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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Farm Household Support Bill 2014
No. , 2014
(Agriculture)
A Bill for an Act to provide financial assistance to
farmers and their partners, and for related
purposes
No. , 2014
Farm Household Support Bill 2014
i
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Object of this Act ............................................................................... 2
4
Simplified outline of this Act ............................................................. 3
5
Definitions ......................................................................................... 3
6
Meaning of cumulative period of farm household allowance
and 3 years or less ............................................................................. 6
Part 2--Farm household allowance
8
Division 1--Simplified outline of this Part
8
7
Simplified outline of this Part ............................................................ 8
Division 2--Basic qualifications of farmers and their partners
for farm household allowance
10
8
Qualification of farmers for farm household allowance .................. 10
9
Qualification of farmers' partners for farm household
allowance ......................................................................................... 10
10
Grace period for farmers' partners ................................................... 11
11
Persons with temporary incapacity exemption may be taken
to meet the labour requirement ........................................................ 12
12
Persons not qualified if Secretary determines that they do not
effectively control farm enterprises ................................................. 12
13
Determination of matters relating to qualification for farm
household allowance ........................................................................ 13
Division 3--Financial improvement agreements
14
14
Requirement to enter financial improvement agreement ................. 14
15
Terms of financial improvement agreement .................................... 15
16
Approval of requirements ................................................................ 15
17
Variation, cancellation and review .................................................. 16
18
Notification of circumstances preventing or affecting
compliance ....................................................................................... 17
Division 4--The activity test
18
19
The activity test ................................................................................ 18
20
Training and advice to be provided by appropriately
qualified person ............................................................................... 18
21
Determining whether work is unsuitable ......................................... 19
Division 5--Exemptions from the activity test
21
Subdivision A--General exemptions determined by the Secretary
21
ii
Farm Household Support Bill 2014
No. , 2014
22
Determination of exemption by Secretary ....................................... 21
23
Essential farm activities ................................................................... 21
24
Domestic violence etc. ..................................................................... 22
25
People with disabled children .......................................................... 23
26
Inclusion in prescribed class ............................................................ 23
27
Exemption where requirement for person to satisfy the
activity test would be unreasonable ................................................. 24
28
Special circumstances ...................................................................... 24
Subdivision B--Automatic general exemptions
24
29
Members of Defence Reserves ........................................................ 24
30
Prenatal and postnatal exemption .................................................... 24
Subdivision C--People temporarily incapacitated
25
31
Temporarily incapacitated person exempt from the activity
test .................................................................................................... 25
32
Time limit for exemption--end of person's maximum
exemption period ............................................................................. 26
Division 6--Payability
29
Subdivision A--Situations where allowance not payable (assets
test)
29
33
Non-farm assets value limit ............................................................. 29
34
Farm assets value limit .................................................................... 29
35
Meaning of farm assets and non-farm assets ................................... 29
36
Meaning of value of assets ............................................................... 30
Subdivision B--Situations where allowance not payable (general)
31
37
Farm household allowance not payable if allowance rate nil .......... 31
38
Multiple entitlement exclusion ........................................................ 31
Subdivision C--Situations where allowance not payable (waiting
periods)
33
39
Waiting periods ................................................................................ 33
40
Ordinary waiting period ................................................................... 33
41
Duration of ordinary waiting period ................................................ 34
42
Newly arrived resident's waiting period .......................................... 34
43
Duration of newly arrived resident's waiting period ....................... 36
44
Liquid assets test waiting period ...................................................... 36
45
Duration of liquid assets test waiting period .................................... 37
46
Waiver for severe financial hardship ............................................... 37
47
Effect of being subject to more than one waiting period ................. 38
Subdivision D--Other situations where farm household allowance
not payable
38
No. , 2014
Farm Household Support Bill 2014
iii
48
Seasonal workers ............................................................................. 38
Division 7--Overseas portability
39
49
Division does not affect need for qualification ................................ 39
50
Persons to whom Division applies ................................................... 39
51
Farm household allowance portable ................................................ 39
52
Amounts added to rate ..................................................................... 40
53
Meaning of allowable absence and portability period .................... 40
54
Secretary may extend the portability period .................................... 40
Division 8--Rate of farm household allowance
43
Subdivision A--Persons who have turned 22
43
55
How to work out the rate of a person's farm household
allowance ......................................................................................... 43
56
Maximum basic rate......................................................................... 43
57
Pension supplement does not apply ................................................. 43
58
Clean energy supplement ................................................................. 43
59
Pharmaceutical allowance ................................................................ 44
Subdivision B--Persons who have not turned 22
44
60
How to work out the rate of a person's farm household
allowance ......................................................................................... 44
61
Maximum basic rate......................................................................... 45
62
Clean energy supplement ................................................................. 45
63
Pharmaceutical allowance ................................................................ 45
64
Youth disability supplement does not apply .................................... 45
65
Student income bank does not apply ............................................... 45
Subdivision C--Income test
46
66
Deemed income from financial assets ............................................. 46
67
Allowable deductions from ordinary income ................................... 46
Subdivision D--Estimates of business income
47
68
Determination of rate may be based on estimate ............................. 47
69
Date of effect of determinations based on estimates of
business income ............................................................................... 48
70
Debts arising from payments of farm household allowance
based on estimates of business income ............................................ 49
Division 9--Compliance with obligations in relation to farm
household allowance
50
71
Qualification failures ....................................................................... 50
72
Consequences of qualification failures ............................................ 50
73
Conduct failures ............................................................................... 51
74
Consequences of conduct failures .................................................... 51
iv
Farm Household Support Bill 2014
No. , 2014
75
Revoking a determination relating to a conduct failure ................... 51
76
Reasonable excuses ......................................................................... 52
77
Day of determination ....................................................................... 53
78
Relationship with section 80 of the Social Security
Administration Act .......................................................................... 53
Part 3--Activity supplement
54
79
Simplified outline of this Part .......................................................... 54
80
Qualification for the activity supplement ......................................... 54
81
Electing method of payment ............................................................ 57
82
Amount of activity supplement ........................................................ 57
83
Determination of eligible activities .................................................. 57
Part 4--Farm financial assessments
58
Division 1--Simplified outline of this Part
58
84
Simplified outline of this Part .......................................................... 58
Division 2--Farm financial assessments
59
85
Requirement to have farm financial assessment conducted ............. 59
86
Requirement for farm financial assessment to be conducted
by independent prescribed adviser ................................................... 59
Division 3--Farm financial assessment supplement
61
87
Qualification for farm financial assessment supplement ................. 61
88
Electing method of payment ............................................................ 61
89
The amount of farm financial assessment supplement .................... 62
Part 5--Application and modification of the Social Security Act
and the Social Security Administration Act
63
Division 1--Introduction
63
90
Simplified outline of this Part .......................................................... 63
91
Purposes of this Part ........................................................................ 64
92
Further modification of the Social Security Act and the
Social Security Administration Act ................................................. 64
Division 2--Application and modification of the Social Security
Act
66
93
Application of the Social Security Act ............................................ 66
94
Certain provisions do not apply ....................................................... 69
95
Modification of particular provisions .............................................. 70
96
Application of Division 10 of Part 2.11 and Division 9 of
Part 2.12 (bereavement payments) of the Social Security Act ......... 73
97
References to youth allowance and newstart allowance .................. 73
No. , 2014
Farm Household Support Bill 2014
v
Division 3--Application and modification of the Social Security
Administration Act
74
98
Certain provisions do not apply ....................................................... 74
99
Modification of particular provisions .............................................. 74
Part 6--Miscellaneous
77
100
Simplified outline of this Part .......................................................... 77
101
Delegation of powers ....................................................................... 77
102
Delegation by Secretary: references to the Secretary and the
Department ...................................................................................... 77
103
Approval of forms ............................................................................ 79
104
Annual report ................................................................................... 79
105
Appropriation ................................................................................... 79
106
Rules ................................................................................................ 80
No. , 2014
Farm Household Support Bill 2014
1
A Bill for an Act to provide financial assistance to
1
farmers and their partners, and for related
2
purposes
3
The Parliament of Australia enacts:
4
Part 1--Preliminary
5
6
1 Short title
7
This Act may be cited as the Farm Household Support Act 2014.
8
Part 1 Preliminary
Section 2
2
Farm Household Support Bill 2014
No. , 2014
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 and
2 and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Sections 3 to
89
A single day to be fixed by Proclamation.
However, if the provision(s) do not
commence within the period of 6 months
beginning on the day this Act receives the
Royal Assent, they commence on the day
after the end of that period.
3. Parts 5 and 6
At the same time as the provision(s) covered
by table item 1.
Note:
This table relates only to the provisions of this Act as originally
7
enacted. It will not be amended to deal with any later amendments of
8
this Act.
9
(2) Any information in column 3 of the table is not part of this Act.
10
Information may be inserted in this column, or information in it
11
may be edited, in any published version of this Act.
12
3 Object of this Act
13
The object of this Act is to improve the financial situation of
14
farmers and their partners, who need financial assistance, by
15
providing them with financial assistance that consists of:
16
(a) farm household allowance for up to 3 years; and
17
(b) funding to engage in certain activities; and
18
Preliminary Part 1
Section 4
No. , 2014
Farm Household Support Bill 2014
3
(c) funding to obtain a farm financial assessment.
1
4 Simplified outline of this Act
2
This Act provides financial assistance to certain farmers and their
3
partners.
4
The assistance is available to farmers, and partners of farmers, who
5
contribute significant labour and capital to a farm enterprise that
6
has a significant commercial purpose or character.
7
The payments that are available under this Act are:
8
(a)
farm household allowance for up to 3 years; and
9
(b)
funding (called the activity supplement) for undertaking
10
activities such as receiving training or advice, or
11
undertaking study; and
12
(c)
funding (called the farm financial assessment
13
supplement) to pay for an assessment of the financial
14
position of a person and a relevant farm enterprise.
15
The rules dealing with how to make claims, how payments are
16
made and review of decisions relating to payments under this Act
17
are found in the Social Security Act and the Social Security
18
Administration Act.
19
5 Definitions
20
(1) In this Act:
21
3 years or less has the meaning given by subsection 6(3).
22
activity supplement means the supplement payable under Part 3.
23
allowable absence has the meaning given by subsection 53(1).
24
Benefit Rate Calculator B means the Benefit Rate Calculator B in
25
Part 3.6 of the Social Security Act.
26
business income has the meaning given by subsection 68(3).
27
Part 1 Preliminary
Section 5
4
Farm Household Support Bill 2014
No. , 2014
conduct failure has the meaning given by section 73.
1
cumulative period of farm household allowance has the meaning
2
given by subsection 6(1).
3
farm asset has the meaning given by subsection 35(1).
4
farm enterprise means an enterprise carried on within any of the
5
agricultural, horticultural, pastoral, apicultural or aquacultural
6
industries.
7
farmer means an individual who:
8
(a) has a right or interest in land; and
9
(b) uses the land wholly or mainly for the purposes of a farm
10
enterprise.
11
farm financial assessment is an assessment of:
12
(a) the financial position of:
13
(i) the farm enterprise; and
14
(ii) the person for whom the assessment is conducted; and
15
(b) options to improve that person's financial position.
16
farm financial assessment supplement means the supplement
17
payable under Division 3 of Part 4.
18
farm household allowance means the allowance payable under
19
Part 2.
20
financial improvement agreement means an agreement entered
21
into under Division 3 of Part 2.
22
liquid assets test waiting period means the liquid assets test
23
waiting period under section 44.
24
maximum amount of activity supplement means the maximum
25
amount of activity supplement prescribed by, or worked out in
26
accordance with, Minister's rules made for the purposes of
27
paragraph 82(1)(a).
28
maximum exemption period has the meaning given by section 32.
29
Minister's rules means the rules made under subsection 106(1).
30
Preliminary Part 1
Section 5
No. , 2014
Farm Household Support Bill 2014
5
newly arrived resident's waiting period means a newly arrived
1
resident's waiting period under section 42.
2
non-farm asset has the meaning given by subsection 35(3).
3
ordinary waiting period means an ordinary waiting period under
4
section 40.
5
period of absence has the meaning given by section 50.
6
portability period has the meaning given by subsection 53(2).
7
prescribed adviser means a person who is prescribed by the
8
Minister's rules for the purposes of this definition.
9
qualification failure has the meaning given by section 71.
10
registered training organisation has the same meaning as in the
11
National Vocational Education and Training Regulator Act 2011.
12
Secretary means the Secretary of the Department.
13
Secretary's rules means the rules made under subsection 106(2).
14
service provider for an activity means the person who provides the
15
activity.
16
Social Security Act means the Social Security Act 1991.
17
Social Security Administration Act means the Social Security
18
(Administration) Act 1999.
19
Social Security Department means the Department administered
20
by the Social Security Minister.
21
Social Security Minister means the Minister administering the
22
Data-matching Program (Assistance and Tax) Act 1990.
23
Social Security Secretary means the Secretary of the Social
24
Security Department.
25
this Act includes the Minister's rules and the Secretary's rules.
26
value includes the meaning given by section 36.
27
Part 1 Preliminary
Section 6
6
Farm Household Support Bill 2014
No. , 2014
waiting period means:
1
(a) an ordinary waiting period; or
2
(b) a newly arrived resident's waiting period; or
3
(c) a liquid assets test waiting period.
4
Youth Allowance Rate Calculator means the Youth Allowance
5
Rate Calculator in Part 3.5 of the Social Security Act.
6
Expressions used in the Social Security Act
7
(2) An expression that is used in the Social Security Act or a part of
8
that Act has the same meaning, when used in this Act, as in that
9
Act or part (subject to subsection (1) and Part 5 of this Act).
10
(3) The Minister's rules may prescribe expressions to which
11
subsection (2) does not apply.
12
6 Meaning of cumulative period of farm household allowance and 3
13
years or less
14
(1) A person's cumulative period of farm household allowance is the
15
total number of days for which farm household allowance is
16
payable to the person.
17
(2) In working out that total number:
18
(a) the days do not have to be consecutive days; and
19
(b) every day for which farm household allowance is payable to
20
the person is to be counted.
21
Note:
For paragraph (2)(b) for example, all days for which farm household
22
allowance is payable are counted even if:
23
(a) the person qualifies for the allowance under section 8 for some of
24
those days and under section 9 for others; or
25
(b) the person qualifies under section 9 as a partner of a farmer, and
26
also later qualifies under that section as a result of being the
27
partner of a different farmer.
