Veterans' Affairs and Other Legislation Amendment (Pension Reform) Act 2009 (Cth)

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Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009

No. 81, 2009

An Act to amend the law relating to veterans’ affairs, social security, military rehabilitation and compensation and aged care, and for related purposes

Contents

Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009

No. 81, 2009

An Act to amend the law relating to veterans’ affairs, social security, military rehabilitation and compensation and aged care, and for related purposes

[Assented to 10 September 2009]

The Parliament of Australia enacts:

1Short title

This Act may be cited as the Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009.

2Commencement
  1. (1)

    Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.

Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

10 September 2009

2.

Schedule 1, Parts 1 and 2

20 September 2009.

20 September 2009

3.

Schedule 1, Part 3, Division 1

20 September 2009.

20 September 2009

4.

Schedule 1, Part 3, Division 2

Immediately after the commencement of Schedule 4 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009.

20 September 2009

5.

Schedule 1, Part 4

20 September 2009.

20 September 2009

6.

Schedule 2

The day this Act receives the Royal Assent.

10 September 2009

7.

Schedule 3

1 January 2010.

1 January 2010

8.

Schedule 4, Parts 1, 2, 3 and 4

20 September 2009.

20 September 2009

9.

Schedule 4, items 54 to 111

Immediately after the commencement of Schedule 4 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009.

20 September 2009

10.

Schedule 4, item 112

Immediately after the commencement of Schedule 5 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009.

However, if that Schedule does not commence, the provision(s) do not commence at all.

Does not commence

11.

Schedule 4, items 113 to 206

Immediately after the commencement of Schedule 4 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009.

20 September 2009

12.

Schedule 4, Part 6

20 September 2009.

20 September 2009

13.

Schedule 5

Immediately after the commencement of Part 1 of Schedule 3 to the Carbon Pollution Reduction Scheme Amendment (Household Assistance) Act 2009.

However, if that Part does not commence, the provision(s) do not commence at all.

Does not commence

14.

Schedules 6 and 7

20 September 2009.

20 September 2009

15.

Schedule 8

The day this Act receives the Royal Assent.

10 September 2009

16.

Schedule 9, Part 1

20 September 2009.

20 September 2009

17.

Schedule 9, Part 2, Division 1

20 September 2009.

20 September 2009

18.

Schedule 9, Part 2, Division 2

21 September 2009.

21 September 2009

19.

Schedule 9, Part 3

Immediately after the commencement of Part 1 of Schedule 10 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009.

20 September 2009

20.

Schedule 10

The day this Act receives the Royal Assent.

10 September 2009

21.

Schedule 11

1 July 2010.

1 July 2010

22.

Schedule 12

20 September 2009.

20 September 2009

Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

  1. (2)

    Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3Schedule(s)

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

Schedule 1Increased pension and income support supplementPart 1Main amendments

Veterans’ Entitlements Act 1986

1

Subsection 30(1)

After “sum of”, insert “the following amounts per fortnight”.

2

Paragraph 30(1)(a)

Repeal the paragraph, substitute:

  1. (a)

    1/26 of the amount specified in column 3 of item 1 of the table in point SCH6‑B1 of Schedule 6;

3

Paragraph 30(1)(b)

Omit “per fortnight; and”, substitute “;”.

4

Paragraph 30(1)(c)

Repeal the paragraph, substitute:

  1. (c)

    $25.60.

5

At the end of subsection 30(1)

Add:

Note: Each of the amounts referred to in paragraphs (1)(a), (b) and (c) is subject to indexation (see Division 18 of Part IIIB for indexation of the amount referred to in paragraph (1)(a), and section 198 for indexation of the amounts in paragraphs (1)(b) and (c)).

6

Subsection 30(1A)

Repeal the subsection.

7

After section 198FA

Insert:

198FBRates for service pension and income support supplement increased on 20 September 2009

Maximum basic rate for single person

  1. (1)

    This Act has effect as if, on 20 September 2009, the indexed amount substituted under section 59C for the amount specified in column 3 of item 1 of the table in point SCH6‑B1 of Schedule 6 on that day were in turn replaced with an amount equal to the indexed amount plus $1,560.00.

Ceiling rate

  1. (2)

    This Act has effect as if, on 20 September 2009, the amount substituted under section 59LA for the amount specified in point SCH6‑A4 of Schedule 6 on that day were in turn replaced with an amount worked out as follows:

Method statement

Step 1. Work out the amount substituted under section 59LA for the amount specified in point SCH6‑A4 of Schedule 6 on 20 September 2009 (apart from this subsection).

Step 2. Work out what would have been the indexed rate substituted under section 198E for the rate of utilities allowance under column 3 of item 1 of the table in section 118OC on 20 September 2009 had those sections not been repealed.

Step 3. Work out, on the assumption that section 198F and subsection 118SA(1) had not been repealed:

  1. (a)

    what would have been the rate substituted under that section for the rate payable under that subsection on 20 September 2009; or

  2. (b)

    if there would not have been such a substitution, the rate that would have been payable under that subsection on that day.

    1. Note:

      Subsection 118SA(1) dealt with telephone allowance for certain persons with internet connections at home.

Step 4. Add up:

  1. (a)

    the results of steps 1, 2 and 3; and

  2. (b)

    $130.

Step 5. If the result of step 4 is not a multiple of $2.60, round that result up to the nearest multiple of $2.60.

Part 2Related amendments

Veterans’ Entitlements Act 1986

  1. 8

    Subsection 198(1) (paragraph (e) of the definition of relevant rate)

    Repeal the paragraph, substitute:

    1. (e)

      the amount specified in paragraph 30(1)(c).

9

Subsection 198(4) (note 1)

Omit “Note 1:”, substitute “Note:”.

10

Subsection 198(4) (note 2)

Repeal the note.

11

Subsections 198(5A), (5D), (6), (7) and (8)

Repeal the subsections.

Part 3Other amendmentsDivision 1Veterans’ Entitlements Act 1986
  1. 12

    Section 45UF (cell at table item 1, column headed “The person’s annual pension rate is:”)

    Repeal the cell, substitute:

the rate that would be the person’s provisional payment rate under method statement 1 in subpoint SCH6‑A1(2), ascertained as at the date of the grant, if it were assumed that the person’s maximum payment rate were the sum of:

(a) the person’s maximum basic rate under Module B of the Rate Calculator; and

(b) the person’s pension supplement basic amount

  1. 13

    Section 45UF (cell at table item 2, column headed “The person’s annual pension rate is:”)

    Repeal the cell, substitute:

the sum of:

(a) the person’s maximum basic rate under Module B of the Rate Calculator; and

(b) the person’s pension supplement basic amount;

ascertained as at the date of the grant

  1. 14

    Section 45UF (cell at table item 3, column headed “The person’s annual pension rate is:”)

    Repeal the cell, substitute:

the lesser of the following rates (or, if the rates are the same, the first rate):

(a) the person’s ceiling rate under point SCH6‑A4, ascertained as at the date of the grant;

(b) the rate that would be the person’s provisional payment rate under method statement 1 in subpoint SCH6‑A1(2), ascertained as at the date of the grant, if it were assumed that the method statement applied and the person’s maximum payment rate were the sum of:

(i) the person’s maximum basic rate under Module B of the Rate Calculator; and

(ii) the person’s pension supplement basic amount

  1. 15

    Section 45UF (cell at table item 5, column headed “The person’s annual pension rate is:”)

    Repeal the cell, substitute:

the rate that would be the person’s provisional payment rate under method statement 5 in subpoint SCH6‑A1(6), ascertained as at the date of the grant, if it were assumed that the person’s maximum payment rate were the sum of:

(a) the person’s maximum basic rate under Module B of the Rate Calculator; and

(b) the person’s pension supplement basic amount

  1. 16

    Subsection 45UH(1) (table item 1, column headed “The person’s annual notional single pension rate is:”)

    Omit “pension supplement under Module BA”, substitute “pension supplement basic amount”.

  2. 17

    Subsection 45UH(1) (table item 2, column headed “The person’s annual notional single pension rate is:”)

    Omit “amounts worked out under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)”, substitute “person’s maximum basic rate under point SCH6‑B1 and the person’s pension supplement basic amount”.

  3. 18

    Subsection 45UH(2) (paragraph (a) of the definition of provisional payment rate)

    Omit “pension supplement under Module BA”, substitute “pension supplement basic amount”.

  4. 19

    Subsection 45UH(2) (paragraph (b) of the definition of provisional payment rate)

    Omit “amounts under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)”, substitute “person’s maximum basic rate under point SCH6‑B1 and the person’s pension supplement basic amount”.

  5. 20

    Subsection 45UH(2) (subparagraph (c)(iv) of the definition of provisional payment rate)

    Omit “pension supplement under point 1064‑BA2 of that Act”, substitute “pension supplement basic amount”.

  6. 21

    Subsection 45UH(2) (subparagraph (d)(iv) of the definition of provisional payment rate)

    Omit “pension supplement under point 1065‑BA2 of that Act”, substitute “pension supplement basic amount”.

  7. 22

    Subsection 45UH(3) (definition of maximum basic rate)

    Omit “amounts worked out under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)”, substitute “person’s maximum basic rate under point SCH6‑B1 and the person’s pension supplement basic amount”.

  8. 23

    Subsection 45UI(1) (table item 1, column headed “The person’s annual notional partnered pension rate is:”)

    Omit “pension supplement under Module BA”, substitute “pension supplement basic amount”.

  9. 24

    Subsection 45UI(1) (table item 2, column headed “The person’s annual notional partnered pension rate is:”)

    Omit “amounts worked out under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)”, substitute “person’s maximum basic rate under point SCH6‑B1 and the person’s pension supplement basic amount”.

  10. 25

    Subsection 45UI(2) (paragraph (a) of the definition of provisional payment rate)

    Omit “pension supplement under Module BA”, substitute “pension supplement basic amount”.

  11. 26

    Subsection 45UI(2) (paragraph (b) of the definition of provisional payment rate)

    Omit “amounts under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)”, substitute “person’s maximum basic rate under point SCH6‑B1 and the person’s pension supplement basic amount”.

  12. 27

    Subsection 45UI(2) (subparagraph (c)(iv) of the definition of provisional payment rate)

    Omit “pension supplement under point 1064‑BA2 of that Act”, substitute “pension supplement basic amount”.

  13. 28

    Subsection 45UI(2) (subparagraph (d)(iv) of the definition of provisional payment rate)

    Omit “pension supplement under point 1065‑BA2 of that Act”, substitute “pension supplement basic amount”.

  14. 29

    Subsection 45UI(3) (definition of maximum basic rate)

    Omit “amounts worked out under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)”, substitute “person’s maximum basic rate under point SCH6‑B1 and the person’s pension supplement basic amount”.

  15. 30

    Section 45UIA (paragraph (a) of the definition of provisional payment rate)

    Omit “steps 2 and 3 were omitted from the method statement”, substitute “the person’s maximum payment rate were the sum of the person’s maximum basic rate under point SCH6‑B1 and the person’s pension supplement basic amount”.

  16. 31

    Section 45UIA (paragraph (b) of the definition of provisional payment rate)

    Omit “amounts under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)”, substitute “person’s maximum basic rate under point SCH6‑B1 and the person’s pension supplement basic amount”.

  17. 32

    Section 45UIA (paragraph (c) of the definition of provisional payment rate)

    Omit “steps 2 and 3 were omitted from the method statement”, substitute “the person’s maximum payment rate were the sum of the person’s maximum basic rate under Table B in point 1064‑B1 of the Social Security Act 1991 and the person’s pension supplement basic amount”.

  18. 33

    Section 45UIA (paragraph (d) of the definition of provisional payment rate)

    Omit “pension supplement under point 1065‑BA2”, substitute “pension supplement basic amount”.

