"59. The Secretary may, for the purposes of section 77, by writing, approve organisations that he or she considers provide vocationally useful full-time voluntary work.

Calculation of amount of pharmaceutical allowance paid

Calculation of rate

"60.(1) If:

(a) a person is paid an instalment of youth training allowance on a particular day; and

(b) an amount by way of pharmaceutical allowance is to be added to the person's maximum basic rate in working out the amount of the instalment;

then, for the purposes of this Part, the amount of pharmaceutical allowance paid to the person on that day is the amount worked out using subsections (2), (3) and (4).

Allowance rate for whole fortnights

"(2) If the instalment is for a fortnight or a period of whole fortnights, the amount of allowance paid is the amount worked out using the formula:

where:

'pharmaceutical allowance rate' is the fortnightly amount of pharmaceutical allowance added to the person's maximum basic rate in working out the amount of the instalment;

'number of fortnights' is the number of fortnights in the period for which the instalment is paid.

Allowance rate for period less than a fortnight

"(3) If the instalment is for a period of less than a fortnight, the amount of allowance paid is the amount worked out using the formula:

where:

'pharmaceutical allowance rate' is the fortnightly amount of pharmaceutical allowance added to the person's maximum basic rate in working out the amount of the instalment;

'week days in period' is the number of week days in the period for which the instalment is paid.

Allowance rate for whole fortnights and additional days

"(4) If the instalment is for a period that consists of:

(a) a fortnight or a number of whole fortnights; and

(b) a period of less than a fortnight;

the amount of allowance paid is the amount worked out using the formula:

where:

'pharmaceutical allowance rate' is the fortnightly amount of pharmaceutical allowance added to the person's maximum basic rate in working out the amount of the instalment;

'number of whole fortnights' is the number of whole fortnights in the period for which the instalment is paid;

'week days in short period' is the number of days in the period that is less than a fortnight.

Transferee to youth training allowance

Single person

"61.(1) If:

(a) a person becomes qualified for a youth training allowance; and

(b) immediately before becoming qualified for the allowance the person was receiving:

(i) a social security pension or service pension (an 'old pension');or

(ii) a social security benefit (an 'old benefit');and

(c) the person ceases to receive the old pension or old benefit;

then, for the purposes of this Part, the person is a transferee to the youth training allowance and the person's transfer day is the day that immediately follows:

(d) if the person was receiving an old pension—the person's last pension payday; or

(e) if the person was receiving an old benefit—the day on which the person ceases to receive the old benefit.

Member of couple

"(2) If:

(a) a person becomes qualified for a youth training allowance; and

(b) immediately before becoming qualified for the allowance:

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

(ii) the person's partner was receiving a social security benefit or a rehabilitation allowance;

then, for the purposes of this Part, the person is a transferee to the youth training allowance and the person's transfer day is the day on which the person becomes qualified for the youth training allowance.

Tables, notes etc. form part of section

Table and Key to a Table

"62.(1) For the purposes of this Act, a Table and a Key to a Table are to be taken to be part of:

(a) if the Table occurs in a section containing subsections—the subsection immediately before the Table; and

(b) if the Table occurs in a section that does not contain subsections—the section.

Notes

"(2) For the purposes of this Act, a Note is to be taken to be part of:

(a) if the Note immediately follows a section that does not contain subsections—the section; or

(b) if the Note immediately follows a subsection—the subsection; or

(c) if the Note immediately follows a point in a MODULE in a Schedule—the point; or

(d) if the Note immediately follows a Step in a Method Statement and is aligned with the text of the Step—the Step; or

(e) if the Note immediately follows a Table—the Table; or

(f) if the Note immediately follows a paragraph and is aligned with the text of the paragraph—the paragraph.

Modules

"(3) Part 2 of Schedule 1 and Schedule 4 are divided into MODULES (for example, MODULE A).

Points

"(4) A MODULE in a Schedule is divided into points.

Payments are period-based

Period-based payments

"63.(1) Payments under this Part are referable to periods.

Effect of payments being period-based

"(2) If a payment is payable to a person, the person will be paid only for the particular period (which might be less than a fortnight) in respect of which the payment is payable.

Note: The qualifications for a payment usually require the qualifying conditions to be met throughout a particular period and the payment is expressed as being 'in respect of or 'for' that period.

Qualification for, or payability of, youth training allowance

"64. Before a youth training allowance is payable to a person under this Part:

(a) the person must be qualified for the allowance; and

(b) there must be nothing in this Part that makes the allowance not payable to the person (for example, a waiting period provision, a multiple entitlement exclusion provision or a compensation preclusion provision).

Note: Provisions in the Part relating to paragraph (a) matters refer to the 'person' being 'qualified', 'disqualified' or 'not qualified' for the allowance and provisions in the Part relating to paragraph (b) matters refer to the allowance being 'payable' or 'not payable' to the person.

"Division 2Qualification for, and payability of, youth training allowance

"Subdivision ABasic qualifications

Qualification for youth training allowance

Basic qualifications

"65.(1) Subject to subsection (2) and to sections 66, 67 and 72, a person is qualified for a youth training allowance in respect of a period if:

(a) the person did not receive job search allowance at any time during either:

(i) the 6 weeks immediately before the period; or

(ii) the 6 weeks immediately before the person's provisional commencement day; and

(b) the person satisfies the Secretary that throughout the period the person is unemployed; and

(c) throughout the period, or each period within the period, the person either:

(i) satisfies the activity test; or

(ii) is not required to satisfy the activity test; and

(d) when the person is required by the Secretary to enter into a Youth Training Activity Agreement in relation to the period, the person enters into the agreement; and

(e) while the agreement is in force, the person satisfies the Secretary that the person is taking reasonable steps to comply with the terms of the agreement; and

Note: See subsection (4) on taking reasonable steps.

(f) at all times when the person is a party to the agreement, the person is prepared to enter into another such agreement instead of the existing agreement if required to do so by the Secretary; and

(g) throughout the period, the person:

(i) is over the age of 16 years but under the age of 18 years; and

(ii) is an Australian resident; and

(iii) is in Australia; and

Note: See subsection (5).

(iv) is registered by the Commonwealth Employment Service in an allowance category as being unemployed.

"(2) If:

(a) a person is receiving sickness allowance at the commencement of this Part; and

(b) the person ceases to receive sickness allowance and immediately afterwards would, apart from paragraph (1)(a), become qualified for a youth training allowance; and

(c) immediately before the person received sickness allowance the person was receiving job search allowance;

the receipt of that job search allowance is not to be taken into account for the purposes of paragraph (1)(a).