28
Meaning of 3 years or less
29
(3) A person's cumulative period of farm household allowance is 3
30
years or less if the total number of days for which farm household
31
allowance is payable to the person is 1095 days or fewer.
32
Preliminary Part 1
Section 6
No. , 2014
Farm Household Support Bill 2014
7
When farm household allowance is payable for a day
1
(4) Farm household allowance is payable to a person for a day if:
2
(a) the person qualifies for the allowance on the day; and
3
(b) no provision of this or any other Act applies resulting in the
4
allowance not being payable to the person for the day.
5
Part 2 Farm household allowance
Division 1 Simplified outline of this Part
Section 7
8
Farm Household Support Bill 2014
No. , 2014
Part 2--Farm household allowance
1
Division 1--Simplified outline of this Part
2
7 Simplified outline of this Part
3
Farm household allowance is payable to certain farmers and their
4
partners. A person must qualify for farm household allowance for
5
the allowance to be payable. The allowance is payable for a
6
cumulative period of up to 3 years.
7
To qualify for the allowance as a farmer, a person must contribute
8
significant labour and capital to a farm enterprise that has a
9
significant commercial purpose or character. The partner of such a
10
person may also qualify for the allowance.
11
Another requirement for a person to qualify for the allowance is
12
that the person is willing to enter into a financial improvement
13
agreement. A financial improvement agreement sets out the
14
activities that the person must do for the purposes of the activity
15
test (which is a test that a person to whom the allowance is payable
16
is generally required to satisfy). The kinds of activities that may be
17
set out in a financial improvement agreement include receiving
18
training or advice from an appropriately qualified person, or
19
undertaking study.
20
In certain circumstances, a person may be exempt from the activity
21
test (for example, during periods that are essential to the operation
22
of the farm or if a person is temporarily incapacitated).
23
Even if a person qualifies for farm household allowance, the
24
allowance may not be payable (such as where the value of the
25
person's assets exceeds a certain limit, where the person receives
26
other support under the Social Security Act or where the person is
27
subject to a waiting period).
28
Farm household allowance Part 2
Simplified outline of this Part Division 1
Section 7
No. , 2014
Farm Household Support Bill 2014
9
Farm household allowance may continue to be payable during a
1
person's period of absence from Australia. (The period is generally
2
no longer than 6 weeks.)
3
A person's rate of farm household allowance depends on the age of
4
the person. For a person who has not turned 22, the rate is worked
5
out using the Youth Allowance Rate Calculator in the Social
6
Security Act. Otherwise, the rate is worked out using the Benefit
7
Rate Calculator B in that Act (which is also used to work out
8
newstart allowance). Some modifications are made to the
9
Calculators for the purposes of farm household allowance.
10
There are certain obligations imposed on a person to whom farm
11
household allowance is payable. Farm household allowance may
12
cease to be payable to a person who fails to comply with these
13
obligations.
14
The rules dealing with how to make claims, how payments are
15
made and review of decisions relating to farm household allowance
16
are found in the Social Security Act and the Social Security
17
Administration Act. (This is because Part 5 of this Act applies and
18
modifies the Social Security Act and the Social Security
19
Administration Act in relation to farm household allowance.)
20
Part 2 Farm household allowance
Division 2 Basic qualifications of farmers and their partners for farm household
allowance
Section 8
10
Farm Household Support Bill 2014
No. , 2014
Division 2--Basic qualifications of farmers and their
1
partners for farm household allowance
2
8 Qualification of farmers for farm household allowance
3
A person is qualified for farm household allowance for a period if
4
throughout the period:
5
(a) the person is a farmer; and
6
(b) the person contributes a significant part of his or her labour
7
and capital to a farm enterprise; and
8
(c) the farm enterprise has a significant commercial purpose or
9
character; and
10
(d) the land that is used for the purposes of the farm enterprise is
11
in Australia; and
12
(e) the person has turned 16; and
13
(f) the person is an Australian resident, and is in Australia; and
14
(g) either:
15
(i) the person has indicated, in writing, that the person is
16
willing to enter into, and comply with, a financial
17
improvement agreement; or
18
(ii) a financial improvement agreement is in force in
19
relation to the person; and
20
(h) the person's cumulative period of farm household allowance
21
is 3 years or less.
22
Note 1:
For paragraph (b), see section 11 if a person is exempt from the
23
activity test under section 31 (temporary incapacity).
24
Note 2:
Paragraph (f) is subject to Division 7 (overseas portability).
25
Note 3:
This section is subject to section 12 (no effective control of farm
26
enterprises).
27
9 Qualification of farmers' partners for farm household allowance
28
A person is qualified for farm household allowance for a period if
29
throughout the period:
30
(a) the person is not qualified for farm household allowance
31
under section 8; and
32
Farm household allowance Part 2
Basic qualifications of farmers and their partners for farm household allowance
Division 2
Section 10
No. , 2014
Farm Household Support Bill 2014
11
(b) the person is a member of a couple; and
1
(c) the person's partner is a farmer; and
2
(d) the farmer contributes a significant part of his or her labour
3
and capital to a farm enterprise; and
4
(e) the farm enterprise has a significant commercial purpose or
5
character; and
6
(f) the land that is used for the purposes of the farm enterprise is
7
in Australia; and
8
(g) the farmer resides in Australia; and
9
(h) the person is an Australian resident, and is in Australia; and
10
(i) either:
11
(i) the person has indicated, in writing, that the person is
12
willing to enter into, and comply with, a financial
13
improvement agreement; or
14
(ii) a financial improvement agreement is in force in
15
relation to the person; and
16
(j) the person's cumulative period of farm household allowance
17
is 3 years or less.
18
Note 1:
For paragraph (d), see section 11 if a person is exempt from the
19
activity test under section 31 (temporary incapacity).
20
Note 2:
Paragraph (h) is subject to Division 7 (overseas portability).
21
Note 3:
This section is subject to sections 10 (grace period for farmers'
22
partners) and 12 (no effective control of farm enterprises).
23
10 Grace period for farmers' partners
24
(1) This section applies if:
25
(a) a person was qualified for farm household allowance under
26
section 9 as a partner of a farmer; and
27
(b) the person would (apart from this section) have ceased to be
28
qualified for farm household allowance on a day (the grace
29
period start day) only because:
30
(i) the person ceased to be a member of a couple on that
31
day; or
32
(ii) the person's partner was in gaol or undergoing
33
psychiatric confinement on that day, and could not
34
contribute a significant part of his or her labour or
35
Part 2 Farm household allowance
Division 2 Basic qualifications of farmers and their partners for farm household
allowance
Section 11
12
Farm Household Support Bill 2014
No. , 2014
capital to a farm enterprise as a result of the
1
imprisonment or confinement.
2
(2) The person remains qualified under section 9 for farm household
3
allowance for the period:
4
(a) starting on the grace period start day; and
5
(b) ending on the earlier of the following days:
6
(i) the day the person otherwise ceases to be qualified for
7
farm household allowance under that section;
8
(ii) the day that is 14 weeks after the grace period start day.
9
11 Persons with temporary incapacity exemption may be taken to
10
meet the labour requirement
11
A person who is exempt from the activity test under section 31
12
(temporary incapacity) for a period is taken to contribute a
13
significant part of his or her labour to a farm enterprise during the
14
period if the person contributed a significant part of his or her
15
labour to the farm enterprise immediately before becoming
16
incapacitated.
17
12 Persons not qualified if Secretary determines that they do not
18
effectively control farm enterprises
19
(1) A person is not qualified, or ceases to be qualified, for farm
20
household allowance for a period if the Secretary determines that:
21
(a) during the period:
22
(i) for a person who qualifies under section 8 as a farmer--
23
the person is not effectively in control of the farm or
24
farm enterprise in relation to which the person claims
25
the allowance; or
26
(ii) for a person who qualifies under section 9 as a partner
27
of a farmer--the farmer is not effectively in control of
28
the farm or farm enterprise in relation to which the
29
person claims the allowance; and
30
(b) farm household allowance should not be payable to the
31
person for the period.
32
Farm household allowance Part 2
Basic qualifications of farmers and their partners for farm household allowance
Division 2
Section 13
No. , 2014
Farm Household Support Bill 2014
13
Note
Some examples of cases in which the Secretary may consider that a
1
person is not effectively in control of a farm or farm enterprise are
2
when a mortgagee has taken possession of a farm, when a person is a
3
bankrupt or when an eviction notice has been served on a person in
4
respect of a farm.
5
(2) A person may effectively be in control of a farm enterprise that is a
6
designated private trust even if the person does not pass the control
7
test in relation to the farm enterprise under section 1207V of the
8
Social Security Act.
9
13 Determination of matters relating to qualification for farm
10
household allowance
11
(1) The Secretary's rules may prescribe matters the Secretary must
12
take into account in deciding whether the requirement in
13
paragraph 8(b) or (c), or paragraph 9(d) or (e), is met.
14
(2) To avoid doubt, the Secretary's rules do not limit the matters the
15
Secretary may take into account in deciding whether the
16
requirement is met.
17
Part 2 Farm household allowance
Division 3 Financial improvement agreements
Section 14
14
Farm Household Support Bill 2014
No. , 2014
Division 3--Financial improvement agreements
1
14 Requirement to enter financial improvement agreement
2
(1) The Secretary may require a person to enter a financial
3
improvement agreement if:
4
(a) such an agreement is not already in force in relation to the
5
person; and
6
(b) either:
7
(i) the person is receiving, or has made a claim for, farm
8
household allowance; or
9
(ii) the Department is contacted by or on behalf of the
10
person in relation to a claim for farm household
11
allowance.
12
(2) The Secretary may require a person to enter into another financial
13
improvement agreement if a financial improvement agreement is
14
already in force in relation to the person.
15
Note:
The earlier financial improvement agreement is cancelled in
16
accordance with section 17.
17
Giving notice of requirement
18
(3) The Secretary must give a person who is required to enter a
19
financial improvement agreement written notice of:
20
(a) the requirement; and
21
(b) the places and times at which the agreement is to be
22
negotiated; and
23
(c) the period (of not more than 28 days) within which the
24
person must comply with the notice; and
25
(d) a description of consequences that may apply if the person
26
does not comply with the notice.
27
Note:
For the consequences that may apply if the person does not comply
28
with the notice, see sections 71 and 72.
29
(4) The Secretary may, in writing, extend the period under
30
paragraph (3)(c) once by no more than 28 days.
31
Farm household allowance Part 2
Financial improvement agreements Division 3
Section 15
No. , 2014
Farm Household Support Bill 2014
15
Form of financial improvement agreement
1
(5) A financial improvement agreement must be in a form approved by
2
the Secretary.
3
15 Terms of financial improvement agreement
4
(1) A financial improvement agreement that is in force in relation to a
5
person is to contain one or more terms (the requirements) that:
6
(a) require the person to undertake activities for the purposes of
7
the activity test; and
8
(b) the Secretary regards as suitable for the person.
9
Note:
For the activities that may be undertaken, see section 19.
10
(2) A financial improvement agreement must not contain a
11
requirement of a kind prescribed by the Secretary's rules for the
12
purposes of this subsection.
13
(3) To avoid doubt, the Secretary's rules do not limit the Secretary's
14
discretion to exclude other kinds of requirements from a particular
15
financial improvement agreement under subsection (1).
16
Optional terms
17
(4) A financial improvement agreement may also contain one or more
18
terms that the person may, but is not required to, comply with.
19
16 Approval of requirements
20
(1) The requirements in a financial improvement agreement are to be
21
approved by the Secretary.
22
(2) In considering whether to approve the requirements in a financial
23
improvement agreement that will be in force in relation to a person,
24
the Secretary is to have regard to:
25
(a) the person's capacity to comply with the requirements; and
26
(b) the person's needs.
27
Part 2 Farm household allowance
Division 3 Financial improvement agreements
Section 17
16
Farm Household Support Bill 2014
No. , 2014
Matters to take into account in determining person's capacity to
1
comply with requirements
2
(3) In having regard to a person's capacity to comply with the
3
requirements in a financial improvement agreement, the Secretary
4
is to take into account the following matters:
5
(a) the person's education, experience, skills and age;
6
(b) the impact of any disability, illness, mental health condition
7
or physical condition of the person on the person's ability to
8
participate in activities;
9
(c) the participation opportunities available to the person;
10
(d) the family and caring responsibilities of the person, including
11
whether:
12
(i) the person is a registered and active foster carer of a
13
child; or
14
(ii) the person is a home educator or distance educator of a
15
child; or
16
(iii) a child lives with the person under a family law order,
17
or other document that is prepared or accepted by an
18
authority of a State or Territory that has responsibility
19
for the wellbeing of children; or
20
(iv) there are 4 or more children (which may include
21
secondary pupil children), and the person is the
22
principal carer or main supporter of the children;
23
(e) the length of travel time required to comply with the
24
requirements;
25
(f) the financial costs (such as travel costs) of complying with
26
the requirements, and the person's capacity to pay for such
27
costs;
28
(g) the state of the local labour market and the transport options
29
available to the person in accessing that market;
30
(h) any other matters that the Secretary or the person considers
31
relevant in the circumstances.
32
17 Variation, cancellation and review
33
A financial improvement agreement that is in force in relation to a
34
person:
35
Farm household allowance Part 2
Financial improvement agreements Division 3
Section 18
No. , 2014
Farm Household Support Bill 2014
17
(a) may be varied (in negotiation with the person); and
1
(b) must be cancelled by the Secretary if the person enters into
2
another financial improvement agreement; and
3
(c) may be reviewed from time to time by the Secretary on
4
request or on his or her own initiative; and
5
(d) may be cancelled by the Secretary after a review under
6
paragraph (c).
7
18 Notification of circumstances preventing or affecting compliance
8
(1) A person must notify the Secretary of any circumstance preventing
9
or affecting the person's capacity to comply with the requirements
10
in a financial improvement agreement that is in force in relation to
11
a person.
12
Note:
For the consequences of failing to comply with this section, see
13
sections 71 and 72.
14
(2) The person must notify the Secretary under subsection (1) within
15
14 days of the circumstance occurring.
16
(3) The Secretary may determine, in writing, that this section does not
17
apply if the Secretary is satisfied that in those circumstances it
18
would be unreasonable to expect the person to give the
19
notification.
