Social Security Amendment (Liquid Assets Waiting Period) Act 2009

Administered by Department of Social Services

Legislation au C2009A00025 In force Act

Legislation content

 

 

 

 

 

 

Social Security Amendment (Liquid Assets Waiting Period) Act 2009

 

No. 25, 2009

 

 

 

 

 

An Act to amend the law relating to social security, and for other purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Part 1—Main amendments

Social Security Act 1991

Part 2—Application and transitional provisions

Part 3—Technical amendments

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Social Security Act 1991

Social Security (Administration) Act 1999

Veterans’ Entitlements Act 1986

 

 

 

Social Security Amendment (Liquid Assets Waiting Period) Act 2009

No. 25, 2009

 

 

 

An Act to amend the law relating to social security, and for other purposes

[Assented to 26 March 2009]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Social Security Amendment (Liquid Assets Waiting Period) Act 2009.

2  Commencement

 (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 on which this Act receives the Royal Assent.

26 March 2009

2.  Schedule 1, Parts 1 and 2

1 April 2009.

1 April 2009

3.  Schedule 1, Part 3

Immediately after the time specified in the Household Stimulus Package Act (No. 2) 2009 for the commencement of Schedule 5 to that Act.

18 February 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.

 (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.

3  Schedule(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  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 1—Amendments

Part 1—Main amendments

Social Security Act 1991

1  Subsection 14A(1) (after paragraph (dab) of the definition of liquid assets)

Insert:

 (dac) the surrender value of a life policy (within the meaning of the Life Insurance Act 1995); or

2  At the end of subsection 14A(1)

Add:

Note: The definition of maximum reserve is affected by subsections (6A) and (6B).

3  At the end of section 14A

Add:

 (6A) This section has effect for the purposes of Parts 2.11, 2.11A, 2.12 and 2.14 during the designated period as if:

 (a) the reference in paragraph (a) of the definition of maximum reserve in subsection (1) to $2,500 were a reference to $5,000; and

 (b) the reference in paragraph (b) of that definition to $5,000 were a reference to $10,000.

 (6B) For the purposes of subsection (6A), the designated period is the period beginning on 1 April 2009 and ending at the end of:

 (a) 31 March 2011; or

 (b) if a later date is determined by the Minister by legislative instrument—that later date.

4  Section 19B (after paragraph (fb) of the definition of liquid assets)

Insert:

 (fc) the surrender value of a life policy (within the meaning of the Life Insurance Act 1995); or


Part 2—Application and transitional provisions

5  Claims made on or after 1 April 2009

The amendments made by Part 1 of this Schedule apply in relation to a person who makes a claim on or after 1 April 2009 for a social security payment.

6  Persons subject to liquid assets test waiting period at beginning and end of designated period

Persons subject to liquid assets test waiting period at beginning of designated period

(1) The amendments made by items 1, 2 and 3 of this Schedule apply in relation to a person if:

 (a) the person is subject to a liquid assets test waiting period on 1 April 2009; and

 (b) the liquid assets test waiting period started before that date.

(2) If the application of the amendments made by items 1, 2 and 3 of this Schedule would result in the person’s liquid assets test waiting period ending before 1 April 2009, the person’s liquid assets test waiting period is taken to end on 31 March 2009.

Persons subject to liquid assets test waiting period after end of designated period

(3) Subsection 14A(6A) of the Social Security Act 1991 continues to have effect in relation to a person after the end of the designated period if:

 (a) the person is subject to a liquid assets test waiting period on the day after the end of the designated period; and

 (b) the liquid assets test waiting period started before the end of the designated period.

Definitions

(4) In this item:

designated period means the designated period referred to in subsection 14A(6B) of the Social Security Act 1991.

liquid assets test waiting period means a liquid assets test waiting period under Part 2.11, 2.11A, 2.12 or 2.14 of the Social Security Act 1991.


Part 3—Technical amendments

Income Tax Assessment Act 1936

7  Subsection 159J(6) (paragraph (adak) of the definition of separate net income)

Omit “Act 2009”, substitute “Act (No. 2) 2009”.

Income Tax Assessment Act 1997

8  Section 11‑15 (table item headed “family assistance”)

Omit “Household Stimulus Package Act 2009”, substitute “Household Stimulus Package Act (No. 2) 2009”.

9  Section 11‑15 (table item headed “social security or like payments”)

Omit “Household Stimulus Package Act 2009”, substitute “Household Stimulus Package Act (No. 2) 2009”.

10  Section 52‑165

Omit “Act 2009”, substitute “Act (No. 2) 2009”.

Social Security Act 1991

11  Paragraph 8(8)(yj)

Omit “Act 2009”, substitute “Act (No. 2) 2009”.

Social Security (Administration) Act 1999

12  Section 123TC (paragraph (e) of the definition of household stimulus payment)

Omit “Act 2009”, substitute “Act (No. 2) 2009”.

Veterans’ Entitlements Act 1986

13  Paragraph 5H(8)(zzg)

Omit “Act 2009”, substitute “Act (No. 2) 2009”.

 

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 12 March 2009

Senate on 18 March 2009]

(29/09)

 

Overview

The Social Security Amendment (Liquid Assets Waiting Period) Act 2009, enacted by the Parliament of Australia, serves to amend the existing social security laws with the intent to address certain issues surrounding the waiting periods for liquid assets tests. This legislation specifically modifies the Social Security Act 1991 to temporarily increase the thresholds for liquid assets that can be held without incurring a waiting period for certain social security payments. This adjustment is intended to provide temporary financial relief to individuals affected by the economic downturn. The Act came into effect on different dates for various provisions, with the primary amendments taking effect on 1 April 2009. The policy objective of the Act is to offer a temporary respite from stringent asset tests during a period of economic challenge, thereby potentially easing the financial burden on affected individuals and families.

Scope and Application

The Social Security Amendment (Liquid Assets Waiting Period) Act 2009 amends the law relating to social security, specifically focusing on modifying the criteria and thresholds for liquid assets under the Social Security Act 1991. This Act applies to individuals who make a claim for a social security payment on or after 1 April 2009, particularly those who are subject to a liquid assets test waiting period as of 1 April 2009 or who start such a period before this date. The amendments also continue to apply to individuals who remain subject to the liquid assets test waiting period after the designated period, which runs from 1 April 2009 until 31 March 2011 or a later date determined by the Minister. The Act includes technical amendments to various other Acts, such as the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, the Social Security (Administration) Act 1999, and the Veterans' Entitlements Act 1986, to ensure consistency with the changes introduced by this legislation. The Act's provisions are effective across the Commonwealth of Australia, impacting all states and territories within the jurisdiction.

Key Provisions

The Social Security Amendment (Liquid Assets Waiting Period) Act 2009 (Act) introduces significant changes to the Social Security Act 1991 (SSA) by altering the definition of "liquid assets" and the maximum reserve for individuals subject to a liquid assets test waiting period. Specifically, section 1 of Schedule 1 amends the SSA to include the surrender value of a life policy as a liquid asset (subsection 14A(1)). Furthermore, section 3 of Schedule 1 modifies the definition of "maximum reserve" by increasing the dollar amounts from $2,500 to $5,000 and from $5,000 to $10,000 for the designated period starting on 1 April 2009 and ending on 31 March 2011 or a later date determined by the Minister. This Act imposes several obligations on individuals and entities subject to the liquid assets test waiting period. Firstly, the amendments apply to individuals who make a claim for a social security payment on or after 1 April 2009 (section 5 of Schedule 1). Secondly, the changes affect individuals who are already subject to a liquid assets test waiting period as of 1 April 2009, provided that the waiting period began before that date (section 6(1) of Schedule 1). If the application of the amendments would cause the waiting period to end before 1 April 2009, it is taken to end on 31 March 2009 (section 6(2) of Schedule 1). Lastly, the amendments continue to apply to individuals who are subject to a liquid assets test waiting period on the day after the designated period ends, provided the waiting period began before the end of the designated period (section 6(3) of Schedule 1). There are no specific offences, penalties, or consequences outlined in the Act itself for non-compliance with the amendments. However, any breach of the amended provisions of the SSA, including the new definition of liquid assets and maximum reserve, could result in civil or criminal penalties under the SSA or other relevant legislation. For instance, making a false or misleading statement in relation to a social security payment could attract penalties under section 210 of the SSA, which provides for a maximum penalty of 2,000 penalty units for individuals and 10,000 penalty units for bodies corporate. It is important to note that the penalties and consequences for breaches of the SSA would apply regardless of the amendments introduced by this Act.

Legal classification tags

Area of Law
Social Security Law
Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Transitional Provisions
Reporting & Disclosure Obligations
Enforcement Powers

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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.