Social Security (Family Payment) Amendment Act 1992

Social Security (Family Payment) Amendment Act 1992

No. 69 of 1992

TABLE OF PROVISIONS—continued

TABLE OF PROVISIONS—continued

TABLE OF PROVISIONS—continued

SCHEDULE

CONSEQUENTIAL AMENDMENTS

Social Security (Family Payment) Amendment Act 1992

No. 69 of 1992

An Act to amend the Social Security Act 1991, and for related purposes

[Assented to 26 June 1992]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title etc.

1.(1) This Act may be cited as the Social Security (Family Payment) Amendment Act 1992.

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

Commencement

2. This Act commences on 1 January 1993.

PART 2—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

Repeal and substitution of Parts 2.17 and 2.18

3. Parts 2.17 and 2.18 of the Principal Act are repealed and the following Part is substituted:

“PART 2.17—FAMILY PAYMENT

“Division 1—Family payment child status

FP child

“831.(1) Subject to subsections (2) and (3) and sections 832 to 836, each dependent child of a person is also an FP child of that person.

“(2) If the male member of a couple has a dependent child, the dependent child is taken to be the dependent child of the female member of the couple.

“(3) Subsection (2) does not apply if family payment is not payable to the female for the child for some reason other than that the child is not her dependent child.

Note: for ‘dependent child’ see subsections 5(2) to (9).

FP child—prescribed student child not included

“832.(1) A dependent child cannot be an FP child if the child:

(a)     has turned 16; and

(b)     is a prescribed student child.

“(2) For the purposes of subsection (1), a young person who is qualified to receive payments under the Assistance for Isolated Children Scheme is not a prescribed student child.

Note: for ‘prescribed student child’ see subsection 5(11).

FP child—child over 18

“833.(1) Subject to subsections (2), (3) and (4), a dependent child who has turned 18 cannot be an FP child.

“(2) A dependent child who has turned 18 and is undertaking secondary studies may be an FP child of a person until:

(a)     the end of the calendar year in which the child turned 18; or

(b)     the child ceases secondary studies;

whichever first happens.

“(3) A dependent child who has turned 18 may be an FP child if a person would, but for subsection (1), be qualified for:

(a) additional family payment; or

(b) a double orphan pension; or

(c) a child disability allowance;

for the child.

“(4) A dependent child who has turned 18 may be an FP child of a person if the person or the person’s partner is receiving a service pension.

FP child—child in approved care organisation care

“834.(1) If a person is qualified for family payment for a young person, an approved care organisation cannot be qualified for family payment for the young person.

Note: for ‘young person’ see subsection 5(1).

“(2) An approved care organisation is not qualified for additional family payment for a young person.

“(3) If an approved care organisation is receiving family payment for a young person, no person is qualified for additional family payment for the young person.

FP child—residence requirements

“835. A dependent child cannot be an FP child unless:

(a)     the child is an inhabitant of Australia; or

FP child—child absent from Australia for more than 3 years

“836.(1) If a dependent child of a person:

(a) either:

(i) leaves Australia; or

(ii) is born outside Australia; and

(b) continues to be absent from Australia for more than 3 years;

the child cannot be an FP child of the person at any time after the first 3 years of absence while the child remains absent from Australia.

“(2) If:

(b)     the child leaves Australia less than 13 weeks later;

for the purposes of subsection (1), the child is taken not to have come to Australia.

“(3) If:

(b)     the child comes to Australia; and

(c) the child leaves Australia less than 13 weeks later;

the child cannot be an FP child of the person when the child leaves Australia as mentioned in paragraph (c).

“Division 2—Qualification for and payability of family payment

“Subdivision A—Qualification

Qualified person outside Australia for more than 13 weeks

“837.(1) Subject to subsection (2), if:

(b)     the child is also a dependent child of another person; and

(c) the child is living in Australia with the other person;

the child continues to be an FP child of the first parent.

“(2) If the first parent continues to be absent from Australia for more than 13 weeks, the child ceases to be an FP child of the first parent from the end of that period until the first parent returns to Australia.

Qualification for individual family payment

“838.(1) A person is qualified for family payment if:

(a)     the person has at least one FP child; and

(b)     the person is an inhabitant of Australia; and

(d)     the value of the person’s assets does not exceed $600,000.

Note 1: for ‘inhabitant of Australia’ see subsection 23(1).

Note 6: the assets test may be modified by the hardship provision in section 1132A.

“(2) For the purposes of paragraph (1)(d), the value of the assets of a person is taken to include:

(a)     the value of the assets of the person’s partner; and

(b)     the value of the assets of the person’s FP child or FP children.

Qualification for approved care organisation family payment

“839.(1) An approved care organisation is, subject to subsections (2), (3) and (4), qualified for family payment for a young person if:

(a)     the young person is a client of the organisation; and

(b)     the young person is an inhabitant of Australia; and

(c) no person is receiving family payment for the young person.

Note: for ‘approved care organisation’ see subsection 6(1) and section 35.

“(2) If the young person has not turned 16, the organisation is not qualified for family payment for the young person if the young person:

(a)     is not a full-time student; and

(b)     is in receipt of income from employment; and

(c)     the rate of that income exceeds $111.35 per week.

“(3) If the young person has turned 16, the organisation is not qualified for family payment for the young person if the young person is a prescribed student child.

Note: for ‘prescribed student child’ see subsection 5(11).