Basic qualifications for certain people aged 15 years

"(3) Subject to sections 66, 67 and 72, a person is qualified for youth training allowance in respect of a period if:

(a) throughout the period the person is over the age of 15 years but under the age of 16 years; and

(b) had the person reached the age of 16 years, he or she would have been qualified for a youth training allowance in respect of the period under subsection (1); and

(c) the person satisfies the Secretary that the person:

(i) has an employment history involving full-time employment that was on either a permanent basis or a regular casual basis; or

(ii) has received an offer of employment of that kind but has been unable to take up the offer for reasons beyond his or her control; or

(iii) has been registered by the Commonwealth Employment Service in an allowance category as being unemployed for at least 13 weeks; and

(d) before the period begins:

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

(ii) a formal exemption from attending school was granted in respect of the person by the education authority of that State or Territory; and

(e) throughout the period, the person:

(i) does not live at a home of either of his or her parents; and

(ii) does not receive regular financial support from either of those parents.

What are reasonable steps

"(4) For the purposes of paragraph (1)(e), a person is taking reasonable steps to comply with the terms of a Youth Training Activity Agreement unless the person has failed to comply with the terms of the agreement and:

(a) the main reason for failing to comply involved a matter that was within the person's control; or

(b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.

Attendance at Reserve or Emergency Force training camp

"(5) A person is not disqualified for youth training allowance because of being outside Australia during a period if the person is attending a training camp during that period as a member of:

(a) the Australian Naval Reserve; or

(b) the Naval Emergency Reserve Forces; or

(c) the Australian Army Reserve; or

(d) the Australian Air Force Reserve; or

(e) the Air Force Emergency Force; or

(f) the Army Individual Emergency Reserve.

Person taken to be qualified

"(6) If:

(a) a person was receiving a social security pension; and

(b) the person claims a youth training allowance within 14 days after the day on which the last instalment of the person's pension was paid; and

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

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

Note 1: A person may be treated as unemployed (see section 68).

Note 2: The activity test is set out in section 75.

Note 3: For 'allowance category' see subsection 58(2).

Note 4: For 'Australian resident' see section 7 of the Social Security Act.

Note 5: A person may not be qualified if the person's unemployment is due to industrial action (see section 69).

Note 6: A person may not be qualified if the person has reduced the person's employment prospects by moving to an area of lower employment prospects (see section 71).

Note 7: If circumstances beyond the person's control prevent the person from being registered by the Commonwealth Employment Service, this requirement may be waived (see section 73).

Note 8: A person unregistered by the Commonwealth Employment Service for up to 6 weeks may be taken to be registered (see section 73).

Note 9: A youth training allowance is not payable in certain circumstances even if the person is qualified (see Subdivisions D, E, F, G and H).

Note 10: A youth training allowance may continue to be paid during incapacity (see section 66).

Note 11: Qualification for a youth training allowance may continue to the end of the last pay period (see section 67).

Note 12: Section 76 relieves people attending training camps mentioned in subsection 65(5) from the activity test.

Note 13: Subsection (6) operates when a person transfers from a pension to a youth training allowance and the person is not qualified for a youth training allowance immediately after the day on which the person's last instalment of pension is paid. The subsection treats the person as being so qualified. As a result, the person may be paid a youth training allowance for the period beginning on the day after the day on which the person's last instalment of pension was paid. The subsection aims to ensure that there is minimal disruption to a person's payments when a person transfers from a pension to a youth training allowance.

Effect of incapacity on qualification

Meaning of 'sickness period'

"66.(1) In this section:

'sickness period',in relation to a person, means a period:

(a) for which the person would be qualified for a sickness allowance under section 666 of the Social Security Act if subsections 666(7) and (8) of that Act were disregarded; and

(b) that begins while the person is receiving a youth training allowance.

Sickness period less than 13 weeks

"(2) Subject to subsections (3) and (4), a person is qualified for a youth training allowance in respect of a sickness period of the person if the Secretary does not expect that period to be longer than 13 weeks.

Sickness period for longer than 13 weeks

"(3) If:

(a) a person is qualified for a youth training allowance in respect of a period under subsection (2); and

(b) the period lasts for longer than 13 weeks;

the person ceases to be qualified for a youth training allowance 13 weeks after the period began.

Sickness period after reaching 18 years of age

"(4) A person is not qualified for a youth training allowance in respect of any part of a sickness period that occurs after the person reaches the age of 18 years.

Youth training allowance may continue to end of payment period

"67. If:

(a) a person is receiving a youth training allowance; and

(b) apart from this section, the person would cease on a particular day to be qualified for the allowance because the person reaches the age of 18 years; and

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

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

People may be treated as unemployed

Work may be disregarded

"68.(1) If:

(a) a person undertakes paid work during a period; and

(b) the Secretary is of the opinion that, taking into account:

(i) the nature of the work; and

(ii) the duration of the work; and

(iii) any other matters relating to the work that the Secretary thinks relevant;

the work should be disregarded;

the Secretary may treat the person as being unemployed throughout the period.

Compliance with activity test requirement

"(2) A person complying with:

(a) a requirement under subsection 75(7) (activity test); or

(b) a Youth Training Activity Agreement;

may be treated by the Secretary as being unemployed.

Matters relevant to Secretary's decision

"(3) In deciding whether to treat a person as being unemployed, the Secretary is to take into account:

(a) the nature of the activity undertaken by the person so as to comply with a requirement under subsection 75(7) (activity test) or a Youth Training Activity Agreement; and

(b) the duration of the activity; and

(c) any other matters relating to the activity that the Secretary thinks relevant.

Unemployment due to industrial action

Applicant engaged in industrial action

"69.(1) A person is not qualified for a youth training allowance in respect of a period unless the person satisfies the Secretary that the person's unemployment during the period was not due to the person being, or having been, engaged in industrial action or in a series of industrial actions.

Other people engaged in industrial action

"(2) If:

(a) a person's unemployment during a period was due to other people being, or having been, engaged in industrial action or in a series of industrial actions; and

(b) the people, or some of the people, were members of a trade union that was involved in the industrial action;

the person is not qualified for a youth training allowance in respect of the period unless the Secretary is satisfied that the person was not a member of the trade union during the period.