20
Part 2 Farm household allowance
Division 4 The activity test
Section 19
18
Farm Household Support Bill 2014
No. , 2014
Division 4--The activity test
1
19 The activity test
2
Undertaking activities
3
(1) A person satisfies the activity test for a period if the person
4
satisfies the Secretary that, throughout the period, the person is
5
complying with requirements in the person's financial
6
improvement agreement for the person to undertake any of the
7
following activities for the purposes of the activity test:
8
(a) participating in training in accordance with section 20;
9
(b) receiving advice in accordance with section 20;
10
(c) undertaking study;
11
(d) actively seeking, or being willing to undertake, paid work in
12
Australia (other than paid work that is unsuitable to be
13
undertaken by the person);
14
(e) undertaking any other activity.
15
Note 1:
For determining whether work is unsuitable, see section 21.
16
Note 2:
A person may qualify for the activity supplement by undertaking
17
activities for the purposes of the activity test (see Part 3).
18
Meeting prescribed conditions
19
(2) Alternatively, a person satisfies the activity test for a period if the
20
person satisfies the Secretary that, throughout the period, the
21
person satisfies any conditions prescribed by the Secretary's rules
22
for the purposes of this subsection.
23
20 Training and advice to be provided by appropriately qualified
24
person
25
(1) Training must be provided by a person or body who:
26
(a) is a registered training organisation; or
27
(b) has been approved, in writing, by the Secretary.
28
(2) For the purposes of Part 4 of the Social Security Administration
29
Act (as it applies because of Part 5 of this Act), a decision made
30
Farm household allowance Part 2
The activity test Division 4
Section 21
No. , 2014
Farm Household Support Bill 2014
19
under paragraph (1)(b) is taken not to be a decision under the social
1
security law.
2
(3) Advice must be provided by a person who:
3
(a) has a qualification:
4
(i) in a relevant field from a tertiary institution; and
5
(ii) that is recognised by a professional institution or body;
6
and
7
(b) is independent from:
8
(i) the person (the recipient) to whom the advice is
9
provided; and
10
(ii) if the recipient is a member of a couple--the partner of
11
the recipient; and
12
(c) does not have any right or interest in:
13
(i) the farm; or
14
(ii) any asset that is owned by the recipient, the partner of
15
the recipient or the farm enterprise.
16
21 Determining whether work is unsuitable
17
(1) This section applies in determining whether work is unsuitable to
18
be undertaken by a person for the purposes of paragraph 19(1)(d).
19
Matters to be taken into account
20
(2) The Secretary must take into account the following matters:
21
(a) any other employment of the person that does not relate to
22
the relevant farm;
23
(b) the person's education, experience, skills and age, and
24
whether the employer for the work referred to in
25
subsection (1) would provide training;
26
(c) any disability, illness, mental health condition or physical
27
condition of the person;
28
(d) any family or caring responsibilities of the person;
29
(e) if the person is a farmer--the workload associated with the
30
operation of the farm;
31
(f) any other matters that the Secretary considers relevant in the
32
circumstances.
33
Part 2 Farm household allowance
Division 4 The activity test
Section 21
20
Farm Household Support Bill 2014
No. , 2014
When work is unsuitable
1
(3) Despite subsection (2), particular paid work is unsuitable to be
2
undertaken by a person if in the Secretary's opinion:
3
(a) the conditions in which the work would be performed would
4
constitute a risk to health or safety and would contravene a
5
law of the Commonwealth, a State or a Territory relating to
6
occupational health and safety; or
7
(b) the terms and conditions for the work would be less generous
8
than the applicable statutory conditions; or
9
(c) commuting between the person's home and the place of work
10
would be unreasonably difficult; or
11
(d) the work would require enlistment in the Defence Force or
12
the Reserves; or
13
(e) the work would require the person to move from a home in a
14
place to a home in another place; or
15
(f) performing the work would jeopardise the current
16
employment, or the employment prospects, of the person's
17
partner; or
18
(g) the educational, cultural or religious background of the
19
person makes it unreasonable for the person to perform the
20
work; or
21
(h) it is more appropriate for the person to participate in training,
22
receive advice or undertake study than to perform the work;
23
or
24
(i) the person would suffer severe financial hardship if the
25
person were to perform the work.
26
Determination of additional matters
27
(4) The Secretary's rules may prescribe matters that the Secretary must
28
take into account in deciding whether, for the purposes of
29
paragraph (2)(f), particular paid work is unsuitable to be
30
undertaken by a person.
31
(5) To avoid doubt, the Secretary's rules do not limit the matters that
32
the Secretary may take into account in deciding whether particular
33
paid work is unsuitable to be undertaken by a person.
34
Farm household allowance Part 2
Exemptions from the activity test Division 5
Section 22
No. , 2014
Farm Household Support Bill 2014
21
Division 5--Exemptions from the activity test
1
Subdivision A--General exemptions determined by the
2
Secretary
3
22 Determination of exemption by Secretary
4
(1) A person is exempt from the activity test for a period if the
5
Secretary makes a determination under this Subdivision.
6
(2) The Secretary may revoke a determination under this Subdivision
7
if the Secretary is satisfied that the grounds on which the
8
determination was made no longer exist.
9
(3) Subsection (2) does not affect any operation that subsection 33(3)
10
of the Acts Interpretation Act 1901 has in relation to a
11
determination under this Subdivision.
12
23 Essential farm activities
13
(1) A farmer who qualifies for farm household allowance under
14
section 8 is exempt from the activity test for a period if the
15
Secretary is satisfied that requiring the farmer to satisfy the activity
16
test during the period would prevent the farmer from undertaking
17
activities that are essential to the operation of the farm.
18
(2) The Secretary may, in writing, determine the period during which
19
the farmer is exempt.
20
(3) The period must not exceed 6 weeks (and must not be extended).
21
(4) The Secretary may not exempt a farmer under this section from the
22
activity test if, during the previous 12 months, the farmer has
23
already been exempt under this section for 2 other periods
24
(irrespective of the length of the periods, or whether farm
25
household allowance was payable during the periods).
26
Part 2 Farm household allowance
Division 5 Exemptions from the activity test
Section 24
22
Farm Household Support Bill 2014
No. , 2014
24 Domestic violence etc.
1
(1) The Secretary may make a determination in relation to a person for
2
a period if the Secretary is satisfied that:
3
(a) the person:
4
(i) is the principal carer of one or more children; and
5
(ii) was subjected to domestic violence in the 26 weeks
6
before the making of the determination; or
7
(b) the person is the principal carer of one or more children, and
8
there are special circumstances relating to the person's family
9
that make it appropriate to make the determination.
10
Determination of matters Secretary must take into account
11
(2) The Secretary's rules may prescribe matters that the Secretary must
12
take into account in deciding whether there are special
13
circumstances relating to a person's family that make it appropriate
14
to make a determination.
15
(3) To avoid doubt, the Secretary's rules do not limit the matters that
16
the Secretary may take into account in deciding whether to make a
17
determination under paragraph (1)(b).
18
Period of determination
19
(4) If a determination is made on grounds referred to in
20
paragraph (1)(a) (or on grounds that include those grounds), the
21
period that the Secretary determines must be 16 weeks.
22
(5) Otherwise, the period that the Secretary determines must be the
23
lesser of:
24
(a) the period that the Secretary considers to be appropriate; or
25
(b) 16 weeks.
26
(6) A period referred to in subsection (4) or (5) may be followed by
27
one or more other periods (each of those other periods not
28
exceeding 16 weeks) determined in relation to the person.
29
Farm household allowance Part 2
Exemptions from the activity test Division 5
Section 25
No. , 2014
Farm Household Support Bill 2014
23
25 People with disabled children
1
(1) The Secretary may make a determination in relation to a person for
2
a period if the Secretary is satisfied that the person is the principal
3
carer of one or more children:
4
(a) who have a disability, illness, mental health condition or
5
physical condition; and
6
(b) whose care needs are such that the person should not be
7
required to satisfy the activity test for the period.
8
Period of determination
9
(2) The period that the Secretary determines must be the lesser of:
10
(a) the period that the Secretary considers to be appropriate; or
11
(b) 12 months.
12
(3) The period determined by the Secretary in relation to a person may
13
be followed by one or more other periods (each of those other
14
periods not exceeding 12 months) determined in relation to the
15
person.
16
26 Inclusion in prescribed class
17
(1) The Secretary may make a determination in relation to a person for
18
a period if the Secretary is satisfied that:
19
(a) the person is in a class of persons prescribed by the
20
Secretary's rules for the purposes of this subsection; and
21
(b) the person's circumstances are such that the person should
22
not be required to satisfy the activity test for the period.
23
Period of determination
24
(2) The period that the Secretary determines must be the lesser of:
25
(a) the period that the Secretary considers to be appropriate; or
26
(b) 12 months.
27
(3) The period determined by the Secretary in relation to a person may
28
be followed by one or more other periods (each of those other
29
periods not exceeding 12 months) determined in relation to the
30
person.
31
Part 2 Farm household allowance
Division 5 Exemptions from the activity test
Section 27
24
Farm Household Support Bill 2014
No. , 2014
27 Exemption where requirement for person to satisfy the activity
1
test would be unreasonable
2
The Secretary may make a determination in relation to a person for
3
a period if the Secretary is satisfied that, having regard to all the
4
relevant factors, including the following, it would be unreasonable
5
to expect the person to satisfy the activity test for that period:
6
(a) the location of offices of the Department or the Human
7
Services Department;
8
(b) difficulties with transport and communication;
9
(c) the educational, cultural or religious background of the
10
person.
11
28 Special circumstances
12
(1) The Secretary may make a determination in relation to a person for
13
a period if:
14
(a) the Secretary is satisfied that special circumstances, beyond
15
the person's control, exist; and
16
(b) the Secretary is satisfied that in those circumstances it would
17
be unreasonable to expect the person to satisfy the activity
18
test for that period.
19
Period of determination
20
(2) The period must not exceed 13 weeks (and must not be extended).
21
Subdivision B--Automatic general exemptions
22
29 Members of Defence Reserves
23
A person is exempt from the activity test for a period if the person
24
is attending a training camp during the period as a member of the
25
Reserves.
26
30 Prenatal and postnatal exemption
27
(1) A pregnant woman is exempt from the activity test for the period
28
that:
29
Farm household allowance Part 2
Exemptions from the activity test Division 5
Section 31
No. , 2014
Farm Household Support Bill 2014
25
(a) starts 6 weeks before the woman's expected date of
1
confinement; and
2
(b) ends on the day the woman gives birth to the child (whether
3
or not the child is born alive).
4
(2) If a woman gives birth to a child (whether or not the child is born
5
alive), the woman is exempt from the activity test for the period
6
that:
7
(a) starts on the day she gives birth to the child; and
8
(b) ends 6 weeks after that day.
9
Subdivision C--People temporarily incapacitated
10
31 Temporarily incapacitated person exempt from the activity test
11
(1) A person is exempt from the activity test for a period if:
12
(a) throughout the period, because of sickness or an accident, the
13
person is incapacitated and cannot undertake any activities
14
for the purposes of the activity test for more than 8 hours a
15
week; and
16
(b) in the Secretary's opinion, no activities are of a kind that the
17
person could be reasonably expected to undertake for the
18
purposes of the activity test for more than 8 hours a week;
19
and
20
(c) the incapacity is caused wholly, or virtually wholly, by a
21
medical condition arising from the sickness or accident; and
22
(d) the incapacity is, or is likely to be, of a temporary nature; and
23
(e) the person has, whether before or after the commencement of
24
this section, given the Secretary a certificate of a medical
25
practitioner, in a form approved by the Secretary, stating:
26
(i) the medical practitioner's diagnosis; and
27
(ii) the medical practitioner's prognosis; and
28
(iii) that the person is incapacitated and cannot undertake
29
any activities for the purposes of the activity test for
30
more than 8 hours a week; and
31
(iv) the period for which the person is incapacitated; and
32
Part 2 Farm household allowance
Division 5 Exemptions from the activity test
Section 32
26
Farm Household Support Bill 2014
No. , 2014
(f) the Secretary is satisfied that the incapacity has not been
1
brought about with a view to obtaining an exemption from
2
the activity test.
3
Note:
A person who is exempt from the activity test under this section may
4
still be taken to contribute a significant part of his or her labour to a
5
farm enterprise (see section 11).
6
Requirements for making decisions
7
(2) The Secretary must comply with any requirements prescribed by
8
the Minister's rules in deciding the following:
9
(a) whether paragraph (1)(a), (c) or (d) applies to a person for a
10
period;
11
(b) whether, for the purposes of paragraph (1)(b), an activity is
12
of a kind that a person could be reasonably expected to
13
undertake.
14
32 Time limit for exemption--end of person's maximum exemption
15
period
16
Cessation of exemption
17
(1) A person ceases to be exempt under section 31 from the activity
18
test if the person's maximum exemption period ends.
19
Maximum exemption period
20
(2) A person's maximum exemption period is:
21
(a) if the person has, whether before or after the commencement
22
of this section, given the Secretary a medical certificate for
23
the purpose of enabling the Secretary to decide whether the
24
person was required to satisfy the activity test--the lesser of
25
the following periods:
26
(i) the period stated in the certificate as the period for
27
which the person would be incapacitated and could not
28
undertake any activities for the purposes of the activity
29
test for more than 8 hours a week;
30
(ii) the period of 13 weeks that started or starts on the first
31
day of the period so stated in the certificate; or
32
Farm household allowance Part 2
Exemptions from the activity test Division 5
Section 32
No. , 2014
Farm Household Support Bill 2014
27
(b) otherwise--the period of 4 weeks that started or starts on the
1
day determined by the Secretary to have been the day on
2
which the person's incapacity began.
3
Extension of maximum exemption period
4
(3) The Secretary may extend a person's maximum exemption period
5
if:
6
(a) both of the following apply:
7
(i) the person has, whether before or after the
8
commencement of this section, given the Secretary a
9
certificate of a medical practitioner that states the
10
matters listed in paragraph 31(1)(e) and is in accordance
11
with the form approved for the purposes of that
12
paragraph;
13
(ii) the Secretary is satisfied that the person's incapacity
14
will continue after the end of the person's maximum
15
exemption period; or
16
(b) both of the following apply:
17
(i) within 14 days after the end of the person's maximum
18
exemption period the person gives the Secretary a
19
certificate of a medical practitioner that states the
20
matters listed in paragraph 31(1)(e) and is in accordance
21
with a form approved for the purposes of that
22
paragraph;
23
(ii) the Secretary is satisfied that the person's incapacity has
24
continued after the end of the person's maximum
25
exemption period and that the incapacity will continue.
26
(4) The extension of the maximum exemption period under
27
subsection (3) must not be more than the lesser of the following
28
periods:
29
(a) the period stated in the certificate as the period for which the
30
person will be incapacitated;
31
(b) 13 weeks.