Division 2Social Security Act 1991
  1. 34

    Subparagraphs 93J(3)(a)(ii) and (b)(ii) and (4)(a)(ii) and (b)(ii)

    Repeal the subparagraphs, substitute:

    1. (ii)

      the amount worked out for the person using the table in subsection 93H(4);

  2. 35

    Subsection 93J(5) (definition of maximum basic rate)

    Omit “amounts worked out under steps 1 and 1A of the method statement in point 1064‑A1”, substitute “person’s maximum basic rate worked out using Module B of Pension Rate Calculator A in section 1064 and the amount worked out for the person using the table in subsection 93H(4)”.

Part 4Application
  1. 36

    Amendments of the Veterans’ Entitlements Act 1986

    (1) The amendments of the Veterans’ Entitlements Act 1986 made by this Schedule (except Division 1 of Part 3) apply for the purposes of working out the rates of payments under that Act for days on or after 20 September 2009.

    (2) To avoid doubt, section 198FB of the Veterans’ Entitlements Act 1986 applies in working out the amount specified in paragraph 30(1)(a) of that Act (as amended by this Schedule) for 20 September 2009.

    (3) Subitem (2) does not limit the application of section 198FB of the Veterans’ Entitlements Act 1986.

    (4) The amendments of the Veterans’ Entitlements Act 1986 made by Division 1 of Part 3 of this Schedule apply for the purposes of working out the amount of pension bonus for a person who starts to receive a designated pension on or after 20 September 2009.

    (5) Despite subitem (1), the amount specified in paragraph 30(1)(c) of the Veterans’ Entitlements Act 1986 is not to be indexed under section 198 of that Act before 20 March 2010.

    Note: Subitem (5) affects the application of the amendment by this Schedule of subsection 198(1) of the Veterans’ Entitlements Act 1986 only so far as the amendment relates to the indexation of the amount specified in paragraph 30(1)(c) of that Act, and not so far as the amendment prevents the indexation under section 198 of that Act on and after 20 September 2009 of the rate specified in paragraph 30(1)(a) of that Act.

37

Amendments of the Social Security Act 1991

The amendments of the Social Security Act 1991 made by Division 2 of Part 3 of this Schedule apply for the purposes of working out the amount of pension bonus for a person whose start day for the age pension is on or after 20 September 2009.

Schedule 2Indexation using the Pensioner and Beneficiary Living Cost Index

Veterans’ Entitlements Act 1986

1

After paragraph 59(a)

Insert:

  1. (aa)

    the indexation of the maximum basic rates for service pension and income support supplement using the Pensioner and Beneficiary Living Cost Index; and

2

Subsection 59C(2) (method statement, step 5)

After “amount:”, insert “subject to section 59EAA,”.

3

Subsection 59C(2) (method statement, step 5)

After “The indexed amount”, insert “(including one replaced under section 59EAA)”.

4

After section 59E

Insert:

59EAAIndexation using Pensioner and Beneficiary Living Cost Index

  1. (1)

    This section applies to the pension MBR amount (see item 1 of the table in section 59A).

  2. (2)

    If the indexed amount for the pension MBR amount, worked out under section 59C on an indexation day and disregarding section 59EA and this section, is less than the living cost amount worked out on that indexation day using the following method statement, then that indexed amount is taken to be an amount equal to that living cost amount:

Method statement

Step 1. Use section 59EAB to work out the living cost indexation factor on that indexation day.

Step 2. Work out the current figure for the pension MBR amount immediately before that indexation day.

Note: For current figure see subsection 5NA(1).

Step 3. Multiply the current figure by the living cost indexation factor: the result is the provisional living cost amount.

Step 4. Use section 59EAC to round off the provisional living cost amount: the result is the living cost amount.

Note: If the indexed amount for the pension MBR amount, worked out under section 59C, is taken to be an amount equal to that living cost amount, there may be a further increase of that replaced indexed amount under section 59EA.

59EABLiving cost indexation factor

  1. (1)

    Subject to subsections (5) and (6), the living cost indexation factor on an indexation day is:

worked out to 3 decimal places.

Definitions

  1. (2)

    For the purposes of this section, the living cost index number, in relation to a quarter, is the All Groups Pensioner and Beneficiary Living Cost Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.

  2. (3)

    For the purposes of this section, the reference quarter is:

    1. (a)

      if the indexation day is a 20 March—the most recent December quarter before the indexation day; and

    2. (b)

      if the indexation day is a 20 September—the most recent June quarter before the indexation day.

  3. (4)

    For the purposes of this section, the base quarter is the June or December quarter that:

    1. (a)

      is a quarter before the reference quarter; and

    2. (b)

      has the highest living cost index number.

Rounding

  1. (5)

    If a living cost indexation factor worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, that indexation factor is to be increased by 0.001.

  2. (6)

    If a living cost indexation factor worked out under subsections (1) and (5) would be less than 1, that indexation factor is to be increased to 1.

Publication of substituted living cost index numbers

  1. (7)

    Subject to subsection (8), if at any time (whether before or after the commencement of this section) the Australian Statistician publishes a living cost index number for a quarter in substitution for a living cost index number previously published by the Australian Statistician for that quarter, the publication of the later living cost index number is to be disregarded for the purposes of this section.

Change to reference base

  1. (8)

    If at any time (whether before or after the commencement of this section) the Australian Statistician changes the reference base for the Pensioner and Beneficiary Living Cost Index, regard is to be had, for the purposes of applying this section after the change takes place, only to living cost index numbers published in terms of the new reference base.

59EACRounding off amounts

  1. (1)

    If a provisional living cost amount is a multiple of $2.60, the provisional living cost amount becomes the living cost amount.

  2. (2)

    Subject to subsection (3), if a provisional living cost amount is not a multiple of $2.60, the living cost amount is the provisional living cost amount rounded up or down to the nearest multiple of $2.60.

  3. (3)

    If a provisional living cost amount is not a multiple of $2.60 but is a multiple of $1.30, the living cost amount is the provisional living cost amount rounded up to the nearest multiple of $2.60.

5

Point SCH6‑B1 of Schedule 6 (at the end of note 2)

Add “See also sections 59EAA to 59EAC (about Pensioner and Beneficiary Living Cost Index indexation).”.

6

Application

The amendments made by items 2 to 4 apply in relation to the indexation day that is 20 September 2009 and all later indexation days.

7

Transitional—adjustment of ceiling rate on 20 September 2009

Section 59LA of the Veterans’ Entitlements Act 1986 applies in relation to the adjustment day that is 20 September 2009 as if the current single pension MBR amount on that day were the amount that would have been the current single pension MBR amount on that day if the amendments made by Part 1 of Schedule 1 to this Act had not been made.

Schedule 3Indexation using combined couple benchmark

Veterans’ Entitlements Act 1986

1

Section 59A (table item 1, column 2)

After “income support supplement”, insert “for a person who is partnered”.

2

Section 59A (table item 1, column 4)

Omit:

*Rate Calculator—point SCH6‑B1—Table B—column 3—all amounts

substitute:

*Rate Calculator—point SCH6‑B1—Table B—column 3—item 2

3

Section 59A (after table item 1)

Insert:

1A.

Maximum basic rates for service pension or income support supplement for a person who is not partnered

single pension rate MBR

*Rate Calculator—point SCH6‑B1—Table B—column 3—item 1

  1. 4

    Subsection 59EA(1) (definition of category A amount)

    Repeal the definition.

5

Subsection 59EA(2)

Repeal the subsection, substitute:

  1. (2)

    If:

    1. (a)

      a category B amount is to be indexed under this Subdivision on an indexation day; and

    2. (b)

      50% of the combined couple benchmark for that indexation day exceeds the indexed amount for the category B amount;

then:

  1. (c)

    the indexed amount for the category B amount is to be increased by an amount equal to the excess; and

  2. (d)

    if the indexed amount for the category B amount (as increased under paragraph (c)) is not a multiple of $2.60, the indexed amount (as increased under paragraph (c)) is to be further increased by rounding up to the next highest multiple of $2.60.

  1. (2A)

    For the purposes of this section, the combined couple benchmark, for an indexation day, is 41.76% of the annualised MTAWE figure for whichever of the following quarters is applicable:

    1. (a)

      if the indexation day is a 20 March—the most recent December quarter;

    2. (b)

      if the indexation day is a 20 September—the most recent June quarter.

6

Before section 59GA

Insert:

59GAdjustment of single pension rate MBR amount

  1. (1)

    This Act has effect as if, on 20 March (an indexation day) and 20 September (an indexation day) each year, the adjusted single pension amount were substituted for the single pension rate MBR amount (see item 1A of the table in section 59A).

  2. (2)

    For the purposes of this section, the adjusted single pension amount is worked out as follows:

Method statement

Step 1. Work out the amount substituted for the pension MBR amount (see item 1 of the table in section 59A) on that indexation day under section 59C.

Step 2. Multiply the amount worked out at step 1 by 2.

Step 3. Work out 66.33% of the amount worked out at step 2.

Step 4. Round the amount worked out at step 3 to the nearest multiple of $2.60 (rounding up if necessary): the result is the adjusted single pension amount.

7

Subsections 59LA(1) and (2)

Repeal the subsections, substitute:

  1. (1)

    This Act has effect as if, on each adjustment day, the amount worked out in accordance with the following formula, and rounded up to the nearest multiple of $2.60, were substituted for the ceiling rate:

where:

pension MBR factor is:

previous ceiling rate is the ceiling rate applicable on the day before the adjustment day.

  1. (2)

    In subsection (1):

current single pension rate MBR amount means the single pension rate MBR amount (see item 1A of the table in section 59A) applicable on the adjustment day.

previous single pension rate MBR amount means the single pension rate MBR amount (see item 1A of the table in section 59A) applicable on the day before the adjustment day.

8

Point SCH6‑B1 of Schedule 6 (note 2)

Repeal the note, substitute:

Note 2: The maximum basic rates are adjusted 6 monthly: see sections 59B to 59G.

Schedule 4SupplementsPart 1Pension supplement

Veterans’ Entitlements Act 1986

1

After section 5G

Insert:

5GAPension supplement rate definitions

  1. (1)

    In this Act, the combined couple rate of pension supplement is $2,199.60.

    Note 1: This rate is indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

    Note 2: This rate is an annual rate.

  2. (2)

    In this Act, the combined couple rate of minimum pension supplement is $1,185.60.

    Note 1: This rate is indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

    Note 2: This rate is an annual rate.

  3. (3)

    In this Act, a person’s minimum pension supplement amount is the amount worked out by:

    1. (a)

      applying the applicable percentage in the following table to the combined couple rate of minimum pension supplement; and

    2. (b)

      if:

      1. (i)

        the person is not partnered; and

      2. (ii)

        the amount resulting from paragraph (a) is not a multiple of $2.60;

    rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Item

Person’s family situation

Use this %

1

Not member of couple

66.33%

2

Partnered

50%

3

Member of illness separated couple

66.33%

4

Member of respite care couple

66.33%

Note: A person’s minimum pension supplement amount is an annual rate.

  1. (4)

    In this Act, a person’s pension supplement basic amount depends on which family situation in the following table applies to the person. The person’s pension supplement basic amount is the corresponding amount set out in the table.

Item

Person’s family situation

Amount

1

Not member of couple

$509.60

2

Partnered

$426.40

3

Member of illness separated couple

$509.60

4

Member of respite care couple

$509.60

Note 1: Each amount in the table will be indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Note 2: A person’s pension supplement basic amount is an annual rate.

  1. (5)

    In this Act, the daily rate of tax‑exempt pension supplement, for a person who is receiving a service pension or income support supplement is the amount a day worked out using the table.

Tax‑exempt pension supplement

Item

Payment received

Amount a day of tax‑exempt pension supplement

1

Service pension

The amount worked out by:

(a) subtracting the person’s pension supplement basic amount from the person’s pension supplement amount; and

(b) dividing the result of paragraph (a) by 364

2

Income support supplement

The person’s minimum pension supplement amount divided by 364

Note: The portion of the person’s service pension or income support supplement equal to the tax‑exempt pension supplement is exempt from income tax (see sections 52‑65 and 52‑70 of the Income Tax Assessment Act 1997).