Period after industrial action stops

"(3) Subsections (1) and (2) do not prevent a person from being qualified for a youth training allowance in respect of a period that occurs after the relevant industrial action or series of industrial actions have stopped.

Note: For 'industrial action', 'trade union' and "unemployment' see section 16 of the Social Security Act.

Assurance of support

"70. A person is not qualified for a youth training allowance in respect of a period if the Secretary is satisfied that throughout the period:

(a) an assurance of support was in force in respect of the person (the 'assuree');and

(b) the person who gave the assurance of support was willing and able to provide an adequate level of support to the assuree; and

(c) it was reasonable for the assuree to accept that support.

Note: For 'assurance of support' see subsection 23(1) of the Social Security Act.

Move to area of lower employment prospects

Move to an area without sufficient reason

"71.(1) Subject to subsection (2), a person is not qualified for a youth training allowance on a day on which, in the opinion of the Secretary, the person has reduced his or her employment prospects by moving to a new place of residence without sufficient reason.

Not applicable to certain people

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

(a) has started:

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

(ii) a rehabilitation program approved by the Secretary; and

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

What constitutes sufficient reason

"(3) For the purposes of subsection (1), a person has a sufficient reason for moving to a new place of residence if, and only if, the person:

(a) moves to accompany a parent who changes his or her residence; or

(b) moves to live with a family member who has already established his or her residence in that place of residence; or

(c) moves to live near a family member who has already established residence in the same area; or

(d) satisfies the Secretary that the move is necessary for the purpose of treating or alleviating a physical disease or illness suffered by the person or by a family member.

Note: For 'family member' see subsection 23(1) of the Social Security Act.

Liquid assets test waiting period

Definitions

"72.(1) In this section:

'liquid assets',in relation to a person, means the person's cash and readily realisable assets, and includes:

(a) the person's shares in, and debentures issued by, a public company within the meaning of the Corporations Law; and

(b) amounts deposited with, or otherwise lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and

(c) amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person;

but does not include an amount that is an eligible termination payment for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;

'maximum reserve',in relation to a person, means:

(a) if the person is not a member of a couple and does not have a dependent child—$5,000; or

(b) in any other case—$10,000.

Liquid assets

"(2) For the purposes of this Part, a person's liquid assets are taken to include:

(a) the liquid assets of the person's partner; and

(b) the liquid assets of the person and the person's partner.

Transfer taken not to have occurred

"(3) If:

(a) during the 4 weeks immediately before a person claims youth training allowance, the person or the person's partner transfers liquid assets to a person of any age who is the natural or adopted child of the person or the partner; and

(b) either:

(i) the person transferring receives no consideration or inadequate consideration, in money or money's worth, for the transfer; or

(ii) the Secretary is satisfied that the purpose, or the dominant purpose, of the transfer was to enable the claimant to obtain youth training allowance;

then the transfer is taken, for the purposes of this section, not to have occurred.

Liquid assets test

"(4) Subject to subsections (10), (11), (12) and (13), if:

(a) the value of a person's liquid assets is more than the person's maximum reserve on:

(i) the day on which the person becomes unemployed; or

(ii) the day on which the person claims a youth training allowance; and

(b) the person is not a transferee to a youth training allowance;

the person is not qualified for a youth training allowance for a period unless the person has served the liquid assets test waiting period in relation to the claim before the beginning of that period.

Note 1: For 'transferee to a youth training allowance' see section 61.

Note 2: For 'served the liquid assets test waiting period' see subsection (14).

Waiting period

"(5) The liquid assets test waiting period in relation to the claim lasts for 4 weeks.

Operation of subsections (7) and (8)

"(6) Subsection (7) applies for the purpose of determining, at a time before 20 March 1995, when a liquid assets test waiting period starts, and subsection (8) applies for the purpose of the making of such a determination on or after that date.

Start of waiting period before 20 March 1995

"(7) Subject to subsections (6) and (9) the liquid assets test waiting period in relation to the claim starts on the day on which the person becomes unemployed.

Start of waiting period on or after 20 March 1995

"(8) Subject to subsections (6) and (9), the liquid assets test waiting period in relation to the claim starts:

(a) if the person is not a member of a couple—on the day on which the person became unemployed; or

(b) if the person is a member of a couple—on the last occurring of the following days:

(i) the day on which the person became unemployed;

(ii) if, when the claim is made, the person's partner is unemployed—the day on which the person's partner became unemployed;

(iii) if, when the claim is made, the person's partner is incapacitated for work—the day on which the person's partner became incapacitated for work.

Effect of incapacity for work

"(9) If:

(a) a person becomes incapacitated for work; and

(b) because of section 676 (sickness allowance liquid assets test disqualification) of the Social Security Act, the person is not qualified for sickness allowance during the period of 4 weeks that starts on the day on which the person becomes incapacitated for work; and

(c) within that period of 4 weeks:

(i) the person ceases to be incapacitated for work; and

(ii) the person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed; and

(d) within 14 days after the day on which the person becomes so registered by the Commonwealth Employment Service, the person claims a youth training allowance;

the liquid assets test waiting period starts on the day on which the person becomes incapacitated for work.

Person serving liquid assets test waiting period

"(10) On or after 20 March 1995, subsection (4) does not apply to a person if, at any time during the 12 months before:

(a) the day on which the person becomes unemployed; or

(b) the day on which the person claims youth training allowance;

the person was serving a liquid assets test waiting period under this Part or the Social Security Act that started during that 12 months.

Waiver for disadvantage or hardship

"(11) If the Secretary is satisfied that the application of subsection (4) to a person will cause undue long term disadvantage or significant hardship to the person, the Secretary may:

(a) waive the application of that subsection to the person; and

(b) authorise the payment of a youth training allowance to the person.

No application to certain transferees to youth training allowance

"(12) Subsection (4) does not apply to a person if both of the following conditions apply:

(a) the person is a transferee to youth training allowance;

(b) the person claims the youth training allowance:

(i) within 14 days of the transfer day; or

(ii) if the person becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed within 14 days after the transfer day—within 14 days of the person becoming so registered or any further period that the Secretary considers reasonable.

Exemption

"(13) Subsection (4) does not apply to a person who:

(a) has started:

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

(ii) a rehabilitation program approved by the Secretary; and

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

Person taken to have served liquid assets test waiting period

"(14) A person who is subject to a liquid assets test waiting period for a youth training allowance is taken to have served the waiting period if, and only if:

(a) the waiting period has ended; and

(b) the person was, apart from this section, qualified for the allowance throughout so much of the waiting period as occurred after the claim for the allowance was made.