“(4) An approved care organisation is not qualified for family payment for a young person if the young person is receiving:

(a)     a social security pension or benefit; or

“(5) For the purposes of subsection (3), a prescribed student child does not include a young person qualified to receive payments under the Assistance for Isolated Children Scheme.

Qualification for family payment ceases after 3 year absence of recipient from Australia

“840.(1) If a person who is qualified for family payment:

(a)     leaves Australia; and

(b)     continues to be absent from Australia for more than 3 years;

the person is not qualified for family payment at any time after the first 3 years of the absence while the person remains absent from Australia.

Note: for effects of absence for shorter periods see section 837.

“(2) If:

for the purposes of subsection (1), the person is taken not to have returned to Australia.

“(3) If:

(b)     the person returns to Australia; and

the person is not qualified for family payment at any time during the absence referred to in paragraph (c).

“Subdivision B—Payability

Family payment not payable in some circumstances

“841. Even though a person is qualified for family payment, the payment may not be payable to the person because:

(d)     the person’s family payment rate would be nil.

Family payment generally not payable before claim

“842. Family payment is not payable to a person before the provisional commencement day (identified under section 843).

Note: for ‘recipient’ see section 6.

Family payment provisional commencement day

“843.(1) Subject to this section and to sections 844, 845, 846 and 847, the provisional commencement day is the day on which the person or approved care organisation claims family payment.

“(2) If:

(i) a child disability allowance or a double orphan pension;

or

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

“(3) If:

(a)     a person lodges a claim for family payment; and

the person’s provisional commencement day is the first day on which the person is qualified for family payment.

Backdating—birth of child

“844. If:

(a)     a person has a dependent child; and

the person’s provisional commencement day is the day on which the dependent child is born.

Backdating—new client

“845. If:

the organisation’s provisional commencement day is the day on which the young person becomes a client of the organisation.

Note: for ‘provisional commencement day’ see section 843.

Backdating—child disability allowance payable

“846. If:

family payment can become payable before the provisional commencement day but cannot become payable before:

Note 1: for ‘provisional commencement day’ see section 843.

Backdating—death of former recipient

“847. If:

family payment can become payable to the second person before the provisional commencement day but cannot become payable to that person before the day of the death.

Family payment not payable to 2 people for the same child

“848. If:

(c)     one of the people is receiving family payment for the child; and

(d) the child is the only FP child of the other person;

family payment is not payable to that other person.

Provision of person’s tax file number

“849.(1) Family payment 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

“850.(1) Subject to subsection (4), family payment 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;

(iii) a declaration by the partner under subparagraph (1)(c)(ii).

“Division 3—Claim for family payment

Need for a claim

“851.(1) A person who wants to be granted family payment must make a proper claim for that payment.

“(2) An approved care organisation that wants to be granted family payment must make a proper claim for that payment.

“(3) For the purposes of subsections (1) and (2), if:

the claim is, subject to subsection 843(3), to be taken not to have been made.

Form of claim

“852. 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

“853.(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 inhabitant of Australia

“854. A claim by a person is not a proper claim unless the person is an inhabitant of Australia on the day on which the claim is lodged.

Note: for ‘inhabitant of Australia’ see subsection 23(1).

Secretary may require recipient or claimant to give statement of tax file number

“855. The Secretary may require a recipient of, or a claimant for, family payment to give the Secretary a written statement of the person’s tax file number.

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

“856. If:

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

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

Note 3: the Secretary can waive the requirement in some cases (see subsection 850(4)).

“Division 4—Determination of claim

Secretary to determine claim

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

Grant of claim

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

(b)     the payment is payable.

Date of effect of determination

“859.(1) Subject to this section, a determination under section 858 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 13 weeks

“(2) If:

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

Notified decision—review sought after 13 weeks

“(3) If:

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

Decision not notified

“(4) If:

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

Prescribed student child determination

“(5) 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.

“(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 on which the young person became a prescribed student child.

“Division 5—Rate of family payment

Rate struck for calendar year

“860. If the rate of the family payment payable to a person in a calendar year has been worked out in accordance with the Family Payment Rate Calculator in section 1069, the rate of family payment payable to the person only has to be worked out again during that calendar year if:

(b)     a notifiable event has occurred in relation to the person and

the person fails to notify the Department that it has occurred; or

(d)     the person revises an estimate of his or her taxable income; or

(e) the person has underestimated his or her taxable income; or

How to work out a person’s family payment rate

“861. The rate of family payment payable to a person or to an approved care organisation for an FP child is worked out using the Family Payment Rate Calculator at the end of section 1069.

Note 1: for base rate for a person see points 1069-B1, 1069-C1 and 1069-C2.

Note 2: for the rate of additional family payment see point 1069-D23.

Note 3: for the rate payable to an approved care organisation see point 1069-B3.

“Division 6—Payment of family payment

Commencement of family payment

“862. Family payment becomes payable to a recipient on the first day on which:

(a)     the recipient is qualified for the payment; and

Note 1: for qualification see sections 838 and 839.

Note 2: for the circumstances when family payment is not payable see section 841.

Note 3: for ‘recipient’ see section 6.

Payment by instalments

“863.(1) Subject to section 864, a full instalment of family payment is payable to a recipient on each family payment payday on which:

(a)     the recipient is qualified for family payment; and

(b)     family payment is payable to the recipient.

“(2) If the amount of an instalment of family payment or additional family payment would not be a multiple of 5 cents, the amount is to be rounded up to the nearest multiple of 5 cents.

Effect on instalments of backdating claim

“864. If:

then:

Note: for ‘provisional commencement day’ see section 843.