  1. (6)

    If a person is receiving a service pension at a rate that:

    1. (a)

      is worked out under subpoint SCH6‑A1(4) of Schedule 6 and is the revised rate; or

    2. (b)

      is worked out under subpoint SCH6‑A1(5) of Schedule 6;

subsection (5) applies in relation to the person and the pension as if the person had a pension supplement amount equal to what would be the person’s pension supplement amount if the person were receiving the service pension at the rate worked out under subpoint SCH6‑A1(4) of Schedule 6 and equal to the provisional rate.

2

Paragraph 1(1)(aa) of Schedule 6

Repeal the paragraph.

3

Subclause 1(1) of Schedule 6 (note 1)

Omit “rent assistance and pharmaceutical allowance”, substitute “pension supplement and rent assistance”.

4

Clause 4 of Schedule 6

Repeal the clause, substitute:

4Application for income tax purposes of reductions in respect of service pension or income support supplement

Service pension

  1. (1)

    If a person’s rate of service pension is affected by a reduction under any or all of the following:

    1. (a)

      Module E (ordinary/adjusted income test) of the Rate Calculator;

    2. (b)

      Module F (assets test) of the Rate Calculator;

    3. (c)

      section 59T (compensation recovery);

the reduction is to be applied as follows (in descending order):

Item

Component of the rate

1

all of the rate apart from the person’s pension supplement amount and any increase under Module C (rent assistance) of the Rate Calculator

2

the portion of the person’s pension supplement amount equal to the person’s pension supplement basic amount

3

(a) if an election by the person under subsection 60A(1) is in force—any remaining portion of the person’s pension supplement amount; or

(b) otherwise—any remaining portion of the person’s pension supplement amount to the extent to which it exceeds the person’s minimum pension supplement amount

4

the amount of any increase under Module C

5

the person’s minimum pension supplement amount

Note: Table item 5 will not apply if an election by the person under subsection 60A(1) is in force, as the rate would have already been reduced to nil.

  1. (2)

    If a person’s rate of service pension:

    1. (a)

      is worked out under subpoint SCH6‑A1(4) of Schedule 6 and is the revised rate; or

    2. (b)

      is worked out under subpoint SCH6‑A1(5) of Schedule 6;

subclause (1) applies in relation to the person and the pension as if:

  1. (c)

    paragraphs (1)(a) and (b) were omitted; and

  2. (d)

    the person had a pension supplement amount equal to what would be the person’s pension supplement amount if the person were receiving the service pension at the rate worked out under subpoint SCH6‑A1(4) of Schedule 6 and equal to the provisional rate.

Income support supplement

  1. (3)

    If a person’s rate of income support supplement is affected by a reduction under any or all of the following:

    1. (a)

      Module E (ordinary/adjusted income test) of the Rate Calculator;

    2. (b)

      Module F (assets test) of the Rate Calculator;

    3. (c)

      section 59T (compensation recovery);

the reduction is to be applied as follows (in descending order):

Item

Component of the rate

1

all of the rate apart from any increase under Module C (rent assistance) of the Rate Calculator and the person’s minimum pension supplement amount

2

the amount of any increase under Module C

3

the person’s minimum pension supplement amount

Quarterly pension supplement

  1. (4)

    If:

    1. (a)

      the rate (the main rate) of a person’s service pension or income support supplement is to be reduced as described in subclause (1) (applying of its own force or as affected by subclause (2)) or subclause (3); and

    2. (b)

      an election by the person under subsection 60A(1) is in force;

the person’s quarterly pension supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person’s minimum pension supplement amount would be reduced under subclause (1) or (3) were the election not in force.

Note: The reduction will be disregarded unless the person’s quarterly pension supplement is reduced to nil (see subsection 60C(4)).

5

Subpoint SCH6‑A1(4) of Schedule 6 (method statement 3, step 5)

Repeal the step, substitute:

Step 5. Add:

  1. (a)

    the ceiling rate; and

  2. (b)

    any amount obtained under step 2A; and

  3. (c)

    any amount obtained under step 4;

and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person’s minimum pension supplement amount. The result is the revised rate.

6

Subpoint SCH6‑A1(5) of Schedule 6 (method statement 4, step 4)

Repeal the step, substitute:

Step 4. Add:

  1. (a)

    the ceiling rate; and

  2. (b)

    any amount obtained under step 1A; and

  3. (c)

    any amount obtained under step 3;

and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person’s minimum pension supplement amount. The result is the person’s rate of service pension.

  1. Note:

    The amount of a fortnightly instalment of service pension may be reduced by an advance payment deduction (see Division 6 of Part IVA).

7

Subpoint SCH6‑A1(6) of Schedule 6 (method statement 5, step 9A)

Repeal the step, substitute:

Step 9A. Add:

  1. (a)

    the ceiling rate; and

  2. (b)

    any amount obtained under step 2;

and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person’s minimum pension supplement amount. The result is the increased rate.

8

Subpoint SCH6‑A1(7) of Schedule 6 (method statement 6, step 4)

Repeal the step, substitute:

Step 4. Add:

  1. (a)

    the ceiling rate; and

  2. (b)

    any amount obtained under step 1A; and

  3. (c)

    any amount obtained under step 3;

and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person’s minimum pension supplement amount. The result is the person’s rate of income support supplement.

  1. Note:

    The amount of a fortnightly instalment of income support supplement may be reduced by an advance payment deduction (see Division 6 of Part IVA).

9

Part 2 of Schedule 6 (Module BA)

Repeal the Module, substitute:

Module BAPension supplement

Pension supplement

  1. SCH6‑BA1

    A pension supplement amount is to be added to the person’s maximum basic rate.

Residents in Australia etc.

  1. SCH6‑BA2

    If the person is residing in Australia and:

    1. (a)

      is in Australia; or

    2. (b)

      is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks;

the person’s pension supplement amount is:

  1. (c)

    if an election by the person under subsection 60A(1) is in force—the amount worked out under point SCH6‑BA4; and

  2. (d)

    otherwise—the amount worked out under point SCH6‑BA3.

Residents in Australia etc.—no election in force

  1. SCH6‑BA3

    The person’s pension supplement amount is the amount worked out by:

    1. (a)

      applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

    2. (b)

      if:

      1. (i)

        the person is not partnered; and

      2. (ii)

        the amount resulting from paragraph (a) is not a multiple of $2.60;

    rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Item

Person’s family situation

Use this %

1

Not member of couple

66.33%

2

Partnered

50%

3

Member of illness separated couple

66.33%

4

Member of respite care couple

66.33%

Note: For combined couple rate of pension supplement, see subsection 5GA(1).

Residents in Australia etc.—election in force

  1. SCH6‑BA4

    The person’s pension supplement amount is the amount worked out as follows:

    1. (a)

      work out the amount for the person under point SCH6‑BA3 as if the election were not in force;

    2. (b)

      from that amount, subtract the person’s minimum pension supplement amount.

Persons absent from Australia for more than 13 weeks

  1. SCH6‑BA5

    If the person is not covered by point SCH6‑BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.

Part 2Quarterly pension supplement and seniors supplement

Veterans’ Entitlements Act 1986

10

After Part IIIC

Insert:

Part IIIDQuarterly pension supplement

60When this Part applies

  1. (1)

    This Part applies to a person if:

    1. (a)

      the person is receiving a service pension or income support supplement (the main payment); and

    2. (b)

      the person is residing in Australia and:

      1. (i)

        is in Australia; or

      2. (ii)

        is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

  2. (2)

    For the purposes of subsection (1), it does not matter if the rate of the person’s main payment would become nil were an election by the person under subsection 60A(1) to come into force.

60AQuarterly pension supplement

  1. (1)

    The person may, in a manner or way approved by the Commission, make an election to receive the person’s minimum pension supplement amount on a quarterly basis as a separate payment.

  2. (2)

    An election comes into force as soon as practicable after it is made.

  3. (3)

    An election ceases to be in force if the main payment ceases to be payable to the person.

  4. (4)

    The person may, in a manner or way approved by the Commission, revoke an election. A revocation takes effect as soon as practicable after it happens.

  5. (5)

    Quarterly pension supplement is payable to the person in relation to each day on which an election is in force.

60BRate of quarterly pension supplement

  1. (1)

    The person’s annual rate of quarterly pension supplement is the person’s minimum pension supplement amount.

  2. (2)

    The person’s daily rate of quarterly pension supplement is worked out by dividing the person’s annual rate by 364.

  3. (3)

    This section has effect subject to subclause 4(4) of Schedule 6.

60CPayment of quarterly pension supplement

  1. (1)

    Quarterly pension supplement is to be paid by instalments.

  2. (2)

    An instalment of quarterly pension supplement is to be paid to a person as soon as is reasonably practicable on or after the first supplement test day (the current test day) that follows a day on which an election by the person under subsection 60A(1) is in force.

  3. (3)

    The amount of the instalment is worked out by multiplying the person’s daily rate of quarterly pension supplement by the number of days during the test period for which an election by the person under subsection 60A(1) is in force.

  4. (4)

    If:

    1. (a)

      an election by the person under subsection 60A(1) is in force on a particular day; and

    2. (b)

      apart from this subsection, the portion of the instalment of the person’s quarterly pension supplement that corresponds to that day would be reduced under subclause 4(4) of Schedule 6, but not reduced to a nil amount;

the amount of that portion of the instalment is not to be reduced under subclause 4(4) of Schedule 6.

  1. (5)

    In this section:

supplement test day means:

  1. (a)

    20 March; or

  2. (b)

    20 June; or

  3. (c)

    20 September; or

  4. (d)

    20 December.

test period means the period:

  1. (a)

    starting on the most recent supplement test day before the current test day; and

  2. (b)

    ending on the day immediately before the current test day.

11

Part VIIAD

Repeal the Part, substitute:

Part VIIADSeniors supplement

Division 1Eligibility

118PEligibility for seniors supplement

Person holds a seniors health card

  1. (1)

    A person is eligible for seniors supplement if:

    1. (a)

      the person is the holder of a seniors health card; and

    2. (b)

      the person is not receiving any of the following:

      1. (i)

        a service pension;

      2. (ii)

        income support supplement;

      3. (iii)

        a social security pension or social security benefit;

      4. (iv)

        seniors supplement under the Social Security Act.

Person holds a gold card

  1. (2)

    A person is eligible for seniors supplement if:

    1. (a)

      the person is the holder of a gold card; and

    2. (b)

      the person has reached qualifying age; and

    3. (c)

      the person:

      1. (i)

        is in Australia; or

      2. (ii)

        is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks; and

    4. (d)

      the person is not receiving any of the following:

      1. (i)

        a service pension;

      2. (ii)

        income support supplement;

      3. (iii)

        a social security pension or social security benefit;

      4. (iv)

        seniors supplement under the Social Security Act.

  2. (3)

    In this section:

gold card means a card known as the Repatriation Health Card—For All Conditions, that evidences a person’s eligibility, under this Act or the Military Rehabilitation and Compensation Act 2004, to be provided with treatment for all injuries or diseases.

118PAWhen seniors supplement is payable

  1. (1)

    Seniors supplement is payable to a person in relation to each day on which the person is eligible for the supplement.

  2. (2)

    However, seniors supplement is not payable to the person in relation to a day if:

    1. (a)

      before that day:

      1. (i)

        the person had elected not to be covered by this Part; and

      2. (ii)

        that election had not been withdrawn; or

    2. (b)

      subsection 122A(1C) (failing to nominate a bank account) applies to the person.