Registration by Commonwealth Employment Service

Certain people not required to be registered at Commonwealth Employment Service

"73.(1) The Secretary may decide that a person does not have to satisfy subparagraph 65(1)(g)(iv) (Commonwealth Employment Service registration) for a period if:

(a) the person was not registered as unemployed by the Commonwealth Employment Service during the period; and

(b) the Secretary is satisfied that there are circumstances beyond the person's control relating to the person's failure to be registered; and

(c) having regard to those circumstances, the Secretary is satisfied that the person's failure to be registered should be disregarded in respect of the period.

Period of registration for purposes of 12 month limit

"(2) If, because of subsection (1), a person does not have to satisfy subparagraph 65(1)(g)(iv) for a period, then, for the purposes of that subparagraph, the period is one for which the person is taken to be registered as required by that subparagraph.

Registration ceasing for less than 6 weeks

"(3) If a person:

(a) is registered by the Commonwealth Employment Service in an allowance category as being unemployed; and

(b) ceases for a period of not longer than 6 weeks to be registered by the Commonwealth Employment Service in an allowance category as being unemployed; and

(c) at the end of that period becomes registered by the Commonwealth Employment Service in an allowance category as being unemployed;

then, for the purposes of subparagraph 65(1)(g)(iv), the person is taken to have been registered throughout that period by the Commonwealth Employment Service in an allowance category as being unemployed.

Prospective determinations for some claimants

"74. A person is qualified for youth training allowance in respect of a period, if:

(a) the person was, immediately before starting to receive youth training allowance, receiving:

(i) a social security benefit; or

(ii) a rehabilitation allowance instead of a social security benefit; and

(b) the last payment of that benefit or allowance was made in respect of a period that ended after the day on which the payment was made; and

(c) the person may, in the Secretary's opinion, reasonably be expected to satisfy the qualification requirements for youth training allowance (see sections 65 to 73) during the period.

"Subdivision BActivity test

Activity test

Satisfaction of activity test

"75.(1) Subject to subsections (2) and (8), a person satisfies the activity test in respect of a period if the person satisfies the Secretary that, throughout the period, the person is:

(a) actively seeking; and

(b) willing to undertake;

paid work, other than paid work that is unsuitable to be undertaken by the person.

Note 1: For situations in which a person is not required to satisfy the activity test see:

(a) section 76 (people attending training camp);

(b) section 77 (certain people engaged in voluntary work);

(c) section 78 (special circumstances).

Note 2: See subsections (8) to (11) on what paid work is unsuitable.

Requirement regarding job application

"(2) The Secretary may notify a person that the person must apply for a particular number of advertised job vacancies in the period stated in the notice.

Failure to comply

"(3) If the person fails to take reasonable steps to comply with the notice under subsection (2), the person is taken not to satisfy the activity test in respect of the period stated in the notice.

Note: See subsection (15) on taking reasonable steps.

Statement from employer

"(4) A person is taken to have applied for a job vacancy as required under the notice under subsection (2) only if the person gives the Secretary a written statement from the employer concerned that confirms that the person applied for the job vacancy.

Form of statement

"(5) The statement from the employer must be in a form approved by the Secretary.

Special circumstances

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

Participation in courses

"(7) A person also satisfies the activity test in respect of a period if the Secretary is of the opinion that, throughout the period, the person:

(a) should undertake particular paid work other than paid work that is unsuitable to be done by the person; or

(b) should:

(i ) undertake a course of vocational training; or

(ii) participate in a labour market program; or

(iii) participate in a rehabilitation program; or

(iv) participate in another course;

approved by the Secretary that is likely to:

(v) improve the person's prospects of obtaining suitable paid work; or

(vi) help the person in seeking suitable paid work; or

(c) if the person lives in an area where:

(i) there is no locally accessible labour market; and

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

should participate in an activity suggested by the person and approved by the Commonwealth Employment Service;

and, after the Secretary notifies the person that the person is required to act in accordance with the opinion, the person takes reasonable steps to comply, throughout the period, with the Secretary's requirement.

Note: See subsection (15) on taking reasonable steps.

Unsuitable work

"(8) For the purposes of subsection (1) and paragraph (7)(a), particular paid work is unsuitable for a person if, and only if, in the Secretary's opinion:

(a) the person lacks the particular skills, experience or qualifications that are needed to perform the work; or

(b) the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

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

(d) the work would involve the person being self-employed; or

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

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

(g) commuting between the person's home and the place of work would be unreasonably difficult; or

(h) for any other reason, the work is unsuitable for the person.

Commuting—unreasonable difficulty

"(9) For the purposes of paragraph (8)(g), commuting is not unreasonably difficult if:

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

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

"(10) Subsection (9) does not limit the Secretary's discretion to form the opinion that, for the purposes of paragraph (8)(g), commuting is not unreasonably difficult.

Remuneration for work

"(11) A reference in subsection (8) to remuneration for work is a reference to any income derived from the work that is income from personal exertion.

Note: For 'income from personal exertion' see subsection 8(1) of the Social Security Act.

Failure to take reasonable steps to comply with requirements

"(12) If a person fails to take reasonable steps to comply, throughout a period, with a requirement of the Secretary under subsection (7), the person cannot be taken to satisfy the activity test in respect of that period in spite of any compliance of the person with subsection (1).

Reasonable steps to comply with terms of Agreement

"(13) A person also satisfies the activity test in respect of a period if, throughout the period, the person is taking reasonable steps to comply with the terms of a Youth Training Activity Agreement between the Commonwealth Employment Service and the person.

Note: See subsection (15) on taking reasonable steps.

Failure to take reasonable steps to comply with terms of Agreement

"(14) If a person fails to take reasonable steps to comply, throughout a period, with the terms of a Youth Training Activity Agreement between the Commonwealth Employment Service and the person, the person cannot be taken to satisfy the activity test in respect of the period in spite of any compliance of the person with subsection (1).

Note: See subsection (15) on taking reasonable steps.

What are reasonable steps

"(15) For the purposes of this section, a person takes reasonable steps to comply with a notice under subsection (2), with a requirement of the Secretary under subsection (7) or with the terms of a Youth Training Activity Agreement (as the case requires) unless the person has failed so to comply and:

(a) the main reason for failing to comply involved a matter that was within the person's control; or

(b) the circumstances that prevented the person from complying were reasonably foreseeable by the person.

