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This is a Bill, not an Act. For current law, see the Acts databases.


SOCIAL SECURITY LEGISLATION AMENDMENT (FURTHER BUDGET AND OTHER MEASURES) BILL 1996

1996

The Parliament of the
Commonwealth of Australia

THE SENATE




Presented and read a first time









Social Security Legislation Amendment (Further Budget and Other Measures) Bill 1996

No. , 1996

(Social Security)



A Bill for an Act to amend the law relating to social security, and for related purposes



9613820—3,165/14.10.1996—(138/96) Cat. No. 96 5265 5 ISBN 0644 482362

Contents



Social Security Act 1991 6sslafs1.html

Social Security Act 1991 6sslafs1.html

Student and Youth Assistance Act 1973 6sslafs1.html
Social Security Act 1991 6sslafs1.html

Student and Youth Assistance Act 1973 6sslafs1.html

Social Security Act 1991 6sslafs1.html

A Bill for an Act to amend the law relating to social security, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Security Legislation Amendment (Further Budget and Other Measures) Act 1996.

2 Commencement

(1) Subject to subsections (2), (3) and (4), this Act commences on the day on which it receives the Royal Assent.

(2) Schedule 1 commences on 20 September 1997.

(3) Schedule 2 commences on 1 July 1997.

(4) Schedule 4 commences on 20 September 1997, immediately after the commencement of Part 3 of Schedule 24 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

3 Schedule(s)

Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments to remove the means test exemption for superannuation assets in certain cases

Social Security Act 1991

1 Section 3 (index)

Insert:

prescribed pre-pension age person 23(1)

2 Subsection 8(1) (definition of income)

After “(5)”, insert “, (7A)”.

3 After subsection 8(7)

Insert:

Excluded amounts—superannuation investment returns

(7A) Subject to subsection (7B), a return on a person’s investment in a superannuation fund, an approved deposit fund, a deferred annuity or an ATO small superannuation account is not income for the purposes of this Act if the person has not:

(a) reached pension age; or

(b) started to receive a pension or an annuity out of the fund.

Note 1: For pension age see subsection 23(1).

Note 2: For superannuation fund, approved deposit fund, deferred annuity and ATO small superannuation account see subsection 9(1).

Certain investment returns not excluded

(7B) Subsection (7A) does not exclude a return on a person’s investment if the person is a prescribed pre-pension age person.

Note: For prescribed pre-pension age person see subsection 23(1).

4 Paragraph 8(8)(b)

Repeal the paragraph and the notes.

5 Paragraph 9(1B)(d) (note)

Omit “before pension age is reached”, substitute “by persons who are neither prescribed pre-pension age persons nor persons who have reached pension age”.

6 Paragraph 9(1B)(e) (note)

Omit “before pension age is reached”, substitute “by persons who are neither prescribed pre-pension age persons nor persons who have reached pension age”.

7 Paragraph 9(1B)(f) (note)

Omit “before pension age is reached”, substitute “by persons who are neither prescribed pre-pension age persons nor persons who have reached pension age”.

8 Paragraph 9(1B)(g) (note)

Omit “before pension age is reached”, substitute “by persons who are neither prescribed pre-pension age persons nor persons who have reached pension age”.

9 Paragraph 9(1C)(a)

After “investor”, insert “is not a prescribed pre-pension age person and”.

10 Paragraph 9(1C)(b)

After “investor”, insert “is not a prescribed pre-pension age person and”.

11 Paragraph 9(1C)(c)

After “investor”, insert “is not a prescribed pre-pension age person and”.

12 Paragraph 9(1C)(ca)

After “investor”, insert “is not a prescribed pre-pension age person and”.

13 Subsection 9(1C) (note 1)

Repeal the note, substitute:

Note 1: For pension age and prescribed pre-pension age person see subsection 23(1).

14 Subsection 23(1)

Insert:

prescribed pre-pension age person means a person who, whether before, on or after 20 September 1997:

(a) reaches, or has reached, 55; and

(b) has received, since reaching 55, any, or any combination, of the following for a single continuous period of 39 weeks, or for separate periods that add up to a period of 39 weeks:

(i) a social security pension;

(ii) a social security benefit;

(iii) a service pension.

15 After subsection 23(1)

Insert:

(1A) For the purposes of the definition of prescribed pre-pension age person in subsection (1), a person who receives a payday-based payment of a pension or benefit of the kind referred to in paragraph (b) of the definition is taken to have received the payment for a period of 2 weeks.