Division 2Rate of seniors supplement

118PBRate of seniors supplement

  1. (1)

    The person’s annual rate of seniors supplement is the amount worked out by:

    1. (a)

      applying the applicable percentage in the following table to the combined couple rate of minimum pension supplement; and

    2. (b)

      if:

      1. (i)

        the person is not partnered; and

      2. (ii)

        the amount resulting from paragraph (a) is not a multiple of $2.60;

    rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Item

Person’s family situation

Use this %

1

Not member of couple

66.33%

2

Partnered

50%

3

Member of illness separated couple

66.33%

4

Member of respite care couple

66.33%

Note: For combined couple rate of minimum pension supplement, see subsection 5GA(2).

  1. (2)

    The person’s daily rate of seniors supplement is worked out by dividing the person’s annual rate by 364.

Division 3Payment of seniors supplement

118PCPayment of seniors supplement

  1. (1)

    Seniors supplement is to be paid by instalments.

  1. (2)

    An instalment of seniors supplement is to be paid to a person as soon as is reasonably practicable on or after the first seniors supplement test day (the current test day) that follows a day on which the person is eligible for seniors supplement.

  2. (3)

    The amount of the instalment is worked out by multiplying the person’s daily rate of seniors supplement by the number of days during the test period for which the person was eligible for seniors supplement.

  3. (4)

    In this section:

seniors supplement test day means:

  1. (a)

    20 March; or

  2. (b)

    20 June; or

  3. (c)

    20 September; or

  4. (d)

    20 December.

test period means the period:

  1. (a)

    starting on the most recent supplement test day before the current test day; and

  2. (b)

    ending on the day immediately before the current test day.

Part 3Veterans supplement

Veterans’ Entitlements Act 1986

12

Part VIIA

Repeal the Part, substitute:

Part VIIAVeterans supplement

Division 1Eligibility for veterans supplement

118AVeterans supplement for dependants of deceased veterans or for persons eligible for pharmaceutical benefits

  1. (1)

    Subject to this section, a person is eligible for veterans supplement under this section if:

    1. (a)

      the person is receiving a pension whose rate is specified under subsection 30(2); or

    2. (b)

      but for subsection 13(7), a pension would have been payable to the person at a rate specified under subsection 30(2); or

    3. (c)

      the person is eligible for pharmaceutical benefits under the scheme known as the Repatriation Pharmaceutical Benefits Scheme.

  2. (2)

    A person is not eligible for veterans supplement under this section if:

    1. (a)

      the person is receiving a social security payment; or

    2. (b)

      the person is receiving service pension; or

    3. (c)

      the person is a war widow/war widower—pensioner.

      Note: For war widow/war widower—pensioner see section 5Q.

  3. (3)

    A person who leaves Australia otherwise than temporarily is not eligible for veterans supplement under this section after the day on which he or she left Australia.

  4. (4)

    A person who is temporarily absent from Australia and has been so absent for more than 26 weeks is not eligible for veterans supplement under this section after the first 26 weeks of the absence.

118BVeterans supplement for certain Part II and Part IV pensioners or for World War 1 veterans

  1. (1)

    Subject to this section, a person is eligible for veterans supplement under this section if:

    1. (a)

      the person is eligible for a pension at a rate specified in subsection 22(4); or

    2. (b)

      the person is eligible for a pension at a rate specified in section 24; or

    3. (c)

      the person is eligible for a pension, the rate of which is increased under subsection 27(2) by an amount specified in any of items 1 to 8 of the table in subsection 27(1); or

    4. (d)

      the person is eligible for a pension at the rate specified in subsection 30(1) and the person is under qualifying age.

      Note: For qualifying age see section 5Q.

  2. (2)

    Subject to this section, a person is eligible for veterans supplement under this section if the person is:

    1. (a)

      a veteran who rendered eligible war service during World War 1; or

    2. (b)

      a Commonwealth veteran who rendered continuous full‑time service during World War 1; or

    3. (c)

      an allied veteran who rendered continuous full‑time service during World War 1.

      Note: For World War 1 see subsections 5B(1) and (3).

  3. (3)

    A person is not eligible for veterans supplement under this section if:

    1. (a)

      the person is receiving a social security payment; or

    2. (b)

      the person is receiving service pension or income support supplement; or

    3. (c)

      the person is receiving seniors supplement under this Act or the Social Security Act; or

    4. (d)

      the person is receiving MRCA supplement under Division 4 of Part 7 of Chapter 4, or Division 5 of Part 2 of Chapter 5, of the MRCA.

  4. (4)

    A person who leaves Australia otherwise than temporarily is not eligible for veterans supplement under this section after the day on which he or she left Australia.

  5. (5)

    A person who is temporarily absent from Australia and has been so absent for more than 26 weeks is not eligible for veterans supplement under this section after the first 26 weeks of the absence.

Division 2Rate of veterans supplement

118CRate of veterans supplement—section 118A

The rate of veterans supplement under section 118A is $6.00 per fortnight.

Note: The amount specified in this section is adjusted annually in line with CPI increases under section 198F.

118DRate of veterans supplement—section 118B

The rate of veterans supplement under section 118B is $6.00 per fortnight.

Note: The amount specified in this section is adjusted annually in line with CPI increases under section 198F.

13

Part VIIB

Repeal the Part.

14

Subsection 121(7) (definition of pension)

After “includes”, insert “veterans supplement under Part VIIA or”.

15

Section 198F

Repeal the section, substitute:

198FIndexation of veterans supplement

  1. (1)

    This section applies to the dollar amount mentioned in the following provisions:

    1. (a)

      section 118C;

    2. (b)

      section 118D.

  2. (2)

    The dollar amount mentioned in that provision, for an indexation day on which the indexation factor is greater than one, is replaced by the amount that is worked out using the following formula:

  3. (3)

    The indexation factor for an indexation day is the number worked out using the following formula:

  4. (4)

    The indexation factor is to be calculated to 3 decimal places, but increased by 0.001 if the 4th decimal place is more than 4.

  5. (5)

    If an amount worked out under subsection (2) is not a multiple of 20 cents, the amount is to be rounded down to the nearest multiple of 20 cents.

  6. (6)

    In this section:

indexation day means 1 January 2010 and each later 1 January.

Part 4MRCA supplement

Military Rehabilitation and Compensation Act 2004

16

Division 4 of Part 7 of Chapter 4 (heading)

Repeal the heading, substitute:

Division 4MRCA supplement for members and former members

17

Section 220A

Repeal the section.

18

Subsection 221(1)

Omit “a telephone allowance”, substitute “MRCA supplement under this section”.

Note: The heading to section 221 is altered by omitting “telephone allowance” and substituting “MRCA supplement”.

19

Paragraph 221(1)(b)

Omit “1986); and”, substitute “1986).”.

20

Paragraph 221(1)(c)

Repeal the paragraph.

21

Subsection 221(1) (note)

Omit “telephone allowance”, substitute “MRCA supplement”.

22

Subsection 221(2)

Omit “a telephone allowance”, substitute “MRCA supplement under this section”.

23

Paragraph 221(2)(b)

Omit “1986); and”, substitute “1986).”.

24

Paragraph 221(2)(c)

Repeal the paragraph.

25

Subsection 221(2) (note)

Omit “telephone allowance”, substitute “MRCA supplement”.

26

Subsection 222(1)

Omit “a telephone allowance on or after the next telephone allowance payday”, substitute “MRCA supplement under section 221 after the day on which he or she left Australia”.

Note: The heading to section 222 is altered by omitting “Telephone allowance” and substituting “MRCA supplement”.

27

Subsection 222(2)

Omit “a telephone allowance”, substitute “MRCA supplement under section 221”.

28

Subsection 222(3)

Omit “the telephone allowance”, substitute “MRCA supplement under section 221”.

Note: The heading to subsection 222(3) is altered by omitting “telephone allowance” and substituting “MRCA supplement”.

29

Subsections 222(4) and (5)

Repeal the subsections, substitute:

Persons receiving other payments

  1. (4)

    Even though a person is eligible for MRCA supplement under subsection 221(2), the supplement is not payable to the person if he or she is receiving MRCA supplement under subsection 221(1).

  2. (5)

    Even though a person is eligible for MRCA supplement under section 221, the supplement is not payable to the person if he or she is receiving:

    1. (a)

      veterans supplement under section 118B of the Veterans’ Entitlements Act 1986; or

    2. (b)

      a telephone allowance under the Social Security Act 1991; or

    3. (c)

      MRCA supplement under Division 5 of Part 2 of Chapter 5.

30

Sections 223 to 225

Repeal the sections, substitute:

223Rate of MRCA supplement

The rate of MRCA supplement that is payable under section 221 is the rate of veterans supplement that is payable from time to time under section 118D of the Veterans’ Entitlements Act 1986.

224Payment of MRCA supplement

A person’s MRCA supplement under section 221 is payable on each pension payday (within the meaning of subsection 5Q(1) of the Veterans’ Entitlements Act 1986) on which:

  1. (a)

    the person is eligible for the MRCA supplement; and

  2. (b)

    the MRCA supplement is payable to the person.

    Note: If a trustee is appointed under section 432, then the MRCA supplement would be payable to the trustee.

31

Division 5 of Part 2 of Chapter 5 (heading)

Repeal the heading, substitute:

Division 5MRCA supplement for wholly dependent partners

32

Section 244A

Repeal the section.

33

Section 245

Omit “a telephone allowance”, substitute “MRCA supplement under this section”.

Note: The heading to section 245 is altered by omitting “telephone allowance” and substituting “MRCA supplement”.

34

Paragraph 245(b)

Omit “1986); and”, substitute “1986).”.

35

Paragraph 245(c)

Repeal the paragraph.

36

Section 245 (note)

Omit “telephone allowance”, substitute “MRCA supplement”.

37

Subsection 246(1)

Omit “a telephone allowance on or after the next telephone allowance payday”, substitute “MRCA supplement under section 245 after the day on which he or she left Australia”.

Note: The heading to section 246 is altered by omitting “Telephone allowance” and substituting “MRCA supplement”.

38

Subsection 246(2)

Omit “a telephone allowance”, substitute “MRCA supplement under section 245”.

39

Subsection 246(3)

Omit “the telephone allowance”, substitute “MRCA supplement under section 245”.

Note: The heading to subsection 246(3) is altered by omitting “telephone allowance” and substituting “MRCA supplement”.

40

Subsections 246(4) and (5)

Repeal the subsections, substitute:

Persons receiving other payments

  1. (4)

    Even though a wholly dependent partner is eligible for MRCA supplement under section 245, the supplement is not payable to the partner if he or she is receiving:

    1. (a)

      veterans supplement under section 118B of the Veterans’ Entitlements Act 1986; or

    2. (b)

      a telephone allowance under the Social Security Act 1991; or

    3. (c)

      MRCA supplement under Division 4 of Part 7 of Chapter 4.

41

Sections 247 to 249

Repeal the sections, substitute:

247Rate of MRCA supplement

The rate of MRCA supplement that is payable under section 245 is the rate of veterans supplement that is payable from time to time under section 118D of the Veterans’ Entitlements Act 1986.

248Payment of MRCA supplement

A wholly dependent partner’s MRCA supplement under section 245 is payable on each pension payday (within the meaning of subsection 5Q(1) of the Veterans’ Entitlements Act 1986) on which:

  1. (a)

    the partner is eligible for the MRCA supplement; and

  2. (b)

    the MRCA supplement is payable to the partner.

    Note: If a trustee is appointed under section 432, then the MRCA supplement would be payable to the trustee.

42

Division 4 of Part 4 of Chapter 6 (heading)

Repeal the heading, substitute:

Division 4MRCA supplement for members, former members and dependants

43

Section 300

Omit “a pharmaceutical allowance”, substitute “MRCA supplement under this section”.

Note: The heading to section 300 is altered by omitting “pharmaceutical allowance” and substituting “MRCA supplement”.

44

Section 300 (note)

Omit “pharmaceutical allowance”, substitute “MRCA supplement”.

45

Subsection 301(1)

Omit “a pharmaceutical allowance”, substitute “MRCA supplement under section 300”.

Note: The heading to section 301 is altered by omitting “Pharmaceutical allowance” and substituting “MRCA supplement”.

