Family and Community Services and Veterans' Affairs Legislation Amendment (Further Assistance for Older Australians) Act 2001

Administered by Department of Social Services

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Family and Community Services and Veterans’ Affairs Legislation Amendment (Further Assistance for Older Australians) Act 2001

 

No. 42, 2001

 

 

 

 

Family and Community Services and Veterans’ Affairs Legislation Amendment (Further Assistance for Older Australians) Act 2001

 

No. 42, 2001

 

 

 

 

An Act to amend the Social Security Act 1991 and the Veterans’ Entitlements Act 1986, and for related purposes

 

 

Contents

1 Short title...................................

2 Commencement...............................

3 Schedule(s)..................................

Schedule 1—Beneficial treatment of superannuation assets for people aged between 55 and pension age

Social Security Act 1991

Schedule 2—Extension of telephone allowance to holders of seniors health cards

Social Security Act 1991

Social Security (Administration) Act 1999

Veterans’ Entitlements Act 1986

Schedule 3—Increase in income limits for seniors health card

Social Security Act 1991

Veterans’ Entitlements Act 1986

 

Family and Community Services and Veterans’ Affairs Legislation Amendment (Further Assistance for Older Australians) Act 2001

No. 42, 2001

 

 

 

An Act to amend the Social Security Act 1991 and the Veterans’ Entitlements Act 1986, and for related purposes

[Assented to 25 May 2001]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Family and Community Services and Veterans’ Affairs Legislation Amendment (Further Assistance for Older Australians) Act 2001.

2  Commencement

 (1) This Act (other than Schedule 2) commences on 1 July 2001.

 (2) Schedule 2 commences on 1 September 2001.

3  Schedule(s)

  Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 1—Beneficial treatment of superannuation assets for people aged between 55 and pension age

 

Social Security Act 1991

1  Subsection 8(1) (definition of income)

Omit “, (7A)”.

2  Subsections 8(7A) and (7B)

Repeal the subsections (including the notes).

3  After paragraph 8(8)(a)

Insert:

 (b) any return on a person’s investment in:

 (i) a superannuation fund; or

 (ii) an approved deposit fund; or

 (iii) a deferred annuity; or

 (iv) an ATO small superannuation account;

  until the person:

 (v) reaches pension age; or

 (vi) starts to receive a pension or annuity out of the fund;

4  Paragraph 9(1B)(d) (note)

Omit “by persons who are neither prescribed pre‑pension age persons nor persons who have reached pension age”, substitute “before pension age is reached”.

5  Paragraph 9(1B)(e) (note)

Omit “by persons who are neither prescribed pre‑pension age persons nor persons who have reached pension age”, substitute “before pension age is reached”.

6  Paragraph 9(1B)(f) (note)

Omit “by persons who are neither prescribed pre‑pension age persons nor persons who have reached pension age”, substitute “before pension age is reached”.

7  Paragraph 9(1B)(g) (note)

Omit “by persons who are neither prescribed pre‑pension age persons nor persons who have reached pension age”, substitute “before pension age is reached”.

8  Paragraph 9(1C)(a)

Omit “is not a prescribed pre‑pension age person and has not yet turned”, substitute “has not yet reached”.

9  Paragraph 9(1C)(b)

Omit “is not a prescribed pre‑pension age person and has not yet turned”, substitute “has not yet reached”.

10  Paragraph 9(1C)(c)

Omit “is not a prescribed pre‑pension age person and has not yet turned”, substitute “has not yet reached”.

11  Paragraph 9(1C)(ca)

Omit “is not a prescribed pre‑pension age person and has not yet turned”, substitute “has not yet reached”.

12  Subsection 9(1C) (note 1)

Repeal the note.

13  Subsection 23(1) (definition of prescribed pre‑pension age person)

Repeal the definition.

14  Paragraph 1096(aa)

Omit “is not a prescribed pre‑pension age person and has not reached pension age”, substitute “has not turned 55”.

15  Section 1096 (notes)

Repeal the notes.

16  At the end of section 1096

Add:

 (2) However, if the person turns 55 before the end of the period of 12 months, this section does not apply to the person in relation to:

 (a) the week, during that period, in which the person turns 55; and

 (b) any later weeks during that period.

17  After paragraph 1118(1)(e)

Insert:

 (f) the value of the person’s investment in:

 (i) a superannuation fund; or

 (ii) an approved deposit fund; or

 (iii) a deferred annuity; or

 (iv) an ATO small superannuation account;

  until the person:

 (v) reaches pension age; or

 (vi) starts to receive a pension or annuity out of the fund;

18  Section 1118A

Repeal the section (including the note).