Relief from activity test—general

Relief from test for people attending training camps

"76.(1) A person is taken to satisfy the activity test in respect of a period when the person is attending a training camp as a member of:

(a) the Australian Naval Reserve; or

(b) the Naval Emergency Reserve Forces; or

(c) the Australian Army Reserve; or

(d) the Australian Airforce Reserve; or

(e) the Airforce Emergency Force; or

(f) the Army Individual Emergency Reserve.

Note: Subsection 65(5) relieves people attending these training camps from the requirement of being in Australia to qualify for youth training allowance.

Relief from test for certain people in remote areas

"(2) If the Secretary considers that:

(a) it would be reasonable to assume that, at the end of a period, a person is present in an area described in paragraph 75(7)(c); and

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

(i) unemployed; and

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

(iii) willing to undertake paid work that in the Secretary's opinion is suitable to be undertaken by the person; and

(c) having regard to all the relevant factors, including:

(i) the location of offices of the Department of Social Security; and

(ii) difficulties with transport and communication; and

(iii) the educational and cultural background of the person;

it would be unreasonable to expect the person to comply with the activity test in order to be qualified for youth training allowance for the period;

then, unless the person has been notified of a requirement under subsection 75(7) in relation to the period, the person is taken to satisfy the activity test during the period.

Note: For 'activity test' see section 75.

Relief from activity test—people engaged in voluntary work

Conditions for relief from activity test

"77.(1) Subject to subsections (2) and (3), a person is taken to satisfy the activity test in respect of a period if:

(a) on each day in the period the person is engaged in full-time voluntary work with an approved organisation; and

(b) the person has been a qualified beneficiary for at least 3 months immediately before the person starts working for the organisation.

Relief not to apply to certain days

"(2) Subsection (1) does not apply to a day if:

(a) there are already 30 days in the same calendar year on which the person is taken to satisfy the activity test because of subsection (1); or

(b) having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that subsection (1) should not apply in relation to the day.

Note 1: For 'approved organisation' see subsection 58(1).

Note 2: For 'activity test' see section 75.

"(3) Paragraph (1)(b) does not apply if:

(a) the person was employed by the organisation; and

(b) that employment ended on a day, but not later than 2 weeks after that day the person was engaged in full-time voluntary work for the organisation; and

(c) the person is a qualified beneficiary and was a qualified beneficiary immediately after the person started working for the organisation in such a full-time voluntary capacity.

Relief from activity test—special circumstances

Special circumstances

"78.(1) Subject to subsections (2) and (3), a person is not required to satisfy the activity test for a period if:

(a) the Secretary is satisfied that special circumstances, beyond the person's control, exist; and

(b) the Secretary is satisfied that in those circumstances it would be unreasonable to expect the person to comply with the activity test for that period.

Duration of period

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

Duration where a number of determinations made

(d) a transaction (whatever its terms or form) that in substance gives effect to an advance of money;

'obligation',in relation to a dwelling, means a unit:

(a) on a unit plan registered under a law of a State or Territory that provides for the registration of titles of a kind known as strata titles or unit titles; and

(b) that comprises:

(i) a part of a building that contains the dwelling and is a flat or home unit; or

(ii) apart of a parcel of land if the building containing the dwelling is constructed on that part.

Loan benefits

14.(1) If a person (the 'provider')who is the employer, or an associate of the employer, of a recipient makes a loan to the recipient, the making of the loan is taken to be a loan benefit provided by the provider to the recipient.

(2) For the purposes of this clause, if:

(a) a debtor is under an obligation to pay or repay an amount (the 'principal amount')to another person (the 'creditor');and

(b) the principal amount is not the whole or a part of the amount of a loan; and

(c) after the due date for payment or repayment of the principal amount, the whole or part of the principal amount remains unpaid;

the following provisions have effect:

(d) the creditor is taken, immediately after the due date, to have made a loan (the 'notional loan') of the principal amount to the debtor;

SCHEDULE 3— continued

(e) at any time when the debtor is under an obligation to repay any part of the principal amount, the debtor is taken to be under an obligation to repay that part of the notional loan;

(f) the notional loan is taken to have been made:

(i) if interest accrues on so much of the principal amount as remains from time to time unpaid—at the rate of interest at which that interest accrues; or

(ii) in any other case—at nil rate of interest.

(3) Subject to subclause (4), a loan is a deferred interest loan if interest is payable on the loan at a rate that is greater than nil.

(4) A loan is not a deferred interest loan if:

(a) the whole of the interest is due for payment within 6 months after the loan is made; or

(b) all of the following conditions are satisfied:

(i) interest on the loan is payable by instalments;

(ii) the intervals between instalments are not more than 6 months;

(iii) the first instalment is due for payment within 6 months after the loan is made.

(5) For the purposes of this clause, if the provider makes a deferred interest loan (the 'principal loan') to the recipient, the following provisions apply:

(a) the provider is taken, at the end of:

(i) the period of 6 months beginning on the day on which the principal loan was made; and

(ii) each later period of 6 months;

to have made a notional loan to the recipient;

(b) the amount of the loan is taken to be equal to the amount by which the interest (the 'accrued interest')that has accrued on the principal loan in respect of the period is more than any amount paid in relation to the accrued interest before the end of the period;

(c) if any part of the accrued interest becomes payable, or is paid, after the time when the notional loan is taken to have been made, the notional loan is taken to be reduced accordingly;

(d) the notional loan is taken to have been made at a nil rate of interest.

(6) Paragraph (5) (a) only applies to a period of 6 months if the recipient is under an obligation during the whole of the period to repay the whole or a part of the principal loan.

SCHEDULE 3— continued

(7) For the purposes of this Part, if no interest is payable in relation to a loan, a nil rate of interest is taken to be payable in relation to the loan.

Division 2Exempt loan benefits

15.(1) A loan is an exempt loan benefit if:

(a) the loan is made by a provider that carries on a business that consists of, or includes, making loans to members of the public; and'

(b) the rate of interest payable in respect of the loan:

(i) is stated in a document in existence at the time the loan is made; and

(ii) is not less than the rate of interest in respect of a similar arm's length loan made by the provider, at or about that time, to a member of the public in the ordinary course of carrying on that business; and

(iii) cannot be varied.