46

Subsection 301(2)

Omit “a pharmaceutical allowance”, substitute “MRCA supplement under section 300”.

47

Subsection 301(3)

Omit “the pharmaceutical allowance”, substitute “MRCA supplement under section 300”.

Note: The heading to subsection 301(3) is altered by omitting “pharmaceutical allowance” and substituting “MRCA supplement”.

48

Subsections 301(4) and (5)

Repeal the subsections, substitute:

When MRCA supplement is not payable

  1. (4)

    Even though a person is eligible for MRCA supplement under section 300, the supplement is not payable to the person if:

    1. (a)

      he or she is receiving veterans supplement under section 118A of the Veterans’ Entitlements Act 1986; or

    2. (b)

      he or she is receiving a pharmaceutical allowance under the Social Security Act 1991; or

    3. (c)

      he or she is a wholly dependent partner of a deceased member.

49

Section 302

Omit “pharmaceutical allowance”, substitute “MRCA supplement”.

Note: The heading to section 302 is altered by omitting “pharmaceutical allowance” and substituting “MRCA supplement”.

50

Section 302

After “is the rate”, insert “of veterans supplement”.

51

Section 303

Omit “pharmaceutical allowance”, substitute “MRCA supplement under section 300”.

Note: The heading to section 303 is altered by omitting “pharmaceutical allowance” and substituting “MRCA supplement”.

52

Paragraphs 303(a) and (b)

Omit “allowance”, substitute “MRCA supplement”.

53

Section 303 (note)

Omit “allowance”, substitute “MRCA supplement”.

Part 5Other amendments

Income Tax Assessment Act 1997

54

Section 52‑65 (table item 12.1)

Repeal the item, substitute:

12.1

Quarterly pension supplement

Exempt

Not applicable

55

Section 52‑65 (table item 16A.1)

Repeal the item, substitute:

16A.1

Seniors supplement

Exempt

Not applicable

56

Section 52‑65 (table item 18.1)

Repeal the item.

57

Section 52‑65 (table item 20A.1)

Repeal the item.

58

Section 52‑65 (after table item 21.1)

Insert:

21A.1

Veterans supplement

Exempt

Not applicable

59

At the end of section 52‑70

Add:

  1. ; and (d)

    so much of the payment as is equal to the tax‑exempt pension supplement for the payment.

60

Section 52‑75 (table item 12)

Repeal the item, substitute:

12

Quarterly pension supplement

Part IIID

Not applicable

61

Section 52‑75 (table item 16A)

Repeal the item, substitute:

16A

Seniors supplement

Part VIIAD

Not applicable

62

Section 52‑75 (table item 18)

Repeal the item.

63

Section 52‑75 (table item 20A)

Repeal the item.

64

Section 52‑75 (after table item 21)

Insert:

21A

Veterans supplement

Part VIIA

Not applicable

65

Section 52‑114 (table item 10)

Omit “Telephone allowance”, substitute “MRCA supplement”.

66

Section 52‑114 (table item 10)

Omit “and 245”, substitute “, 245 and 300”.

67

Section 52‑114 (table item 20)

Repeal the item.

Military Rehabilitation and Compensation Act 2004

68

Section 3

Omit “an allowance such as a telephone allowance, a pharmaceutical allowance,”, substitute “veterans supplement,”.

69

Subsection 5(1) (paragraph (c) of the definition of compensation)

Repeal the paragraph, substitute:

  1. (c)

    MRCA supplement under section 221, 245 or 300;

70

Subsection 5(1) (paragraph (e) of the definition of compensation)

Omit “Chapter 6;”, substitute “Chapter 6.”.

71

Subsection 5(1) (paragraph (f) of the definition of compensation)

Repeal the paragraph.

72

Section 269

Omit “a pharmaceutical allowance”, substitute “MRCA supplement”.

73

Section 278

Omit “a pharmaceutical allowance”, substitute “MRCA supplement”.

74

Paragraph 388(5)(a)

Omit “telephone allowance”, substitute “MRCA supplement”.

75

Paragraph 398(2)(a)

Omit “telephone allowance”, substitute “MRCA supplement”.

76

Paragraph 401(2)(a)

Omit “telephone allowance”, substitute “MRCA supplement”.

77

Subsection 402(2)

Omit “telephone allowance”, substitute “MRCA supplement”.

78

Paragraph 403(3)(b)

Omit “telephone allowance”, substitute “MRCA supplement”.

Social Security Act 1991

79

Subparagraph 8(8)(y)(viia)

Repeal the subparagraph, substitute:

  1. (viia)

    veterans supplement under Part VIIA of that Act; or

80

Subparagraph 8(8)(y)(viib)

Omit “seniors concession allowance”, substitute “seniors supplement”.

81

Subsection 44(2)

Repeal the subsection, substitute:

  1. (2)

    Subsection (1) does not apply to a person if the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force.

82

Subsection 98(2)

Repeal the subsection, substitute:

  1. (2)

    Subsection (1) does not apply to a person if the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force.

83

Subsection 148(2)

Repeal the subsection, substitute:

  1. (2)

    Subsection (1) does not apply to a person if the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force.

84

Subsection 199(2)

Repeal the subsection, substitute:

  1. (2)

    Subsection (1) does not apply to a person if the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force.

85

Subsection 316(2)

Repeal the subsection, substitute:

  1. (2)

    Subsection (1) does not apply to a person if the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force.

86

Subsection 364(2)

Repeal the subsection, substitute:

  1. (2)

    Subsection (1) does not apply to a person if the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force.

87

Paragraph 408CA(2)(b)

Omit “or Division 2 of Part VIIA of the Veterans’ Entitlements Act”.

88

Paragraph 500I(2)(b)

Omit “or Division 2 of Part VIIA of the Veterans’ Entitlements Act”.

89

Subsection 547(2)

Repeal the subsection, substitute:

  1. (2)

    Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under the social security law.

90

Paragraph 572(2)(b)

Omit “or Division 2 of Part VIIA of the Veterans’ Entitlements Act”.

91

Paragraph 608(2)(b)

Omit “or Division 2 of Part VIIA of the Veterans’ Entitlements Act”.

92

Paragraph 677(2)(b)

Omit “or Division 2 of Part VIIA of the Veterans’ Entitlements Act”.

93

Paragraph 732(2)(b)

Omit “or Division 2 of Part VIIA of the Veterans’ Entitlements Act”.

94

Paragraph 771HC(2)(b)

Omit “or Division 2 of Part VIIA of the Veterans’ Entitlements Act”.

95

Subsection 1061G(2)

Repeal the subsection.

96

Section 1061JC (paragraphs (a) to (c) of the note)

Repeal the paragraphs.

97

Subsection 1061JD(1)

Omit “(1)”.

98

Subsection 1061JD(2)

Repeal the subsection.

99

Section 1061R

Repeal the section, substitute:

1061RTelephone allowance not payable in some circumstances

Even though a person is qualified for a telephone allowance, the allowance is not payable to the person if:

  1. (a)

    the person is receiving a social security payment for which a pension supplement amount is used to work out the rate of the payment, with a pension supplement amount that is more than the person’s pension supplement basic amount; or

  2. (b)

    the following subparagraphs apply to the person:

    1. (i)

      the person is qualified for the telephone allowance because of the application of subsection 1061Q(3C), (3F) or (3G) to the person in relation to a social security payment the person has ceased to receive;

    2. (ii)

      immediately before the cessation of the payment, a pension supplement amount was used to work out the rate of the payment;

    3. (iii)

      that pension supplement amount was more than the person’s pension supplement basic amount; or

  3. (c)

    an election by the person under subsection 1061VA(1) is in force; or

  4. (d)

    the person is receiving seniors supplement under this Act or the Veterans’ Entitlements Act; or

  5. (e)

    the person is receiving MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act; or

  6. (f)

    the person is receiving veterans supplement under section 118B of the Veterans’ Entitlements Act; or

  7. (g)

    both:

    1. (i)

      the person is a member of a couple (other than an illness separated, temporarily separated or respite care couple); and

    2. (ii)

      the person’s partner is receiving veterans supplement under either subsection 118B(2) of the Veterans’ Entitlements Act or a determination under subsection 5R(1) of that Act.

    Note 1: For the purposes of subparagraph (b)(i), subsections 1061Q(3C) and (3G) have an extended application (see subsections 1061Q(3D), (3E) and (3H)).

    Note 2: For member of a couple, illness separated couple, temporarily separated couple and respite care couple, see section 4.

    Note 3: Subsection 118B(2) of the Veterans’ Entitlements Act covers certain categories of World War I veterans.

    Note 4: The relevant determination under subsection 5R(1) of the Veterans’ Entitlements Act provides eligibility for veterans supplement to certain categories of World War I Australian mariners.

100

Subsection 1061S(1) (cell at table item 4, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner getting pension or benefit; or

(b) partner is a holder of a seniors health card;

and:

(c) partner is not getting telephone allowance; and

(d) if the partner were taken to be qualified for telephone allowance, section 1061R would not prevent telephone allowance from being payable to the partner

  1. 101

    Subsection 1061S(1) (cell at table item 5, column 2)

    Repeal the cell, substitute:

Partnered, and:

(a) partner getting pension or benefit; or

(b) partner is a holder of a seniors health card;

and:

(c) partner is getting telephone allowance; or

(d) if the partner were taken to be qualified for telephone allowance, section 1061R would prevent telephone allowance from being payable to the partner

  1. 102

    Subsection 1061S(1) (cell at table item 7, column 2)

    Repeal the cell, substitute:

Partnered, and:

(a) partner not getting veterans supplement under section 118B of the Veterans’ Entitlements Act; and

(b) partner not getting MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act

  1. 103

    Subsection 1061S(1) (cell at table item 8, column 2)

    Repeal the cell, substitute:

Partnered, and:

(a) partner getting veterans supplement under section 118B of the Veterans’ Entitlements Act; or

(b) partner getting MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act

  1. 104

    Subsection 1061SA(1) (cell at table item 4, column 2)

    Repeal the cell, substitute:

Partnered, and:

(a) partner getting pension or benefit; or

(b) partner is a holder of a seniors health card;

and:

(c) partner is not getting telephone allowance; and

(d) if the partner were taken to be qualified for telephone allowance, section 1061R would not prevent telephone allowance from being payable to the partner

  1. 105

    Subsection 1061SA(1) (cell at table item 5, column 2)

    Repeal the cell, substitute:

Partnered, and:

(a) partner getting pension or benefit; or

(b) partner is a holder of a seniors health card;

and:

(c) partner is getting telephone allowance at the increased rate; or

(d) if the partner were taken to be qualified for telephone allowance, section 1061R would prevent telephone allowance from being payable to the partner

  1. 106

    Subsection 1061SA(1) (cell at table item 7, column 2)

    Repeal the cell, substitute:

Partnered, and:

(a) partner not getting veterans supplement under section 118B of the Veterans’ Entitlements Act; and

(b) partner not getting MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act

  1. 107

    Subsection 1061SA(1) (cell at table item 8, column 2)

    Repeal the cell, substitute:

Partnered, and:

(a) partner getting veterans supplement under section 118B of the Veterans’ Entitlements Act; or

(b) partner getting MRCA supplement under section 221 or 245 of the Military Rehabilitation and Compensation Act

108

Subsection 1061SA(1) (table item 11)

Repeal the item.

109

Subsection 1061SA(3)

Omit “or 11”.

110

Paragraph 1061TA(2)(b)

Omit “seniors concession allowance”, substitute “seniors supplement”.

111

After subsection 1061VA(2)

Insert:

  1. (2A)

    An election ceases to be in force if the main payment ceases to be payable to the person.

112

Paragraph 1061ZAAZA(2)(ea)

Omit “seniors concession allowance”, substitute “seniors supplement”.

113

Point 1064‑A1 (note 5)

Omit “1168”, substitute “1173”.

Note: This item fixes an incorrect cross‑reference.