Instalments to be paid to person or nominee

“865.(1) Subject to subsection (3), instalments of a recipient’s family payment are to be paid to that recipient.

“(2) The Secretary may direct that the whole or a part of the instalments of a recipient’s family payment are to be paid to someone else on behalf of the recipient.

“(3) If the Secretary makes a direction under subsection (2), the instalments are to be paid in accordance with the direction.

Payment into bank account etc.

“866.(1) An amount that is to be paid to a recipient under section 865 is to be paid in the manner set out in this section.

“(2) Subject to this section, the amount is to be paid to the credit of a bank account, credit union account or building society account nominated and maintained by the recipient.

“(3) The account may be an account that is maintained by the recipient either alone or jointly or in common with another person or organisation.

“(4) If the recipient has not nominated an account for the purposes of subsection (2) then, subject to subsections (5) and (6), the amount is not to be paid.

“(5) If:

(a)     an amount has not been paid because of subsection (4); and

the amount is to be paid into that account.

“(6) The Secretary may direct that the whole or a part of the amount be paid to the recipient in a different way to that provided for by subsection (2).

“(7) If the Secretary makes a direction under subsection (6), the family payment is to be paid in accordance with the direction.

Where family payment payday would fall on public holiday etc.

“867. If the Secretary is satisfied that an amount of family payment 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 family payment after death

“868.(1) If:

(a)     a family payment is payable to a person; and

(b)     the person dies; and

(e)     the application is made:

(i) within 26 weeks after the death; or

the Secretary may pay the amount to the person or organisation, as the case may be, who, in the Secretary’s opinion, is best entitled to it.

“(2) If the Secretary pays an amount of family payment under subsection (1), the Commonwealth has no further liability to any person or organisation in respect of that amount of family payment.

Secretary may make declaration where 2 people qualified for family payment for the same child

“869.(1) If the Secretary is satisfied that 2 people are each qualified for family payment for the same child, the Secretary is to make a declaration:

“(2) If the child is one of 3 or more children who were born during the same multiple birth, the Secretary is to specify in the declaration under subsection (1) the manner in which multiple birth allowance under point 1069-C1 of the Family Payment Rate Calculator is to be dealt with.

“(3) Without limiting subsection (2), the Secretary may specify that the whole of the multiple birth allowance is to be paid to one of the 2 people involved.

“(4) If the Secretary makes a declaration under subsection (1), the Secretary is to give each of the 2 people involved notice of the declaration.

“Division 7—Protection of family payment

Family payment to be absolutely inalienable

“870.(1) Subject to subsections (2) and (3) and section 1359, family payment 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 family payment payable to a recipient if the recipient asks the Secretary:

(a)     to make the deductions; and

“(3) The Secretary may make deductions from the instalments of family payment payable to a recipient if the recipient consents under section 1234A to the Secretary making the deductions.

Effect of garnishee or attachment order

“871.(1) If:

(a)     a recipient 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 notice of the happening of an event or a change in circumstances

“872.(1) The Secretary may give a recipient of family payment a notice that requires the recipient 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 family payment.

“(3) A notice under subsection (1):

(a)     must be in writing; and

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

Note: for recipient notification notice see subsection 23(1).

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

“(5) If a notice requires the person to inform the Department of any proposal by the person to leave Australia, subsection (4) does not apply to that requirement.

“(6) A recipient must not, without reasonable excuse, refuse or fail to comply with a notice under subsection (1) to the extent that the recipient is capable of complying with the notice.

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

“(7) A recipient 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: Imprisonment for 2 years.

“(8) 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 family payment

“873.(1) The Secretary may give a recipient of family payment a notice that requires the recipient to give the Department a statement about a matter that might affect the payment of the family payment to the recipient.

“(2) A notice under subsection (1):

(a)     must be in writing; and

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

Note: for recipient statement notice see subsection 23(1).

“(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 recipient must not, without reasonable excuse, refuse or fail to comply with a notice under subsection (1) to the extent that the recipient is capable of complying with the notice.

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

“(6) A recipient 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: Imprisonment for 2 years.

“(7) This section extends to:

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

“Division 9—Continuation, variation and termination

“Subdivision A—General

Continuing effect of determination

Entitlement determination

“874. (1) A determination that:

(b)     family payment is payable to a person or organisation; continues in effect until:

(c)     the payment ceases to be payable under section 875 or 876; or

Note 1: for paragraph (a) see section 858.

Note 3: for paragraph (d) see also section 882.

Rate determination

“(2) A determination of the rate of family payment continues in effect until:

Note: for paragraph (b) see also section 882.

“Subdivision B—Automatic termination

Automatic termination—recipient complying with section 872 notification obligations

“875. If:

(a)     a recipient is given a notice under section 872; and

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

family payment continues to be payable to the recipient until the end of the notification period and then ceases to be payable to the recipient.

Automatic termination—recipient not complying with section 872 notification obligations

“876. If:

(a)     a recipient is given a notice under section 872; and

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

(ii) family payment ceases to be payable to the recipient;

family payment ceases to be payable to the recipient immediately after the day on which the event or change in circumstances occurs.

“Subdivision C—Automatic rate reduction

Automatic rate reduction—recipient not complying with section 872 notification obligations

“877. If:

(a)     a recipient is given a notice under section 872; and

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

family payment becomes payable to the recipient at the reduced rate immediately after the day on which the event or change in circumstances occurs.

“Subdivision D—Determinations

Rate increase determination

“878. If the Secretary is satisfied that the rate at which family payment 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 887.