(2) A loan is an exempt loan benefit if:

(a) the loan is made by a provider who carries on a business that consists of, or includes, making loans to members of the public; and

(b) the interest rate payable from time to time for the loan is not less than the rate that applies to a comparable arm's length loan made by the provider to another person in the ordinary course of carrying on that business.

(3) A loan is an exempt loan benefit if:

(a) the loan consists of an advance to a recipient by a provider who is an employer of the recipient; and

(b) the sole purpose of the making of the loan is to enable the recipient to meet the expenses incurred by the recipient:

(i) in the course of performing the duties of that employment; and

(ii) not later than 6 months after the loan is made; and

(c) the amount of the loan is not substantially greater than the amount of those expenses that could reasonably be expected to be incurred by the recipient; and

(d) the recipient is required:

(i) to account to the employer, not later than 6 months after the loan is made, for expenses met from the loan; and

(ii) to repay (whether by set-off or otherwise) any amount not so accounted for.

SCHEDULE 3— continued

(4) A loan is an exempt loan benefit if:

(a) the loan consists of an advance to a recipient by a provider who is an employer of the recipient; and

(b) the sole purpose of the making of the loan is to enable the recipient to pay any of the following amounts payable by the recipient in respect of accommodation:

(i) a rental bond;

(ii) a security deposit in respect of electricity, gas or telephone services;

(iii) any similar amount; and

(c) the recipient is required to repay (whether by set-off or otherwise) the loan no later than 12 months after the loan is made.

Division 3Value of a loan benefit

Method of valuing loan benefits

16.(1) The value of a loan benefit is calculated as follows:

Method statement

Step 1.

Work out whether the loan is a housing loan or another type of loan.

Note: For the meaning of "housing loan", see clause 17.

Step 2.

Work out the notional rate of interest for the loan using subclause (2).

Step 3.

Work out the actual rate of interest for the loan in the relevant fringe benefits year using subclause (3).

Step 4.

Work out whether the actual rate of interest is more than the notional rate of interest.

Step 5.

If the actual rate of interest is equal to or more than the notional rate of interest, the value of the loan benefit is nil.

Note: If the value of the loan benefit is nil, the remainder of this subclause does not apply.

Step 6.

If the actual rate of interest is less than the notional rate of interest, take the actual rate of interest away from the notional rate of interest.

SCHEDULE 3— continued

Method statement—continued

Step 7.

Work out the amount of the loan (both the principal and interest) that is outstanding in the relevant fringe benefits year using subclause (5).

Step 8.

Multiply the rate of interest obtained in Step 6 and the amount obtained in Step 7: the result is the interim value of the loan.

Step 9.

Work out how many complete weeks in the relevant fringe benefits year the person had, or will have, the loan: the result is the number of allowable weeks.

Step 10.

Apply the formula:

Step 11.

The amount obtained by applying the formula in Step 10 is the value of the loan benefit.

Note: If the recipient is a member of a couple, the value of the loan benefit is to be halved in certain circumstances (see subclause (5)).

(2) The notional rate of interest for a fringe benefits year is:

(a) for a housing loan—the rate prescribed for the purposes of this paragraph; and

(b) for a loan of any other kind—the rate prescribed for the purposes of this paragraph.

(3) The actual rate of interest for the loan is:

(a) if the loan starts after 1 April in the relevant fringe benefits year—the rate of interest payable under the loan on the day on which the loan starts; and

(b) in any other case—the rate of interest payable under the loan on 1 April in the relevant fringe benefits year.

(4) The amount of the loan that is outstanding is:

(a) if the loan starts after 1 April in the relevant fringe benefits year—the amount outstanding on the day on which the loan starts; and

(b) in any other case—the amount outstanding on 1 April in the relevant fringe benefits year.

(5) If:

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

(b) the recipient's partner receives a loan benefit in the relevant fringe benefits year; and

SCHEDULE 3— continued

(c) the recipient's, and the recipient's partner's, loan benefits relate to the same loan;

the value of the loan benefit obtained in Step 11 in subclause (1) is halved.

What is a housing loan?

17. A loan is taken to be a housing loan if:

(a) the loan is made to, or used by, a recipient (whether in his or her own right or jointly with his or her partner) wholly:

(i) to enable the recipient to acquire a relevant interest in land on which a dwelling or a building containing a dwelling is to be constructed; or

Note: For the meaning of 'relevant interest', see clause 18.

(ii) to enable the recipient to acquire a relevant interest in land and construct, or complete the construction of, a dwelling or a building containing a dwelling on the land; or

(iii) to enable the recipient to construct, or complete the construction of, a dwelling or a building containing a dwelling on land in which the recipient held a relevant interest; or

(iv) to enable the recipient to acquire a relevant interest in land on which there was a dwelling or a building containing a dwelling; or

(v) to enable the recipient to acquire a relevant interest in a stratum unit in relation to a dwelling; or

(vi) to enable the recipient to extend a building that is a dwelling or contains a dwelling, and is constructed on land in which the recipient held a relevant interest, by adding a room, or part of a room, to the building or the part of the building containing the dwelling, as the case may be; or

(vii) if the recipient held a relevant interest in a stratum unit in relation to a dwelling—to enable the recipient to extend the dwelling by adding a room or part of a room to the dwelling; or

(viii) to enable the recipient to repay a loan that was made to, and used by, the recipient wholly for a purpose mentioned in subparagraphs (i) to (vii); and

(b) when the loan was made, the dwelling was used, or proposed to be used, as the recipient's usual place of residence.

SCHEDULE 3— continued

What is a relevant interest?

18.(1) For the purposes of clause 17, an interest described in a following provision of this clause is a relevant interest.

(2) If:

(a) a person; or

(b) 2 or more persons as joint tenants or tenants in common; acquire, hold or held an estate in fee simple in land or in a stratum unit, the person or those persons are taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit.

(3) If:

(a) a person acquires, holds or held an interest in land or in a stratum unit as lessee or licensee under a lease or licence; and

(b) the lease or licence gives or gave reasonable security of tenure to the lessee or licensee for a period of, or for periods totalling, 10 years or more;

the person is taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit, as the case requires.

(4) If:

(a) a person acquires, holds or held an interest in land or in a stratum unit as purchaser of an estate in fee simple in the land or in the stratum unit under an agreement; and

(b) the agreement provides or provided for payment of the purchase price, or a part of the purchase price, to be made at a future time or by instalments;

the person is taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit, as the case requires.

(5) If:

(a) a person acquires, holds or held an interest in land or in a stratum unit as purchaser of a right to be granted a lease of the land or of the stratum unit under an agreement; and

(b) the agreement provides or provided for payment of the purchase price, or a part of the purchase price, for the lease to be made at a future time or by instalments; and

(c) the Secretary is satisfied that the lease will give reasonable security of tenure to the lessee for a period of, or for periods totalling, 10 years or more;

the person is taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit, as the case requires.

SCHEDULE 3— continued

(6) If:

(a) 2 or more persons acquire, hold or held an interest referred to in paragraph (3) (a), (4) (a) or (5) (a) in land or in a stratum unit as joint tenants or tenants in common; and

(b) paragraph (3) (b) or (4) (b) or paragraphs (5) (b) and (c) are satisfied;

those persons are taken to acquire or hold, or to have held, a relevant interest in that land or stratum unit, as the case requires.

PART 6—SCHOOL FEES BENEFITS

Division 1What is a school fees benefit?

Definition

19. In this Part, unless the contrary intention appears:

'school' means a school, college or other educational institution that provides primary or secondary level education.

School fees benefits

20.(1) If:

(a) a person pays an amount, whether directly or indirectly, to a school; and

(b) the person is the employer, or an associate of the employer, of a recipient; and

(c) the amount is for fees for:

(i) tuition at primary or secondary level provided by the school; or

(ii) books or equipment provided by the school in relation to that tuition; and

(d) the tuition, books or equipment is provided to a dependant of the recipient or of the recipient's partner;

the payment is taken to be a school fees benefit provided by the person to the recipient.

(2) For the purposes of this clause, if:

(a) a school is providing tuition at primary or secondary level to a dependant of a person; and

(b) the dependant is boarding at the school;

the fees that are payable for the dependant to board at the school are taken to be fees for the tuition provided by the school to the dependant.

SCHEDULE 3—continued

Division 2Value of a school fees benefit

Value of school fees benefits

21. The value of a school fees benefit is the amount of the payment that constitutes the school fees benefit.

_____________

"SCHEDULE 4Section 223

CALCULATION OF EARNINGS CREDIT ACCOUNT BALANCE

MODULE A—overall account balance calculation

Account balance calculation

A1. If the person has an earnings credit account, this is how to work out the balance of the account:

Method statement

Step 1.

Work out the person's opening balance using MODULE B below.

Step 2.

If the person has an earnings credit, add the amount of the earnings credit to the account: see MODULE C below.

Step 3.

If the person draws on the account, deduct from the account the amount drawn: see MODULE D below.

Account balance not to be more than $500

A2. The balance of an individual account is not to be more than $500.

Balance not to be in debit

A3. The balance of an earnings credit account is not to fall below nil.

EC accounting periods—subsection 222(1)

A4. The earnings credit accounting periods for an account established under subsection 222(1) are the fortnights beginning on the first day in each period for which an instalment of the person's youth training allowance is payable.

EC accounting periods—subsection 222(2)

A5. The earnings credit accounting periods for an account established under subsection 222(2) are the fortnights beginning on the first day in each period for which an instalment of the person's partner's youth training allowance is payable.

MODULE B—Opening balance

General rule

B1. The opening balance of the person's earnings credit account is nil.

Transferees from social security pensions or benefits or service pensions

B2. Subject to point B3, if:

SCHEDULE 4— continued

(a) the person begins to receive a youth training allowance; and

(b) immediately before beginning to receive the allowance, the person was receiving a social security pension or a social security benefit and had an earnings credit account balance under this Act, the Social Security Act or the Veterans' Entitlements Act;

the opening balance of the person's earnings credit account is the amount of that account balance.

Transferees—joint account

B3. If:

(a) a person begins to receive youth training allowance; and

(b) immediately before beginning to receive the allowance, the person was receiving a social security pension or a social security benefit and had an earnings credit account balance under this Act, the Social Security Act or the Veterans' Entitlements Act; and

(c) the earnings credit account was a joint account with the person's partner;

the opening balance of the person's new earnings credit account is 50% of the balance of the joint account.

Preservation of benefit earnings credit account balances for 13 weeks

B4. If:

(a) a person begins to receive a youth training allowance; and

(b) within the period of 13 weeks immediately before the person began to receive the allowance, the person was receiving a social security benefit or a youth training allowance; and

(c) immediately before the person ceased to receive the social security benefit, the person had an earnings credit account balance under this Part or the Social Security Act that was greater than nil;

the opening balance of the person's earnings credit account is the closing balance of that earnings credit account under the Social Security Act.

Preservation—member of a couple

B5. If:

(a) a person begins to receive a youth training allowance; and

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

(c) the person's partner:

(i) is not receiving a youth training allowance; and

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

SCHEDULE 4—continued

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

(d) within the period of 13 weeks immediately before the person began to receive the youth training allowance, the person was receiving a social security benefit; and

(e) immediately before the person ceased to receive the social security benefit, the partner had an earnings credit account balance under the Social Security Act that was greater than nil;

the opening balance of the partner's earnings credit account is the amount of the closing balance of that earnings credit account under the Social Security Act.

MODULE C—Earnings credit

When earnings credit arises

C1. A person has an earnings credit for an earnings credit accounting period if during that period the person's fortnightly rate of ordinary income is less than the person's ordinary income free area.

Note 1: For 'earnings credit accounting period' see points A4 and A5 above.

Note 2: For 'ordinary income free area' see MODULE G in Schedule 1.

Amount of earnings credit

C2. If the person is not a member of a couple, the amount of an earnings credit for an earnings credit accounting period is $90.00.

Note: This is the basic free area plus all the maximum additional free area for income from personal exertion.

C3. If a person is a member of a couple, the amount of an earnings credit for an earnings credit accounting period is $80.00.

Note: This is half the basic free area plus all the maximum additional free area for income from personal exertion by the person.

MODULE D—Drawing account

Drawing on account (recipient account)

D1. A person draws on an account established under subsection 222(1) if:

(a) during an earnings credit accounting period:

(i) the person earns an amount of money for remunerative work done by the person during that period; and

(ii) the person's fortnightly rate of ordinary income is more than the person's ordinary income free area; and

(b) the rate of youth training allowance payable to the person for the accounting period would otherwise be greater than nil; and

(c) immediately before the beginning of the earnings credit accounting period, the person's earnings credit account balance was greater than nil.