114

Subparagraph 1064‑H1(aa)(ii)

Repeal the subparagraph, substitute:

  1. (ii)

    apart from this point, the person’s rate of pension would be nil merely because an election by the person under subsection 1061VA(1) is in force; and

115

Subparagraph 1065‑E1(aa)(ii)

Repeal the subparagraph, substitute:

  1. (ii)

    apart from this point, the person’s rate of pension would be nil merely because an election by the person under subsection 1061VA(1) is in force; and

116

Subparagraph 1066‑H1(aa)(ii)

Repeal the subparagraph, substitute:

  1. (ii)

    apart from this point, the person’s rate of pension would be nil merely because an election by the person under subsection 1061VA(1) is in force; and

117

Points 1066A‑D2 and 1066A‑D3

Repeal the points, substitute:

No pharmaceutical allowance if person receiving veterans supplement or MRCA supplement

  1. 1066A‑D2

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

    1. (a)

      veterans supplement under section 118A of the Veterans’ Entitlements Act; or

    2. (b)

      MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans supplement or MRCA supplement and not a service pensioner

  1. 1066A‑D3

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

    1. (a)

      the person is a member of a couple; and

    2. (b)

      the person’s partner is receiving:

      1. (i)

        veterans supplement under section 118A of the Veterans’ Entitlements Act; or

      2. (ii)

        MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; and

    3. (c)

      the person’s partner is not receiving a service pension.

118

Paragraph 1066A‑D4(a)

Repeal the paragraph, substitute:

  1. (a)

    the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and

119

Point 1066A‑D7

Repeal the point.

120

Subparagraph 1066A‑I1(aa)(ii)

Repeal the subparagraph, substitute:

  1. (ii)

    apart from this point, the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; and

121

Points 1066B‑D2 and 1066B‑D3

Repeal the points, substitute:

No pharmaceutical allowance if person receiving veterans supplement or MRCA supplement

  1. 1066B‑D2

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

    1. (a)

      veterans supplement under section 118A of the Veterans’ Entitlements Act; or

    2. (b)

      MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans supplement or MRCA supplement and not a service pensioner

  1. 1066B‑D3

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

    1. (a)

      the person is a member of a couple; and

    2. (b)

      the person’s partner is receiving:

      1. (i)

        veterans supplement under section 118A of the Veterans’ Entitlements Act; or

      2. (ii)

        MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; and

    3. (c)

      the person’s partner is not receiving a service pension.

122

Paragraph 1066B‑D4(a)

Repeal the paragraph, substitute:

  1. (a)

    the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and

123

Point 1066B‑D7

Repeal the point.

124

Subparagraph 1066B‑F1(aa)(ii)

Repeal the subparagraph, substitute:

  1. (ii)

    apart from this point, the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; and

125

Point 1067G‑C2

Repeal the point, substitute:

No pharmaceutical allowance if partner receiving veterans supplement or MRCA supplement and not a service pensioner

  1. 1067G‑C2

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

    1. (a)

      the person is a member of a couple; and

    2. (b)

      the person’s partner is receiving:

      1. (i)

        veterans supplement under section 118A of the Veterans’ Entitlements Act; or

      2. (ii)

        MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; and

    3. (c)

      the person’s partner is not receiving a service pension.

126

Point 1067L‑C2

Repeal the point, substitute:

No pharmaceutical allowance if partner receiving veterans supplement or MRCA supplement and not a service pensioner

  1. 1067L‑C2

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

    1. (a)

      the person is a member of a couple; and

    2. (b)

      the person’s partner is receiving:

      1. (i)

        veterans supplement under section 118A of the Veterans’ Entitlements Act; or

      2. (ii)

        MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; and

    3. (c)

      the person’s partner is not receiving a service pension.

127

Points 1068‑D4 and 1068‑D5

Repeal the points, substitute:

No pharmaceutical allowance if person receiving veterans supplement or MRCA supplement

  1. 1068‑D4

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

    1. (a)

      veterans supplement under section 118A of the Veterans’ Entitlements Act; or

    2. (b)

      MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans supplement or MRCA supplement and not a service pensioner

  1. 1068‑D5

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

    1. (a)

      the person is a member of a couple; and

    2. (b)

      the person’s partner is receiving:

      1. (i)

        veterans supplement under section 118A of the Veterans’ Entitlements Act; or

      2. (ii)

        MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; and

    3. (c)

      the person’s partner is not receiving a service pension.

128

Paragraph 1068‑D6(a)

Repeal the paragraph, substitute:

  1. (a)

    the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and

129

Point 1068‑D9

Repeal the point.

130

Paragraph 1068‑J1(aa)

Repeal the paragraph, substitute:

  1. (aa)

    any of the following subparagraphs applies:

    1. (i)

      apart from this point, the person’s rate would be greater than nil;

    2. (ii)

      apart from this point, the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act;

    3. (iii)

      apart from this point, the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force;

    4. (iv)

      apart from this point, the person’s rate would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); and

131

Point 1068A‑C2

Repeal the point, substitute:

No pharmaceutical allowance if person receiving veterans supplement or MRCA supplement

  1. 1068A‑C2

    Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

    1. (a)

      veterans supplement under section 118A of the Veterans’ Entitlements Act; or

    2. (b)

      MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act.

132

Paragraph 1068A‑C3(a)

Repeal the paragraph, substitute:

  1. (a)

    the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and

133

Point 1068A‑C6

Repeal the point.

134

Paragraph 1068A‑F1(a)

Repeal the paragraph, substitute:

  1. (a)

    any of the following subparagraphs applies:

    1. (i)

      apart from this point, the person’s rate would be greater than nil;

    2. (ii)

      apart from this point, the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act;

    3. (iii)

      apart from this point, the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force;

    4. (iv)

      apart from this point, the person’s rate would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); and

135

Points 1068B‑E2 and 1068B‑E3

Repeal the points, substitute:

No pharmaceutical allowance if person receiving veterans supplement or MRCA supplement

  1. 1068B‑E2

    Pharmaceutical allowance is not to be included in a person’s maximum basic rate if the person is receiving:

    1. (a)

      veterans supplement under section 118A of the Veterans’ Entitlements Act; or

    2. (b)

      MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans supplement or MRCA supplement and not a service pensioner

  1. 1068B‑E3

    Pharmaceutical allowance is not to be included in a person’s maximum basic rate if:

    1. (a)

      the person is a member of a couple; and

    2. (b)

      the person’s partner is receiving:

      1. (i)

        veterans supplement under section 118A of the Veterans’ Entitlements Act; or

      2. (ii)

        MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; and

    3. (c)

      the person’s partner is not receiving a service pension.

136

Paragraph 1068B‑E4(a)

Repeal the paragraph, substitute:

  1. (a)

    the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and

137

Point 1068B‑E7

Repeal the point.

138

Paragraph 1068B‑G1(b)

Repeal the paragraph, substitute:

  1. (b)

    any of the following subparagraphs applies:

    1. (i)

      apart from this point, the person’s rate of benefit PP (partnered) would be greater than nil;

    2. (ii)

      apart from this point, the person’s rate of benefit PP (partnered) would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act;

    3. (iii)

      apart from this point, the person’s rate of benefit PP (partnered) would be nil merely because an election by the person under subsection 1061VA(1) is in force;

    4. (iv)

      apart from this point, the person’s rate of benefit PP (partnered) would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); and

139

Section 1190 (table items 55 and 56)

Repeal the items, substitute:

55

Rate of telephone allowance for a person with a partner where the partner is not getting veterans supplement or MRCA supplement

TA “partnered” (item 7) rate

section 1061S—Table—column 3—item 7

56

Rate of telephone allowance for a person with a partner where the partner is getting veterans supplement or MRCA supplement

TA “partnered” (item 8) rate

section 1061S—Table—column 3—item 8

140

Section 1190 (table items 56AG and 56AH)

Repeal the items, substitute:

56AG

Increased rate of telephone allowance for a person with a partner where the partner is not getting veterans supplement or MRCA supplement and the person has home internet

TA (Internet) “partnered” (item 7) rate

section 1061SA—Table—column 3—item 7

56AH

Increased rate of telephone allowance for a person with a partner where the partner is getting veterans supplement or MRCA supplement and the person has home internet

TA (Internet) “partnered” (item 8) rate

section 1061SA—Table—column 3—item 8

141

Section 1190 (table item 56AK)

Repeal the item.

142

Subsection 1191(1) (table item 33AAC)

Repeal the item.

143

Subparagraph 1210(1)(b)(ii)

Omit “1168”, substitute “1173”.

Note: This item fixes an incorrect cross‑reference.

Social Security (Administration) Act 1999

144

Subsection 48C(3)

Repeal the subsection, substitute:

  1. (3)

    The amount of the instalment is worked out by multiplying the person’s daily rate of quarterly pension supplement by the number of days during the test period for which an election by the person under subsection 1061VA(1) is in force.

145

Section 123TC (paragraph (k) of the definition of category I welfare payment)

Repeal the paragraph, substitute:

  1. (k)

    veterans supplement under section 118B of the Veterans’ Entitlements Act; or

146

Section 123TC (paragraph (m) of the definition of category I welfare payment)

Repeal the paragraph.

147

Section 123TC (paragraph (v) of the definition of category I welfare payment)

Omit “or VIIA”.

148

Section 123TC (paragraph (k) of the definition of category Q welfare payment)

Omit “(other than an advance pharmaceutical allowance in relation to an age pension or a carer payment)”.

Veterans’ Entitlements Act 1986

149

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

combined couple rate of minimum pension supplement

5GA(2)

150

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

combined couple rate of pension supplement

5GA(1)

151

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

minimum pension supplement amount

5GA(3)

152

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

pension supplement amount

5Q(1)

153

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

pension supplement basic amount

5GA(4)

154

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

quarterly pension supplement

5Q(1)

155

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

seniors supplement

5Q(1)

156

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

tax‑exempt pension supplement

5GA(5)

157

Paragraph 5H(8)(ba)

Repeal the paragraph, substitute:

  1. (ba)

    a payment of an instalment of a supplement under Part VIIA (veterans supplement);

158

Paragraph 5H(8)(ga)

Repeal the paragraph.

159

Paragraph 5H(8)(gb)

Omit “seniors concession allowance”, substitute “seniors supplement”.

160

Paragraph 5H(8)(zt)

Repeal the paragraph, substitute:

  1. (zt)

    a payment of MRCA supplement under section 221, 245 or 300 of the MRCA;

161

Subsection 5NB(1) (paragraphs (d) and (e) of the definition of compensation affected pension)

Repeal the paragraphs.

162

Subsection 5Q(1) (definition of Australia)

Repeal the definition, substitute:

Australia, when used in a geographical sense, includes the external Territories for the purposes of section 5PAA, Parts III, IIIA and IIIAB, Division 8A of Part IIIB, Subdivision E of Division 11 of Part IIIB, sections 52ZO and 58A, Parts IIID, VIIA, VIIAD and VIIC, section 132 and Schedule 6.

163

Subsection 5Q(1)

Insert:

pension supplement amount, for a person:

  1. (a)

    whose rate of service pension is worked out under subpoint SCH6‑A1(2) or (3) of Schedule 6; or

  2. (b)

    whose rate of service pension is worked out under subpoint SCH6‑A1(4) of Schedule 6 and is the provisional rate worked out under that subpoint;

means the amount worked out and added under the pension supplement Module of the Rate Calculator.

164

Subsection 5Q(1)

Insert:

quarterly pension supplement means the separate payment described in subsection 60A(1).

165

Subsection 5Q(1) (definition of seniors concession allowance)

Repeal the definition.

166

Subsection 5Q(1)

Insert:

seniors supplement means seniors supplement under Part VIIAD.

167

Subsection 5Q(1) (definition of utilities allowance)

Repeal the definition.