32
(5) The Secretary may extend a person's maximum exemption period,
33
by no more than 4 weeks, if:
34
(a) all of the following apply:
35
Part 2 Farm household allowance
Division 5 Exemptions from the activity test
Section 32
28
Farm Household Support Bill 2014
No. , 2014
(i) the person gives the Secretary written evidence (other
1
than a certificate referred to in subparagraph (3)(a)(i))
2
that the person's incapacity will continue after the end
3
of the person's maximum exemption period;
4
(ii) the Secretary is satisfied that the person's circumstances
5
make it unreasonable to expect the person to obtain a
6
certificate referred to in subparagraph (3)(a)(i) before
7
the end of the maximum exemption period;
8
(iii) the Secretary is satisfied that person's incapacity will
9
continue after the end of the person's maximum
10
exemption period; or
11
(b) all of the following apply:
12
(i) within 14 days after the end of the person's maximum
13
exemption period the person gives the Secretary written
14
evidence (other than a certificate referred to in
15
subparagraph (3)(b)(i)) that the person's incapacity will
16
continue after the end of the person's maximum
17
exemption period;
18
(ii) the Secretary is satisfied that the person's circumstances
19
make it unreasonable to expect the person to obtain a
20
certificate referred to in subparagraph (3)(b)(i);
21
(iii) the Secretary is satisfied that the person's incapacity has
22
continued after the end of the person's maximum
23
exemption period and that the incapacity will continue;
24
or
25
(c) all of the following apply:
26
(i) the person has, whether before or after the
27
commencement of this section, given the Secretary a
28
certificate referred to in subparagraph (3)(a)(i) before
29
the end of the person's maximum exemption period;
30
(ii) before the end of the person's maximum exemption
31
period, the Secretary does not satisfy himself or herself
32
that the person's incapacity will continue after the end
33
of that period;
34
(iii) the sole or dominant cause of the Secretary failing to
35
satisfy himself or herself is an act or omission of an
36
officer of the Department.
37
Farm household allowance Part 2
Payability Division 6
Section 33
No. , 2014
Farm Household Support Bill 2014
29
Division 6--Payability
1
Subdivision A--Situations where allowance not payable (assets
2
test)
3
33 Non-farm assets value limit
4
Farm household allowance is not payable to a person if the value of
5
the person's non-farm assets exceeds:
6
(a) if the person is a member of a couple--the person's assets
7
value limit worked out under item 2 of the table in
8
subsection 611(2) of the Social Security Act as if the family
9
situation described in that item applied to the person; or
10
(b) otherwise--the person's assets value limit worked out under
11
item 1 of that table.
12
34 Farm assets value limit
13
Farm household allowance is not payable to a person if the value of
14
the person's farm assets exceeds $2.55 million.
15
Note 1:
This limit is indexed annually each 1 July in line with CPI increases
16
(see Part 5 of this Act).
17
Note 2:
Sections 1131 and 1132 of the Social Security Act (about accessing
18
financial hardship rules if the assets test prevents payment of a
19
benefit) apply to farm household allowance (see Part 5 of this Act).
20
35 Meaning of farm assets and non-farm assets
21
(1) A farm asset is:
22
(a) a right or interest in land used wholly or mainly for the
23
purposes of a farm enterprise; or
24
(b) a right or interest in livestock, crop, plant or equipment that:
25
(i) is produce of a farm enterprise; or
26
(ii) is used wholly or mainly for the purposes of a farm
27
enterprise;
28
other than any livestock, crop, plant or equipment leased out
29
by the farm enterprise; or
30
Part 2 Farm household allowance
Division 6 Payability
Section 36
30
Farm Household Support Bill 2014
No. , 2014
(c) so much of a loan to which subsection (2) applies as:
1
(i) is used to purchase a right or interest covered by
2
paragraph (a) or (b); and
3
(ii) remains unpaid.
4
Note:
This means that liquid assets such as cash and bank deposits, and
5
investments such as shares, cannot be farm assets.
6
(2) This subsection applies to a loan at a particular time if:
7
(a) it was made by a beneficiary of a trust to the trustee of the
8
trust, or by a shareholder of a company to the company; and
9
(b) the outstanding amount of the principal of the loan exceeds,
10
at that time, the total value of all the financial investments:
11
(i) the trustee has in the capacity of trustee; or
12
(ii) the company has.
13
(3) A non-farm asset is an asset other than a farm asset.
14
Note 1:
A farm management deposit (within the meaning of the Income Tax
15
Assessment Act 1997) is an example of a non-farm asset.
16
Note 2:
The value of the person's principal home (if any) is not counted for
17
the purposes of this Subdivision because of Division 1 of Part 3.12 of
18
the Social Security Act.
19
36 Meaning of value of assets
20
(1) For a person who is a member of a couple:
21
(a) the value of the person's assets includes the value of the
22
partner's assets; and
23
(b) the value of the person's assets of a particular kind includes
24
the value of the partner's assets of that kind.
25
(2) The value of a person's farm assets includes so much of an amount
26
as is, because of the ownership of a farm asset, included in the
27
value of the person's assets under Part 3.18 (means test treatment
28
of private companies and trusts) of the Social Security Act (as that
29
Part applies because of Part 5 of this Act).
30
(3) The value of a person's non-farm assets includes so much of an
31
amount as is, because of the ownership of a non-farm asset,
32
included in the value of the person's assets under Part 3.18 (means
33
Farm household allowance Part 2
Payability Division 6
Section 37
No. , 2014
Farm Household Support Bill 2014
31
test treatment of private companies and trusts) of the Social
1
Security Act (as that Part applies because of Part 5 of this Act).
2
(4) The value of a person's non-farm assets includes so much of an
3
amount as is, because of a disposal of an asset, included in the
4
value of the person's assets under Division 2 of Part 3.12 of the
5
Social Security Act (as that Division applies because of Part 5 of
6
this Act).
7
Note:
Division 2 of Part 3.12 of that Act includes in the value of a person's
8
assets an amount if an asset is destroyed, disposed of (for example, by
9
gift) or if its value is diminished in certain ways. If the asset was a
10
farm asset, the amount will be included in the value of the person's
11
non-farm assets.
12
Subdivision B--Situations where allowance not payable
13
(general)
14
37 Farm household allowance not payable if allowance rate nil
15
(1) Farm household allowance is not payable to a person if the
16
person's allowance rate would be nil.
17
(2) However, subsection (1) does not apply to a person if the person's
18
rate would be nil merely because the person has been paid an
19
advance pharmaceutical allowance under the social security law.
20
38 Multiple entitlement exclusion
21
(1) This section sets out when farm household allowance is not
22
payable to a person because the person receives another pension,
23
benefit, supplement or allowance.
24
(2) The allowance is not payable if:
25
(a) the person is already receiving age pension, a service pension
26
or income support supplement; or
27
(b) a social security pension, another social security benefit, a
28
service pension or income support supplement becomes
29
payable to the person.
30
Part 2 Farm household allowance
Division 6 Payability
Section 38
32
Farm Household Support Bill 2014
No. , 2014
(3) For the purposes of paragraph (2)(b), the allowance is not payable
1
from (and including) the day the pension, benefit or supplement
2
becomes payable.
3
Receipt of veterans benefits
4
(4) The allowance is not payable if:
5
(a) the person is an armed services widow or armed services
6
widower; and
7
(b) either:
8
(i) the person is receiving a pension under Part II or IV of
9
the Veterans' Entitlements Act at a rate determined
10
under or by reference to subsection 30(1) of that Act; or
11
(ii) the person is receiving the weekly amount mentioned in
12
paragraph 234(1)(b) of the MRCA (including a reduced
13
weekly amount because of a choice under section 236 of
14
the MRCA) or has received a lump sum mentioned in
15
subsection 236(5) of the MRCA.
16
(5) Despite subparagraph (4)(b)(i) of this section, farm household
17
allowance is payable to the person if:
18
(a) the person is a woman who has been receiving the pension
19
under Part II or IV of the Veterans' Entitlements Act
20
continuously since before 1 November 1986; and
21
(b) before 1 November 1986 the woman was also receiving a
22
social security benefit.
23
Receipt of payments for other educational etc. schemes
24
(6) The allowance is not payable for a period if a payment has been or
25
may be made in respect of the person for that period under:
26
(a) a prescribed educational scheme other than the ABSTUDY
27
Scheme; or
28
(b) the ABSTUDY Scheme, to the extent that it applies to
29
full-time students; or
30
(c) the scheme to provide an allowance known as:
31
(i) the Maintenance Allowance for Refugees; or
32
(ii) the Adult Migrant Education Program Living
33
Allowance; or
34
Farm household allowance Part 2
Payability Division 6
Section 39
No. , 2014
Farm Household Support Bill 2014
33
(iii) the English as a Second Language Allowance, to the
1
extent that it applies to full-time students.
2
(7) Despite subsection (6), the Secretary may determine that farm
3
household allowance is payable to the person for:
4
(a) a period before the person starts a full-time course of
5
education; or
6
(b) a period of 3 weeks starting on the day the person starts a
7
full-time course of education if:
8
(i) the person was receiving farm household allowance
9
immediately before starting the course; and
10
(ii) an application is made for a payment in respect of the
11
person under the ABSTUDY Scheme.
12
Subdivision C--Situations where allowance not payable
13
(waiting periods)
14
39 Waiting periods
15
(1) Farm household allowance is not payable to a person while the
16
person is subject to a waiting period.
17
(2) A person may be subject to the following waiting periods:
18
(a) an ordinary waiting period (see sections 40 and 41);
19
(b) a newly arrived resident's waiting period (see sections 42 and
20
43);
21
(c) a liquid assets test waiting period (see sections 44 and 45).
22
40 Ordinary waiting period
23
(1) A person is subject to an ordinary waiting period unless:
24
(a) at some time in the 13 weeks immediately before the
25
person's start day, the person received an income support
26
payment; or
27
(b) the following conditions apply:
28
(i) the person is a member of a couple;
29
(ii) the person's partner dies;
30
Part 2 Farm household allowance
Division 6 Payability
Section 41
34
Farm Household Support Bill 2014
No. , 2014
(iii) immediately before the partner's death, the person was
1
receiving a partner allowance;
2
(iv) the person claims a farm household allowance within
3
the period of 4 weeks that starts on the day after the
4
partner dies.
5
Note:
The Secretary may waive all or part of the waiting period (see
6
section 46).
7
(2) However, subsection (1) does not apply to a person who:
8
(a) is undertaking an activity prescribed by the Secretary's rules
9
for the purposes of this subsection; and
10
(b) has been exempted from the application of subsection (1) by
11
the Secretary.
12
41 Duration of ordinary waiting period
13
(1) A person's ordinary waiting period is (subject to subsection (2)) 7
14
days starting from the person's start day.
15
Note:
If the person is subject to a newly arrived resident's waiting period,
16
the newly arrived resident's waiting period runs concurrently with the
17
ordinary waiting period.
18
(2) For a person for whom farm household allowance is not payable
19
because the person is subject to a liquid assets test waiting period,
20
the ordinary waiting period is 7 days starting from the day after the
21
end of the liquid assets test waiting period.
22
42 Newly arrived resident's waiting period
23
(1) A person is (subject to subsection (2)) subject to a newly arrived
24
resident's waiting period if the person has not been an Australian
25
resident and in Australia for a period of, or periods totalling, 104
26
weeks.
27
Note:
If the person is subject to a liquid assets test waiting period, the liquid
28
assets test waiting period runs concurrently with the newly arrived
29
resident's waiting period.
30
Farm household allowance Part 2
Payability Division 6
Section 42
No. , 2014
Farm Household Support Bill 2014
35
Exceptions
1
(2) The following persons are not subject to a newly arrived resident's
2
waiting period:
3
(a) a person who is already subject to a newly arrived resident's
4
waiting period (within the meaning of this Act or the Social
5
Security Act);
6
(b) a person who has already served a newly arrived resident's
7
waiting period (within the meaning of this Act or the Social
8
Security Act);
9
(c) a person who has a qualifying residence exemption for a farm
10
household allowance;
11
(d) a person who, immediately before this section commenced,
12
held a valid designated temporary entry permit for a
13
continuous period of at least 26 weeks;
14
(e) a person in relation to whom all of the following apply:
15
(i) immediately before this section commenced, the person
16
held a valid designated temporary entry permit for a
17
continuous period (the permit period) of less than 26
18
weeks;
19
(ii) that permit was continued in force as a temporary visa
20
by regulations made under the Migration Reform Act
21
1992;
22
(iii) the period during which that permit continued to be in
23
force as a temporary visa together with the permit
24
period is at least 26 weeks;
25
(f) a person who:
26
(i) has previously entered Australia before 1 January 1993;
27
and
28
(ii) held a permanent entry permit granted under the
29
Migration Act 1958 as then in force, or a permanent
30
visa, before the person's last departure from Australia;
31
(g) a person in relation to whom all of the following apply:
32
(i) the person is a New Zealand citizen;
33
(ii) the person was an Australian resident on 1 February
34
2000;
35
Part 2 Farm household allowance
Division 6 Payability
Section 43
36
Farm Household Support Bill 2014
No. , 2014
(iii) when the person claimed farm household allowance the
1
person had been an Australian resident for the 12
2
months immediately preceding the claim, or
3
continuously present in Australia for the 6 months
4
immediately preceding the claim;
5
(h) a person in relation to whom all of the following apply:
6
(i) the person is the principal carer of one or more children;
7
(ii) the person is not a member of a couple;
8
(iii) the person was not a lone parent at the start of the
9
person's current period as an Australian resident.
10
43 Duration of newly arrived resident's waiting period
11
(1) A person's newly arrived resident's waiting period:
12
(a) starts on the day the person first became an Australian
13
resident; and
14
(b) ends (subject to subsection (2)) when the person has been an
15
Australian resident and in Australia for a period of, or periods
16
totalling, 104 weeks.
17
(2) If:
18
(a) immediately before this section commenced, the person held
19
a valid designated temporary entry permit; and
20
(b) that permit was continued in force as a temporary visa by
21
regulations made under the Migration Reform Act 1992; and
22
(c) that temporary visa was in force immediately before the
23
person was granted his or her permanent visa;
24
the newly arrived resident's waiting period ends 26 weeks after the
25
day on which the designated temporary entry permit was granted to
26
the person.
27
44 Liquid assets test waiting period
28
A person is subject to a liquid assets test waiting period if:
29
(a) the value of the person's liquid assets exceeds the person's
30
maximum reserve on the day the person claims farm
31
household allowance; and
32
Farm household allowance Part 2
Payability Division 6
Section 45
No. , 2014
Farm Household Support Bill 2014
37
(b) neither the person nor the person's partner was, at any time
1
during the 12 months immediately before that day, already
2
serving a liquid assets test waiting period (within the
3
meaning of this Act or the Social Security Act).