Rate reduction determination

“879. If the Secretary is satisfied that the rate at which family payment 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 889.

Cancellation or suspension determination

“880. If the Secretary is satisfied that family payment is being, or has been, paid to a recipient to whom it is not, or was not, payable under this Act, the Secretary is to determine that the family payment is to be cancelled or suspended.

Note 2: for the date of effect of a determination under this section see section 889.

Cancellation or suspension for failure to comply with section 873, 1304 or 1305 notice

“881. If:

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

Note 1: this section will not apply if section 880 applies.

Note 2: for the date of effect of a determination under this section see section 889.

Changes to payments by computer

“882. 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

“883.(1) If the Secretary:

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

the Secretary is to determine that family payment was or is payable to the recipient.

“(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 887.

“Subdivision E—Taxable income determinations

Effect of amendment of assessed taxable income

“884. If:

(b)     the assessment is subsequently amended by:

(i) the Commissioner of Taxation; or

(ii) a tribunal; or

(iii) a court;

the person’s rate of family payment is to be recalculated on the basis of the person’s taxable income for that year according to the assessment as amended.

Recalculation if taxable income underestimated by 25% or more

“885. If:

(b)     that taxable income is an amount estimated by the person; and

the person’s rate of family payment is to be recalculated on the basis of that taxable income as assessed by the Commissioner.

Note 1: the person’s rate of family payment will be recalculated under section 860.

Note 2: for the date of effect of a recalculation under this section see section 891.

Recalculation if failure to notify notifiable event

“886. If:

(a)     a notifiable event occurs in relation to a person; and

(d)     the person’s taxable income for that tax year exceeds 125% of:

(ii) the person’s taxable income free area at that time;

the person’s family payment rate is to be recalculated on the basis that the person’s appropriate tax year is the tax year in which the notifiable event occurred.

Note 3: for taxable income free area see point 1069-H21.

Note 4: for base tax year see point 1069-H12.

“Subdivision F—Date of effect of determinations

Date of effect of favourable determination

“887.(1) The day on which a determination under section 878 or 883 (the ‘favourable determination’) takes effect is worked out in accordance with this section.

Notified decision—review sought within 13 weeks

“(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 13 weeks

“(3) If:

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

the determination takes effect on the day on which the recipient 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 favourable determination is made following a recipient having advised the Department of a change in circumstances, 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 on 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 13 weeks before the determination was made) as is specified in the determination.

Amendment of assessment of taxable income

“888. If:

(c)     the assessment is subsequently amended by:

(i) the Commissioner of Taxation; or

(ii) a tribunal; or

(iii) a court; and

the later determination takes effect from:

(f) if the amendment of the assessment was made on application

by the person—the day on which the earlier determination took effect; or

Date of effect of adverse determination

General

“889.(1) The day on which a determination under section 879, 880 or 881 (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:

(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.

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:

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

Date of effect of variation of rate of family payment because of amendment of assessed taxable income

“890. If:

(c)     the assessment is subsequently amended by:

(i) the Commissioner of Taxation; or

(ii) a tribunal; or

(iii) a court; and

the later determination takes effect on the day on which the earlier determination took effect.

Underestimate of taxable income—date of effect of determination

“891. If:

(b)     in making the determination, the Secretary had regard to:

(i) the person’s taxable income for a tax year; or

(ii) the person’s partner’s taxable income for a tax year; and

(c)     that taxable income is an amount estimated by the person; and

the later determination takes effect on the day on which the earlier determination took effect.

Note: this section gives rise to debts that may be recovered under Chapter 5.

“Division 10—Bereavement payments (death of dependent child)

“Subdivision A—Death of dependent child (general)

Continuation of qualification for family payment for bereavement rate continuation period where recipient’s only FP child dies

“892. If:

(a)     a person is receiving family payment for a dependent child; and

(b)     the child dies; and

(c)     the child was the only FP child of the person; and

(d)     immediately before the child died:

the person is to be qualified for family payment during the bereavement rate continuation period as if the child had not died.

Note 2: for ‘FP child’ see subsection 6(1).

Note 3: for ‘service pension’ and ‘dependent child add-on’ see subsection 23(1).

Note 4: for definitions relating to bereavement see section 21.

Bereavement payments on death of dependent child

“893. If:

(a)     a person is receiving family payment; and

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

(c)     immediately before the child died:

for the child or guardian allowance in respect of the child;

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

Note 3: section 896 provides for an additional lump sum in some circumstances.

Continued payment of family payment

“894. If a person is qualified for payments under this Subdivision in relation to the death of a dependent child, the person’s family payment 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

“895. 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:

Additional lump sum payable in some circumstances

“896.(1) A lump sum (worked out using the lump sum calculator at the end of this subsection) is payable to a person if:

ADDITIONAL LUMP SUM CALCULATOR

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

“(2) For the purposes of applying the additional Lump Sum Calculator, a reference in that calculator to a payday is a reference to a payday for the pension, benefit or allowance that constitutes or includes the additional remote area allowance amount concerned.

“Subdivision B—Death of dependent child (special short-term assistance)

Continuation of qualification for family payment for 4 weeks in some cases where recipient’s only FP child dies

“897. If:

(a)     a person is receiving family payment for a dependent child; and

(b)     the child dies; and

(c)     the child was the only FP child of the person; and

the person is qualified for family payment for the period of 4 weeks that starts on the day on which the child died as if the child had not died.