168

Subsection 36A(3)

Repeal the subsection, substitute:

  1. (3)

    Subsection (2) does not apply to a veteran if the veteran’s rate would be nil merely because:

    1. (a)

      an election by the veteran under subsection 60A(1) is in force; or

    2. (b)

      the veteran has been paid an advance pharmaceutical allowance under Part 2.23 of the Social Security Act.

169

Subsection 37A(3)

Repeal the subsection, substitute:

  1. (3)

    Subsection (2) does not apply to a veteran if the veteran’s rate would be nil merely because:

    1. (a)

      an election by the veteran under subsection 60A(1) is in force; or

    2. (b)

      the veteran has been paid an advance pharmaceutical allowance under Part 2.23 of the Social Security Act.

170

Subsection 38A(3)

Repeal the subsection, substitute:

  1. (3)

    Subsection (2) does not apply to a person if the person’s rate would be nil merely because:

    1. (a)

      an election by the person under subsection 60A(1) is in force; or

    2. (b)

      the person has been paid an advance pharmaceutical allowance under Part 2.23 of the Social Security Act.

171

Subparagraph 53M(4)(b)(ii)

Omit “pension supplement under Module BA in Schedule 6”, substitute “partner’s pension supplement amount (worked out as if the partner was receiving a service pension worked out under subpoint SCH6‑A1(2) of Schedule 6)”.

172

Subsections 58A(7) and (8)

Repeal the subsections, substitute:

  1. (7)

    If:

    1. (a)

      an amount of an instalment of service pension or income support supplement is payable to a person in relation to a particular day; and

    2. (b)

      on that day, the person is residing in Australia and:

      1. (i)

        is in Australia; or

      2. (ii)

        is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks; and

    3. (c)

      there is no election by the person under subsection 60A(1) in force on that day; and

    4. (d)

      apart from this subsection, the portion of the instalment corresponding to that day would be less than the person’s minimum daily rate, but more than a nil amount;

the amount of that portion of the instalment is to be increased to the person’s minimum daily rate.

  1. (8)

    In this section:

minimum daily rate, for a person, means 1/364 of the person’s minimum pension supplement amount.

    1. Note: For member of a couple, illness separated couple and respite care couple see subsections 5E(1) and 5R(5) and (6) respectively.

31Amounts affecting transitional rate of service pension

Single Australian resident in Australia

  1. (1)

    For the purposes of subparagraph 30(4)(a)(i), work out the amount as follows if, on the relevant day:

    1. (a)

      the person’s family situation is any of the following:

      1. (i)

        not a member of a couple;

      2. (ii)

        member of an illness separated couple;

      3. (iii)

        member of a respite care couple; and

    2. (b)

      the person is residing in Australia; and

    3. (c)

      the person either:

      1. (i)

        is in Australia; or

      2. (ii)

        is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Method statement

Step 1. Work out what each of the following amounts would have been on 20 September 2009, taking account of indexation (if any) under Division 18 of Part IIIB or Part XII on that day, if the Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009 had not been enacted:

  1. (a)

    the amount that would be the pension MBR (within the meaning of Division 18 of Part IIIB) for a person who is not a member of a couple assuming that section 59EA did not apply on 20 September 2009;

  2. (b)

    pension supplement (within the meaning of Division 18 of Part IIIB) for a person who is not (and was not on 1 July 2000) a member of a couple;

  3. (c)

    PA (service pension) rate (within the meaning of Division 18 of Part IIIB);

  4. (d)

    the rate of telephone allowance in subsection 118SA(1);

  5. (e)

    the rate of utilities allowance in section 118OC for a person who is not a member of a couple.

Step 2. Identify the greater of the amount described in paragraph (e) of step 1 and $525.20 (or either of them if they are the same).

Step 3. Add up all the amounts worked out under step 1 and the amount identified under step 2.

Step 4. If the result of step 3 is not a multiple of $2.60, round that result up to the next multiple of $2.60.

Note 1: For member of a couple, illness separated couple and respite care couple see subsections 5E(1) and 5R(5) and (6) respectively.

Note 2: Subsection 5G(1A) is relevant to determining whether a person is residing in Australia.

Note 3: Section 59A explains the abbreviations used in Division 18 of Part IIIB.

Partnered Australian resident in Australia

  1. (2)

    For the purposes of subparagraph 30(4)(a)(i), work out the amount as follows if, on the relevant day:

    1. (a)

      the person is a member of a couple, but not a member of an illness separated couple or respite care couple; and

    2. (b)

      the person is residing in Australia; and

    3. (c)

      the person either:

      1. (i)

        is in Australia; or

      2. (ii)

        is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Method statement

Step 1. Work out what each of the following amounts would have been on 20 September 2009, taking account of indexation (if any) under Division 18 of Part IIIB or Part XII on that day, if the Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009 had not been enacted:

  1. (a)

    the amount that would be the pension MBR (within the meaning of Division 18 of Part IIIB) for a member of a couple (other than an illness separated couple or a respite care couple) assuming that section 59EA did not apply on 20 September 2009;

  2. (b)

    pension supplement (within the meaning of Division 18 of Part IIIB) for a person who is (and was on 1 July 2000) a member of a couple (other than an illness separated couple or a respite care couple);

  3. (c)

    PA (service pension) rate (within the meaning of Division 18 of Part IIIB);

  4. (d)

    the rate of telephone allowance in subsection 118SA(2);

  5. (e)

    the rate of utilities allowance in section 118OC for a member of a couple (other than an illness separated couple or a respite care couple).

Step 2. Identify the greater of the amount described in paragraph (e) of step 1 and $262.60 (or either of them if they are the same).

Step 3. Add up all the amounts worked out under step 1 and the amount identified under step 2.

Step 4. If the result of step 3 is not a multiple of $2.60, round that result up to the next multiple of $2.60.

Note 1: For member of a couple, illness separated couple and respite care couple see subsections 5E(1) and 5R(5) and (6) respectively.

Note 2: Subsection 5G(1A) is relevant to determining whether a person is residing in Australia.

Note 3: Section 59A explains the abbreviations used in Division 18 of Part IIIB.

Single person not covered by subclause (1)

  1. (3)

    For the purposes of subparagraph 30(4)(a)(i), work out the amount as follows if, on the relevant day:

    1. (a)

      the person’s family situation is any of the following:

      1. (i)

        not a member of a couple;

      2. (ii)

        member of an illness separated couple;

      3. (iii)

        member of a respite care couple; and

    2. (b)

      the person either:

      1. (i)

        is not residing in Australia; or

      2. (ii)

        is absent from Australia and has been so for a continuous period exceeding 13 weeks.

Method statement

Step 1. Work out what each of the following amounts would have been on 20 September 2009, taking account of indexation under Division 18 of Part IIIB on that day, if the Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009 had not been enacted:

  1. (a)

    the amount that would be the pension MBR (within the meaning of Division 18 of Part IIIB) for a person who is not a member of a couple assuming that section 59EA did not apply on 20 September 2009;

  2. (b)

    pension supplement (within the meaning of Division 18 of Part IIIB) for a person who is not (and was not on 1 July 2000) a member of a couple.

Step 2. Add up the amounts worked out under step 1.

Note 1: For member of a couple, illness separated couple and respite care couple see subsections 5E(1) and 5R(5) and (6) respectively.

Note 2: Subsection 5G(1A) is relevant to determining whether a person is residing in Australia.

Note 3: Section 59A explains the abbreviations used in Division 18 of Part IIIB.

Partnered person not covered by subclause (2)

  1. (4)

    For the purposes of subparagraph 30(4)(a)(i), work out the amount as follows if, on the relevant day:

    1. (a)

      the person is a member of a couple, but not a member of an illness separated couple or respite care couple; and

    2. (b)

      the person either:

      1. (i)

        is not residing in Australia; or

      2. (ii)

        is absent from Australia and has been so for a continuous period exceeding 13 weeks.

Method statement

Step 1. Work out what each of the following amounts would have been on 20 September 2009, taking account of indexation under Division 18 of Part IIIB on that day, if the Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009 had not been enacted:

  1. (a)

    the amount that would be the pension MBR (within the meaning of Division 18 of Part IIIB) for a member of a couple (other than an illness separated couple or a respite care couple) assuming that section 59EA did not apply on 20 September 2009;

  2. (b)

    pension supplement (within the meaning of Division 18 of Part IIIB) for a person who is (and was on 1 July 2000) a member of a couple (other than an illness separated couple or a respite care couple).

Step 2. Add up the amounts worked out under step 1.

Note 1: For member of a couple, illness separated couple and respite care couple see subsections 5E(1) and 5R(5) and (6) respectively.

Note 2: Subsection 5G(1A) is relevant to determining whether a person is residing in Australia.

Note 3: Section 59A explains the abbreviations used in Division 18 of Part IIIB.

32Amounts affecting transitional rate of income support supplement

Single person’s component of maximum basic rate

  1. (1)

    For the purposes of subparagraph 30(6)(a)(i), work out the amount as follows if, on the relevant day, the person’s family situation is:

    1. (a)

      not a member of a couple; or

    2. (b)

      member of an illness separated couple; or

    3. (c)

      member of a respite care couple.

Method statement

Step 1. Work out what each of the following amounts (described using the abbreviation in section 59A for the amount) would have been on 20 September 2009, taking account of indexation (if any) under Division 18 of Part IIIB on that day, if the Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009 had not been enacted:

  1. (a)

    the amount that would be the pension MBR for a person who is not a member of a couple assuming that section 59EA did not apply on 20 September 2009;

  2. (b)

    pension supplement for a person who is not (and was not on 1 July 2000) a member of a couple.

Step 2. Add up all the amounts worked out under step 1.

Note: For member of a couple, illness separated couple and respite care couple see subsections 5E(1) and 5R(5) and (6) respectively.

Partnered person’s component of maximum basic rate

  1. (2)

    For the purposes of subparagraph 30(6)(a)(i), work out the amount as follows if, on the relevant day, the person is a member of a couple, but not a member of an illness separated couple or respite care couple:

Method statement

Step 1. Work out what each of the following amounts (described using the abbreviation in section 59A for the amount) would have been on 20 September 2009, taking account of indexation (if any) under Division 18 of Part IIIB on that day, if the Veterans’ Affairs and Other Legislation Amendment (Pension Reform) Act 2009 had not been enacted:

  1. (a)

    the amount that would be the pension MBR for a member of a couple (other than an illness separated couple or a respite care couple) assuming that section 59EA did not apply on 20 September 2009;

  2. (b)

    pension supplement for a person who is (and was on 1 July 2000) a member of a couple (other than an illness separated couple or a respite care couple).

Step 2. Add up all the amounts worked out under step 1.

Note: For member of a couple, illness separated couple and respite care couple see subsections 5E(1) and 5R(5) and (6) respectively.

Increased rate

  1. (3)

    For the purposes of paragraph 30(6)(c), work out the amount for the person as follows:

Method statement

Step 1. Work out the ceiling rate for the person (see Module A of the Rate Calculator).

Step 2. Work out the amount per year (if any) for rent assistance for the person (see Module C of the Rate Calculator).

Step 3. Add up the results of steps 1 and 2 and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person’s minimum pension supplement amount.

33Rate of payments to partners of persons affected by clause 30

  1. (1)

    This clause applies if clause 30 applies to a person who is a member of a couple and that clause affects the rate at which service pension or income support supplement is payable to the person.

  2. (2)

    In working out the amount of a payment under this Act payable to a partner of the person, assume that the service pension or income support supplement payable to the person is payable at the rate at which it would be payable if clause 30 had not been enacted.

34Payment and income tax consequences of receiving service pension or income support supplement at rate affected by clause 30

Application

  1. (1)

    This clause applies if clause 30 affects the rate at which service pension or income support supplement is payable to a person.

Purpose

  1. (2)

    The purpose of this clause is to ensure that the person is treated appropriately in relation to the payment, and income taxation, of the pension or supplement by modifying the operation of this Act (and thus affecting the related income tax law) in relation to the person and the pension or supplement.

