Social Security Legislation Amendment Act (No. 1) 1996

Administered by Department of Social Services, Department of Education, Employment and Workplace Relations

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No. 57, 1996

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

Contents
1	Short title.........................................................	1567
2	Commencement.....................................................	1567
3	Schedule(s)........................................................	1568
Schedule 1—Amendment of the Social Security Act 1991 relating to amounts received from the Mark Fitzpatrick Trust		1569
Schedule 2—Amendment of the Social Security Act 1991 relating to mature age partner allowance		1570
Schedule 3—Amendment of the Social Security Act 1991 to continue the effect of certain saving provisions		1571
Schedule 4—Amendment of the Social Security Act 1991 relating to Pension Rate Calculator A		1573

Social Security Legislation Amendment Act (No. 1) 1996

No. 57, 1996

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

[Assented to 20 November 1996]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Security Legislation Amendment Act (No. 1) 1996.

2 Commencement

(1) Subject to subsections (2) and (3), this Act commences on the day on which it receives the Royal Assent.

(2) Item 1 of Schedule 3 is taken to have commenced on 1 January 1996, immediately after the commencement of Schedule 2 to the Social Security Legislation Amendment (Family Measures) Act 1995.

(3) Schedule 4 is taken to have commenced on 1 January 1993, immediately after the commencement of the Social Security (Family Payment) Amendment Act 1992.

3 Schedule(s)

Subject to section 2, each Act specified in a Schedule to this Act is amended in accordance with the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendment of the Social Security Act 1991 relating to amounts received from the Mark Fitzpatrick Trust

1 After section 1118

Insert:

1118AA Value of assets reduced by amounts received from Mark Fitzpatrick Trust

(1) In this section:

application day, in relation to a person who was a recipient of a social security payment immediately before 28 September 1995, means the day, on or after that date, on which the person applied or applies for review of the rate of that social security payment because of the expected enactment, or the operation, of this section.

(2) Subject to subsection (3), the value of a person’s assets for the purposes of this Act (other than subparagraph 263(1) (d) (iv) and sections 1124A, 1125, 1125A and 1126) is reduced by the sum of any amounts received by the person from the Mark Fitzpatrick Trust.

(3) Subsection (2) has effect, or is taken to have had effect, as the case may be:

(a) for a person who was a recipient of a social security pension immediately before 28 September 1995—on the first pension payday after the application day; or

(b) for a person who was a recipient of a social security payment other than a social security pension immediately before 28 September 1995—on the next day, after the application day, on which the person received or receives an instalment of the payment; or

(c) for a person who became or becomes a recipient of a social security payment on or after 28 September 1995—on the day on which the person received or receives the first instalment of the payment.

Schedule 2—Amendment of the Social Security Act 1991 relating to mature age partner allowance

1 Paragraphs 146V (1) (a) and (b)

Repeal the paragraphs, substitute:

(a) her claim for the pension was lodged on or before 30 June 1995 and she qualified for the pension on or before that date; or

(b) all the following subparagraphs apply:

(i) she began to receive mature age partner allowance on or before 30 June 1995;

(ii) her partner was receiving a mature age allowance under Part 2.12A but has, after 30 June 1995, become qualified for an age pension and been automatically transferred to the age pension;

(iii) she received mature age partner allowance for a continuous period from the time when she began to receive the allowance until her partner was automatically transferred to the age pension as mentioned in subparagraph (ii).

2 Paragraph 152(3) (a)

Repeal the paragraph, substitute:

(a) a woman:

(i) is receiving a mature age partner allowance; or

(ii) was receiving a mature age partner allowance immediately before her partner was automatically transferred after 30 June 1995 from a mature age allowance under Part 2.12A to an age pension; and

Schedule 3—Amendment of the Social Security Act 1991 to continue the effect of certain saving provisions

1 Point 1210-A1 (method statement, step 5)

After “minimum”, insert “standard”.

2 Schedule 1A (subclause 54(1), method statement, step 3)

Repeal the step, substitute:

Step 3.	Work out the person’s notional family payment rate as follows on the assumption that the person would have qualified for family payment. Add:
	(a) the standard family payment rate calculated under point 1069-B2; and
	(b) the amount of guardian allowance;
	and then subtract the minimum standard family payment rate worked out under point 1069-B6.