4
Note:
The Secretary may waive all or part of the waiting period (see
5
section 46).
6
45 Duration of liquid assets test waiting period
7
(1) The first day of a person's liquid assets test waiting period is the
8
day the person claims farm household allowance.
9
(2) The liquid assets test waiting period is the following number of
10
weeks, rounded down to the nearest whole number and not more
11
than 13, worked out on the first day of that period:
12
Adjusted value of person's liquid assets
Person's maximum reserve
Divisor
13
where:
14
divisor means:
15
(a) if the person is not a member of a couple and does not have a
16
dependent child--$500; or
17
(b) otherwise--$1,000.
18
46 Waiver for severe financial hardship
19
(1) The Secretary may waive all or part of a person's ordinary waiting
20
period, or liquid assets test waiting period, if the Secretary is
21
satisfied that the person:
22
(a) would otherwise be in severe financial hardship because of
23
substantiated unavoidable or reasonable expenditure to be
24
incurred during the period; or
25
(b) is in severe financial hardship because of substantiated
26
unavoidable or reasonable expenditure incurred during that
27
period.
28
(2) The Secretary's rules may set out ways for substantiating
29
unavoidable or reasonable expenditure.
30
Part 2 Farm household allowance
Division 6 Payability
Section 47
38
Farm Household Support Bill 2014
No. , 2014
47 Effect of being subject to more than one waiting period
1
To avoid doubt, if a person is subject to more than one waiting
2
period under this Subdivision, a farm household allowance is not
3
payable to the person until those waiting periods have ended.
4
Subdivision D--Other situations where farm household
5
allowance not payable
6
48 Seasonal workers
7
(1) This section applies if, at any time during the 6 months
8
immediately before the day a person lodges a claim for farm
9
household allowance, the person, or, if the person is a member of a
10
couple, the person or the person's partner, has been engaged in
11
seasonal work.
12
(2) Farm household allowance is not payable to a person who is
13
subject to a seasonal work preclusion period (whether in relation to
14
the claim referred to in subsection (1) or any other claim under the
15
Social Security Act) for the person's seasonal work preclusion
16
period.
17
(3) Despite subsection (2), the Secretary may determine that a person
18
is not subject to the whole, or any part, of the preclusion period if
19
the Secretary is satisfied that the person is in severe financial
20
hardship because the person has incurred substantiated unavoidable
21
or reasonable expenditure while the person is subject to a seasonal
22
work preclusion period (whether in relation to the claim referred to
23
in subsection (1) or any other claim under the Social Security Act).
24
(4) The Secretary's rules may set out ways for substantiating
25
unavoidable or reasonable expenditure.
26
Farm household allowance Part 2
Overseas portability Division 7
Section 49
No. , 2014
Farm Household Support Bill 2014
39
Division 7--Overseas portability
1
49 Division does not affect need for qualification
2
To avoid doubt, nothing in this Division confers a right on a person
3
to continue to be paid farm household allowance if the person is
4
not qualified for the payment (even if the person's failure to
5
qualify is related to the absence).
6
50 Persons to whom Division applies
7
This Division applies (subject to section 52 (amounts added to
8
rate)) to a person during a period (the period of absence)
9
throughout which the person is continuously absent from Australia,
10
if:
11
(a) the person was receiving farm household allowance
12
immediately before the period of absence commenced; or
13
(b) the person's claim for such a payment is granted under the
14
Social Security Administration Act during the period of
15
absence.
16
51 Farm household allowance portable
17
(1) A person's right to continue to be paid farm household allowance,
18
throughout the person's portability period for farm household
19
allowance, is not affected merely by the period of absence.
20
(2) However, farm household allowance is not payable to the person
21
throughout any of the period of absence that occurs after the end of
22
the person's portability period.
23
Reserve service
24
(3) A person's right to continue to be paid farm household allowance
25
is not affected throughout so much of the period of absence as is
26
for the purposes of undertaking Reserve service.
27
Part 2 Farm household allowance
Division 7 Overseas portability
Section 52
40
Farm Household Support Bill 2014
No. , 2014
52 Amounts added to rate
1
During the period of absence, rent assistance and pharmaceutical
2
allowance are not to be added to the person's rate worked out in
3
accordance with Division 8 after the end of the person's portability
4
period for farm household allowance.
5
53 Meaning of allowable absence and portability period
6
Meaning of allowable absence
7
(1) An absence is an allowable absence in relation to farm household
8
allowance at a particular time if, at that time, it is a temporary
9
absence (of no longer than 6 weeks) for any of the following
10
purposes:
11
(a) to seek eligible medical treatment;
12
(b) to attend to an acute family crisis;
13
(c) for a humanitarian purpose.
14
Meaning of portability period
15
(2) A person's portability period for farm household allowance, in
16
relation to the period of absence, is the period:
17
(a) beginning at the commencement of the period of absence;
18
and
19
(b) ending (subject to section 54) at the earlier of the following
20
times:
21
(i) the first time during the period of absence at which the
22
absence is not an allowable absence in relation to the
23
payment;
24
(ii) the end of 6 weeks.
25
Note:
People are required (under the Social Security Administration Act) to
26
notify changes in circumstances.
27
54 Secretary may extend the portability period
28
(1) The Secretary may extend a portability period if the Secretary is
29
satisfied that the person who is not in Australia during the period is
30
absent because:
31
Farm household allowance Part 2
Overseas portability Division 7
Section 54
No. , 2014
Farm Household Support Bill 2014
41
(a) the person is unable to return to Australia because of any of
1
the following events:
2
(i) a serious accident involving the person or a family
3
member of the person;
4
(ii) a serious illness of the person or a family member of the
5
person;
6
(iii) the hospitalisation of the person or a family member of
7
the person;
8
(iv) the death of a family member of the person;
9
(v) the person's involvement in custody proceedings in the
10
country in which the person is located;
11
(vi) a legal requirement for the person to remain outside
12
Australia in connection with criminal proceedings (other
13
than criminal proceedings in respect of a crime alleged
14
to have been committed by the person);
15
(vii) robbery or serious crime committed against the person
16
or a family member of the person;
17
(viii) a natural disaster in the country in which the person is
18
located;
19
(ix) political or social unrest in the country in which the
20
person is located;
21
(x) industrial action in the country in which the person is
22
located;
23
(xi) a war in the country in which the person is located; or
24
(b) under the Medical Treatment Overseas Program administered
25
by the Minister who administers the National Health Act
26
1953, financial assistance is payable in respect of the
27
person's absence from Australia.
28
(2) The Secretary must not extend the person's portability period
29
under paragraph (1)(a) unless:
30
(a) the event occurred or began during the period of absence; and
31
(b) if the event is political or social unrest, industrial action or
32
war--the person is not willingly involved in, or willingly
33
participating in the event.
34
Part 2 Farm household allowance
Division 7 Overseas portability
Section 54
42
Farm Household Support Bill 2014
No. , 2014
(3) If the Secretary extends a person's portability period under
1
subsection (1), the person's portability period for farm household
2
allowance, for the purposes of this Division, is the extended period.
3
Farm household allowance Part 2
Rate of farm household allowance Division 8
Section 55
No. , 2014
Farm Household Support Bill 2014
43
Division 8--Rate of farm household allowance
1
Subdivision A--Persons who have turned 22
2
55 How to work out the rate of a person's farm household allowance
3
(1) The rate of farm household allowance for a person who has turned
4
22 is to be worked out using Benefit Rate Calculator B.
5
Note:
Section 93 of this Act has the effect that a reference in Benefit Rate
6
Calculator B to newstart allowance is taken to include a reference to
7
farm household allowance.
8
(2) This section has effect subject to this Subdivision and Subdivisions
9
C and D.
10
(3) To avoid doubt, sections 644AAA to 653A of the Social Security
11
Act do not apply to the rate of farm household allowance for a
12
person.
13
56 Maximum basic rate
14
Module B of Benefit Rate Calculator B applies in relation to the
15
rate of farm household allowance for a person who has turned 22
16
as if point 1068-B5 of Benefit Rate Calculator B did not apply.
17
57 Pension supplement does not apply
18
The following do not apply in relation to the rate of farm
19
household allowance for a person who has turned 22:
20
(a) step 1A of the method statement in point 1068-A1 of Benefit
21
Rate Calculator B;
22
(b) Module BA of Benefit Rate Calculator B.
23
58 Clean energy supplement
24
Module C of Benefit Rate Calculator B applies in relation to the
25
rate of farm household allowance for a person who has turned 22
26
as if the person:
27
(a) has not reached pension age; and
28
Part 2 Farm household allowance
Division 8 Rate of farm household allowance
Section 59
44
Farm Household Support Bill 2014
No. , 2014
(b) is not covered by point 1068-B5 of Benefit Rate Calculator
1
B.
2
Note:
Quarterly clean energy supplement is not payable to a recipient of
3
farm household allowance (see section 94).
4
59 Pharmaceutical allowance
5
Module D of Benefit Rate Calculator B applies in relation to the
6
rate of farm household allowance for a person who has turned 22
7
as if paragraph 1068-D2B(a) and point 1068-D3 of Benefit Rate
8
Calculator B did not apply.
9
Subdivision B--Persons who have not turned 22
10
60 How to work out the rate of a person's farm household allowance
11
(1) The rate of farm household allowance for a person who has not
12
turned 22 is to be worked out using the Youth Allowance Rate
13
Calculator, as if the person:
14
(a) were independent within the meaning of section 1067A of the
15
Social Security Act; and
16
(b) were not an accommodated independent person within the
17
meaning of section 1067B of that Act; and
18
(c) were not a long term income support student within the
19
meaning of section 1067F of that Act.
20
Note 1:
Section 93 of this Act has the effect that a reference in the Youth
21
Allowance Rate Calculator to youth allowance is taken to include a
22
reference to farm household allowance.
23
Note 2:
As the person is taken to be independent, the parental income test and
24
the family actual means test (Modules F and G of the Youth
25
Allowance Rate Calculator) will not apply.
26
(2) This section has effect subject to this Subdivision and Subdivisions
27
C and D.
28
(3) To avoid doubt, sections 556A to 559J of the Social Security Act
29
do not apply to the rate of farm household allowance for a person.
30
Farm household allowance Part 2
Rate of farm household allowance Division 8
Section 61
No. , 2014
Farm Household Support Bill 2014
45
61 Maximum basic rate
1
Module B of the Youth Allowance Rate Calculator applies in
2
relation to the rate of farm household allowance for a person who
3
has not turned 22 as if point 1067G-B3A of the Youth Allowance
4
Rate Calculator did not apply.
5
62 Clean energy supplement
6
Module BA of the Youth Allowance Rate Calculator applies in
7
relation to the rate of farm household allowance for a person who
8
has not turned 22 as if the person is not covered by point
9
1067G-B3A of the Youth Allowance Rate Calculator.
10
Note:
Quarterly clean energy supplement is not payable to a recipient of
11
farm household allowance (see section 94).
12
63 Pharmaceutical allowance
13
Module C of the Youth Allowance Rate Calculator applies in
14
relation to the rate of farm household allowance for a person who
15
has not turned 22 as if:
16
(a) paragraph 1067G-C1(a) of the Youth Allowance Rate
17
Calculator did not apply; and
18
(b) the reference in paragraph 1067G-C2A(b) of the Youth
19
Allowance Rate Calculator to a new apprentice were omitted.
20
64 Youth disability supplement does not apply
21
The following do not apply in relation to the rate of farm
22
household allowance for a person who has not turned 22:
23
(a) step 2A of the method statement in point 1067G-A1 of the
24
Youth Allowance Rate Calculator;
25
(b) Module D of the Youth Allowance Rate Calculator.
26
65 Student income bank does not apply
27
Module J of the Youth Allowance Rate Calculator does not apply
28
in relation to the rate of farm household allowance for a person
29
who has not turned 22.
30
Part 2 Farm household allowance
Division 8 Rate of farm household allowance
Section 66
46
Farm Household Support Bill 2014
No. , 2014
Subdivision C--Income test
1
66 Deemed income from financial assets
2
For the purpose of applying Division 1B of Part 3.10 of the Social
3
Security Act in working out the rate of farm household allowance
4
for a person, if:
5
(a) the person is a beneficiary of a trust, or a shareholder of a
6
company; and
7
(b) the person makes a loan to the trustee of the trust, or to the
8
company; and
9
(c) the loan relates to a farm asset that:
10
(i) the trustee has in the capacity of trustee; or
11
(ii) the company has; and
12
(d) the outstanding amount of the principal of the loan exceeds
13
the total value of all the financial investments:
14
(i) the trustee has in the capacity of trustee; or
15
(ii) the company has;
16
the loan is taken, to the extent that it relates to that farm asset, not
17
to be a financial asset that the person has.
18
67 Allowable deductions from ordinary income
19
(1) For the purpose of applying section 1072 of the Social Security Act
20
in working out the rate of farm household allowance for a person,
21
if:
22
(a) during a tax year the person incurs an amount that has been
23
prescribed to be an allowable deduction under subsection (2)
24
of this section; and
25
(b) at the time of incurring the amount, the person carries on a
26
business that is wholly or partly a farm enterprise;
27
the person's ordinary income for the tax year is to be reduced by so
28
much of the amount as relates to the farm enterprise.
29
(2) The Minister's rules may prescribe a kind of amount to be an
30
allowable deduction for the purposes of this section.
31
Farm household allowance Part 2
Rate of farm household allowance Division 8
Section 68
No. , 2014
Farm Household Support Bill 2014
47
(3) Without limiting subsection (2), the prescription of a kind of
1
amount for the purposes of that subsection may include a
2
maximum amount.
3
(4) In working out the rate of farm household allowance for a person,
4
section 1075 of the Social Security Act does not apply.
5
(5) Subsection (4) does not limit the power to make Minister's rules
6
for the purposes of subsection (2).
7
Subdivision D--Estimates of business income
8
68 Determination of rate may be based on estimate
9
(1) If:
10
(a) a person's rate of farm household allowance is required to be
11
determined for the purposes of the Social Security
12
Administration Act (as it applies because of Part 5 of this
13
Act); and
14
(b) information about the amount of the person's business
15
income needed for the determination of the rate is not
16
available (for example, because the business income of the
17
person cannot be known until after the end of the relevant
18
income year); and
19
(c) the person, or if the person has died, another person making a
20
claim under that Act (as so applied) gives the Secretary an
21
estimate of the person's business income; and
22
(d) the Secretary considers the estimate to be reasonable;
23
the Secretary may determine the person's rate of farm household
24
allowance on the basis of the estimate, to the extent that the rate is
25
affected by the amount of the person's business income.
26
(2) The rate cannot be determined if the Secretary does not consider
27
the estimate reasonable.
28
(3) A person's business income is ordinary income of the person in
29
the form of profits from a business carried on by the person.
30
Part 2 Farm household allowance
Division 8 Rate of farm household allowance
Section 69
48
Farm Household Support Bill 2014
No. , 2014
69 Date of effect of determinations based on estimates of business
1
income
2
(1) If:
3
(a) farm household allowance is being, or has been, paid to a
4
person as a result of a decision (the original decision) that
5
was based, wholly or partly, on an estimate of a person's
6
business income; and
7
(b) the Secretary makes a determination (the new
8
determination), relating to the allowance, under Subdivision
9
A of Division 7 of Part 3 of the Social Security
10
Administration Act (as it applies because of Part 5 of this
11
Act), whether or not the new determination is the first such
12
determination; and
13
(c) the reason, or one of the reasons, for making the new
14
determination is that the Secretary considers that:
15
(i) information about the amount of the person's business
16
income is now available; and
17
(ii) the person's business income differs from the estimate
18
on which the original decision was wholly or partly
19
based;
20
the new determination takes effect on the day the determination
21
embodying the original decision took effect, or on the first day of
22
the financial year to which subsection (2) applies, whichever is
23
later.
24
(2) This subsection applies to:
25
(a) the financial year preceding the financial year in which the
26
new determination was made; or
27
(b) if the Secretary specifies an earlier financial year in the new
28
determination--that earlier financial year.
29
(3) This section has effect despite Division 9 of Part 3 of the Social
30
Security Administration Act (as it applies because of Part 5 of this
31
Act), but does not affect the application of section 109 of that Act
32
as so applied in relation to a review of the new determination.
33
(4) To avoid doubt, a person's entitlement to the benefit of a payment,
34
for the purposes of section 1223 of the Social Security Act (as it
35
Farm household allowance Part 2
Rate of farm household allowance Division 8
Section 70
No. , 2014
Farm Household Support Bill 2014
49
applies because of Part 5 of this Act), is to be ascertained taking
1
into account when any relevant new determinations take effect
2
under this section.
3
70 Debts arising from payments of farm household allowance based
4
on estimates of business income
5
(1) If:
6
(a) farm household allowance is being, or has been, paid to a
7
person as a result of a decision that was based, wholly or
8
partly, on an estimate of a person's business income; and
9
(b) the person has not complied with a notice under section 68 or
10
69 of the Social Security Administration Act (as it applies
11
because of Part 5 of this Act); and
12
(c) the notice related to the person's business income during a
13
particular period; and
14
(d) the Secretary is satisfied that, if the person had complied with
15
the notice, information about the amount of the person's
16
business income during the period could have been
17
ascertained;
18
the amount of farm household allowance paid to the person in
19
relation to the period is a debt due to the Commonwealth, and is
20
taken, for the purposes of the Social Security Act, to have arisen
21
under Part 5.2 of that Act.
22
(2) This section does not limit the application of Part 5.2 of the Social
23
Security Act (as it applies because of Part 5 of this Act).
24
Part 2 Farm household allowance
Division 9 Compliance with obligations in relation to farm household allowance
Section 71
50
Farm Household Support Bill 2014
No. , 2014
Division 9--Compliance with obligations in relation to
1
farm household allowance
2
71 Qualification failures
3
(1) The Secretary may determine that a person commits a
4
qualification failure if:
5
(a) the person fails to comply with a notice given under
6
section 14 within the period specified in the notice
7
(requirement to enter financial improvement agreement); or
8
(b) the person fails to comply with subsection 18(1) within the
9
period specified in subsection 18(2) (notification of
10
circumstances preventing or affecting compliance); or
11
(c) the person:
12
(i) fails to satisfy the activity test; and
13
(ii) the person is not exempt, under Division 5, from the
14
activity test.
15
(2) The Secretary may revoke the determination if the failure is
16
rectified within the period of 13 weeks beginning on the day the
17
failure began.
18
72 Consequences of qualification failures
19
(1) Farm household allowance is not payable to a person during the
20
period that:
21
(a) begins on the day the Secretary makes a determination that
22
the person has committed a qualification failure; and
23
(b) ends on the day the Secretary revokes the determination.
24
(2) A person ceases to be qualified for farm household allowance if:
25
(a) the Secretary makes a determination that the person has
26
committed a qualification failure; and
27
(b) the failure is not rectified within the period of 13 weeks
28
beginning on the day the failure began.
29
Farm household allowance Part 2
Compliance with obligations in relation to farm household allowance Division 9
Section 73
No. , 2014
Farm Household Support Bill 2014
51
73 Conduct failures
1
The Secretary may determine that a person commits a conduct
2
failure if the person has done any of the following:
3
(a) engaged in misconduct while undertaking an activity that is
4
specified in the financial improvement agreement that is in
5
force in relation to the person;
6
(b) refused or failed to accept an offer of suitable employment in
7
accordance with a financial improvement agreement that is in
8
force in relation to the person;
9
(c) an act that resulted (directly or indirectly) in the person
10
becoming unemployed, and it was reasonably foreseeable
11
that acting in that manner could result in the person
12
becoming unemployed.
13
74 Consequences of conduct failures
14
Farm household allowance is not payable to a person during the
15
period that:
16
(a) begins on the day the Secretary makes a determination that
17
the person has committed a conduct failure; and
18
(b) ends:
19
(i) if the Secretary revokes the determination under
20
section 75--on the day mentioned in that section; or
21
(ii) otherwise--8 weeks after the period began.
22
75 Revoking a determination relating to a conduct failure
23
(1) The Secretary may revoke a determination that a person has
24
committed a conduct failure if the Secretary determines that
25
continuing the period referred to in section 74 would cause the
26
person to be in severe financial hardship.
27
(2) The Secretary may make a determination under subsection (1) on
28
request or on his or her own initiative.
29
(3) For the purposes of subparagraph 74(b)(i), the day the period ends
30
is:
31
Part 2 Farm household allowance
Division 9 Compliance with obligations in relation to farm household allowance
Section 76
52
Farm Household Support Bill 2014
No. , 2014
(a) if the Secretary makes a determination under subsection (1)
1
of this section on request--the day before the request was
2
made; or
3
(b) if the Secretary makes a determination under subsection (1)
4
on his or her own initiative--the day before the Secretary
5
makes the determination.
6
76 Reasonable excuses
7
(1) The Secretary must not make a determination that a person has
8
committed a qualification failure or a conduct failure if the person
9
satisfies the Secretary that the person has a reasonable excuse for
10
the failure.
11
(2) A determination that a person has committed a qualification failure
12
or a conduct failure is taken never to have been made if, after the
13
Secretary makes the determination, the person satisfies the
14
Secretary that the person had a reasonable excuse for the failure.
15
Secretary's rules
16
(3) The Secretary's rules may specify matters the Secretary must take
17
into account in deciding whether a person has a reasonable excuse
18
for committing a failure.
19
(4) To avoid doubt, the Secretary's rules do not limit the matters that
20
the Secretary may take into account in deciding whether the person
21
has a reasonable excuse.
22
Requirements for reasonable excuses
23
(5) An excuse for failing to satisfy the activity test cannot be a
24
reasonable excuse for the purposes of paragraph 71(1)(c) unless:
25
(a) before the start of the relevant activity on the day concerned,
26
the person notified the excuse to the person or body specified
27
in the financial improvement agreement as the person or
28
body to whom prior notice should be given if the person is
29
unable to undertake the activity; or
30
(b) the Secretary is satisfied that in those circumstances it would
31
be unreasonable to expect the person to give the notification.
32
Farm household allowance Part 2
Compliance with obligations in relation to farm household allowance Division 9
Section 77
No. , 2014
Farm Household Support Bill 2014
53
77 Day of determination
1
For the purposes of sections 72 and 74 (consequences of
2
qualification and conduct failures), the day the Secretary makes the
3
determination is the day the Secretary originally makes the
4
determination (even if another decision in relation to the
5
determination is later made on review).
6
78 Relationship with section 80 of the Social Security
7
Administration Act
8
Nothing in this Division affects the power of the Secretary to
9
cancel or suspend a payment of farm household allowance under
10
section 80 of the Social Security Administration Act.
11
Part 3 Activity supplement
Section 79
54
Farm Household Support Bill 2014
No. , 2014
Part 3--Activity supplement
1
2
79 Simplified outline of this Part
3
A person to whom farm household allowance is payable may
4
qualify for the activity supplement if he or she undertakes, or will
5
undertake, an activity specified in the person's financial
6
improvement agreement.
7
The person may elect to have the supplement paid directly to the
8
person or to the service provider for the activity.
9
The person may be paid the activity supplement more than once.
10
However, in total the person will receive no more than a maximum
11
amount.
12
The amount of the supplement payable to the person is the cost of
13
the activity (up to a maximum amount).
14
The rules dealing with how to make claims, how payments are
15
made and review of decisions relating to the supplement are found
16
in the Social Security Act and the Social Security Administration
17
Act. (This is because Part 5 of this Act applies the Social Security
18
Act and the Social Security Administration Act in relation to the
19
supplement.)
20
80 Qualification for the activity supplement
21
Activities already undertaken
22
(1) A person is qualified for the activity supplement for an activity if:
23
(a) the person undertakes the activity for the purposes of the
24
activity test; and
25
(b) at the time the person begins to undertake the activity, farm
26
household allowance is payable to the person; and
27
Activity supplement Part 3
Section 80
No. , 2014
Farm Household Support Bill 2014
55
(c) the activity is specified in a financial improvement agreement
1
that is in force in relation to the person; and
2
(d) the activity is undertaken in accordance with the financial
3
improvement agreement; and
4
(e) either:
5
(i) the activity is prescribed in, and complies with any
6
conditions prescribed in, rules made for the purposes of
7
section 83 (determination of eligible activities); or
8
(ii) the activity is approved, in writing, by the Secretary;
9
and
10
(f) if the activity is training or advice--the activity is undertaken
11
in accordance with section 20 (training and advice to be
12
provided by appropriately qualified person); and
13
(g) the person makes a claim for the supplement within the
14
period of 2 months beginning on the day the invoice relating
15
to the activity is provided by the service provider for the
16
activity; and
17
(h) at the time the person lodges the claim for the supplement,
18
the person gives the Secretary evidence or a declaration in a
19
form approved by the Secretary that:
20
(i) if the activity is training or advice--the activity is
21
undertaken in accordance with section 20; and
22
(ii) if the person elects under section 81 for the supplement
23
to be paid directly to the person--the person has paid
24
the service provider for the activity; and
25
(i) the total amount of activity supplement that the person has
26
previously been paid is less than the maximum amount of
27
activity supplement.
28
Future activities
29
(2) A person is qualified for the activity supplement for an activity if:
30
(a) a person will undertake the activity for the purposes of the
31
activity test; and
32
(b) farm household allowance is payable to the person; and
33
(c) the activity is specified in a financial improvement agreement
34
that is in force in relation to the person; and
35
(d) either:
36
Part 3 Activity supplement
Section 80
56
Farm Household Support Bill 2014
No. , 2014
(i) the activity is prescribed in rules made for the purposes
1
of section 83 (determination of eligible activities); or
2
(ii) the activity is approved, in writing, by the Secretary;
3
and
4
(e) it is reasonable to assume that:
5
(i) the activity will be undertaken in accordance with the
6
financial improvement agreement; and
7
(ii) the activity will comply with any conditions prescribed
8
in rules made for the purposes of section 83; and
9
(iii) if the activity is advice or training--the activity will be
10
undertaken in accordance with section 20 (training and
11
advice to be provided by appropriately qualified
12
person); and
13
(f) the person makes a claim for the supplement within the
14
period of 2 months beginning on the day the invoice relating
15
to the activity is provided by the service provider for the
16
activity; and
17
(g) at the time the person lodges the claim for the supplement,
18
the person gives the Secretary, in a form approved by the
19
Secretary:
20
(i) if the activity is advice or training--a declaration that
21
the activity will be undertaken in accordance with
22
section 20; and
23
(ii) if the person elects under section 81 for the supplement
24
to be paid directly to the person--evidence that the
25
person has paid the service provider for the activity; and
26
(h) the total amount of activity supplement that the person has
27
previously been paid is less than the maximum amount of
28
activity supplement.
29
Qualification despite farm household allowance ceasing to be
30
payable
31
(3) A person is qualified for an activity supplement for an activity if:
32
(a) the person qualifies for the activity supplement for the
33
activity under subsection (1) or (2); and
34
(b) before the supplement is paid, farm household allowance
35
ceases to be payable to the person.
36
Activity supplement Part 3
Section 81
No. , 2014
Farm Household Support Bill 2014
57
81 Electing method of payment
1
(1) A person who makes a claim for an activity supplement for an
2
activity may elect for the supplement to be paid either:
3
(a) to the person; or
4
(b) to the service provider for the activity.
5
(2) The person must make the election in a manner or way approved
6
by the Secretary.
7
82 Amount of activity supplement
8
(1) The amount of the activity supplement that is payable to a person
9
for an activity is the lowest of the following amounts:
10
(a) the maximum amount prescribed by, or worked out in
11
accordance with, the Minister's rules;
12
(b) the cost of the activity;
13
(c) the remaining balance of the person's activity supplement.
14
(2) The remaining balance of a person's activity supplement is:
15
The maximum amount
The total of all activity supplements
of activity supplement
previously paid to the person
16
83 Determination of eligible activities
17
The Secretary's rules may prescribe either or both of the following:
18
(a) classes of activities that may be specified in a financial
19
improvement agreement for which the activity supplement is
20
payable;
21
(b) conditions that must be met for the supplement to be payable
22
for activities or classes of activities.
23
Part 4 Farm financial assessments
Division 1 Simplified outline of this Part
Section 84
58
Farm Household Support Bill 2014
No. , 2014
Part 4--Farm financial assessments
1
Division 1--Simplified outline of this Part
2
84 Simplified outline of this Part
3
The Secretary may require a person to have a farm financial
4
assessment conducted if the person is receiving, or has made a
5
claim for, farm household allowance.
6
A farm financial assessment is an assessment of the financial
7
position of a farm enterprise, and the person for whom the
8
assessment is conducted, and options for improving that financial
9
position.
10
A farm financial assessment must be conducted by an independent
11
prescribed adviser.
12
If a person has a farm financial assessment conducted, he or she
13
may qualify for a farm financial assessment supplement, which
14
may be paid directly to the person or to the adviser.
15
The amount of the supplement is the cost of the farm financial
16
assessment (up to a maximum amount).
17
Farm household allowance may not be payable if a person fails to
18
comply with a requirement to have a farm financial assessment
19
conducted.
20
The rules dealing with how to make claims, how payments are
21
made and review of decisions relating to the supplement are found
22
in the Social Security Act and the Social Security Administration
23
Act. (This is because Part 5 of this Act applies the Social Security
24
Act and the Social Security Administration Act in relation to the
25
supplement.)
26
Farm financial assessments Part 4
Farm financial assessments Division 2
Section 85
No. , 2014
Farm Household Support Bill 2014
59
Division 2--Farm financial assessments
1
85 Requirement to have farm financial assessment conducted
2
(1) The Secretary may require a person to have a farm financial
3
assessment conducted if the person is receiving, or has made a
4
claim for, farm household allowance.
5
(2) The Secretary must give a person who is required to have a farm
6
financial assessment conducted written notice of:
7
(a) the requirement; and
8
(b) sufficient information for the person to organise the
9
assessment; and
10
(c) a description of the farm financial assessment supplement;
11
and
12
(d) the period (of no more than 28 days) within which the person
13
must have farm financial assessment conducted; and
14
(e) a description of consequences that may apply if the person
15
does not comply with the notice.
16
(3) The Secretary may, in writing, extend the period under
17
paragraph (2)(d) once by no more than 28 days.
18
(4) A farm financial assessment must be in a form approved by the
19
Secretary.
20
(5) A notice given in accordance with this section is taken to have
21
been given under subsection 63(2) of the Social Security
22
Administration Act.
23
Note:
Farm household allowance may not be payable if a person does not
24
comply with a notice (see section 64 of the Social Security
25
Administration Act).
26
86 Requirement for farm financial assessment to be conducted by
27
independent prescribed adviser
28
A farm financial assessment must be conducted by a prescribed
29
adviser who:
30
(a) is independent from:
31
Part 4 Farm financial assessments
Division 2 Farm financial assessments
Section 86
60
Farm Household Support Bill 2014
No. , 2014
(i) the person (the recipient) for whom the farm financial
1
assessment is conducted; and
2
(ii) if the recipient is a member of a couple--the partner of
3
the recipient; and
4
(b) does not have any right or interest in:
5
(i) the farm; or
6
(ii) any asset that is owned by the recipient, the partner of
7
the recipient, or the relevant farm enterprise.
8
Farm financial assessments Part 4
Farm financial assessment supplement Division 3
Section 87
No. , 2014
Farm Household Support Bill 2014
61
Division 3--Farm financial assessment supplement
1
87 Qualification for farm financial assessment supplement
2
A person is qualified for farm financial assessment supplement if:
3
(a) the person has been given a notice in accordance with
4
section 85 requiring the person to have a farm financial
5
assessment conducted; and
6
(b) the assessment was conducted in accordance with section 86;
7
and
8
(c) the assessment has been provided to the Department in the
9
approved form; and
10
(d) the person makes a claim for the supplement within the
11
period of 2 months beginning on the day the invoice for the
12
assessment is provided; and
13
(e) at the time the person lodges the claim, the person gives the
14
Secretary, in a form approved by the Secretary, evidence that:
15
(i) the assessment was conducted in accordance with
16
section 86; and
17
(ii) if the person elects under section 88 for the supplement
18
to be paid directly to the person--the person has paid
19
the prescribed adviser who conducted the assessment.
20
88 Electing method of payment
21
(1) A person who makes a claim for farm financial assessment
22
supplement may elect for the supplement to be paid either:
23
(a) to the person; or
24
(b) to the prescribed adviser who conducts the farm financial
25
assessment.
26
(2) The person must make the election in a manner or way approved
27
by the Secretary.
28
Part 4 Farm financial assessments
Division 3 Farm financial assessment supplement
Section 89
62
Farm Household Support Bill 2014
No. , 2014
89 The amount of farm financial assessment supplement
1
The amount of farm financial assessment supplement is the lesser
2
of the following amounts:
3
(a) the maximum amount prescribed by, or worked out in
4
accordance with, the Minister's rules;
5
(b) the cost of the farm financial assessment.
6
Application and modification of the Social Security Act and the Social Security
Administration Act Part 5
Introduction Division 1
Section 90
No. , 2014
Farm Household Support Bill 2014
63
Part 5--Application and modification of the Social
1
Security Act and the Social Security
2
Administration Act
3
Division 1--Introduction
4
90 Simplified outline of this Part
5
This Part notionally modifies how the Social Security Act and the
6
Social Security Administration Act operate, so that those Acts can
7
apply in relation to payments made under this Act.
8
Farm household allowance is generally treated in the same way as
9
newstart and youth allowance. This means that where there is a
10
reference in those Acts to newstart or youth allowance, it is as if
11
there were also a reference to farm household allowance. Similarly,
12
where there is a reference to a concept that is defined to include
13
those allowances, such as "social security benefit" or "social
14
security payment", it is as if that concept were also defined to
15
include farm household allowance.
16
The farm household allowance, the activity supplement and the
17
farm financial assessment supplement are all treated as if they were
18
social security payments. As a result, the general rules in the Social
19
Security Act and Social Security Administration Act relating to
20
how to make claims, how payments are made and review of
21
decisions apply in relation payments under this Act.
22
In order for those Acts to operate appropriately in relation to this
23
Act, some provisions of those Acts are notionally turned off, and
24
the text of other provisions of the Acts is notionally changed.
25
The modifications of concepts in the Social Security Act and the
26
Social Security Administration Act flow through to other Acts,
27
such as the Income Tax Assessment Act 1936 and the Income Tax
28
Assessment Act 1997 as a result of this Part.
29
Part 5 Application and modification of the Social Security Act and the Social Security
Administration Act
Division 1 Introduction
Section 91
64
Farm Household Support Bill 2014
No. , 2014
91 Purposes of this Part
1
(1) This Part modifies the Social Security Act and the Social Security
2
Administration Act so that those Acts apply in relation to payments
3
made under this Act.
4
(2) The modifications apply for the purposes of the following Acts
5
(including any regulations or other legislative instruments made
6
under those Acts):
7
(a) this Act;
8
(b) the Social Security Act;
9
(c) the Social Security Administration Act;
10
(d) any other Act that refers to the Social Security Act or the
11
Social Security Administration Act.
12
(3) To avoid doubt, when an Act (the relevant Act) other than the
13
Social Security Act:
14
(a) uses an expression that is also used in all or part of the Social
15
Security Act; and
16
(b) gives the expression the same meaning as in that Act or part;
17
and
18
(c) the expression is modified by section 93 of this Act;
19
the expression when used in the relevant Act has the modified
20
meaning.
21
Example: Subsection 3(2) of the Social Security Administration Act gives
22
expressions used in that Act the same meaning as in the Social
23
Security Act. So, for example, a reference in the Social Security
24
Administration Act to a social security payment is taken, as a result of
25
this Part, to include a reference to farm household allowance, activity
26
supplement and farm financial assessment supplement.
27
92 Further modification of the Social Security Act and the Social
28
Security Administration Act
29
(1) The Minister's rules may provide that:
30
(a) this Part; or
31
(b) the Social Security Act; or
32
(c) the Social Security Administration Act;
33
Application and modification of the Social Security Act and the Social Security
Administration Act Part 5
Introduction Division 1
Section 92
No. , 2014
Farm Household Support Bill 2014
65
has effect for the purposes set out in section 91 of this Act with any
1
modifications that are prescribed.
2
(2) Without limiting subsection (1), the Minister's rules may:
3
(a) prescribe additional provisions of the Social Security Act or
4
the Social Security Administration Act that do not apply, or
5
that apply with modifications that are prescribed, in relation
6
to the operation of this Act; or
7
(b) prescribe provisions referred to in section 94 or 98 of this Act
8
that, despite those sections, apply in relation to the operation
9
of this Act; or
10
(c) make further modifications of provisions already modified by
11
section 95 or 99 of this Act.
12
Part 5 Application and modification of the Social Security Act and the Social Security
Administration Act
Division 2 Application and modification of the Social Security Act
Section 93
66
Farm Household Support Bill 2014
No. , 2014
Division 2--Application and modification of the Social
1
Security Act
2
93 Application of the Social Security Act
3
(1) This table modifies (subject to this Division) the operation of the
4
Social Security Act.
5
Note 1:
Certain provisions of the Social Security Act do not apply as a result
6
of section 94 of this Act. Sections 95 to 97 modify particular
7
provisions of the Social Security Act.
8
Note 2:
Division 8 of Part 2 of this Act (rate of farm household allowance)
9
also modifies the Social Security Act for the purposes of determining
10
the rate of farm household allowance.
11
12
Modification of the general operation of the Social Security Act
Item
The Social Security Act applies
(subject to this Division) as if a
reference in a provision of that
Act to ...
included a reference to ...
1
newstart allowance
farm household allowance, to the
extent that it relates to a person who
has turned 22.
2
youth allowance
farm household allowance, to the
extent that it relates to a person who
has not turned 22.
3
an income support payment
farm household allowance.
4
a social security benefit
farm household allowance.
5
a social security entitlement
farm household allowance.
6
a social security payment
farm household allowance, activity
supplement and farm financial
assessment supplement.
7
the Minister (within the meaning of
that Act)
the Minister (within the meaning of
this Act), to the extent that the
application of the provision is solely
in relation to a payment under this
Act.
Application and modification of the Social Security Act and the Social Security
Administration Act Part 5
Application and modification of the Social Security Act Division 2
Section 93
No. , 2014
Farm Household Support Bill 2014
67
Modification of the general operation of the Social Security Act
Item
The Social Security Act applies
(subject to this Division) as if a
reference in a provision of that
Act to ...
included a reference to ...
8
subject to subsection (3), the
Secretary (within the meaning of
that Act)
the Secretary (within the meaning of
this Act), to the extent that the
application of the provision is solely
in relation to a payment under this
Act.
9
the Department (within the meaning
of that Act)
the Department (within the meaning
of this Act), to the extent that the
application of the provision is solely
in relation to a payment under this
Act.
10
the purposes of the Social Security
Act
the purposes of this Act.
11
the social security law
this Act.
12
a payment under the Social Security
Act (however expressed)
a payment under this Act.
13
Part 2.11 or 2.12 of the Social
Security Act
Part 2 of this Act.
14
newstart allowance ordinary waiting
period under sections 620 and 621 of
the Social Security Act
ordinary waiting period (within the
meaning of this Act).
15
youth allowance newly arrived
resident's waiting period under
section 549D of the Social Security
Act
newly arrived resident's waiting
period (within the meaning of this
Act), to the extent that it relates to a
person who has not turned 22.
16
newstart allowance newly arrived
resident's waiting period under
sections 623A and 623B of the
Social Security Act
newly arrived resident's waiting
period (within the meaning of this
Act), to the extent that it relates to a
person who has turned 22.
17
a temporary incapacity exemption
under section 542A of the Social
Security Act
an exemption from the activity test
under section 31 of this Act.
18
Subdivision BA of Division 1 of
Subdivision C of Division 5 of
Part 5 Application and modification of the Social Security Act and the Social Security
Administration Act
Division 2 Application and modification of the Social Security Act
Section 93
68
Farm Household Support Bill 2014
No. , 2014
Modification of the general operation of the Social Security Act
Item
The Social Security Act applies
(subject to this Division) as if a
reference in a provision of that
Act to ...
included a reference to ...
Part 2.12 of the Social Security Act
Part 2 of this Act.
19
section 544B or 606 of the Social
Security Act
section 15, 16, 17 or 18 of this Act.
20
a Youth Allowance Employment
Pathway Plan or a Newstart
Allowance Employment Pathway
Plan
a financial improvement agreement.
21
the purposes of the assets test
the purposes of Subdivision A of
Division 6 of Part 2 of this Act.
22
Subdivision AB of Division 2 of
Part 2.11
Subdivision A of Division 6 of
Part 2 of this Act.
23
section 549A of the Social Security
Act
section 44 of this Act.
24
section 549B or 549C of the Social
Security Act
section 45 of this Act.
25
section 598 of the Social Security
Act
section 44 or 45 of this Act.
26
sections 611 and 612 of the Social
Security Act
sections 33 and 34 of this Act.
27
section 612 of the Social Security
Act
subsection 36(1) of this Act.
28
the youth allowance assets test or the
newstart allowance assets test
the tests in sections 33 and 34 of this
Act.
29
the youth allowance liquid assets
test or the newstart allowance liquid
assets test
the test in section 33 of this Act.
30
section 547AA or 615 of the Social
Security Act
section 72 of this Act, as it applies
as a result of paragraph 71(1)(a).
31
Division 2 of Part 4.2 of the Social
Security Act (overseas portability)
Division 7 of Part 2 of this Act.
32
subsection 42P(1) of the Social
sections 73 and 74 of this Act.
Application and modification of the Social Security Act and the Social Security
Administration Act Part 5
Application and modification of the Social Security Act Division 2
Section 94
No. , 2014
Farm Household Support Bill 2014
69
Modification of the general operation of the Social Security Act
Item
The Social Security Act applies
(subject to this Division) as if a
reference in a provision of that
Act to ...
included a reference to ...
Security Administration Act
33
subsection 42P(2) of the Social
Security Administration Act
section 74 of this Act.
Note:
Item 11 is subject to subsection 20(2) (training and advice to be
1
provided by appropriately qualified person).
2
(2) For the purposes of the table in subsection (1):
3
(a) item 12 of the table applies only in relation to a general
4
reference to a payment under the Social Security Act and not
5
to a reference to a specific payment under the Social Security
6
Act; and
7
(b) item 13 of the table applies only in relation to a general
8
reference to Part 2.11 or 2.12 of the Social Security Act and
9
not a reference to a specific part of that Part.
10
Note 1:
For example, item 12 of the table would not apply in relation to a
11
specific reference to austudy payment under the Social Security Act.
12
Note 2:
Other items of this table translate references to a part of Part 2.11 or
13
2.12 of the Social Security Act into references to parts of Part 2 of this
14
Act.
15
(3) Item 8 of the table does not apply in relation to the following
16
provisions of the Social Security Administration Act (as those
17
provisions apply as a result of subsection 3(2) of that Act):
18
(a) subsection 127(3) (decisions that are not reviewable by the
19
Secretary);
20
(b) section 234 (delegation).