    Note: This clause does not modify the operation of subsection 5GA(3), which provides for working out the person’s minimum pension supplement amount.

Pension supplement amount

  1. (3)

    This Act applies in relation to the person’s pension or supplement as if each of the following:

    1. (a)

      the amount described in subparagraph 30(4)(a)(i), as affected by any indexation and any relevant reduction described in paragraph 30(4)(a);

    2. (b)

      the amount described in subparagraph 30(6)(a)(i), as affected by any indexation and any relevant reduction described in paragraph 30(6)(a);

were an amount worked out and added under the pension supplement Module of the Rate Calculator.

Note 1: One effect of subclause (3) is that whichever of the amounts described in paragraphs (3)(a) and (b) is relevant is the person’s pension supplement amount (as defined in subsection 5Q(1) of this Act).

Note 2: If that amount exceeds the person’s pension supplement basic amount (as affected by subclause (4)), another effect of subclause (3) is that the excess affects the tax‑exempt pension supplement under subsection 5GA(5) of this Act in some cases.

Note 3: Yet another effect of subclause (3) is that clause 4 of Schedule 6 will affect the operation of reductions of the maximum payment rate because of the income test and assets test in some cases.

Pension supplement basic amount

  1. (4)

    This Act applies in relation to the person’s service pension or income support supplement as if:

    1. (a)

      each reference in the table in subsection 5GA(4) to $509.60 were a reference to $14,903.20; and

    2. (b)

      the reference in the table in subsection 5GA(4) to $426.40 were a reference to $12,448.80.

      Note 1: This affects the person’s pension supplement basic amount.

      Note 2: The provisions for indexing amounts in the table in subsection 5GA(4) apply to the higher figures mentioned in this subclause.

Part 2Related amendmentsDivision 1Amendments commencing on 20 September 2009

Veterans’ Entitlements Act 1986

  1. 2

    Subpoint SCH6‑A1(2) of Schedule 6 (after note 4)

    Insert:

    1. Note 4A:

      Clause 30 of Schedule 5 may affect the provisional payment rate in step 9.

  2. 3

    Subpoint SCH6‑A1(6) of Schedule 6 (after note 4)

    Insert:

    1. Note 4A:

      Clause 30 of Schedule 5 may affect the provisional payment rate in step 10.

Division 2Amendments commencing on 21 September 2009

Veterans’ Entitlements Act 1986

4

Section 59A (at the end of the table)

Add:

Maximum transitional service pension rates

23.

Maximum transitional service pension rates

Maximum transitional service pension rates

Subparagraph 30(4)(a)(i) of Schedule 5

Maximum transitional income support supplement rates

24.

Maximum transitional income support supplement rates

Maximum transitional income support supplement rates

Subparagraph 30(6)(a)(i) of Schedule 5

5

Subsection 59B(1) (at the end of the table)

Add:

Maximum transitional service pension rates

14.

Maximum transitional service pension rates

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June or December quarter before reference quarter (but not earlier than June quarter 2008)

$2.60

Maximum transitional income support supplement rates

15.

Maximum transitional income support supplement rates

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June or December quarter before reference quarter (but not earlier than June quarter 2008)

$2.60

Part 3Other amendments

Social Security Act 1991

6

Paragraph 146(1)(a) of Schedule 1A

Omit “social security pensions”, substitute “payments”.

7

Subparagraph 146(1)(a)(vii) of Schedule 1A

Omit “and”.

8

At the end of paragraph 146(1)(a) of Schedule 1A

Add:

  1. (viii)

    service pension (except carer service pension);

  2. (ix)

    income support supplement; and

9

Paragraph 146(1)(b) of Schedule 1A

Omit “social security pensions”, substitute “payments”.

10

Subclause 146(2) of Schedule 1A

Omit “those social security pensions”, substitute “the social security pensions described in paragraph (1)(a)”.

11

At the end of subclause 146(2) of Schedule 1A

Add:

Note: This clause does not make a person entitled to receive a social security pension if the person is not otherwise entitled to receive it.

12

Subclause 146(5) of Schedule 1A

Repeal the subclause, substitute:

Limit on application of subclause (3)

  1. (5)

    Subclause (3) does not apply for working out the rate of a social security pension of the person for the relevant day if the relevant day is after a day for which one of the following conditions was met:

    1. (a)

      the amount worked out for the day under subclause (4) (in a previous application of this clause) was less than or equal to the person’s provisional annual payment rate, apart from this clause, for a social security pension described in paragraph (1)(a);

    2. (b)

      the amount worked out for the day under subclause 30(4) of Schedule 5 to the Veterans’ Entitlements Act was less than or equal to the person’s provisional payment rate for service pension (except carer service pension) apart from clause 30 of that Schedule;

    3. (c)

      the amount worked out for the day under subclause 30(6) of Schedule 5 to the Veterans’ Entitlements Act was less than or equal to the person’s provisional payment rate for income support supplement apart from clause 30 of that Schedule.

  2. (5A)

    However, subclause (5) does not prevent subclause (3) from applying for working out the rate of a social security pension of the person for the relevant day if:

    1. (a)

      on the relevant day the person is a member of a couple, but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol); and

    2. (b)

      on each day for which a condition in paragraph (5)(a), (b) or (c) was met, the person was a member of a respite care couple; and

    3. (c)

      on a day before all the days described in paragraph (b):

      1. (i)

        the person was a member of a couple, but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol); and

      2. (ii)

        either subclause (3) affected the rate at which a social security pension was payable to the person or clause 30 of Schedule 5 to the Veterans’ Entitlements Act affected the rate at which service pension or income support supplement was payable to the person.

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

Schedule 10Pension age for persons other than veterans

Veterans’ Entitlements Act 1986

1

Subsection 5QB(2)

Repeal the subsection, substitute:

Men

  1. (2)

    A man born during the period specified in column 2 of an item in the following table reaches pension age when he turns the age specified in column 3 of that item.

Table—Pension age for men

Column 1

Item

Column 2

Period during which man was born

Column 3

Pension age

1

On or before 30 June 1952

65 years

2

1 July 1952 to 31 December 1953

65 years and 6 months

3

1 January 1954 to 30 June 1955

66 years

4

1 July 1955 to 31 December 1956

66 years and 6 months

5

On or after 1 January 1957

67 years

2

Subsection 5QB(5)

Repeal the subsection, substitute:

  1. (5)

    A woman born during the period specified in column 2 of an item in the following table reaches pension age when she turns the age specified in column 3 of that item.

Table—Pension age for women

Column 1

Item

Column 2

Period during which woman was born

Column 3

Pension age

1

1 January 1949 to 30 June 1952

65 years

2

1 July 1952 to 31 December 1953

65 years and 6 months

3

1 January 1954 to 30 June 1955

66 years

4

1 July 1955 to 31 December 1956

66 years and 6 months

5

On or after 1 January 1957

67 years

Schedule 11Advance payments

Veterans’ Entitlements Act 1986

1

Section 5 (index of definitions)

Insert the following entry in its appropriate alphabetical position, as determined on a letter‑by‑letter basis:

advance payment eligible amount

5Q(1)

2

Subsection 5Q(1)

Insert:

advance payment eligible amount, for a person, means:

  1. (a)

    if the person is receiving a service pension worked out under subpoint SCH6‑A1(2) of Schedule 6—the sum of the following amounts:

    1. (i)

      the person’s maximum basic rate;

    2. (ii)

      the amount (if any) by which the person’s pension supplement amount exceeds the person’s minimum pension supplement amount; or

  2. (b)

    otherwise—the result of paragraph (a) worked out as if the person were receiving a service pension worked out under subpoint SCH6‑A1(2) of Schedule 6.

3

Paragraph 79B(1)(b)

After “advance payment”, insert “is made”.

4

Subsection 79B(2)

Repeal the subsection, substitute:

  1. (2)

    A person is not eligible for an advance payment if:

    1. (a)

      the maximum amount of advance payment to which the person would be entitled under Division 5 is less than 1/52 of the person’s advance payment eligible amount; or

    2. (b)

      the amount of an advance payment of:

      1. (i)

        pension; or

      2. (ii)

        a social security entitlement under Part 2.22 of the Social Security Act;

    that the person received in full (whether as a single lump sum or in instalments) more than 12 months ago has not been fully repaid; or

    1. (c)

      the person owes a debt to the Commonwealth under section 205 or 205A.

The amount worked out under paragraph (a) must be rounded to the nearest cent (rounding 0.5 cents upwards).

Note 1: Paragraph (a) does not prevent payment of an advance payment in instalments of less than the amount worked out under that paragraph.

Note 2: For advance payment eligible amount, see subsection 5Q(1).

5

Division 5 of Part IVA

Repeal the Division, substitute:

Division 5Amount of advance payment

79KAmount of advance payment

  1. (1)

    The amount of an advance payment of pension is the smaller of the following amounts:

    1. (a)

      the amount of advance payment sought;

    2. (b)

      the maximum amount of advance payment payable to the person as worked out as follows:

Method statement

Step 1. Work out 3/52 of the person’s advance payment eligible amount.

Step 2. Work out the annual rate at which pension was payable to the person on the last payday before the application for the advance payment was made, disregarding:

  1. (a)

    any amount payable by way of remote area allowance; and

  2. (b)

    so much of the person’s pension supplement amount (if any) as is equal to the person’s minimum pension supplement amount.

Step 3. Work out the smaller of the result of step 1 and:

  1. (a)

    if the pension is a service pension or income support supplement—7.5% of the result of step 2; and

  2. (b)

    otherwise—13 times the fortnightly rate of pension payable to the person.

Step 4. Subtract the following from the result of step 3:

  1. (a)

    each advance payment (if any) of pension paid to the person during any of the 13 fortnights immediately before the application for the current advance payment was made;

  2. (b)

    each other advance payment (if any) of pension paid to the person that has not been fully repaid.

Step 5. The result of step 4 (rounded to the nearest cent (rounding 0.5 cents upwards)) is the maximum amount of advance payment payable to the person.

Note 1: The amount of the advance payment will be more than the minimum eligible amount for the person (see paragraph 79B(2)(a)).

Note 2: For advance payment eligible amount, see subsection 5Q(1).

6

Application

The amendments made by this Schedule apply in relation to applications for advance payment made on or after 1 July 2010.

Schedule 12Amendments relating to aged care

Aged Care Act 1997

1

Paragraph 44‑24(2)(a)

After “pension”, insert “reduced by the amount worked out under subsection 5GA(3) of the Veterans’ Entitlements Act 1986 to be the care recipient’s minimum pension supplement amount”.

2

Paragraph 44‑24(3)(a)

After “supplement”, insert “reduced by the amount worked out under subsection 5GA(3) of the Veterans’ Entitlements Act 1986 to be the care recipient’s minimum pension supplement amount”.

3

Paragraph 44‑24(4)(a)

After “payment”, insert “reduced by, if the payment is an income support payment within the meaning of subsection 23(1) of the Social Security Act 1991, the amount worked out under subsection 20A(4) of that Act to be the care recipient’s minimum pension supplement amount”.

4

After subsection 44‑24(4)

Insert:

  1. (4A)

    However, the reduction referred to in paragraph (4)(a) does not apply if:

    1. (a)

      the care recipient’s income support payment is special benefit or youth allowance under the Social Security Act 1991; or

    2. (b)

      the care recipient has not reached pension age (within the meaning of subsections 23(5A), (5B), (5C) and (5D) of that Act) and the rate of the care recipient’s income support payment is worked out in accordance with the Rate Calculator at the end of section 1066A, 1067L, 1068, 1068A or 1068B of that Act.

5

Application

The amendments made by this Schedule apply in relation to the calculation of the total assessable income for a care recipient under section 44‑24 of the Aged Care Act 1997 for the purposes of working out the daily income tested reduction in respect of the care recipient for a day that is on or after 20 September 2009.

[Minister’s second reading speech made in—

House of Representatives on 12 August 2009

Senate on 19 August 2009]

(152/09)

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