Bereavement payments on death of dependent child

“898. If:

(a)     a person is receiving family payment; and

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

(c)     the child was not the only FP child of the person; and

the person is qualified for payments under this Subdivision to cover the period of 4 weeks that starts on the day on which the child died.

Continued payment of family payment

“899. If a person is qualified for payments under this Subdivision in relation to the death of a dependent child, the person’s family payment rate, during the period of 4 weeks that starts on the day on which the child dies, is to be calculated as if the child had not died.

“Subdivision C—Death of recipient

Death of recipient

“900.(1) If:

(a)     a person is receiving family payment; and

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

(c)     the person dies; and

(d)     the person:

the partner is to be paid an amount equal to the sum of the following amounts:

(f) the difference between:

“(2) If:

(a)     a person is receiving family payment; and

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

(c)     the person dies; and

(d)     the person:

(ii) would have been so qualified if the person had not died;

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:

4. Parts 3.7 and 3.8 of the Principal Act are repealed and the following Part is substituted:

“PART 3.7—FAMILY PAYMENT RATE CALCULATOR

Rate of family payment

“1069. The rate of a person’s family payment is to be calculated in accordance with the following Rate Calculator.

“FAMILY PAYMENT RATE CALCULATOR

“MODULE A—OVERALL RATE CALCULATION PROCESS

Method of calculating rate

“1069-A1. The rate of family payment of a person with an FP child or FP children is a fortnightly rate calculated as follows:

MODULE B—MAXIMUM BASIC RATE

Maximum basic rate

“1069-B1. A person’s maximum basic rate is worked out using Table B1. Work out which category applies to each FP child of the person. The FP child rate for that child is the corresponding rate in column 3. The maximum basic rate is the sum of the FP child rates.

Note 1: for ‘FP child’ see sections 831 to 836.

Taxable income test—exempt FP child

“1069-B2. If:

(b)     the person has an exempt FP child;

the person’s basic rate is to be worked out under point 1069-B1 having regard only to the exempt FP child or exempt FP children of the person.

Note: for taxable income ceiling see point 1069-H21.

Rate of family payment payable to an approved care organisation

“1069-B3. The rate of family payment payable to an approved care organisation for a child is $27.60 per fortnight.

MODULE C—MULTIPLE BIRTH ALLOWANCE

Qualification for multiple birth allowance

“1069-C1. An amount by way of a multiple birth allowance is to be added to a person’s basic rate for a family payment payday if:

(a)     the person has 3 or more FP children; and

Rate of multiple birth allowance

“1069-C2. The rate of multiple birth allowance is:

MODULE D—ADDITIONAL FAMILY PAYMENT

Submodule 1—Method

Method of calculating additional family payment

“1069-D1. This is how to work out whether a person qualifies for additional family payment, and the rate of the additional family payment.

Submodule 2—Qualification for additional family payment

Qualification for additional family payment

“1069-D2. Subject to points 1069-D5, 1069-D6, 1069-D7, 1069-D9 and 1069-D11, a person is qualified for additional family payment for a dependent child of the person (an ‘AFP child’) if:

(a)     the person and the child are present in Australia and:

(b)     the person:

(i) is receiving family payment in respect of the child; or

(c) the value of the person’s assets does not exceed $359,250.

Note 4: the assets test may be modified by the hardship provision in section 1132A.

Value of assets to include value of assets of partner and FP children

“1069-D3. For the purposes of paragraph 1069-D2(c), the value of the assets of a person is taken to include:

(a)     the value of the assets of the person’s partner; and

(b)     the value of the assets of each FP child of the person.

Assets test not to apply to recipient of pension or benefit

“1069-D4. Paragraph 1069-D2(c) does not apply to a person who is, or whose partner is, receiving:

(a)     a social security pension or benefit; or

(b)     payments under a prescribed educational scheme.

Person outside Australia temporarily

“1069-D5. Subject to point 1069-D6, if:

(b)    the first parent is outside Australia for 13 weeks or less; and

(c)     the child is also a dependent child of another person; and

(d) the child is living in Australia with the other person;

the child continues to be an FP child of the first parent.

Return of parent

“1069-D6. If the first parent is absent from Australia for more than 13 weeks, the child ceases to be an FP child of the first parent from the end of that period until the first parent returns to Australia.

FP child—receipt of other periodic payments for child

“1069-D7. A person is not qualified for additional family payment for a dependent child of the person if:

(a) the person or the person’s partner is receiving a periodic

payment under a law of the Commonwealth and the law provides for an increase in the rate of payment by reference to the child; or

Compensation payments excluded

“1069-D8. Point 1069-D7 does not apply to a periodic payment that is a compensation payment.

Taxable income unknown—no qualification

“1069-D9. A person is not qualified for additional family payment if:

Exception to 1069-D9

“1069-D10. Point 1069-D9 does not apply:

(a) to a person who is receiving payments under:

(i) the AUSTUDY scheme; or

(ii) the ABSTUDY scheme; or

(iii) the Post-Graduate Awards Scheme; or

(c)     if:

(i) a person gives a notice under point 1069-H9; and

Effect of maintenance rights on qualification

“1069-D11. A person is not qualified for additional family payment for a child if:

(a)     the person is entitled to maintenance for the child; and

Meaning of maintenance

“1069-D12. In point 1069-D11, ‘maintenance’, in relation to a person, means maintenance for an FP child of the person.

Additional family payment not payable in some circumstances

“1069-D13. Even though a person is qualified for additional family payment, the additional family payment may not be payable to the person because:

(c)     the person’s rate of additional family payment would be nil.