3 Schedule 1A (subclause 54(2), method statement, step 2)

Repeal the step, substitute:

Step 2.	Work out the person’s notional family payment rate as follows on the assumption that the person would have qualified for family payment.
	Add:
	(a) the standard family payment rate calculated under point 1069-B2; and
	(b) the amount of guardian allowance;
	and then subtract the minimum standard family payment rate worked out under point 1069-B6.

4 Schedule 1A (subclause 54(5), method statement, step 3)

Repeal the step, substitute:

Step 3.	Work out the person’s notional family payment rate as follows on the assumption that the person would have qualified for family payment.
	Add:
	(a) the standard family payment rate calculated under point 1069-B2;and
	(b) the amount of guardian allowance;
	and then subtract the minimum standard family payment rate worked out under point 1069-B6.

Schedule 4—Amendment of the Social Security Act 1991 relating to Pension Rate Calculator A

1 Point 1064-E10

Repeal the point, substitute:

Pension reduction for ordinary income in excess of ordinary income free area

1064-E10 A person’s reduction for ordinary income is worked out by dividing the person’s ordinary income excess by 2.

[Minister’s second reading speech made in—

House of Representatives on 9 October 1996

Senate on 14 November 1996]

Overview

The Social Security Legislation Amendment Act (No. 1) 1996 was enacted by the Parliament of Australia to amend the law relating to social security and address specific issues within the existing framework. This legislation sought to refine and update various aspects of social security provisions to better cater to the needs of the recipients. By making targeted amendments to the Social Security Act 1991, the Act aimed to ensure that the social security system remained effective and responsive to changes in societal needs and economic conditions. The primary objective, as outlined in the Minister's second reading speech, was to enhance the integrity and efficiency of the social security provisions, thereby providing more accurate and fair support to those in need.

Scope and Application

The Social Security Legislation Amendment Act (No. 1) 1996 is a Commonwealth Act that amends the Social Security Act 1991 to adjust various aspects of the social security system. The Act applies to individuals and entities that are recipients or potential recipients of social security benefits as defined under the Social Security Act 1991. This includes those who receive payments such as pensions, mature age partner allowances, and family payments, as well as those who may be affected by changes to the asset valuation rules or pension calculation methods. The Act's amendments cover specific provisions relating to the value of assets received from the Mark Fitzpatrick Trust, adjustments to the mature age partner allowance, continuation of certain saving provisions, and modifications to the Pension Rate Calculator A. The Act's provisions are designed to ensure that the social security system operates fairly and effectively by making targeted adjustments to existing laws. The Act's amendments commenced on various dates specified within the Act, with some provisions backdated to align with previous legislative changes. The Act does not explicitly state exclusions, exemptions, or thresholds, but its applicability is inherently limited to the individuals and entities subject to the Social Security Act 1991.

Key Provisions

The Social Security Legislation Amendment Act (No. 1) 1996 includes several significant amendments to the Social Security Act 1991, primarily through its schedules. Schedule 1 amends the calculation of assets for social security purposes by reducing the value of assets by any amounts received from the Mark Fitzpatrick Trust (section 1118AA). This reduction occurs at specific times relative to the date of application for review of the social security payment. Schedule 2 modifies the eligibility criteria for mature age partner allowance, stipulating new conditions that must be met for a person to qualify (sections 146V and 152). Schedule 3 revises certain saving provisions to ensure the continued effect of specific amendments, altering the method of calculating notional family payment rates (Schedule 1A points 1069-B2, 1069-B6, and related steps). Schedule 4 adjusts the calculation of pension reductions for ordinary income, modifying the rate at which income above the free area is considered (point 1064-E10). The Act imposes various obligations on individuals and entities governed by it. Recipients of social security payments must comply with the new asset valuation rules as outlined in Schedule 1, particularly concerning amounts received from the Mark Fitzpatrick Trust. Those applying for or reviewing their social security payments must adhere to the specified timelines for these reductions to take effect. Additionally, individuals seeking mature age partner allowance must meet the new eligibility criteria set out in Schedule 2. The Act also mandates that the Department of Social Security correctly apply the revised calculation methods for family payment rates as stipulated in Schedule 3. Violations of the provisions in this Act may lead to various consequences. While specific offences and penalties are not detailed in the text, breaches of social security laws generally may result in civil or criminal penalties. For instance, incorrect claims or misrepresentations could lead to financial penalties or legal action. The maximum penalties for such breaches are not explicitly stated in the provided text but typically involve fines or imprisonment, depending on the severity of the offence.

Area of Law: Social Security Law
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Transitional Provisions; Savings Provisions; Definitions & Interpretation; Compliance Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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