Schedule 2—Extension of telephone allowance to holders of seniors health cards

 

Social Security Act 1991

1  After subsection 1061Q(4)

Insert:

 (4A) A person is qualified for a telephone allowance if:

 (a) either:

 (i) the person is the holder of a seniors health card; or

 (ii) the person is temporarily absent from Australia for a continuous period not exceeding 26 weeks and was the holder of a seniors health card immediately before leaving Australia; and

 (b) the person is a telephone subscriber.

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

Repeal the cell, substitute:

 

Partnered (partner getting neither social security pension nor social security benefit), partner not holder of a seniors health card and person getting pension or benefit before 12 March 1992

3  Subsection 1061S(1) (cell at table item 3, column 2)

Repeal the cell, substitute:

 

Partnered (partner getting neither social security pension nor social security benefit), partner not holder of a seniors health card and person not getting pension or benefit before 12 March 1992

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

Repeal the cell, substitute:

 

Either:

(a) partnered (partner getting pension or benefit); or

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

and partner not getting telephone allowance

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

Repeal the cell, substitute:

 

Either:

(a) partnered (partner getting pension or benefit); or

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

and partner getting telephone allowance

6  After subsection 1061S(3)

Insert:

 (3A) For the purposes of working out a person’s rate of telephone allowance under subsection (1), the person’s partner is taken to be the holder of a seniors health card if the partner:

 (a) is temporarily absent from Australia for a continuous period not exceeding 26 weeks; and

 (b) was the holder of a seniors health card immediately before leaving Australia.

Social Security (Administration) Act 1999

7  Subsection 48(4)

Repeal the subsection and insert:

 (4) In this section:

telephone allowance payday means:

 (a) for a person who is qualified for telephone allowance otherwise than under subsection 1061Q(4A)—the first day on which an instalment of a social security periodic payment would normally be paid to the person on or after any of the following:

 (i) 1 January;

 (ii) 20 March;

 (iii) 1 July;

 (iv) 20 September; and

 (b) for a person who is qualified for telephone allowance under subsection 1061Q(4A)—any of the following:

 (i) 1 January;

 (ii) 20 March;

 (iii) 1 July;

 (iv) 20 September;

  or the first working day after that day if that day is not a working day.

working day means a day other than:

 (a) a Saturday; or

 (b) a Sunday; or

 (c) a day that is a public holiday or bank holiday in Canberra or Sydney.

Veterans’ Entitlements Act 1986

8  After subsection 118Q(3)

Insert:

 (3AA) A person is eligible for a telephone allowance if:

 (a) either:

 (i) the person is the holder of a seniors health card; or

 (ii) the person is absent from Australia and was the holder of a seniors health card immediately before leaving Australia; and

 (b) the person is a telephone subscriber.

9  Subsection 118S(1)

Omit “and (3)”, substitute “, (3) and (4)”.

10  At the end of section 118S

Add:

 (4) The rate of telephone allowance for a person is half the amount of the rate specified in subsection (1) if:

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

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

 (c) the person’s partner is receiving a telephone allowance under:

 (i) this Act; or

 (ii) the Social Security Act; and

 (d) the person is living with the person’s partner in the same home.


Schedule 3—Increase in income limits for seniors health card

 

Social Security Act 1991

1  Point 1071‑12 (table)

Repeal the table (including the notes), substitute:

 

Seniors Health Card Taxable Income Limit Table

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount per year

Column 4

Additional dependent child

Amount per year

1

Not member of couple

$50,000

$639.60

2

Partnered

$40,000

$639.60

3

Member of illness separated couple

$50,000

$639.60

4

Member of respite care couple

$50,000

$639.60

5

Partnered (partner in gaol)

$50,000

$639.60

Veterans’ Entitlements Act 1986

2  Point 118ZAA‑11 (table)

Repeal the table, substitute:

 

Seniors Health Card Taxable Income Limit Table

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount per year

Column 4

Additional dependent child

Amount per year

1

Not member of couple

$50,000

$639.60

2

Partnered

$40,000

$639.60

3

Member of illness separated couple

$50,000

$639.60

4

Member of respite care couple

$50,000

$639.60

Note 1: For member of couple and partnered, see section 5E.

Note 2: For illness separated couple and respite care couple, see section 5R.

Note 3: For dependent child, see section 5F.

 

 

[Minister’s second reading speech made in—

House of Representatives on 22 May 2001

Senate on 23 May 2001]

 

(81/01)


 

 

Overview

The Family and Community Services and Veterans’ Affairs Legislation Amendment (Further Assistance for Older Australians) Act 2001 was enacted to provide further assistance to older Australians by amending the Social Security Act 1991 and the Veterans’ Entitlements Act 1986. The Act was introduced to address the financial needs of older Australians by providing beneficial treatment of superannuation assets for people aged between 55 and pension age, extending telephone allowance to holders of seniors health cards, and increasing income limits for seniors health cards. The policy objective of the Act is to provide financial assistance to older Australians, particularly those who are nearing retirement age, to help them maintain their standard of living. The Act was passed by the Parliament of Australia and received Royal Assent on 25 May 2001. The Act commenced on 1 July 2001, with certain provisions commencing on 1 September 2001. The Act amends the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 by providing beneficial treatment of superannuation assets for people aged between 55 and pension age, extending telephone allowance to holders of seniors health cards, and increasing income limits for seniors health cards. The Act also makes consequential amendments to the Social Security (Administration) Act 1999.

Scope and Application

The Family and Community Services and Veterans’ Affairs Legislation Amendment (Further Assistance for Older Australians) Act 2001 applies to individuals aged between 55 and pension age, as well as veterans and their families, by amending the Social Security Act 1991 and the Veterans’ Entitlements Act 1986. The Act provides beneficial treatment of superannuation assets for people within this age bracket, effectively increasing their eligibility for certain social security benefits by excluding returns on investments in superannuation funds, approved deposit funds, deferred annuities, and ATO small superannuation accounts until the person reaches pension age or starts receiving a pension or annuity from these funds. The Act also extends telephone allowances to holders of seniors health cards and increases the income limits for seniors health cards, thereby making these benefits accessible to a broader segment of the elderly population. The Act's provisions are applicable nationally across Australia, impacting both Commonwealth and state jurisdictions as it amends federal legislation. Notably, the Act does not specify any exclusions, exemptions, or thresholds other than the age bracket and the conditions related to superannuation assets and income limits for the seniors health card. Subordinate instruments may further extend or clarify the application of these provisions, though none are explicitly mentioned in the Act itself.

Key Provisions

The Family and Community Services and Veterans' Affairs Legislation Amendment (Further Assistance for Older Australians) Act 2001 (the Act) introduces a number of changes to existing legislation primarily aimed at providing further assistance for older Australians. The Act amends the Social Security Act 1991 (SSA) and the Veterans’ Entitlements Act 1986 (VEA) by introducing beneficial treatment of superannuation assets for people aged between 55 and pension age, extending the telephone allowance to holders of seniors health cards, and increasing income limits for seniors health cards. Section 8(1) of the SSA is amended to redefine the term 'income' to include returns on investments in specified superannuation funds, approved deposit funds, deferred annuities, and ATO small superannuation accounts for individuals aged between 55 and pension age. This change is intended to provide a more equitable treatment of superannuation assets for those nearing retirement. Furthermore, the Act repeals subsections 8(7A) and (7B) and makes corresponding changes to paragraph 9(1B) and subsection 9(1C) to reflect the new definition of income. Schedule 2 of the Act introduces a new subsection 1061Q(4A) to the SSA, which qualifies a person for a telephone allowance if they are a holder of a seniors health card and a telephone subscriber. Additionally, the Act amends subsection 1061S(1) of the SSA to adjust the categories of individuals eligible for the telephone allowance based on their relationship status and pension or benefit status. It also introduces a new subsection 1061S(3A) to account for partners who are temporarily absent from Australia but were holders of a seniors health card immediately before leaving. Schedule 3 of the Act increases the income limits for seniors health cards under both the SSA and the VEA. The new income limits are set at $50,000 for individuals not in a couple and $40,000 for partnered individuals. The Act also includes provisions for additional dependent children and specific family situations such as illness separated couples and respite care couples. The Act imposes obligations on the relevant authorities to administer and enforce the changes introduced by the Act. These include updating their systems to reflect the new definitions and eligibility criteria for the telephone allowance and seniors health card, as well as ensuring that the new income limits are applied correctly. Additionally, the Act requires individuals to provide accurate information regarding their investment returns and eligibility for the telephone allowance and seniors health card. Breach of the provisions introduced by the Act may result in various civil and criminal consequences. For example, providing false or misleading information to obtain a seniors health card or telephone allowance may be considered an offence under the SSA and the VEA. Penalties for such offences may include fines and, in severe cases, imprisonment. The maximum penalties for offences under the SSA and the VEA vary depending on the nature and severity of the offence.

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Social Security Law
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Commencement Provisions
Repeal & Amendment
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.