Additional family payment generally not payable before application

“1069-D14. Subject to section 847 and points 1069-D17, 1069-D18, 1069-D19 and 1069-D20, additional family payment is not payable to a person before the person applies for it.

Form of application for additional family payment

“1069-D15. An application for additional family payment:

(a)     must be in writing; and

(b)     must be in a form approved by the Secretary; and

(b) may be made either:

(ii) separately.

Rule where person not qualified on day of application

“1069-D16. If:

(a)     a person applies for additional family payment; and

additional family payment is payable to the person from the first day on which the person is qualified for it.

Application within 13 weeks of birth

“1069-D17. If:

(a) a person has a dependent child; and

additional family payment is payable to the person from the day of the birth.

Claim for pension or allowance

“1069-D18. If:

(a) a person makes a claim (the ‘initial claim’) for:

additional family payment is payable to the person from the day on which the person made the initial claim.

Backdating where child disability allowance payable

“1069-D19. If:

(a)     a person is qualified for additional family payment; and

additional family payment can become payable before the day on which the person makes an application for additional family payment (the ‘application day’) but cannot become payable before:

(f)      if the application day is more than 52 weeks after the person

became qualified for additional family payment—the day occurring 52 weeks before the application day.

Application within 6 weeks of ceasing other payments

“1069-D20. If:

(a) either:

additional family payment is payable to the person from the day after the effective date of cancellation.

1069-D20. not to apply to compensation payments

“1069-D21. Point 1069-D20 does not apply to a periodic payment that is made under:

(b)    section 5 of the Seamen’s Compensation Act 1911.

Suspension of AFP if pension or benefit suspended

“1069-D22. If:

the Secretary may direct that payments of additional family payment to the person be suspended.

Submodule 3—Maximum Rate of AFP

Maximum rate of AFP

“1069-D23. A person’s maximum rate of AFP is worked out using Table D. Work out which category applies to each AFP child of the person. The AFP child rate is the corresponding amount in column 3. The maximum rate of AFP is the sum of the AFP child rates.

Note 1: for AFP child see point 1069-D2.

MODULE E—SHARED DAILY CARE AND CONTROL

the FP child rate for that child, in working out the rate of family payment payable to that person, is the specified percentage of the FP child rate that would otherwise apply to the child.

Note: for FP child rate see point 1069-B1.

2 people qualified for additional family payment for the same child (determination under subsection 869(1) directing the sharing of family payment)

“1069-E2. If:

additional family payment is payable to each of those people for the child in the proportions so determined.

2 people qualify for family payment for same child (no determination under subsection 869(1))

“1069-E3. If:

an FP child rate for the child is not to be included in the family payment rate of the other person.

Sharing additional family payment when only one member of a couple is qualified for additional family payment for a child (determination under subsection 869(1))

“1069-E4. If:

the maximum AFP child rate for that child, in working out the maximum rate of additional family payment payable to the person who is so qualified, is the specified percentage of the AFP child rate that would otherwise apply to that person for the child if that person had the sole daily care and control of the child.

Note: for AFP child rate see point 1069-D23.

Sharing multiple birth allowance between 2 people (declaration under subsection 869(1))

“1069-E5. If:

multiple birth allowance under this Module in respect of the multiple birth is to be dealt with in accordance with the declaration.

2 people qualified for multiple birth allowance for the same child (no declaration under subsection 869(1))

“1069-E6. If:

the family payment rate of the other person is not to include any amount by way of multiple birth allowance under this Module.

MODULE F—RENT ASSISTANCE

Rent assistance

“1069-F1. Subject to point 1069-F2, a person who is receiving additional family payment is qualified for an additional amount to help cover the cost of rent if:

(a)     the person is not an ineligible homeowner; and

Note 1: for ‘rent’, ‘Government rent’ and ‘ineligible homeowner’ see section 13.

Note 2: for incentive allowance see subsection 23(1).

Effect of maintenance rights on qualification

“1069-F2. A person is not qualified for rent assistance for a child if:

(a)     the person is entitled to maintenance for the child; and

Meaning of maintenance

“1069-F3. In point 1069-F2, ‘maintenance’, in relation to a person, means maintenance for an FP child of the person.

Rate of rent assistance

“1069-F4. The rate of rent assistance is worked out using Table F. Work out the number of AFP children the person has and calculate Rate A for the person using the corresponding formula in column 3. This will be the person’s rate of rent assistance but only up to the person’s maximum rent assistance rate. The person’s maximum rent assistance rate is Rate B worked out using column 4.

Note 2: for ‘AFP child’ see point 1069-D2.

Fortnightly rent

“1069-F5. Fortnightly rent in Table F is the fortnightly rent paid or payable by the person whose rent is being calculated.

Rent paid by a member of a couple

“1069-F6. If a person is a member of a couple and is living with his or her partner in their home, any rent paid or payable by the partner is to be treated as paid or payable by the person.

AFP children to include ‘shared’ children

“1069-F7. A reference in Table F to an AFP child includes a reference to a child in relation to whom the Secretary has made a declaration under subsection 869(1).

MODULE G—GUARDIAN ALLOWANCE

Guardian allowance

“1069-G1. Subject to this Module, a person who:

(a)     has a dependent child or dependent children; and

(c)     either:

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

(ii) is a member of an illness separated couple;

is qualified for an amount by way of guardian allowance.

