Social Security and Repatriation Legislation Amendment Act 1983

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Social Security and Repatriation Legislation Amendment Act 1983

No. 36 of 1983

 

An Act to subject certain pensions to an income test

[Assented to 19 June 1983]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Social Security and Repatriation Legislation Amendment Act 1983.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

PART II—AMENDMENTS OF THE SOCIAL SECURITY ACT 1947

Principal Act

3. The Social Security Act 19471 is in this Part referred to as the Principal Act.


Rate of age or invalid pension

4. Section 28 of the Principal Act is amended by omitting sub-section (2ab) and substituting the following sub-sections:

“(2ab) Notwithstanding sub-section (2) but subject to sub-section (2a), where a claimant or pensioner—

(a) has attained the age of 70 years;

(b) is in receipt of, or is qualified to receive, an age pension; and

(c) is a person referred to in paragraph (1a) (a) or a person in relation to whom a direction under sub-section (1aaa) is in force,

the annual rate at which that pension is determined shall not be less than—

(d) if the person is an unmarried person and has an annual rate of income exceeding $10,400—$2,675.40 per annum reduced by one-half of the amount per annum by which the annual rate of income of the person exceeds $10,400;

(e) if the person is a married person and has an annual rate of income exceeding $8,658—$2,675.40 per annum reduced by one-half of the amount per annum by which the annual rate of income of the person exceeds $8,658; or

(f) in any other case—$2,675.40 per annum.

“(2ac) Notwithstanding sub-section (2), where a claimant or pensioner—

(a) has attained the age of 70 years;

(b) is in receipt of, or is qualified to receive, an age pension; and

(c) is not a person referred to in paragraph (1a) (a) or a person in relation to whom a direction under sub-section (1aaa) is in force,

the annual rate at which that pension is determined shall not be less than—

(d) if the person has an annual rate of income exceeding $8,658—$2,230.80 per annum reduced by one-half of the amount per annum by which the annual rate of income of the person exceeds $8,658; or

(e) in any other case—$2,230.80 per annum.”.

Computation of income

5. Section 29 of the Principal Act is amended by inserting after sub-section (1) the following sub-section:

“(1a) Paragraph (1) (b) shall not be taken into account in the computation of income for the purposes of sub-section 28 (2ab) or (2ac).”.

Suspension of pension where allowance granted under Tuberculosis Act 1948

6. Section 48a of the Principal Act is amended by omitting from paragraph (2) (b) “the rate referred to in paragraph 28 (2ab) (c) or (d), whichever is the appropriate rate” and substituting “a rate determined in accordance with sub-section 28 (2ab) or (2ac)”.


Application

7. The amendments made by sections 4, 5 and 6 apply, insofar as they affect instalments of pension under Part III of the Social Security Act 1947, in relation to each instalment of pension that falls due on or after 1 November 1983.

PART III—AMENDMENTS OF THE REPATRIATION ACT 1920

Principal Act

8. The Repatriation Act 19202 is in this Part referred to as the Principal Act.

Variation of rate of service pension according to income

9. Section 87 of the Principal Act is amended—

(a) by omitting sub-section (1b) and substituting the following sub-sections:

“(1b) Notwithstanding sub-section (1), where a claimant or pensioner—

(a) has attained the age of 70 years;

(b) is in receipt of, or is qualified to receive, a service pension; and

(c) is—

(i) a member of the Forces who is a person referred to in paragraph 28 (1a) (a) of the Social Security Act 1947, being that paragraph in its application to members of the Forces by virtue of section 84 or 85 of this Act;

(ii) a member of the Forces in relation to whom a determination under sub-section 84 (2) of this Act is in force; or

(iii) the wife of a member of the Forces, being a wife in relation to whom a determination under sub-section 85 (1aa) of this Act is in force,

the annual rate at which that pension is granted shall not be less than—

(d) if the person is not a married person and has an annual rate of income exceeding $10,400—$2,675.40 per annum reduced by one-half of the amount per annum by which the annual rate of income of the person exceeds $10,400;

(e) if the person is a married person and has an annual rate of income exceeding $8,658—$2,675.40 per annum reduced by one-half of the amount per annum by which the annual rate of income of the person exceeds $8,658; or

(f) in any other case—$2,675.40 per annum.

“(1c) Notwithstanding sub-section (1), where a claimant or pensioner—

(a) has attained the age of 70 years;


(b) is in receipt of, or is qualified to receive, a service pension; and

(c) is not a person referred to in paragraph (1b) (c),

the annual rate at which that pension is granted shall not be less than—

(d) if the person has an annual rate of income exceeding $8,658—$2,230.80 per annum reduced by one-half of the amount per annum by which the annual rate of income of the person exceeds $8,658; or

(e) in any other case—$2,230.80 per annum.”;

(b) by inserting after sub-section (3) the following sub-section:

“(3aaa) Paragraph (3) (b) shall not be taken into account in the computation of income for the purposes of sub-section (1b) or (1c).”; and

(c) by inserting in sub-section (3a) “or of sub-section (1b) or (1c) of this section” after “Social Security Act 1947”.

Receipt of income to be notified

10. Section 96 of the Principal Act is amended by omitting from paragraph (6a) (a) “or, having attained the age of 70 years, is in receipt of pension at the rate referred to in paragraph 87 (1b) (c) or (d), whichever is the appropriate rate”.

Application

11. The amendments made by sections 9 and 10 apply, insofar as they affect instalments of service pension under the Repatriation Act 1920, in relation to each instalment of service pension that falls due on or after 1 November 1983.

 

NOTES

1. No. 26, 1947, as amended. For previous amendments, see Nos. 38 and 69, 1948; No. 16, 1949; Nos. 6 and 26, 1950; No. 22, 1951; Nos. 41 and 107, 1952; No. 51, 1953; No. 30, 1954; Nos. 15 and 38, 1955; Nos. 67 and 98, 1956; No. 46, 1957; No. 44, 1958; No. 57, 1959; No. 45, 1960; No. 45, 1961; Nos. 1 and 95, 1962; No. 46, 1963; Nos. 3 and 63, 1964; Nos. 57 and 152, 1965; No. 41, 1966; Nos. 10 and 61, 1967; No. 65, 1968; No. 94, 1969; Nos. 2 and 59, 1970; Nos. 16 and 67, 1971; Nos. 1, 14, 53 and 79, 1972; Nos. 1, 26, 48, 103 and 216, 1973; Nos. 2, 23 and 91, 1974; Nos. 34, 56, 101 and 110, 1975; Nos. 26, 62 and 111, 1976; No. 159, 1977; No. 128, 1978; No. 121, 1979 (as amended by Nos. 37 and 98, 1982); No. 130, 1980; No. 61, 1981; No. 159, 1981 (as amended by No. 98, 1982); No. 170, 1981; Nos. 37, 98 and 148, 1982; and No. 4, 1983.

2. No. 6, 1920, as amended. For previous amendments, see No. 34, 1921; No. 23, 1922; No. 14, 1929; No. 74, 1930; Nos. 10 and 47, 1931; No. 32, 1934; No. 58, 1935; Nos. 29 and 67, 1936; Nos. 12, 24 and 42, 1937; No. 55, 1938; Nos. 37 and 96, 1940; No. 49, 1941; No. 22, 1943; No. 11, 1945; No. 49, 1946; Nos. 1, 29 and 74, 1947; No. 39, 1948; No. 38, 1949; Nos. 34 and 80, 1950; No. 31, 1951; No. 58, 1952; No. 69, 1953; No. 31, 1954; No. 39, 1955; Nos. 68 and 97, 1956; No. 44, 1957; No. 47, 1958; No. 58, 1959; No. 44, 1960; No. 46, 1961; Nos. 75 and 91, 1962; No. 47, 1963; Nos. 62 and 105, 1964; No. 64, 1965; No.

NOTES—continued

42, 1966; No. 64, 1967; Nos. 66 and 120, 1968; No. 95, 1969; Nos. 4 and 60, 1970; Nos. 17 and 68, 1971; Nos. 15, 82 and 139, 1972; Nos. 2, 27 and 104, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 3, 24 and 90, 1974; Nos. 35, 56 and 111, 1975; Nos. 27, 91 and 112, 1976; No. 56, 1977; Nos. 129 and 170, 1978; Nos. 18 and 124, 1979; No. 129, 1980; Nos. 41, 61 and 160, 1981; and Nos. 20, 80 and 100, 1982.

Overview

The Social Security and Repatriation Legislation Amendment Act 1983 was enacted by the Parliament of Australia to address the gap in the income test for certain pensions, particularly for age and service pensions. The Act amends the Social Security Act 1947 and the Repatriation Act 1920 by introducing a new income test for pensioners aged 70 years or older, effectively linking the pension rates to the income levels of the recipients. The policy objective is to ensure that pension payments are more equitable by reducing pensions for those with higher incomes, thus promoting a more targeted social security system. The amendments came into effect on 1 November 1983.

Scope and Application

The Social Security and Repatriation Legislation Amendment Act 1983 applies to individuals who have attained the age of 70 and are in receipt of, or qualified to receive, an age pension or service pension under the Social Security Act 1947 and the Repatriation Act 1920, respectively. This Act amends the income test for these pensions, modifying the annual rates based on the claimant's income level and marital status. The amendments affect both age pensions and service pensions, ensuring that the income test is applied uniformly across these categories. The Act applies nationwide as it is Commonwealth legislation, and there are no specific exclusions mentioned within the text. The amendments come into effect on 1 November 1983, affecting all future instalments of pension. The scope of the Act is further defined by the specified income thresholds and the conditions under which the reduced rates of pension apply.

Key Provisions

The Social Security and Repatriation Legislation Amendment Act 1983 introduces significant changes to pension rates for individuals over 70 years old. Section 4 amends the Social Security Act 1947 by setting new minimum annual rates for age pensions based on the claimant's income. For example, an unmarried person with an annual income exceeding $10,400 will receive a minimum annual pension of $2,675.40, reduced by half the amount by which their income exceeds this threshold (Section 4(2ab)(d)). Conversely, for married individuals with an annual income exceeding $8,658, the minimum annual pension is $2,675.40, reduced by half the amount by which their income exceeds this threshold (Section 4(2ab)(e)). For all other cases, the minimum annual pension is set at $2,675.40 (Section 4(2ab)(f)). Similarly, for those not qualifying under certain conditions, the minimum annual pension for individuals with an income over $8,658 is $2,230.80, reduced by half the excess income (Section 4(2ac)(d)), and $2,230.80 otherwise (Section 4(2ac)(e)). Section 5 further specifies that certain allowances are excluded from the income computation for determining pension rates. Entities and individuals governed by the Act must comply with these new pension rates and income computations. They are required to accurately report their income to ensure they receive the correct pension amount, as per the provisions set out in Section 4. Failure to correctly report income could result in underpayment or overpayment of pensions, necessitating adjustments and potential repayments. Section 6 mandates that where a claimant or pensioner receives an allowance under the Tuberculosis Act 1948, their pension is suspended, and the new rates under this Act apply. The Act also imposes obligations on entities to notify the relevant authorities of any changes in income that may affect pension rates. Section 10 specifies that failure to report changes in income, especially for those receiving certain allowances, could lead to non-compliance with the Act's provisions. Any breach of the provisions, such as failing to report income accurately or deliberately misrepresenting income to receive higher pension payments, may result in legal consequences. The specific penalties for such breaches are not detailed within the provided excerpt of the Act, but generally, non-compliance with social security laws can result in fines, penalties, or even criminal charges, depending on the severity and intent of the breach.

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Pension Law
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