Note: For payday-based payment see section 42.

16 Section 1095

Repeal the section.

17 Paragraph 1096(a)

Omit “before the person reaches pension age”.

18 After paragraph 1096(a)

Insert:

(aa) when the investment is realised, the person is not a prescribed pre-pension age person and has not reached pension age; and

19 At the end of section 1096

Add:

Note: For pension age and prescribed pre-pension age person see subsection 23(1).

20 Paragraph 1118(1)(f)

Repeal the paragraph.

21 After section 1118

Insert:

1118A Value of certain superannuation investments to be disregarded

(1) Subject to subsections (2) and (3), the value of a person’s investment in a superannuation fund, an approved deposit fund, a deferred annuity or an ATO small superannuation account is to be disregarded in calculating the value of the person’s assets for the purposes of this Act if the person has not:

(a) reached pension age; or

(b) started to receive a pension or an annuity out of the fund.

(2) Subsection (1) does not apply to the calculation of the value of a person’s assets for the purposes of section 198J or 198L, subparagraph 263(1)(d)(iv), or section 1124A, 1125, 1125A, 1126, 1133 or 1135A.

(3) Subsection (1) does not exclude the value of a person’s investment if the person is a prescribed pre-pension age person.

Note: For pension age and prescribed pre-pension age person see subsection 23(1).

Schedule 2—Single persons sharing accommodation

Social Security Act 1991

1 Section 3 (index)

Insert:

single person sharing accommodation 5A

2 After section 5

Insert:

5A Single person sharing accommodation

(1) For the purposes of this Act, a person is to be treated as a single person sharing accommodation if the person:

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

(b) has no dependent children; and

(c) has, in common with one or more other people, the right to use at least one major area of accommodation.

(2) A person is not to be treated as a single person sharing accommodation if the person:

(a) pays, or is liable to pay, amounts for the person’s board and lodging; or

(b) is residing in a nursing home.

(3) A person who has the exclusive right to use a bathroom, a kitchen and a bedroom is not to be treated as a single person sharing accommodation solely because the person has the right, in common with one or more other people, to use other major areas of accommodation.

(4) A person is not to be treated as a single person sharing accommodation solely because the person shares accommodation with one or more recipient children of the person.

(5) If:

(a) a person lives alone in a caravan or mobile home, or on board a vessel; or

(b) a person shares accommodation in a caravan, mobile home or vessel solely with one or more recipient children of the person;

the person is not to be treated as a single person sharing accommodation solely because the person has the right, in common with one or more other people, to use one or more major areas of accommodation in a caravan park or marina.

(6) In this section:

major area of accommodation means any of the following, whether identifiably separate from other areas of accommodation or not:

(a) a bathroom;

(b) a kitchen;

(c) a bedroom.

recipient child means a child who receives any of the following, but who does not receive any amount by way of rent assistance:

(a) a social security payment;

(b) an AUSTUDY allowance;

(c) a payment under the ABSTUDY Schooling scheme or the ABSTUDY Tertiary scheme;

(d) a service pension;

(e) a youth training allowance.

3 Point 1064-D5

Omit “The person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table.”, substitute:

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of the rate that would otherwise have been Rate B for the person.

4 Point 1064-D5 (after note 2)

Insert:

Note 2A: For single person sharing accommodation see section 5A.

5 Point 1066-D4

Omit “The person’s maximum rent assistance rate is Rate B for the person worked out using column 2 of the Table.”, substitute:

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B worked out using column 2 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of Rate B.

6 Point 1066-D4 (before note 2)

Insert:

Note 1: For single person sharing accommodation see section 5A.

7 Point 1066A-EA12

Omit “The person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table.”, substitute:

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of the rate that would otherwise have been Rate B for the person.

8 Point 1066A-EA12 (after note 3)

Insert:

Note 3A: For single person sharing accommodation see section 5A.

9 Point 1066A-EB13

Omit “The person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table.”, substitute:

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of the rate that would otherwise have been Rate B for the person.

10 Point 1066A-EB13 (after note 4)

Insert:

Note 4A: For single person sharing accommodation see section 5A.

11 Point 1067-F13

Omit “The person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table.”, substitute:

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of the rate that would otherwise have been Rate B for the person.

12 Point 1067-F13 (after note 1A)

Insert:

Note 1B: For single person sharing accommodation see section 5A.

13 Point 1067E-D6

Omit “The person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table.”, substitute:

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of the rate that would otherwise have been Rate B for the person.

14 Point 1067E-D6 (after note 1)

Insert:

Note 1A: For single person sharing accommodation see section 5A.

15 Point 1068-F15

Omit “The person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table.”, substitute:

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of the rate that would otherwise have been Rate B for the person.

16 Point 1068-F15 (after note 1)

Insert:

Note 1A: For single person sharing accommodation see section 5A.

Student and Youth Assistance Act 1973

17 Point D6 of Part 2 of Schedule 1

Omit “The person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table.”, substitute:

If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two-thirds of the rate that would otherwise have been Rate B for the person.

18 Point D6 of Part 2 of Schedule 1 (after note 1)

Insert:

Note 1A: For single person sharing accommodation see section 5A of the Social Security Act.

Schedule 3—Holiday processing of social security benefits

Social Security Act 1991

1 Paragraph 1223AA(1)(a)

After “social security benefit”, insert “(other than partner allowance)”.

2 Paragraph 1223AA(1)(b)

Repeal the paragraph, substitute:

(b) the person fails to provide a statement under section 408JC (widow allowance), section 658 (newstart allowance), section 660YID (mature age allowance), section 728 (sickness allowance), or section 760 (special benefit), in respect of the period;

3 After subsection 1223AA(1)

Insert:

(1AA) If a person has received a prepayment of partner allowance in respect of a period and:

(a) the person fails to provide a statement under section 771MD in respect of the period; or

(b) the person’s partner fails to provide a statement under section 658 (newstart allowance), section 660YID (mature age allowance), or section 760 (special benefit), in respect of the period;

the amount of the prepayment is a debt due to the Commonwealth.

4 Subsection 1223AA(1A)

After “subsection (1)”, insert “or (1AA)”.

5 Paragraph 1223AA(1B)(c)

After “subsection (1)”, insert “or (1AA)”.

6 After subsection 1223AA(1B)

Insert:

(1BA) If:

(a) a person has, whether before or after the commencement of this subsection, received a payment (the received amount) of a social security benefit (other than parenting allowance) in respect of a period; and

(b) the received amount was calculated having regard to estimated income or anticipated changes of circumstances set out in a statement made in response to a recipient statement notice in respect of the period; and

(c) the person’s actual income or the circumstances that actually occur are different from those estimated or anticipated; and

(d) the received amount is more than the amount (if any) of the social security benefit (the correct amount) that would have been paid under this Act to the person in respect of the period if the income or circumstances set out in the statement had been the person’s actual income or the circumstances that actually occurred;

the difference between the received amount and the correct amount is a debt due to the Commonwealth.

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

Note: The heading to section 1223AA is replaced by the heading “Debts arising from prepayments and certain other payments”.

7 Subsection 1223AA(1C)

Omit “or (1B)”, substitute “, (1AA), (1B) or (1BA)”.

8 Subsection 1223AA(2) (definition of prepayment)

Omit “652”, substitute “408GG, 652, 660YGG”.

Student and Youth Assistance Act 1973

9 After subsection 262(3)

Insert:

Calculation of debt: estimated income or anticipated circumstances

(3A) If:

(a) a person has, whether before or after the commencement of this subsection, received a payment (the received amount) of a youth training allowance in respect of a period; and

(b) the received amount was calculated having regard to estimated income or anticipated changes of circumstances set out in a statement made in response to a notice under section 150 in respect of the period; and

(c) the person’s actual income or the circumstances that actually occur are different from those estimated or anticipated; and

(d) the received amount is more than the amount (if any) of the youth training allowance (the correct amount) that would have been paid under this Act to the person in respect of the period if the income or circumstances set out in the statement had been the person’s actual income or the circumstances that actually occurred;

the difference between the received amount and the correct amount is a debt due to the Commonwealth.

Note: The heading to section 262 is replaced by the heading “Debts arising from prepayments and certain other payments”.

10 Subsection 262(4)

Omit “or (3)”, substitute “, (3) or (3A)”.

Schedule 4—Application provision

Social Security Act 1991

1 At the end of Schedule 1A

Add:

104A Application provision: amendments relating to means test exemption for superannuation assets

If:

(a) a person receives a period-based social security payment paid in arrears; and

(b) the person’s first payday after 20 September 1997 is within 2 weeks of that day; and

(c) the person’s rate of payment is affected by the amendments made by Schedule 1 to the Social Security Legislation Amendment (Further Budget and Other Measures) Act 1996;

the person’s rate of payment for that payday is to be calculated on a pro rata basis under this Act as in force both immediately before and immediately after the commencement of that Schedule.

 


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