No guardian allowance in respect of certain dependent children who have turned 18

“1069-G2. Once a dependent child of a person turns 18, the child is not to be taken into account for the purposes of point 1069-G1 unless:

Effect of maintenance rights on qualification

“1069-G3. A person is not qualified for guardian allowance for a child if:

(a)     the person is qualified for maintenance for the child; and

Meaning of maintenance

“1069-G4. In point 1069-G3, ‘maintenance’, in relation to a person, means maintenance for an FP child of the person.

No guardian allowance if another person is getting guardian allowance

“1069-G5. A person is not qualified for an amount by way of guardian allowance in respect of a child or children if another person is entitled to guardian allowance for the child or children.

Guardian allowance where 2 people share the daily care and control of a dependent child

“1069-G6. If 2 people share the daily care and control of a dependent child, guardian allowance is payable to whichever one of them has the greater share of the daily care and control of the child.

No guardian allowance for child covered by VEA

“1069-G7. There is no guardian allowance for a child if the maximum payment rate of a person’s service pension includes an amount for the child under either of the following provisions of the VEA:

Rate of guardian allowance

“1069-G8. The rate of guardian allowance is $28.70 a fortnight.

MODULE H—TAXABLE INCOME TEST

Submodule 1—General

Persons to whom the taxable income test applies

“1069-H1. The taxable income tests in Submodules 4 and 5 apply to a person unless the person, or the person’s partner, is receiving:

(a)     a social security pension or benefit or a service pension; or

(b)     payments under a prescribed educational scheme.

Note: for ‘prescribed educational scheme’ see subsection 5(1).

Taxable income of members of couple to be added

“1069-H2. For the purposes of this Module, if a person is a member of a couple, the person’s taxable income for a tax year includes the taxable income for that year of the person’s partner.

Secretary may determine that an event is an assumed notifiable event

“1069-H3. The Secretary may determine that an event that is specified in some or all of the notices given under subsection 872(1) is to be an assumed notifiable event for the purposes of this Module.

Secretary may determine that an event is a notifiable event

“1069-H4. If the Secretary gives a person a notice under subsection 872(1) relating to the payment of family payment to the person, the Secretary may specify in the notice that an event described in the notice is a notifiable event for the purposes of this Module.

Person’s taxable income for tax year—ascertainment

“1069-H5. If a person does not have a taxable income for a tax year in accordance with point 1069-H6, the person is taken to have an unknown taxable income for that year.

Taxable income for tax year

“1069-H6. The person’s taxable income for a tax year is:

(a)     the person’s assessed taxable income for that year; or

Assessed taxable income

“1069-H7. For the purposes of this Module, a person’s ‘assessed taxable income’ for a tax year at a particular time is the most recent of:

Accepted estimated taxable income

“1069-H8. For the purposes of this Module, a person’s ‘accepted estimated taxable income’ for a tax year is that taxable income according to the most recent notice given by the person under point 1069-H9 and accepted by the Secretary for the purposes of this Module.

Notice estimating taxable income

“1069-H9. A person may give the Department or an officer a notice setting out the person’s estimate of the person’s taxable income for a tax year.

Note: for the consequences of underestimating taxable income see section 885.

Acceptance of notice

“1069-H10. The Secretary is to accept a notice referred to in point 1069-H9 for the purpose of this Module only if:

(b) either:

(i) that tax year has not ended; or

(c) the Secretary is satisfied that the estimate is reasonable.

Submodule 2—Appropriate Tax Year

Appropriate tax year

“1069-H11. Subject to the following provisions of this submodule, the appropriate tax year for a family payment payday is the base tax year for that payday.

Base tax year

“1069-H12. The base tax year for a family payment payday is the tax year that ended on 30 June in the calendar year that came immediately before the calendar year in which the payday occurs.

Example: a family payment payday occurs on 25 January 1990—this day occurs in the calendar year 1 January 1990 to 31 December 1990—the calendar year that came immediately before this one is the calendar year 1 January 1989 to 31 December 1989—the base tax year is the tax year that ended on 30 June 1989 (i.e. the year of income that commenced on 1 July 1988).

Current tax year to be retained for consecutive calendar years in certain circumstances

“1069-H13. If:

(a) family payment is payable to a person:

the person’s appropriate tax year, as from the beginning of the later calendar year, is the current tax year and not the base tax year unless

the taxable income for the base tax year is less than the person’s taxable income free area.

(ii) 125% of the person’s taxable income free area;

the appropriate tax year, for the purposes of applying this Module to the person from the beginning of the family payment period, is the tax year in which the assumed notifiable event occurs.

Note 1: for ‘assumed notifiable event’ see section point 1069-H3.

Note 2: for taxable income free area see Table I.

Note 3: for ‘family payment period’ see subsection 6(1).

Change to appropriate tax year because of effect of assumed notifiable event on taxable income for later tax year

“1069-H15. If:

(ii) 125% of the person’s taxable income free area;

the appropriate tax year, for the purposes of applying this Module to the person for:

is the year that follows the event tax year.

(a) a notifiable event occurs in relation to a person; and

(ii) 125% of the person’s taxable income free area;

the appropriate tax year, for the purposes of applying this Module to the person for the remainder of the family payment period, is the tax year in which the notifiable event occurs.

Note: for ‘notifiable event’ see point 1069-H4.

Change to appropriate tax year because of effect of notifiable event on taxable income for later tax year

“1069-H17. If:

(a)     a notifiable event occurs in relation to a person; and

(ii) 125% of the person’s taxable income free area;

the appropriate tax year, for the purposes of applying this Module to the person for:

is the year that follows the event tax year.