SCHEDULE 4—continued

Drawing on account (partner account)

D2. A person draws on an account established under subsection 222(2) if:

(a) during an earnings credit accounting period:

(i) the person earns an amount of money for remunerative work done by the person during that period; and

(ii) the person's partner's fortnightly rate of ordinary income is more than the partner's ordinary income free area; and

(b) the rate of youth training allowance that would otherwise be payable to the person's partner is greater than nil; and

(c) immediately before the beginning of the earnings credit accounting period, the person's earnings credit account balance was greater than nil.

Deducted amount

D3. The amount to be deducted is the amount earned.".

Transitional provision—acts and decisions of authorised persons and prescribed officers taken to be acts and decisions of Secretary

37.(1) Any application made under the Principal Act as in force before 1 January 1995 to an authorised person or to a prescribed officer is taken, on and after that day, for the purposes of the Principal Act as amended by this Act, to be an application made to the Secretary.

(2) Any decision made by an authorised person or by a prescribed officer under, and for the purposes of, the Principal Act as in force before 1 January 1995 is taken, on and after that day, for the purposes of the Principal Act as amended by this Act, to be a decision made by that authorised person or prescribed officer as the delegate of the Secretary.

(3) Any act or thing done by an authorised person or a prescribed officer in relation to a student or other person under, and for the purposes of, the Principal Act as in force before 1 January 1995 is taken, on and after that day, for the purposes of the Principal Act as amended by this Act, to have effect as if it were an act or thing done by the authorised person or prescribed officer as the delegate of the Secretary.

Transitional provision—internal review of student assistance benefit decision

38.(1) If, before 1 January 1995:

(a) a request had been made to the Secretary under section 20 of the Principal Act for consideration of a decision by a senior authorised person or a senior prescribed officer; but

(b) that consideration of that decision had not begun;

that request is to be treated, on and after that day, for all purposes, as if it were an application under section 304 of that Act as so amended for a review of the decision.

(2) If, before 1 January 1995:

(a) a request had been made to the Secretary under section 20 of the Principal Act for consideration of a decision by a senior authorised person or a senior prescribed officer; and

(b) that consideration had begun but not been completed;

the senior authorised person or the senior prescribed officer may complete that consideration as if Part 5 of the Principal Act had not been repealed.

(3) Any decision made by a senior authorised person or a senior prescribed officer on a consideration of another decision that is undertaken for the purpose of section 20 of the Principal Act, whether that first-mentioned decision as made before or, in accordance with subsection (2), on or after 1 January 1995, has effect, for all purposes, as if it were a decision of an authorised review officer.

Transitional provision—review of student assistance benefit decision not yet heard by SART

39.(1) If, before 1 January 1995, a request to the Secretary to the Department of Employment, Education and Training for the review of a decision of a senior authorised person or a senior prescribed officer:

(a) had not been referred to a Convenor of the Student Assistance Review Tribunal ("SART");or

(b) had been referred to a Convenor of the SART but the Convenor:

(i) had not arranged for a panel of the SART to undertake the review; or

(ii) had so arranged but the review had not commenced;

that request is to be treated, on and after that day, for all purposes, as if it were an application to the Social Security Appeals Tribunal ("SSAT") and is to be forwarded by the Secretary, on, or as soon as practicable after, that day, to the National Convener of the SSAT.

(2) If an application is forwarded by the Secretary in accordance with subsection (1) to the National Convener of the SSAT, the Secretary is taken to have complied with subsection 1261(1) of the Social Security Act 1991.

Transitional provision—review of student assistance benefit decision part-heard by SART

40. If, before 1 January 1995:

(a) a request for review of a decision of a senior authorised person or a senior prescribed officer had been referred to a Convenor of the Student Assistance Review Tribunal ("SART");and

(b) the review of the decision had been commenced but not completed by the SART:

then, for all purposes on and after that date:

(c) the request for the review is taken to have been transferred to the Social Security Appeals Tribunal ("SSAT"); and

(d) to facilitate that transfer, the members of the SART constituting the panel of the SART for the purposes of that review are to continue that review, on and after that day, as a properly constituted panel of the SSAT; and

(e) for the purposes of section 1329 of the Social Security Act 1991, the hearing of the matter is taken to have commenced when the hearing of the review by the SART commenced; and

(f) the functions and powers exercisable by the SSAT in such cases are the functions and powers of the SART under the Principal Act if the Principal Act had not been amended.

Transitional provision—members of SART to become members of SSAT

41.(1) A person who is a Convenor or other member of the Student Assistance Review Tribunal ("SART")immediately before 1 January 1995 is taken, on and after that day, for the purposes of subsection 1324(1) of the Social Security Act 1991, to have been appointed by the Governor-General as an ordinary member of the Social Security Appeals Tribunal ("SSAT").

(2) A person taken to be appointed as an ordinary member of the SSAT under subsection (1):

(a) enjoys, subject to subsection (3) or (4), whichever is appropriate, the same terms and conditions as he or she enjoyed while a Convenor or other member of the SART; and

(b) is taken to have been so appointed for the balance of the term of his or her appointment to the SART, had the SART not been abolished.

(3) A convenor of the SART who is taken to be appointed as an ordinary member of the SSAT under subsection (1):

(a) is to be paid such remuneration as is from time to time fixed by the Remuneration Tribunal in relation to a Chairperson of the SSAT, regardless of whether the Convenor sits as a Chairperson of the SSAT or as an ordinary member; and

(b) is to be paid such allowances as are prescribed for a Chairperson of the SSAT.

(4) A member of the SART, other than a Convenor, who is taken to have been appointed as an ordinary member of the SSAT under subsection (1):

(a) is to be paid such remuneration as is from time to time fixed by the Remuneration Tribunal in relation to an ordinary member of the SSAT; and

(b) is to be paid such allowances as are prescribed for an ordinary member of the SSAT.

____________

NOTE

1. No. 155, 1973, as amended. For previous amendments, see No. 26, 1982; No. 6, 1984 (as amended by No. 165, 1984); Nos. 72 and 120, 1984; No. 137, 1985; No. 114, 1986; Nos. 125, 130 and 141, 1987; No. 35, 1988; Nos. 76 and 171, 1989; Nos. 70, 95 and 147, 1991; No. 138, 1992; and Nos. 55, 63, 68, 78, 98 and 109, 1994.

[Minister's second reading speech made in—

House of Representatives on 20 October 1994

Senate on 28 November 1994

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