21
94 Certain provisions do not apply
22
The following provisions of the Social Security Act do not apply in
23
relation to the operation of this Act:
24
(a) section 28B (approved training courses for training
25
supplement);
26
Part 5 Application and modification of the Social Security Act and the Social Security
Administration Act
Division 2 Application and modification of the Social Security Act
Section 95
70
Farm Household Support Bill 2014
No. , 2014
(b) Divisions 1, 2 and 5 of Part 2.11 (youth allowance);
1
(c) Part 2.11B (scholarship payments for students);
2
(d) Divisions 1 and 4 of Part 2.12 (newstart allowance);
3
(e) Part 2.13A (education entry payment);
4
(f) Division 2 of Part 2.18A (quarterly clean energy
5
supplement);
6
(g) Part 2.21 (mobility allowance);
7
(h) Part 2.22A (special employment advances);
8
(i) Part 2.24A (pensioner education supplement);
9
(j) Division 1 of Part 2A.1 (qualification for, and issue of,
10
pensioner concession card);
11
(k) section 1061ZM (qualification for health care card:
12
employment-affected person);
13
(l) section 1061ZMA (further extended qualification rule: loss of
14
payment because of employment income);
15
(m) Division 1AB of Part 3.10 (working credit accrual and
16
depletion rules and their consequences);
17
(n) Division 4 of Part 3.16 (indexation--adjustment of other
18
rates);
19
(o) Part 4.2 (overseas portability);
20
(p) Schedule 1A (savings and transitional provisions).
21
95 Modification of particular provisions
22
This table modifies particular provisions of the Social Security Act.
23
24
Modification of particular provisions of the Social Security Act
Item
The following provisions
of the Social Security
Act:
apply as if ...
1
subsection 8(8)
that subsection included a reference to an
adjusted disability pension (within the
meaning of section 118NA of the Veterans'
Entitlements Act).
2
paragraph 1061SB(2)(c)
(increased rate of phone
the words "has reached pension age and" were
omitted from that paragraph.
Application and modification of the Social Security Act and the Social Security
Administration Act Part 5
Application and modification of the Social Security Act Division 2
Section 95
No. , 2014
Farm Household Support Bill 2014
71
Modification of particular provisions of the Social Security Act
Item
The following provisions
of the Social Security
Act:
apply as if ...
allowance for home
internet)
3
table item 28 in
section 1190 (indexation)
(a) the amount described in that item included
the farm assets value limit set out in
section 34 of this Act; and
(b) the provisions set out in that item included
section 34 of this Act.
4
subsection 1192(1)
the reference in that subsection to the Social
Security Act included a reference to this Act.
5
section 1192
that section also provided that the first
indexation of an amount:
(a) under item 21 of the CPI Indexation Table
in subsection 1191(1); and
(b) that is the farm assets value limit set out in
section 34 of this Act;
is to take place on 1 July 2015.
6
sections 1118 and 1118B
a reference in those sections to the value of a
person's assets (however expressed) included
a reference to:
(a) the value of a person's farm assets; and
(b) the value of a person's non-farm assets.
7
subsection 1118AA(2)
the reference in that subsection to the value of
a person's assets were a reference to the value
of a person's non-farm assets.
8
subsections 1118AB(2)
and 1118AC(2)
the references in those subsections to the total
value of the person's assets were references to
the total value of the person's non-farm assets.
9
section 1120C
that section applied for the purposes of
Subdivision A of Division 6 of Part 2 of this
Act (assets test).
10
section 1121
a reference in that section to an asset were a
reference to a non-farm asset.
11
section 1121A
the content of that section (after the heading)
Part 5 Application and modification of the Social Security Act and the Social Security
Administration Act
Division 2 Application and modification of the Social Security Act
Section 95
72
Farm Household Support Bill 2014
No. , 2014
Modification of particular provisions of the Social Security Act
Item
The following provisions
of the Social Security
Act:
apply as if ...
were replaced with:
(1) If there is a charge or encumbrance over
any of a person's farm assets, the value of
those farm assets for the purposes of this Act
is the result of the following formula (but not
less than nil):
Sum of the value
Sum of each liability
of each farm asset
related to a farm asset
(2) The Secretary (within the meaning of the
Farm Household Support Act 2014) may
decide when, and the extent to which, a
liability is related to a farm asset for the
purposes of subsection (1).
12
section 1122
the content of that section (after the heading)
were replaced with:
(1) The value of a person's farm assets for the
purposes of this Act includes so much of an
amount lent by the person, for spending
relating to farm assets, as remains unpaid.
(2) The value of a person's non-farm assets
for the purposes of this Act includes so much
of an amount lent by the person that:
(a) is not covered by subsection (1); and
(b) remains unpaid.
(3) For the purposes of this section, disregard
any amount payable by way of interest.
13
sections 1131 and 1132
a reference in those sections to an assets test
included a reference to a test in Subdivision A
of Division 6 of Part 2 of this Act.
Application and modification of the Social Security Act and the Social Security
Administration Act Part 5
Application and modification of the Social Security Act Division 2
Section 96
No. , 2014
Farm Household Support Bill 2014
73
96 Application of Division 10 of Part 2.11 and Division 9 of Part 2.12
1
(bereavement payments) of the Social Security Act
2
(1) To avoid doubt, a person continues to be qualified for payments
3
under Division 10 of Part 2.11 or Division 9 of Part 2.12
4
(bereavement payments) of the Social Security Act to cover the
5
bereavement period even if the person ceases to receive farm
6
household allowance because the person's cumulative period of
7
farm household allowance is more than 3 years.
8
(2) To avoid doubt, a person's rate of farm household allowance
9
continues at the rate worked out under section 567G or 660M
10
(continuation of allowance on death of a child) of the Social
11
Security Act (as modified by Division 8 of Part 2 of this Act) even
12
if the person would otherwise cease to receive the allowance
13
because the person's cumulative period of farm household
14
allowance is more than 3 years.
15
97 References to youth allowance and newstart allowance
16
(1) In relation to references to youth allowance, disregard any
17
requirement or condition that a person:
18
(a) is or is not undertaking full-time study; and
19
(b) is or is not a new apprentice.
20
(2) In relation to references to either newstart allowance or youth
21
allowance, disregard any requirement or condition that a person
22
has a partial capacity to work.
23
Part 5 Application and modification of the Social Security Act and the Social Security
Administration Act
Division 3 Application and modification of the Social Security Administration Act
Section 98
74
Farm Household Support Bill 2014
No. , 2014
Division 3--Application and modification of the Social
1
Security Administration Act
2
98 Certain provisions do not apply
3
The following provisions of the Social Security Administration Act
4
do not apply in relation to the operation of this Act:
5
(a) section 45 (payment of youth allowance to person under 18);
6
(b) section 56 (failure to nominate parent);
7
(c) Division 3A of Part 3 (participation payments);
8
(d) Part 3B (income management regime);
9
(e) Part 3C (schooling requirements);
10
(f) section 241 (annual report);
11
(g) section 242 (appropriation).
12
99 Modification of particular provisions
13
This table modifies particular provisions of the Social Security
14
Administration Act.
15
16
Modification of particular provisions of the Social Security Administration Act
Item
The following provisions of the
Social Security Administration
Act:
apply as if ...
1
subsections 10(2) and (3)
the words "(but not Part 2 of the
Farm Household Support Act 2014,
as that Part applies because of Part 5
of that Act)" were added after "1991
Act".
2
subsection 64(2)
were omitted.
3
subsection 69(6)
the words "more than 13 weeks
before the giving of the notice" were
replaced with the words "before the
day the first claim for farm
household allowance was made".
4
paragraph 81(1)(a)
the words "(other than newstart
Application and modification of the Social Security Act and the Social Security
Administration Act Part 5
Application and modification of the Social Security Administration Act Division 3
Section 99
No. , 2014
Farm Household Support Bill 2014
75
Modification of particular provisions of the Social Security Administration Act
Item
The following provisions of the
Social Security Administration
Act:
apply as if ...
allowance)" were omitted from that
paragraph.
5
subsections 110(1A) and (2A)
the words "who has not reached
pension age" were omitted from
those subsections.
6
paragraph 110(3A)(b)
that paragraph was replaced with:
(b) unless the partner is receiving
farm household allowance--the
partner has not reached pension
age; and
7
subsection 118(2A)
the words "who has not reached
pension age" were omitted from that
subsection.
8
subparagraph 118(2B)(b)(ii)
the words "has reached pension age
and" were omitted from that
subparagraph.
9
subsection 118(5A)
the words "who has not reached
pension age" were omitted from that
subsection.
10
subparagraph 118(5B)(b)(ii)
the words "has reached pension age
and" were omitted from that
subparagraph.
11
paragraph 118(6A)(b)
that paragraph was replaced with:
(b) unless the partner is receiving
farm household allowance--the
partner has not reached pension
age; and
12
subparagraph 118(6B)(g)(ii)
the words "has reached pension age
and" were omitted from that
subparagraph.
13
section 125
the words "or the Farm Household
Support Act 2014" were inserted
after "1991 Act".
Part 5 Application and modification of the Social Security Act and the Social Security
Administration Act
Division 3 Application and modification of the Social Security Administration Act
Section 99
76
Farm Household Support Bill 2014
No. , 2014
Modification of particular provisions of the Social Security Administration Act
Item
The following provisions of the
Social Security Administration
Act:
apply as if ...
14
clause 5 of Schedule 2
subclause (1B) of that clause were
omitted.
15
clause 5A of Schedule 2
the words "(other than farm
household allowance)" were inserted
after "participation payment".
Miscellaneous Part 6
Section 100
No. , 2014
Farm Household Support Bill 2014
77
Part 6--Miscellaneous
1
2
100 Simplified outline of this Part
3
This Part deals with miscellaneous matters, such as delegations and
4
rules.
5
101 Delegation of powers
6
(1) The Secretary may, by signed writing, delegate to an officer of the
7
Department all or any of his or her powers or functions under this
8
Act, or the Social Security Act or the Social Security
9
Administration Act (as those Acts apply because of Part 5 of this
10
Act).
11
(2) The Secretary (the Agriculture Secretary) may, in writing,
12
delegate all or any of his or her powers or functions under this Act,
13
or the Social Security Act or the Social Security Administration
14
Act (as those Acts apply because of Part 5 of this Act), to:
15
(a) the Social Security Secretary; or
16
(b) an SES employee or acting SES employee in the Social
17
Security Department; or
18
(c) the Chief Executive Centrelink; or
19
(d) a Departmental employee (within the meaning of the Human
20
Services (Centrelink) Act 1997).
21
102 Delegation by Secretary: references to the Secretary and the
22
Department
23
(1) This section applies if, under section 101, the Secretary (the
24
Agriculture Secretary) delegates a power or function to:
25
(a) the Social Security Secretary; or
26
(b) an SES employee or acting SES employee in the Social
27
Security Department; or
28
(c) the Chief Executive Centrelink; or
29
Part 6 Miscellaneous
Section 102
78
Farm Household Support Bill 2014
No. , 2014
(d) a Departmental employee (within the meaning of the Human
1
Services (Centrelink) Act 1997).
2
Requiring persons to produce or give documents to the Social
3
Security or Human Services Department
4
(2) A person who is delegated a power or function to require another
5
person to produce or give any document or information to the
6
Department (the Agriculture Department) may instead require the
7
other person to produce or give the document or information to the
8
Human Services Department or the Social Security Department (as
9
the case requires).
10
(3) A person who complies with a requirement under subsection (2) is
11
taken for all purposes to have complied with a requirement of the
12
Agriculture Secretary to produce or give the document to the
13
Agriculture Department.
14
(4) A person who does not comply with a requirement under
15
subsection (2) is taken for all purposes not to have complied with a
16
requirement of the Agriculture Secretary to produce or give the
17
document to the Agriculture Department.
18
References to Secretary or Department
19
(5) The Secretary's rules may provide as set out in subsection (6) if, as
20
a result of a delegation, a reference (however described) to the
21
Agriculture Secretary or the Agriculture Department in a provision
22
of this Act, the Social Security Act or the Social Security
23
Administration Act, or in any instrument made under those Acts, is
24
inappropriate (whether for administrative reasons or any other
25
reason).
26
(6) The Secretary's rules may provide that the provision is to have
27
effect as if:
28
(a) the reference to the Agriculture Secretary were a reference to
29
the Chief Executive Centrelink or the Social Security
30
Secretary (as the case requires); or
31
(b) the reference to the Agriculture Department were a reference
32
to the Human Services Department or the Social Security
33
Department (as the case requires).
34
Miscellaneous Part 6
Section 103
No. , 2014
Farm Household Support Bill 2014
79
The provision has effect accordingly.
1
103 Approval of forms
2
The Secretary may, in writing, approve a form for the purposes of
3
this Act.
4
104 Annual report
5
(1) As soon as practicable after 30 June in each year, the Secretary
6
must give to the Minister a written report on the administrative
7
operation of this Act during the financial year that ended on that
8
30 June.
9
(2) The Minister is to cause a copy of the report to be laid before each
10
House of the Parliament within 15 sitting days of that House after
11
the Minister receives the report.
12
105 Appropriation
13
(1) Payments of all amounts which are payable to or in relation to a
14
person because the person qualifies for farm household allowance
15
under section 8 or 9 are to be made out of the Consolidated
16
Revenue Fund, which is appropriated accordingly.
17
(2) To avoid doubt, subsection (1) applies in relation to any
18
supplement, payment or allowance that is payable under the Social
19
Security Act as a result of a person qualifying for farm household
20
allowance.
21
(3) Payments of all amounts which are payable to or in relation to a
22
person under Part 3 (activity supplement) or Division 3 of Part 4
23
(farm financial assessment supplement) of this Act are to be made
24
out of the Consolidated Revenue Fund, which is appropriated
25
accordingly.
26
Part 6 Miscellaneous
Section 106
80
Farm Household Support Bill 2014
No. , 2014
106 Rules
1
Minister's rules
2
(1) The Minister may, by legislative instrument, make Minister's rules
3
prescribing matters required or permitted by this Act to be
4
prescribed by the Minister's rules.
5
Secretary's rules
6
(2) The Secretary may, by legislative instrument, make Secretary's
7
rules prescribing matters:
8
(a) required or permitted by this Act to be prescribed by the
9
Secretary's rules; or
10
(b) necessary or convenient to be prescribed for carrying out or
11
giving effect to this Act.
12
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