Change to appropriate tax year at recipient’s request

“1069-H18. If:

the appropriate tax year, for those purposes, is the tax year in which the person makes the request.

(a) family payment:

(i) is not payable to a person because of this Module; or

(ii) less than the person’s taxable income free area;

the Secretary must determine that the appropriate tax year, for the purposes of applying this Module to the person for a payday on or after the day on which the request is made, is the tax year in which the request is made.

Form of request

“1069-H20. A request under point 1069-H19 must be made in writing in accordance with a form approved by the Secretary.

Submodule 3—Taxable income ceiling and taxable income free area

Taxable income ceiling and taxable income free area

1069-H21. A person’s taxable income ceiling and taxable income free area for a family payment payday are worked out using Table H.

AFP child in point 1069-H21 includes children receiving prescribed educational scheme payments and ‘shared’ children

“1069-H22. In point 1069-H21, ‘AFP child’ includes:

(a) a student child who:

(i) has turned 16 but has not turned 18; and

Submodule 4—Base Rate

Method of working out the effect of taxable income base rate

“1069-H23. This is how to work out whether a person’s taxable income disqualifies the person from receiving family payment for a family payment payday.

Submodule 5—Effect of exceeding taxable income free area

Effect on family payment of exceeding taxable income free area

“1069-H24. This is how to work out the effect of a person’s taxable income on the person’s family payment for a payday:

Taxable income excess

“1069-H25. A person’s taxable income excess for a family payment period is the person’s taxable income for the appropriate tax year for the family payment period less the person’s taxable income free area for the family payment period.

Reduction for taxable income

“1069-H26. A person’s taxable income reduction for a family payment period is:

Note 1: for ‘taxable income excess’ see point 1069-H25.

MODULE I—MAINTENANCE INCOME TEST

Effect of maintenance income on maximum payment rate

“1069-I1. This is how to work out the effect of a person’s maintenance income on the person’s rate of family payment:

• apportionment of capitalised maintenance income (section 1116);

Maintenance incomes of members of couples to be added

“1069-I2. If the person is a member of a couple, add the couple’s maintenance incomes (on a yearly basis) to work out the amount of the person’s maintenance income for the purposes of this Module.

Special maintenance income

“1069-I3. Subject to points 1069-I5 and 1069-I6, if a person has special maintenance income in excess of the ceiling applicable to the person, the excess is disregarded for the purposes of this Module.

Note: for ‘special maintenance income’ see subsection 10(1).

Amount of ceiling

“1069-I4. The ceiling applicable to a person is worked out using the formula:

where:

‘MIFA’ is the person’s maintenance income free area;

‘Table Amount’ is whichever of the amounts in the following table is applicable to the person:

‘FP add-ons’ is the sum of the amounts of additional family payment, guardian allowance and rent assistance that would be payable to the person before the application of the taxable income test or the maintenance income test.

Special maintenance income not disregarded where child support available

“1069-I5. No amount is to be disregarded under point 1069-I3 if:

(c)     the person has:

(i) neither properly made such an application, nor properly

made an application under Part VI of that Act for acceptance of an agreement in relation to the child; or

“1069-I6. No amount is to be disregarded under point 1069-I3 if:

(c)    an application by the person under that section is not in force.

How to calculate a person’s maintenance income free area

“1069-I7. A person’s maintenance income free area is worked out using Table 12. Work out which family situation in Table 12 applies to the person. The maintenance income free area is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each AFP child after the first.

Note 1: for ‘member of a couple’ and ‘partnered’ see section 4.

Note 2: the amounts are indexed in line with CPI increases see sections 1191 to 1194.

Reduction for maintenance income

“1069-I8. A person’s reduction for maintenance income is:

Maintenance income excess

“1069-I9. A person’s maintenance income excess is the person’s maintenance income less the person’s maintenance income free area.”.

5. Sections 1132A and 1132B are repealed and the following section is substituted:

Access to financial hardship rules—family payment

“1132A.(1) The Secretary may determine that paragraph 838(1)(d) or 1069-D2(c) (family payment assets tests) does not apply to a person if:

(d)     the Secretary is satisfied that the estimate is reasonable; and

(f)      the value of the person’s liquid assets is less than:

(i) if the person is a member of a couple—$10,000; or

(ii) if the person is not a member of a couple—$6,000.

Note: for ‘liquid assets’ see section 19B.

“(2) In subsection (1):

‘threshold amount’ means the amount worked out using the following formula:

where:

‘MBR’ is the maximum basic rate of age pension payable to a person who has a pensioner partner;

‘FPC is the number of FP children of the person.

“(3) A person may not make a request under subsection (1) in relation to the application of paragraph 1069-D2(c) if the value of the person’s assets exceeds $600,000.

“(4) For the purposes of paragraph (1)(c), if the person is a member of a couple, the person’s taxable income for a financial year is taken to include the taxable income for that year of the person’s partner.”.

Savings—overseas payments

6.(1) If:

section 1210 applies to the person until the person returns to Australia as if the Method statement in point 1210-A1 were omitted and the following Method statement were substituted:

(2) If:

(b)     the person’s pension or allowance rate is not proportionalised;

the following Method statement applies to the person until the person returns to Australia:

(3) If:

section 1221 applies to the person until the person returns to Australia as if the Method statement in point 1221-A1 were omitted and the following Method statement were substituted:

(4) If:

(c)     the person’s pension or allowance rate is not proportionalised;

the following Method statement applies to the person until the person returns to Australia: