Social Security (Disability and Sickness Support) Amendment Act 1991

Social Security (Disability and Sickness

 Support) Amendment Act 1991

No. 141 of 1991

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SCHEDULE 1

CONSEQUENTIAL AMENDMENTS

SCHEDULE 2

NEW SCHEDULE 1b TO THE SOCIAL SECURITY ACT 1991

Social Security (Disability and Sickness Support) Amendment Act 1991

No. 141 of 1991

An Act to amend the Social Security Act 1991 in relation to disability and sickness support, and for related purposes

[Assented to 9 October 1991]

The Parliament of Australia enacts:

PART 1—INTRODUCTORY

Short title etc.

1. (1) This Act may be cited as the Social Security (Disability and Sickness Support) Amendment Act 1991.

(2) In this Act, “Principal Act” means the Social Security Act 19911.

Commencement

2. (1) Part 1 commences on the day on which this Act receives the Royal Assent.

(2) The remaining provisions of this Act commence on 12 November 1991.

PART 2—AMENDMENTS RELATING TO INVALID PENSION

General definitions

3. Section 23 of the Principal Act is amended:

“ ‘physical impairment” includes sensory impairment;

‘program of assistance’ means:

(a)     a program approved under section 28a; or

(b) by inserting after subsection (4a) the following subsection:

“(4b) For the purposes of this Act, a person is severely disabled if:

(i) to work for at least the next 2 years; and

(b) the person is permanently blind.”.

4. After section 28 of the Principal Act the following section is inserted:

Approval of programs of assistance

“28a. The Secretary of the Department of Employment, Education and Training may, by writing, approve:

(a)     a course of vocational training; or

(b)     a labour market program; or

(c)     another course or program;

(other than a rehabilitation program) as a program of assistance for the purposes of this Act.”.

5. After section 791 of the Principal Act, the following section is inserted in Division 2 of Part 2.16 of Chapter 2:

Claimant must be under pension age

“791a. A claim by a person for special needs disability support pension is not a proper claim unless the person is under the pension age on the day on which the claim is lodged.

Note: the pension age is 65 for a man and 60 for a woman.”.

Grant of pension or allowance when person is outside Australia

6. (1) Section 1212 of the Principal Act is amended:

(b) by inserting after subsection (3) the following subsection:

“(4) If a person who has been granted a disability support pension under subsection (3) ceases to be severely disabled, the person ceases to be qualified for that pension.”;

(c) by adding at the end the following Notes:

“Note 4: for ‘severely disabled’ see subsection 23 (4b).

(2) If, on 11 November 1991 a person was receiving an invalid pension granted:

(a)     while the person was outside Australia; and

section 1212 of the Principal Act as in force before the amendments made by subsection (1) continues to apply in relation to that person.

Some pensions generally portable without time limit

7.     Section 1213 of the Principal Act is amended by omitting paragraph (1) (b).

8.     After section 1213 of the Principal Act, the following section is inserted:

Portability of invalid pension

General

“1213a. (1) Subject to subsections (2) and (3), a person’s right to continue to be paid invalid pension is not affected by the person’s leaving Australia.

Pensions granted on or after 12 November 1991 to persons not severely disabled

“(2) If:

(b)     the person leaves Australia on or after that day; and

the person ceases to be qualified for disability support pension on the day after the 12 month period ends.

Pensions granted on or after 12 November 1991 to persons severely disabled

“(3) If:

(b)     the person leaves Australia on or after that day; and

(c)     the person is severely disabled when leaving; and

the person ceases to be qualified for disability support pension on the day after the 12 month period ends.

Departure certificates and short residence

“(4) Subsection (1) has effect subject to:

(a)     sections 1218 and 1219 (departure certificates); and

(b)     section 1220 (claim based on short residence).

Note: for ‘severely disabled’ see subsection 23 (4b).”.

PART 3—AMENDMENTS RELATING TO DISABILITY SUPPORT PENSION AND SICKNESS ALLOWANCE

General definitions

9. Section 23 of the Principal Act is amended:

(a) by inserting in subsection (1) the following definition:

“ ‘Impairment Tables’ means the Tables in Schedule 1b;”;

(b) by inserting after subsection (4b) the following subsections:

“(4c) For the purposes of this Act, a person is in disability accommodation if:

(a) the person:

(ii) is:

(a) in accommodation that is not the principal

home of the parents or a parent of the person; and

“(4d) For the purposes of this Act, a person is living away from the person’s parental home if the person is living away from:

10. Part 2.3 of the Principal Act is repealed and the following Part is substituted:

“PART 2.3—DISABILITY SUPPORT PENSION

“Division 1—Qualification for and payability of disability support pension

“Subdivision A—Qualification

Qualification for disability support pension—continuing inability to work

“94. (1) A person is qualified for disability support pension if:

(c)     the person has a continuing inability to work; and

(d)     the person has turned 16; and

(e)     the person either:

(ii) has 10 years qualifying Australian residence; or

(a) is not an Australian resident; and

(b) is a dependent child of an Australian resident;

and the person becomes an Australian resident while a dependent child of an Australian resident.

Note 1: for ‘Australian resident’ and ‘qualifying Australian residence’ see section 7.

Note 2: for Impairment Tables see section 7a.

Meaning of continuing inability

“(2) A person has a continuing inability to work if the Secretary is satisfied that:

(i) the person’s usual work; and

(ii) work for which the person is currently skilled;

for at least 2 years; and

(b) either:

Note: for ‘work’ see subsection (5).

“(3) In deciding whether or not a person has a continuing inability to work under subsection (2), the Secretary is not to have regard to:

“(4) For the purposes of subparagraph (2) (b) (ii), if a person has turned 55, the Secretary may, in considering whether educational or vocational training is likely to equip the person to do work, have regard to the likely availability to the person of work in the person’s locally accessible labour market.

“(5) In this section:

‘educational or vocational training’ does not include a program designed specifically for people with physical, intellectual or psychiatric impairments;

‘work’ means work:

Person not qualified in certain circumstances

“(6) A person is not qualified for a disability support pension on the basis of a continuing inability to work if the person brought about the inability with a view to obtaining a disability support pension or a sickness allowance.

Qualification for disability support pension—permanent blindness

“95. (1) A person is qualified for a disability support pension if:

(a)     the person is permanently blind; and

(b)    the person has turned 16; and

(c)     the person either:

(ii) has 10 years qualifying Australian residence; or (iii) is born outside Australia and, at the time when the person first satisfies paragraph (a), the person:

(a) is not an Australian resident; and

(b) is a dependent child of an Australian resident;

and the person becomes an Australian resident while a dependent child of an Australian resident.

Note: for ‘Australian resident’ and ‘qualifying Australian residence’ see section 7.

Person not qualified in certain circumstances

“(2) A person is not qualified for a disability support pension on the basis of blindness if the person brought about the blindness with a view to obtaining a disability support pension or a sickness allowance.

Refusal to attend interview etc. may lead to disqualification

“96. (1) A person is not qualified for a disability support pension if:

(b)    the Secretary is of the opinion that the person should:

(i) contact a specified officer of the Department; or

(ii) attend an interview at a specified location; or

(iii) complete a questionnaire; or

(c) the Secretary notifies the person that the person is required to:

(i) contact that officer; or

(ii) attend that interview; or

(iii) complete that questionnaire; or

(iv) attend that examination; or

“(2) A notice under paragraph (1) (c) must be in writing and must inform the person of the effect of this section.

Departure certificate requirements apply

“97. Sections 94 and 95 have effect subject to sections 1218 and 1219 (departure certificate requirements for people leaving Australia).

“Subdivision B—Payability

Disability support pension not payable in some circumstances

“98. (1) Even though a person is qualified for disability support pension, the pension may not be payable to the person because:

(e)     the person is in gaol (see Part 3.13); or

(g)     the person fails to comply with a requirement that the person:

(i) contact an officer; or

(ii) attend an interview; or

(iii) complete a questionnaire; or

as required by section 105; or

“(2) A disability support pension is not payable to a person if the person’s disability support pension rate would be nil.

Disability support pension generally not payable before claim or end of waiting period

“99. Disability support pension is not payable to a person who is qualified for the pension before:

Note: a person may be subject to a DSP non-compliance waiting period under section 105.

Provisional commencement day

General rule

“100. (1) Subject to subsections (2), (3) and (4), a person’s provisional commencement day is the day on which the person claims the disability support pension.

Initial incorrect claim followed by a claim for disability support pension

“(2) If:

the person’s provisional commencement day is the day on which the person made the initial claim.

Early claim

“(3) If:

(a)     a person lodges a claim for a disability support pension; and

(c)     the person becomes qualified for a disability support pension

sometime during the period of 3 months that starts immediately after the day on which the claim is lodged;

the person’s provisional commencement day is the first day on which the person is qualified for the pension and is an Australian resident and in Australia.

Claim resulting from a major disaster

“(4) If a person:

(a)     claims a disaster relief payment; and

(b)     is qualified for the payment; and

the person’s provisional commencement day is the day on which he or she was affected by the disaster.

Provision of person’s tax file number

“101. (1) A disability support pension is not payable to a person if:

“(2) The person satisfies this subsection if:

(a) the person’s declaration states that the person:

(i) has a tax file number but does not know what it is; and

(i) whether the person has a tax file number; and

“(3) The person satisfies this subsection if:

(d)     the application for a tax file number has not been withdrawn.

Provision of partner’s tax file number

“102. (1) Subject to subsection (4), a disability support pension is not payable to a person if:

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

“(2) The person satisfies this subsection if:

(a) the partner’s declaration states that the partner:

(i) has a tax file number but does not know what it is; and (ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

(i) whether the partner has a tax file number; and

“(3) The person satisfies this subsection if:

(d)     the application for a tax file number has not been withdrawn.

“(4) The Secretary may waive the requirement for a statement of the partner’s tax file number if the Secretary is satisfied that:

(a)     the person does not know the partner’s tax file number; and

(b)     the person can obtain none of the following from the partner:

(i) the partner’s tax file number;

(ii) a statement of the partner’s tax file number;

Multiple entitlement exclusion

“103. (1) A disability support pension is not payable to a person if the person is already receiving a service pension.

“(2) If:

(a)     a person is receiving a disability support pension; and

the disability support pension is not payable to the person.

Note 2: ‘social security benefit’ includes job search and newstart allowances.

Note 3: for the day on which the disability support pension ceases to be payable see section 136.

Rehabilitation and assistance programs

“104. The Secretary may request a person who is receiving disability support pension to undertake a program of assistance or a rehabilitation program.

Refusal to attend interview etc.

“105. (1) A disability support pension is not payable to a person if:

(a)     the person is receiving a disability support pension; and

(b)     the Secretary is of the opinion that the person should:

(i) contact a specified officer of the Department; or

(ii) attend an interview at a specified place; or

(iii) complete a questionnaire; or

(c) the Secretary notifies the person that the person is required to:

(i) contact that officer; or

(ii) attend that interview; or

(iii) complete that questionnaire; or

(iv) attend that examination; or

“(2) A notice under paragraph (1) (c) must be in writing and must inform the person of the effect of this section.

“Division 2—Claim for disability support pension

Need for a claim

“106. (1) A person who wants to be granted a disability support pension must make a proper claim for that pension.

“(2) For the purposes of subsection (1), where:

the claim is, subject to subsection 100 (3), to be taken not to have been made.

Form of claim

“107. To be a proper claim, a claim must be made in writing and must be in accordance with a form approved by the Secretary.

Lodgment of claim

“108. (1) To be a proper claim, a claim must be lodged:

(a)     at an office of the Department; or

(b)     at a place approved for the purpose by the Secretary; or

(c)     with a person approved for the purpose by the Secretary.

“(2) Subject to subsection (3), a place or person approved under subsection (1) must be a place or person in Australia.

“(3) The Secretary may approve a place or person outside Australia under subsection (1) for the purpose of lodgment of claims made under an international agreement.

Note: for international agreements see Part 4.1.

Claimant must be under pension age

“109. A claim by a person is not a proper claim unless the person is under the pension age on the day on which the claim is lodged.

Note: the pension age is 65 for a man and 60 for a woman.

Claimant must be Australian resident and in Australia

“110. A claim by a person is not a proper claim unless the person is:

(a)     an Australian resident; and

(b)     in Australia;

on the day on which the claim is lodged.

Note 1: for ‘Australian resident’ see subsections 7 (2) and (3).

Secretary may require claimant to give statement of claimant’s tax file number

“111. If a claimant for a disability support pension is in Australia, the Secretary may require the claimant to give the Secretary a written statement of the claimant’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 101.

Secretary may require claimant to give statement of partner’s tax file number

“112. If:

(b)     the claimant’s partner is in Australia;

the Secretary may require the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Note 1: for the consequences of a failure to comply with the requirement see section 102.

Note 3: the Secretary can waive the requirement in some cases: see subsection 102 (4).

“Division 3—Determination of claim

Secretary to determine claim

“113. The Secretary must, in accordance with this Act, determine the claim.

Grant of claim

“114. The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

(a)     the person is qualified for a disability support pension; and

(b)     the pension is payable.

Date of effect of determination

“115. (1) Subject to subsections (2), (3) and (4), a determination under section 114 takes effect on the day on which the determination is made or on such later day or earlier day as is specified in the determination.

Notified decision—review sought within 3 months

“(2) If:

the determination takes effect on the day on which the previous decision took effect.

Notified decision—review sought after 3 months

“(3) If:

the determination takes effect on the day on which the person sought the review.

Decision not notified

“(4) If:

the determination takes effect on the day on which the previous decision took effect.

“Division 4—Medical examination following claim

Examination by medical practitioner

“116. (1) The Secretary must direct that a claimant for disability support pension be examined by a medical practitioner or practitioners unless:

(a) it is manifest that:

(ii) the claimant has a continuing inability to work; or

(b) it is manifest that the claimant is permanently blind; or

Note: for ‘continuing inability to work’ see section 94.

“(2) If the claimant resides in a place that is remote from any medical practitioner, the Secretary may direct that:

(a)     subsection (1) does not apply to the claimant; and

“(3) The medical practitioner who has examined the claimant because of a direction under subsection (1) is to give a certificate stating the practitioner’s opinion as to:

(a) whether the claimant:

(i) has a physical, intellectual or psychiatric impairment; or (ii) is permanently blind;

(as the case requires); and

“(4) The medical practitioner must, if required to do so by the Secretary, include in the certificate the practitioner’s opinion as to the percentage of the person’s impairment (if any) under the Impairment Tables.

“(5) A certificate under this section must be in accordance with a form approved by the Secretary.

“Division 5—Rate of disability support pension

How to work out a person’s disability support pension rate

“117. A person’s disability support pension rate is worked out:

“Division 6—Payment of disability support pension

Commencement of disability support pension

“118. A disability support pension becomes payable to a person on the first day on which:

(a)     the person is qualified for the pension; and

Note 1: for qualification see sections 94 and 95.

Note 2: for the circumstances in which a disability support pension is not payable see section 98.

Payment by instalments

“119. (1) A full instalment of disability support pension is payable to a person on each pension payday on which:

(a)     the person is qualified for the pension; and

(b)     the pension is payable to the person.

“(2) If a person who is qualified for disability support pension is outside Australia, the instalments referred to in subsection (1) are to be paid to the person on such pension paydays as the Secretary determines for the purposes of this subsection.

Effect on instalments of backdating claim

“120. If:

any instalment of disability support pension that would, but for this section, be payable, is payable to the person:

(c)     if the claim day was a pension payday—on that day; or

(d)     the first pension payday after the claim day.

Note: for ‘provisional commencement day’ see section 100.

Calculation of amount of instalment

“121. (1) The amount of an instalment of disability support pension is the amount worked out by dividing the amount of the annual rate of the pension by 26.

“(2) If an amount that is payable to a person on a pension payday is not a multiple of 10 cents, the amount is, subject to subsection (3), to be increased or decreased to the nearest multiple of 10 cents.

“(3) If the amount that is payable to a person on a pension payday is a multiple of 5 cents, the amount is to be increased by 5 cents.

“(4) If, apart from this subsection, the amount of an instalment of disability support pension would be less than $1.00, the amount of the instalment is to be increased to $1.00.

Inmates of benevolent homes

“122. (1) While a person who is receiving disability support pension is an inmate of a benevolent home:

“(2) For the purposes of this section, the pensioner contribution is, subject to subsection (3), 364 times the amount in force from time to time for the purposes of subparagraph 47 (2) (b) (iii) of the National Health Act 1953.

“(3) If the amount worked out under subsection (2) is not a multiple of $2.60, the pensioner contribution is the next lower amount that is a multiple of $2.60.

Payment to person

“123. A person’s disability support pension is, subject to section 124, to be paid to that person.

Nominee payments

“124. (1) The Secretary may direct that the whole, or a part, of the amount of a person’s disability support pension is to be paid to someone else on behalf of the person.

“(2) If the Secretary makes a direction under subsection (1), the disability support pension is to be paid in accordance with the direction.

Payment into bank account etc.

“125. (1) Subject to subsection (6), disability support pension payable to a person is to be paid, at the intervals that the Secretary specifies, to the credit of a bank account, credit union account or building society account.

“(2) The account must be an account nominated and maintained by the person to whom the disability support pension is payable.

“(3) The account may be an account that is maintained by a person to whom the disability support pension is payable either alone or jointly or in common with another person.

“(4) Where a person to whom disability support pension is payable has not nominated an account for the purposes of subsection (1), then, subject to subsection (6), that pension is not to be paid.

“(5) Where:

the pension (including any amounts that would have been paid but for subsection (4)) is to be paid under subsection (1).

“(6) The Secretary may direct that the whole or a part of an amount of disability support pension that is payable to a person may be paid to the person in a different way from that provided for by subsection (1).

“(7) If the Secretary gives a direction under subsection (6), the disability support pension is to be payable in accordance with the direction.

Where pension payday would fall on public holiday etc.

“126. If the Secretary is satisfied that an amount of disability support pension that would normally be paid on a particular day cannot reasonably be paid on that day (because, for example, it is a public holiday or a bank holiday), the Secretary may direct that the amount be paid on an earlier day.

Payment of pension after death

“127. (1) If:

(a)     a disability support pension is payable to a person; and

(b)     the person dies; and

(d)     another person applies to receive that amount; and

(e)     the application is made:

(i) within 6 months after the death; or

the Secretary may pay the amount to the person who, in the Secretary’s opinion, is best entitled to it.

“(2) If the Secretary pays an amount of disability support pension under subsection (1), the Commonwealth has no further liability to any person in respect of that amount of disability support pension.

“Division 7—Protection of disability support pension

Disability support pension to be absolutely inalienable

“128. (1) Subject to subsection (2) and section 1359, disability support pension is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

Payments to Commissioner of Taxation at recipient’s request

“(2) The Secretary may make deductions from the instalments of disability support pension payable to a person where the recipient asks the Secretary:

(a)     to make the deductions; and

Effect of garnishee or attachment order

“129. (1) If:

(a)     a person has an account with a financial institution; and

the court order does not apply to the saved amount (if any) in the account.

“(2) The saved amount is worked out as follows:

“(3) This section applies to an account whether it is maintained by a person:

(a)    alone; or

(b)    jointly with another person; or

(c)    in common with another person.

“Division 8—Recipient obligations

Secretary may require recipient to give statement of recipient’s tax file number

“130. If a recipient of a disability support pension is in Australia, the Secretary may require the recipient to give the Secretary a written statement of the recipient’s tax file number.

Note 1: for the consequences of a failure to comply with the requirement see section 101.

Secretary may require recipient to give statement of partner’s tax file number

“131. If:

(b)     the recipient’s partner is in Australia;

the Secretary may require the recipient to give the Secretary a written statement of the tax file number of the recipient’s partner.

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

“132. (1) The Secretary may give a person to whom disability support pension is being paid a notice that requires the person to inform the Department if:

(a)     a specified event or change of circumstances occurs; or

“(2) An event or change of circumstances is not to be specified in a notice under subsection (1) unless the occurrence of the event or change of circumstances might affect the payment of the pension.

“(3) A notice under subsection (1):

(a)     must be in writing; and

(b)     may be given personally or by post; and

(e)     must specify that the notice is given under this section.

“(4) The period specified under paragraph (3) (d) must end at least 14 days after:

“(5) A person must not refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.

Penalty: $1,000 or imprisonment for 6 months, or both.

“(6) A person must not, in purporting to comply with a notice under subsection (1), knowingly or recklessly give information that is false or misleading in a material particular.

Penalty: $1,000 or imprisonment for 6 months, or both.

“(7) This section extends to:

(b)     all persons irrespective of their nationality or citizenship.

Secretary may require recipient to give particular information relevant to payment of disability support pension

“133. (1) The Secretary may give a person to whom disability support pension is being paid a notice that requires the person to give the Department a statement about a matter that might affect the payment of the pension to the person.

“(2) A notice under subsection (1):

(a)     must be in writing; and

(b)     may be given personally or by post; and

(e)     must specify that the notice is given under this section.

“(3) The period specified under paragraph (2) (d) must end at least 14 days after the day on which the notice is given.

“(4) A statement given in response to a notice under subsection (1) must be in writing and in accordance with a form approved by the Secretary.

“(5) A person must not refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.

Penalty: $1,000 or imprisonment for 6 months, or both.

“(6) A person must not, in purporting to comply with a notice under subsection (1), knowingly or recklessly give information that is false or misleading in a material particular.

Penalty: $1,000 or imprisonment for 6 months, or both.

“(7) This section extends to:

(b)     all persons irrespective of their nationality or citizenship.

Self incrimination

“134. (1) A person is not excused from giving information pursuant to a notice under section 132 or 133 on the ground that the information may tend to incriminate the person.

“(2) Information given by a person pursuant to a notice under section 132 or 133 is not admissible in evidence against the person in a criminal proceeding other than a proceeding under, or arising out of, subsection 132 (5) or (6) or 133 (5) or (6).

“Division 9—Continuation, variation and termination

“Subdivision A—General

Continuing effect of determination

Entitlement determination

“135. (1) A determination that:

(a)     a person’s claim for disability support pension is granted; or

(b)     disability support pension is payable to a person;

continues in effect until:

(d)     the determination is revoked under subsection 139 (3); or

Note 1: for paragraph (a) see section 114.

Rate determination

“(2) A determination of the rate of disability support pension continues in effect until:

“Subdivision B—Automatic termination

Automatic termination—transfer to new payment type

“136. If:

(a)     a person is receiving a disability support pension; and

the disability support pension ceases to be payable to the person immediately before the day on which the other pension or benefit becomes payable to the person.

Automatic termination—recipient complying with section 132 notification obligations

“137. If:

(c)     the event or change in circumstances occurs; and

(i) the person ceases to be qualified for the pension; or

the pension continues to be payable to the person until the end of the notification period and then ceases to be payable to the person.

Automatic termination—recipient not complying with section 132 notification obligations

“138. If:

(c)     the event or change in circumstances occurs; and

(i) the person ceases to be qualified for the pension; or

(ii) the pension ceases to be payable to the person;

the pension ceases to be payable to the person immediately after the day on which the event or change in circumstances occurs.

Suspension may occur instead of automatic termination in some circumstances

“139. (1) If:

the Secretary may determine:

(c)     that section 137 does not apply to the person’s pension; and

(d)     that the person’s pension is to be suspended.

Note: the determination to suspend is made under section 146.

“(2) Subsection (1) does not apply to a person if:

“(3) If:

then, at the end of that 2 year period, the determination granting the person disability support pension is automatically revoked.

“(4) If:

(b)     the person has a partner who is receiving:

(i) age pension; or

(ii) disability support pension; or

(iv) service pension;

then, for the period of the suspension, the partner is taken to be partnered (partner getting neither pension nor benefit).

Note 2: for ‘partnered (partner getting neither pension nor benefit)’ see paragraph 4 (11) (b).

“(5) If:

the Secretary must determine that the partner’s pension is not to be cancelled but is to be suspended.

Note: the determination to suspend is made under section 146.

Suspension may be taken to have occurred

“140. (1) If:

(c)     within the period of 2 years after the pension ceases to be

payable, the person ceases to do work of the kind referred to in paragraph (a);

the Secretary may determine that the person is to be treated as if:

“(2) If:

the Secretary may determine that the partner is to be treated as if the partner’s wife or carer pension had not been cancelled but had been suspended under section 139.

“Subdivision C—Automatic rate reduction

Automatic rate reduction—partner starting to receive pension or benefit

“141. If:

(a)     a person is receiving a disability support pension; and

(b)     the person’s partner starts to receive:

(i) a social security pension or benefit; or

(ii) a service pension; and

the disability support pension becomes payable to the person at the reduced rate on the day on which the partner starts to receive that pension or benefit.

Automatic rate reduction—recipient not complying with section 132 notification obligations

“142. If:

(c)     the event or change in circumstances occurs; and

(d)     the person does not inform the Department of the occurrence

of the event or change in circumstances within the notification period in accordance with the notice; and

the pension becomes payable to the person at the reduced rate immediately after the day on which the event or change in circumstance occurs.

Automatic rate reduction—failure to inform Department of payment for remunerative work where earnings credit account balance available

“143. If:

the pension becomes payable to the person at the reduced rate from the first pension payday after the day on which the person’s earnings credit account balance is reduced to nil.

“Subdivision D—Determinations

Rate increase determination

“144. If the Secretary is satisfied that the rate at which disability support pension is being, or has been, paid is less than the rate provided for by this Act, the Secretary is to determine that the rate is to be increased to the rate specified in the determination.

Note: for the date of effect of a determination under this section see section 146d.

Rate reduction determination

“145. If the Secretary is satisfied that the rate at which disability support pension is being, or has been, paid is more than the rate provided for by this Act, the Secretary is to determine that the rate is to be reduced to the rate specified in the determination.

Note 2: for the date of effect of a determination under this section see section 146e.

Cancellation or suspension determination

“146. If the Secretary is satisfied that disability support pension is being, or has been, paid to a person to whom it is not, or was not, payable under this Act, the Secretary is to determine that the pension is to be cancelled or suspended.

Note 2: for the date of effect of a determination under this section see section 146e.

Cancellation or suspension for failure to comply with section 132, 1304 or 1305 notice

“146a. If:

(b)     the person does not comply with the notice;

the Secretary may determine that the pension is to be cancelled or suspended.

Note 1: this section will not apply in a case where section 146 applies.

Note 2: for the date of effect of a determination under this section see section 146e.

Changes to payments by computer

“146b. If:

the change is taken to have been made because of a determination by the Secretary for that reason.

Resumption of payment after cancellation or suspension

“146c. (1) If the Secretary:

(b)     reconsiders the decision to cancel or suspend; and

the Secretary is to determine that disability support pension was or is payable to the person.

“(2) The reconsideration referred to in paragraph (1) (b) might be a reconsideration on an application under section 1240 for review or a reconsideration on the Secretary’s own initiative.

Note: for the date of effect of a determination under this section see section 146d.

“Subdivision E—Date of effect of determinations

Date of effect of favourable determination

“146d. (1) The day on which a determination under section 144 or 146c (in this section called the ‘favourable determination’) takes effect is worked out in accordance with this section.

Notified decision—review sought within 3 months

“(2) If:

(e)     subsections (6), (7) and (8) do not apply to the determination;

the determination takes effect on the day on which the previous decision took effect.

Notified decision—review sought after 3 months

“(3) If:

(e)     subsections (6), (7) and (8) do not apply to the determination;

the determination takes effect on the day on which the person sought the review.

Decision not notified

“(4) If:

(e)     subsections (6), (7) and (8) do not apply to the determination;

the determination takes effect on the day on which the previous decision took effect.

Notified change of circumstances

“(5) If:

the determination takes effect on the day on which the advice was received or on the day on which the change occurred, whichever is the later.

Prescribed student child determination

“(6) If:

the determination takes effect on the day when the determination is made or on such earlier or later day as is specified in the determination.

“(7) If:

the determination takes effect on the day when the determination is made or such earlier or later day as is specified in the determination.

“(8) If:

the determination takes effect on the day on which the young person became a prescribed student child.

Other determinations

“(9) In any other case, the favourable determination takes effect on the day on which the determination was made or on such later day or earlier day (not being a day more than 3 months before the determination was made) as is specified in the determination.

Date of effect of adverse determination

General

“146e. (1) The day on which a determination under section 145, 146 or 146a (in this section called the ‘adverse determination’) takes effect is worked out in accordance with this section.

“(2) The adverse determination takes effect on:

(a)     the day on which the determination is made; or

(b)     if another day is specified in the determination—on that day.

“(3) Subject to subsections (4), (5) and (6), the day specified under paragraph (2) (b) must be later than the day on which the determination is made.

Contravention of Act

“(4) If:

(a) the person whose disability support pension is affected by the

adverse determination has contravened a provision of this Act (other than section 133, 1304, 1305, 1306 or 1307); and

(b) the contravention causes a delay in making the determination;

the day specified under paragraph (2) (b) may be earlier than the day on which the determination is made.

False statement or misrepresentation—suspension or cancellation

“(5) If:

(a)     a person has made a false statement or misrepresentation; and

the day specified under paragraph (2) (b) may be earlier than the day on which the determination is made.

False statement or misrepresentation—rate reduction

“(6) If:

(a)     a person has made a false statement or misrepresentation; and

the day specified under paragraph (2) (b) may be earlier than the day on which the determination is made.

“Division 10—Bereavement payments

“Subdivision A—Death of pensioner partner

Qualification for payments under this Subdivision

“146f. (1) If:

(a)     a person is receiving disability support pension; and

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

(c)     the person’s partner dies; and

(d)     immediately before the partner died, the partner was receiving:

(i) an age pension; or

(ii) a disability support pension; or

(iii) a wife pension; or

(iv) a carer pension; or

(vi) a rehabilitation allowance; or

(viii) a service pension; and

the person is qualified for payments under this Subdivision to cover the bereavement period.

“(2) A person who is qualified for payments under this Subdivision may choose not to receive payments under this Subdivision.

“(3) An election under subsection (2):

(a)     must be made by written notice to the Secretary; and

“(4) If a person is qualified for payments under this Subdivision in relation to the partner’s death, the rate at which disability support pension is payable to the person during the bereavement period is, unless the person has made an election under subsection (2), governed by section 146j.

Continued payment of partner’s pension or allowance

“146g. If a person is qualified for payments under this Subdivision in relation to the death of the person’s partner, there is payable to the person, on each of the pension paydays in the bereavement rate continuation period, an amount equal to the amount that would have been payable to the person’s partner on that payday if the partner had not died.

Lump sum payable in some circumstances

“146h. If:

there is payable to the person as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Adjustment of person’s disability support pension rate

“146j. If:

(a)     a person is qualified for payments under this Subdivision; and

the rate of the person’s disability support pension during the bereavement period is worked out as follows:

Effect of death of person entitled to payments under this Subdivision

“146k. If:

(b)    the person dies within the bereavement period; and

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Matters affecting payment of benefits under this Subdivision

“146l. (1) If:

the following provisions have effect:

“(2) If:

the financial institution is, in spite of anything in any other law, not liable to any action, claim or demand by the Commonwealth, the personal representative of the person’s partner or anyone else in respect of the payment of that money to the person.

“Subdivision B—Death of dependent child

Bereavement payments on death of dependent child

“146m. If:

(a)     a person is receiving disability support pension; and

(b)     a dependent child of the person dies; and

(i) a dependent child add-on in respect of the child; or

(ii) guardian allowance in respect of the child;

the person is qualified for payments under this Subdivision to cover the bereavement period.

Note 3: the additional payments preserved by this Subdivision are:

•  dependent child add-on;

•  guardian allowance;

•  additional rent assistance;

•  additional remote area allowance.

Continued payment of child-related amounts

“146n. If a person is qualified for payments under this Subdivision in relation to the death of a dependent child, the person’s disability support pension rate during the bereavement rate continuation period is to be calculated as if:

(a)     the child had not died; and

Lump sum payable in some circumstances

“146p. If:

a lump sum (worked out using the lump sum calculator at the end of this section) is payable to the person.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

“Subdivision C—Death of recipient

Death of recipient

“146q. (1) If:

(a)     a person is receiving disability support pension; and

(b)     either:

(i) the person is not a member of a couple; or

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

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

(c) is not receiving a service pension; and

(c) the person dies;

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the amount that would have been payable to the person under this Act on the pension payday after the person’s death if the person had not died.

“(2) If an amount is paid under subsection (1) in respect of a person, the Commonwealth is not liable to any action, claim or demand for any further payment under that subsection in respect of the person.

Note 1: for amounts owing to the recipient before the recipient’s death see section 127.

“(3) If:

(a)     a person is receiving disability support pension; and

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

(c)     the person dies; and

(d)     the person:

there is payable to the partner an amount equal to the sum of the following amounts:

(f) the difference between:

“(4) If:

(a)     a person is receiving disability support pension; and

(b)     the person is not a member of a couple; and

(c)     the person dies; and

(d)     the person:

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the sum of the following amounts:

(e) the difference between:

been payable to the person under section 146l if the person had not died; and

“Division 11—Fringe benefits

Fringe benefits

“146r. If a person who is receiving disability support pension qualifies for fringe benefits in accordance with this Division, benefits and concessions of various kinds may be made available to the person under other Commonwealth legislation (for example, the National Health Act 1953).

Qualification for fringe benefits

“146s. (1) A person who is receiving disability support pension is qualified for fringe benefits if:

(a)     the person is permanently blind; or

“(2) If:

(b)     the person’s disability support pension rate is income reduced;

the person is qualified for fringe benefits only if the person satisfies the fringe benefits ordinary income test.

“(3) If:

(b) the person’s disability support pension rate is assets reduced; the person is qualified for fringe benefits only if the person satisfies the fringe benefits assets test.

12 month extension of fringe benefits—person ceasing to be on disability support pension because of employment

“146t. (1) For the purposes of this Division, if:

(a)     a person is receiving disability support pension; and

then, for the period of 12 months after the person ceases to be qualified for disability support pension:

“(2) Subsection (1) ceases to apply to the person if the person ceases work.

12 month extension of fringe benefits—person failing income test because of employment income

“146u. (1) For the purposes of this Division, if:

(a)     a person is receiving disability support pension; and

then, for the period of 12 months after the person begins to earn income at that rate:

“(2) Subsection (1) ceases to apply to the person if the person ceases to earn income from employment.

“(3) If:

(a) this section applies to a person; and

the period of 12 months referred to in section 146t is taken to have commenced on the day the person began to earn income from employment at a rate that causes the person’s annual rate of ordinary income to exceed the fringe benefits ordinary income free area and not on the day the person ceased to be qualified for disability support pension.”.

Qualification for wife pension

11. Section 147 of the Principal Act is amended:

(b)    by inserting after subsection (1) the following subsection:

“(1a) If:

(b)     the person or the person’s partner has not turned 21; and

(c)     the person does not have a dependent child; and

(d) the person’s partner does not have a dependent child;

the person is not qualified for wife pension.”.

12. After section 664b of the Principal Act the following sections are inserted:

Disability support pension recipients

“664c. (1) A person is qualified for an employment entry payment under this section if:

(i) the employment is for at least 30 hours per week; or

(b) immediately before the person commenced the employment:

Note 1: the amount in subparagraph (a) (ii) is adjusted twice a year by legislative amendment.

Note 2: for ‘qualified recipient’ see subsection (4).

“(2) If the Secretary is satisfied that:

the following provisions have effect:

“(3) The time determined under paragraph (2) (c) is not to be more than 28 days before the person is to commence the employment.

“(4) In this section:

‘qualified recipient’ means a person receiving:

(a)     disability support pension; or

(b)     sickness allowance; or

(c)     invalid pension; or

(d)     sickness benefit; or

(e)     sheltered employment allowance; or

‘threshold amount’ means the maximum amount per fortnight that a person receiving newstart allowance can earn, derive or receive without the allowance ceasing to be payable, if the person:

(a)     is not a member of a couple; and

(b)     is not receiving rent assistance; and

(c)     is not receiving remote area allowance; and

(d)     has turned 21 but has not turned 60; and

(e)     has no dependent children.

Amount of section 664c payment

“664d. The amount of an employment entry payment under section 664c is $200.”.

13. Parts 2.9 and 2.10 of the Principal Act are repealed.

14. Part 2.14 of the Principal Act is repealed and the following Part is substituted:

“PART 2.14—SICKNESS ALLOWANCE

“Division 1—Qualification for and payability of sickness allowance

“Subdivision A—Basic qualification

Qualification for sickness allowance

“666. (1) A person is qualified for sickness allowance in respect of a period if:

(c)     the incapacity is, or is likely to be, of a temporary nature; and

(d)     either:

(e) before the period begins the person has turned 16; and

Note 2: for ‘loss of income’ see section 675.

Note 3: for ‘pension age’ see section 23.

Work

“(2) For the purposes of this section:

‘work’ means, in relation to a person:

(a) if:

the work that the person has contracted to perform under the contract; or

“(3) The work referred to paragraph (b) of the definition of ‘work’ in subsection (2) is work that is: