Social Security Legislation Amendment (Carer Pension and Other Measures) Act 1995

Part 1 — AMENDMENTS OF THE CHILD CARE ACT 1972

Part 2 — AMENDMENTS OF THE DATA-MATCHING PROGRAM (ASSISTANCE AND TAX) ACT 1990 COMMENCING ON ROYAL ASSENT

CONTENTS—continued

Part 3 — AMENDMENTS OF THE DATA-MATCHING PROGRAM (ASSISTANCE AND TAX) ACT 1990 COMMENCING ON 1 JANUARY 1996

SCHEDULE 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO WAIVER OF DEBTS

SCHEDULE 4

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO INCREASE RENT ASSISTANCE THRESHOLDS AND FAMILY PAYMENT RENT ASSISTANCE

SCHEDULE 5

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO PRESERVED RENT ASSISTANCE ENTITLEMENTS

Part 1 — AMENDMENTS COMMENCING IMMEDIATELY BEFORE 20 MARCH 1996

Part 2 — AMENDMENTS COMMENCING ON 19 MARCH 1996

SCHEDULE 6

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 AND INCOME TAX ASSESSMENT ACT 1936 TO PROVIDE FOR RESIDENTIAL CARE ALLOWANCE

Part 1 — AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

Part 2 — AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 7

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO PROVIDE FOR IMMEDIATE RENT ASSISTANCE FOR THOSE LEAVING HOME TO RECEIVE OR GIVE COMMUNITY-BASED CARE

SCHEDULE 8

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO EXTEND DISREGARD OF HOMES OF PERSONS WHO ARE RECEIVING OR GIVING COMMUNITY-BASED CARE OR ARE IN RESIDENTIAL CARE

SCHEDULE 9

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO CONTINUE PAYMENT OF CARER PENSION AFTER PERSON RECEIVING CARE IS ADMITTED TO AN INSTITUTION

SCHEDULE 10

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO PROVIDE CARER PENSION FOR PERSONS CARING FOR PERSONS WHO DO NOT RECEIVE PENSIONS OR BENEFITS

CONTENTS—continued

SCHEDULE 11

AMENDMENT OF THE SOCIAL SECURITY ACT 1991 TO REMOVE REQUIREMENT FOR CARER PENSIONER TO LIVE WITH, OR NEXT TO, PERSON CARED FOR

SCHEDULE 12

ADVANCE PAYMENTS OF SOME SOCIAL SECURITY PENSIONS AND SOCIAL SECURITY BENEFITS

SCHEDULE 13

AMENDMENT OF THE SOCIAL SECURITY ACT 1991 TO INCREASE GUARDIAN ALLOWANCE

SCHEDULE 14

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO PARENTING ALLOWANCE

SCHEDULE 15

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO COMPENSATION RECOVERY

SCHEDULE 16

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO CHANGE OF BENEFIT DURING WAITING PERIOD

SCHEDULE 17

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO SICKNESS

ALLOWANCE

SCHEDULE 18

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO BEREAVEMENT PAYMENTS

SCHEDULE 19

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO NOMINATION OF BANK ACCOUNTS FOR PAYMENTS OF PENSIONS OR BENEFITS

SCHEDULE 20

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO MAINTENANCE

SCHEDULE 21

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO PROTECTION OF SOCIAL SECURITY PAYMENTS

CONTENTS—continued

SCHEDULE 22

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO LABOUR MARKET PROGRAMS

SCHEDULE 23

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO CROSS-REFERENCES IN PENALTY PROVISIONS TO THE CRIMES ACT 1914

SCHEDULE 24

OTHER AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

SCHEDULE 25

AMENDMENTS OF THE FARM HOUSEHOLD SUPPORT ACT 1992

Social Security Legislation Amendment (Carer Pension and Other Measures) Act 1995

No. 143 of 1995

An Act to amend the Social Security Act 1991, the Child Care Act 1972, the Data-matching Program (Assistance and Tax) Act 1990, the Farm Household Support Act 1992 and the Income Tax Assessment Act 1936, and for related purposes

[Assented to 12 December 1995]

The Parliament of Australia enacts:

Short title

1. This Act may be cited as the Social Security Legislation Amendment (Carer Pension and Other Measures) Act 1995.

Commencement

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

Part 1 — AMENDMENTS OF THE CHILD CARE ACT 1972

1. Section 4:

Insert:

“approved child care service means:

(a) an eligible child care centre; or

(b) any other child care service, the operator of which receives from the Commonwealth a grant of a similar kind to grants made under section 12A.

fee relief beneficiary, in relation to a child who is receiving child care at an approved child care service, means a person who, if a grant were made to the operator of the service to enable the operator to allow fee relief for the child, would benefit from the fee relief.

partner has the same meaning as in the Social Security Act 1991.

Social Security Secretary means the Secretary to the Department of Social Security.”.

2. After section 12A:

Insert in Part III:

Provision of a persons’s tax file number

“12B.(1) The operator of an approved child care service may not allow fee relief for a child, to a person who is a fee relief beneficiary in relation to the child, from a grant if:

(a) the person is requested under section 12D to:

(i) give the Social Security Secretary a written statement of the person’s tax file number; or

(ii) apply for a tax file number and give the Social Security Secretary a written statement of the person’s tax file number once it has been issued; and

(b) the person has neither:

(i) given the Social Security Secretary a written statement of the person’s tax file number; nor

(ii) given the Social Security Secretary a declaration by the person in a form approved by the Social Security Secretary and satisfied either subsection (3) or (4).

“(2) If a person who is a fee relief beneficiary in relation to a child is requested under section 12D to:

SCHEDULE 2—continued

(a) give the Social Security Secretary a written statement of the person’s tax file number; or

(b) apply for a tax file number and give the Social Security Secretary a written statement of the person’s tax file number once it has been issued;

the person is not to be given an assessment of entitlement to fee relief for the child if the person has neither:

(c) given the Social Security Secretary a written statement of the person’s tax file number; nor

(d) given the Social Security Secretary a declaration by the person in a form approved by the Social Security Secretary and satisfied either subsection (3) or (4).

“(3) A person satisfies this subsection if:

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

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

(ii) has asked the Commissioner of Taxation to inform the person of the person’s tax file number; and

(b) the person has given the Social Security Secretary a document by the person that authorises the Commissioner of Taxation to tell the Social Security Secretary:

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

(ii) if the person has a tax file number—the tax file number; and

(c) the Commissioner of Taxation had not told the Social Security Secretary that the person has no tax file number.

“(4) A person satisfies this subsection if:

(a) the person’s declaration states that the person has applied for a tax file number; and

(b) the person has given the Social Security Secretary a document by the person that authorises the Commissioner of Taxation to tell the Social Security Secretary:

(i) if the tax file number is issued to the person—the tax file number; or

(ii) if the application is refused—that the application has been refused; or

(iii) if the application is withdrawn—that the application has been withdrawn; and

(c) the Commissioner of Taxation has not told the Social Security Secretary that the person has not applied for a tax file number; and

SCHEDULE 2—continued

(d) the Commissioner of Taxation has not told the Social Security Secretary that an application by the person for a tax file number has been refused; and

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

Provision of partner’s tax file number

“12C.(1) Subject to subsection (5), the operator of an approved child care service may not allow fee relief for a child, to a person who is a fee relief beneficiary in relation to the child, from a grant if:

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

(b) the person is requested under section 12E to give the Social Security Secretary a written statement of the tax file number of the person’s partner; and

(c) the person has neither:

(i) given the Social Security Secretary a written statement of the partner’s tax file number; nor

(ii) given the Social Security Secretary a declaration by the partner in a form approved by the Social Security Secretary and satisfied either subsection (3) or (4).

“(2) If a person who is a fee relief beneficiary in relation to a child is requested under section 12D to give the Social Security Secretary a written statement of the tax file number of the person’s partner, the person is not to be given an assessment of entitlement to fee relief for the child if the person has neither:

(a) given the Social Security Secretary a written statement of the partner’s tax file number; nor

(b) given the Social Security Secretary a declaration by the partner in a form approved by the Social Security Secretary and satisfied either subsection (3) or (4).

“(3) A person satisfies this subsection if:

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

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

(ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

(b) the person has given the Social Security Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Social Security Secretary:

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

SCHEDULE 2—continued

(ii) if the partner has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Social Security Secretary that the partner has no tax file number.

“(4) A person satisfies this subsection if:

(a) the partner’s declaration states that an application by the partner for a tax file number is pending; and

(b) the person has given the Social Security Secretary a document by the partner that authorises the Commissioner of Taxation to tell the Social Security Secretary:

(i) if the tax file number is issued to the partner—the tax file number; or

(ii) if the application is refused—that the application has been refused; or

(iii) if the application is withdrawn—that the application has been withdrawn; and

(c) the Commissioner of Taxation has not told the Social Security Secretary that an application by the partner for a tax file number has been refused; and

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

“(5) The Social Security Secretary may waive the request for a statement of the partner’s tax file number if the Social Security Secretary is satisfied that:

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

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

(i) the partner’s tax file number;

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

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

Social Security Secretary may request person who would benefit from fee relief to give statement of person’s tax file number

“12D.(1) If a person who is a fee relief beneficiary is in Australia, the Social Security Secretary may request but not compel the person:

(a) if the person has a tax file number—to give the Social Security Secretary a written statement of the person’s tax file number; or

(b) if the person does not have a tax file number:

(i) to apply to the Commissioner of Taxation for a tax file number; and

SCHEDULE 2—continued

(ii) to give the Social Security Secretary a written statement of the person’s tax file number after the Commissioner of Taxation has issued it.

“(2) A grant is not to be made to the operator of an approved child care service to enable the operator to allow fee relief for a child if:

(a) a person who is a fee relief beneficiary in relation to the child has failed to satisfy a request made under subsection (1); and

(b) the Social Security Secretary has not exempted the person from having to satisfy the request.

“(3) A person who is a fee relief beneficiary in relation to a child is not to be given an assessment of entitlement to fee relief for the child if:

(a) the person has failed to satisfy a request made under subsection (1); and

(b) the Social Security Secretary has not exempted the person from having to satisfy the request.

Social Security Secretary may request person who would benefit from fee relief to give statement of partner’s tax file number

“12E.(1) If:

(a) a person who is a fee relief beneficiary is a member of a couple; and

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

the Social Security Secretary may request but not compel the person to give the Social Security Secretary a written statement of the tax file number of the person’s partner.

“(2) A grant is not to be made to the operator of an approved child care service to enable the operator to allow fee relief for a child if:

(a) a person who is a fee relief beneficiary in relation to the child has failed to satisfy a request made under subsection (1); and

(b) the Social Security Secretary has not exempted the person from having to satisfy the request.

“(3) A person who is a fee relief beneficiary in relation to a child is not to be given an assessment of entitlement to fee relief for the child if:

(a) the person has failed to satisfy a request made under subsection (1); and

(b) the Social Security Secretary has not exempted the person from having to satisfy the request.

SCHEDULE 2—continued

SCHEDULE 2—continued

Part 2 — AMENDMENTS OF THE DATA-MATCHING PROGRAM (ASSISTANCE AND TAX) ACT 1990 COMMENCING ON ROYAL ASSENT

3. Section 3 (definition of personal identity data):

Omit paragraphs (g) and (h).

4. Section 7 (paragraph 3 in Step 1):

Omit the paragraph.

5. Section 7 (paragraph 4 in Step 1):

Omit “either of the checks”, substitute “the check”.

6. Section 7 (after subparagraph 7(c) in Step 3):

Insert:

“(ca) the date of the most recent assessment under the Income Tax Assessment Act 1936 of the person’s declared income;

(cb) the amount of spouse rebate;”.

7. Section 7 (paragraph 10 in Step 4):

Omit the paragraph.

8. Section 7 (paragraph 11 in Step 4):

Omit “, after matching under paragraph 10,”.

9. After subsection 12(2A):

Insert:

“(2B) After the end of each financial year, each agency must give the Privacy Commissioner and cause to be laid before each House of the Parliament a report including the matters relating to the data-matching program carried out during the financial year:

(a) that are specified in paragraphs 9(i) and 9(vi) of the guidelines issued by the Privacy Commissioner on 31 October 1994; or

(b) if the guidelines described in paragraph (a) are replaced—that are specified for the purposes of this subsection in the guidelines issued by the Privacy Commissioner as in force from time to time.

“(2C) After the 3-year period ending on 30 June 1998, and after each successive 3-year period, each agency must give the Minister responsible for the agency a report for presentation to the Parliament including all the details relating to the data-matching program carried out during the period:

SCHEDULE 2—continued

(a) that are specified in guideline 12 of the guidelines issued by the Privacy Commissioner on 31 October 1994; or

(b) if the guidelines described in paragraph (a) are replaced—that are specified for the purposes of this subsection in the guidelines issued by the Privacy Commissioner as in force from time to time.

10. Section 21:

Omit the section, substitute the following section;

Cessation of operation of Act

“21. Parts 1 and 2 of this Act, unless sooner repealed, shall cease to be in force on and from 22 January.”.

SCHEDULE 2—continued

Part 3 — AMENDMENTS OF THE DATA-MATCHING PROGRAM (ASSISTANCE AND TAX) ACT 1990 COMMENCING ON 1 JANUARY 1996

11. Section 3 (definition of assistance agency):

Before paragraph (b) insert:

“(a) the Department of Human Services and Health; or”.

12. Section 3 (paragraph (c) of definition of personal assistance):

Omit “or benefit”, substitute “, benefit or program”.

13. Section 3 (paragraph (c) of definition of personal assistance):

After subparagraph (xxivc) insert:

“(xxivd) Childcare assistance (fee relief);

(xxive) fee relief under the Child Care Act 1972;".

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SCHEDULE 3 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO WAIVER OF DEBTS

1. Section 1236A:

Repeal the section, substitute:

Application

“1236A.(1) Sections 1237, 1237A, 1237AA, 1237AAA, 1237AAB, 1237AAC and 1237AAD apply to:

(a) debts arising on or after 1 January 1996; and

(b) the amounts of debts arising before 1 January 1996 that were outstanding at the start of that day.

“(2) Section 1237AB applies to all debts, whenever incurred, owed to the Commonwealth and arising under this Act or under the Social Security Act 1947.".

2. Sections 1237 and 1237A:

Repeal the sections, substitute:

Power to waive Commonwealth’s right to recover debt

Secretary’s limited power to waive

“1237.(1) On behalf of the Commonwealth, the Secretary may waive the Commonwealth’s right to recover the whole or a part of a debt from a debtor only in the circumstances described in section 1237A, 1237AA, 1237AAA, 1237AAB, 1237AAC or 1237AAD.

When waiver takes effect

“(2) A waiver takes effect:

(a) on the day specified in the waiver (whether that day is before, after or on the day on which the decision to waive is made); or

(b) if the waiver does not specify when it takes effect—on the day on which the decision to waive is made.

Waiver of debt arising from error

Administrative error

“1237A.(1) The Secretary must waive the right to recover the proportion of a debt that is attributable solely to an administrative error made by the Commonwealth if the debtor received in good faith the payment or payments that gave rise to that proportion of the debt.

SCHEDULE 3—continued

Underestimating value of property

“(2) If:

(a) a debt arose because the debtor or the debtor’s partner underestimated the value of particular property of the debtor or partner; and

(b) the estimate was made in good faith; and

(c) the value of the property was not able to be easily determined when the estimate was made;

the Secretary must waive the right to recover the proportion of the debt attributable to the underestimate.

Proportion of a debt

“(3) For the purposes of this section, a proportion of a debt may be 100% of the debt.

Waiver of debt relating to an offence

“1237AA.(1) If:

(a) a debtor has been convicted of an offence that gave rise to a proportion of a debt; and

(b) the court indicated in sentencing the debtor that it imposed a longer custodial sentence on the debtor because he or she was unable or unwilling to pay the debt;

the Secretary must waive the right to recover the proportion of the debt that arose in connection with the offence.

“(2) For the purposes of this section, a proportion of a debt may be 100% of the debt.

Waiver of small debt

“1237AAA.(1) The Secretary must waive the right to recover a debt if:

(a) the debt is, or is likely to be, less than $200; and

(b) it is not cost effective for the Commonwealth to take action to recover the debt.

“(2) Subsection (1) does not apply if the debt is at least $50 and could be recovered by deductions under section 1231 from a social security payment of the debtor.

SCHEDULE 3—continued

Waiver in relation to settlements

Settlement of civil action

“1237AAB.(1) If the Commonwealth has agreed to settle a civil action against a debtor for recovery of a debt for less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.

Settlement of proceedings before the AAT

“(2) If the Secretary has agreed to settle proceedings before the AAT relating to recovery of a debt on the basis that the debtor will pay less than the full amount of the debt, the Secretary must waive the right to recover the difference between the debt and the amount that is the subject of the settlement.

Waiver where at least 80% of debt recovered and debtor cannot pay more

“(3) If:

(a) the Commonwealth has recovered at least 80% of the original value of a debt from a debtor; and

(b) the Commonwealth and the debtor agree that the recovery is in full satisfaction for the whole of the debt; and

(c) the debtor cannot repay a greater proportion of the debt;

the Secretary must waive the remaining 20% or less of the value of the original debt.

Agreement for part-payment in satisfaction of outstanding debt

“(4) If the Secretary and a debtor agree that the debtor’s debt will be fully satisfied if the debtor pays the Commonwealth an agreed amount less than the amount of the debt outstanding at the time of the agreement (the unpaid amount), the Secretary must waive the right to recover the difference between the unpaid amount and the agreed amount.

Limits on agreement to accept part-payment in satisfaction of outstanding debt

“(5) The Secretary must not make an agreement described in subsection (4) unless the Secretary is satisfied that:

(a) the debtor cannot repay more of the debt than the agreed amount; and

(b) the agreed amount is at least the present value of the unpaid amount repaid in instalments whose amount and timing is determined by the Secretary; and

(c) it would take at least a year to recover the unpaid amount under Part 5.3 if subsection (4) did not apply.

SCHEDULE 3—continued

Formula for working out present value of unpaid amount

“(6) For the purposes of subsection (5), the present value of the unpaid amount is the amount worked out in accordance with the following formula:

where:

annual repayment is the amount of the debt that the Secretary believes would be recovered under Part 5.3 in a year if subsection (4) did not apply in relation to the debt.

interest is the annual rate of interest specified by the Minister in a written notice.

repayment period is the number of years needed to repay the unpaid amount if repayments equal to the annual repayment were made each year.

Facts:

Bill owed a debt of $35,000 to the Commonwealth. After repaying $5,000 (leaving an unpaid amount of $30,000), he offers to make an immediate payment of a further $20,000 in full satisfaction of the debt. The Secretary is satisfied that Bill cannot repay a larger amount of the debt than this. The Secretary believes that $1,500 of the debt would be recovered under Part 5.3 in a year, at which rate it would take 20 years to repay the debt. The Minister has specified an interest rate of 5% a year for the purpose of subsection (6).

Application:

The Secretary can accept Bill’s offer and make an agreement with him as described in subsection (4), because the $20,000 is more than the present value of $30,000 repaid over 20 years at a 5% interest rate (which is $18,693.33 = ($1,500÷0.05) × (1-(1÷(l + 0.05)²⁰))). If the Secretary makes the agreement, the Secretary must waive $10,000 of the debt (the difference between the unpaid amount of $30,000 and the agreed amount of $20,000).

Notice is a disallowahle instrument

“(7) A notice described in the definition of interest in subsection (6) is a disallowable instrument.

Waiver where debtor or debtor’s partner would have been entitled to an allowance

Waiver if there was an unclaimed entitlement to family payment or family allowance

“1237AAC.(1) If:

SCHEDULE 3—continued

(a) a debt arises from overpayments made to the debtor; and

(b) the debtor or the debtor’s partner does not claim family payment or family allowance for the period when the overpayments were made; and

(c) an amount of family payment or family allowance would have been payable for the period when the overpayments were made if the debtor or the debtor’s partner had lodged a claim;

the Secretary must waive the right to recover the debt to the extent set out in subsection (2).

Amount of debt Secretary must waive

“(2) The Secretary must waive under subsection (1) the right to recover the amount of debt equal to the amount of family payment or family allowance that would have been payable to the debtor or the debtor’s partner in the 3-year period ending on the day the overpayment is stopped if:

(a) the overpayments had not been made to the debtor; and

(b) the debtor or the debtor’s partner had lodged a claim for the payment.

Reference to amount of family payment or family allowance is a reference to basic rate of payment or allowance only

“(3) For the purposes of subsection (2):

(a) an amount of family payment is the minimum standard family payment rate plus any guardian allowance that is payable plus any large family supplement that is payable; and

(b) an amount of family allowance does not include multiple birth allowance.

Waiver if there was an unclaimed entitlement to parenting allowance

“(4) If:

(a) a debt arises from overpayments to the debtor; and

(b) the Secretary is satisfied that the overpayments did not result wholly or partly from the debtor or another person knowingly:

(i) making a false statement or false representation; or

(ii) failing or omitting to comply with a provision of this Act or the 1947 Act; and

(c) the debtor or the debtor’s partner did not claim parenting allowance for the period (the overpayment period) when the overpayments were made; and

(d) an amount of parenting allowance would have been payable for that period if the debtor or the debtor’s partner had lodged a claim;

SCHEDULE 3—continued

the Secretary must waive the right to recover the debt to the extent set out in subsection (5).

Waiver of amount equal to notional entitlement to parenting allowance

“(5) The Secretary must waive under subsection (4) the right to recover the amount of debt equal to the amount of parenting allowance that would have been payable to the debtor or the debtor’s partner during so much of the overpayment period as was not earlier than 3 years before the day on which the overpayment is stopped if:

(a) the overpayments had not been made to the debtor; and

(b) the debtor or the debtor’s partner had lodged a claim for the allowance.

Calculating the amount equal to notional entitlement to parenting allowance

“(6) For the purposes of working out the amount of parenting allowance that would have been payable to the debtor or the debtor’s partner, the rate of parenting allowance for the debtor or the debtor’s partner:

(a) if the Secretary is satisfied that the rate would have been greater than the maximum basic component if parenting allowance had been claimed—is taken to have been that greater rate; or

(b) in any other case—is taken not to have exceeded the maximum basic component of parenting allowance specified at the relevant time in point 1068A-B6.

Waiver in special circumstances

“1237AAD. The Secretary may waive the right to recover all or part of a debt if the Secretary is satisfied that:

(a) the debt did not result wholly or partly from the debtor or another person knowingly:

(i) making a false statement or a false representation; or

(ii) failing or omitting to comply with a provision of this Act or the 1947 Act; and

(b) there are special circumstances (other than financial hardship alone) that make it desirable to waive; and

(c) it is more appropriate to waive than to write off the debt or part of the debt.

3. After subsection 1240(3A):

Insert:

SCHEDULE 3—continued

“(3B) Despite subsection (3), an authorised review officer cannot review a decision of the Secretary on whether to exercise the Secretary’s power under section 1285A.”.

4. Subsection 1250(1):

Add at the end:

“; or (m) relating to the Secretary’s power under section 1285A to settle proceedings before the AAT.”.

5. After section 1285:

Insert in Division 1 of Part 6.4:

Secretary may settle proceedings before the AAT

“1285A.(1) The Secretary may agree with other parties to proceedings before the AAT that relate to recovering a debt to settle the proceedings. The agreement must be in writing.

“(2) If the proceedings are settled and the Secretary gives the AAT a copy of the agreement to settle the proceedings, the application for review of the decision that was the subject of the proceedings is taken to have been dismissed.”.

______________

SCHEDULE 4 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO INCREASE RENT ASSISTANCE THRESHOLDS AND FAMILY PAYMENT RENT ASSISTANCE

1. Part 3.16 (heading):

Add at the end “AND ADJUSTMENT OF AMOUNTS”.

2. Section 1189:

Add at the end:

“; and (d) one-off adjustments of certain amounts”.

3. Section 1190 (column 4 of item 18B of Table):

Omit “all amounts” (second occurring), substitute “rent threshold amounts”.

4. After Division 4 of Part 3.16:

Insert in Part 3.16:

"Division 5—One-off adjustments of certain amounts

Rent assistance threshold for social security pensions increased on 20 March 1996

“1206D. This Act has effect as if, on 20 March 1996, each indexed amount of pension rent threshold that is substituted under subsection 1192(1) for another amount on that day were in turn replaced with an amount equal to the indexed amount plus $130.00.

Rent assistance threshold for some social security payments increased on 20 March 1996

“1206E.(1) This section applies to the following kinds of rent threshold:

(a) benefit rent threshold;

(b) rent threshold SA (under 18);

(c) family payment rent threshold.

“(2) This Act has effect as if, on 20 March 1996, each indexed amount of rent threshold that is substituted under subsection 1192(1) for another amount on that day were in turn replaced with an amount equal to the indexed amount plus $5.00.

SCHEDULE 4—continued

Rent assistance for family payment increased on 20 March 1996

“1206F. This Act has effect as if, on 20 March 1996, each indexed amount of FP RA (rent assistance) that is substituted under subsection 1192(1) for another amount on that day were in turn replaced with an amount equal to the indexed amount plus $5.00.

Increased rent assistance for pensioners with service pensioner partners with children

“1206G. This Act has effect as if, on 20 March 1996 after indexation, the indexed amount in each of the following provisions were increased by $65.00:

(a) column 4 of items 5 and 6 of Table D in point 1064-D5 (maximum rate of rent assistance for pensioners with service pensioner partners who have rent increased pension and one or more dependent children);

(b) column 4 of items 6 and 7 of Table EA in point 1066A-EA12 (maximum rate of rent assistance for pensioners with service pensioner partners who have rent increased pension and one or more dependent children);

(c) column 4 of items 6 and 7 of Table EB in point 1066A-EB13 (maximum rate of rent assistance for pensioners with service pensioner partners who have rent increased pension and one or more dependent children).”.

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SCHEDULE 5 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO PRESERVED RENT ASSISTANCE ENTITLEMENTS

Part 1 — AMENDMENTS COMMENCING IMMEDIATELY BEFORE 20 MARCH 1996

1. After subclause 27(3) of Schedule 1A:

Insert:

“(3A) For the purposes of subclauses (1) and (3), the person’s floor amount is the amount worked out using the formula:

where:

preserved rent assistance is the amount worked out under subclause (4);

post-1995 increase is the sum of the increases in the amount of the maximum fortnightly rate of any of the following payments to the person after 19 March 1996 (whether or not the type or amount of payment payable to the person varies after that day because the person’s circumstances change):

(a) a social security benefit;

(b) a social security pension;

(c) family payment;

(d) non-benefit parenting allowance;

(e) child disability allowance;

(f) double orphan pension;

(g) mobility allowance;

(h) youth training allowance.”.

2. Subclause 27(4) of Schedule 1A:

Omit “subclauses (1) and (3), the person’s floor amount”, substitute “subclause (3A), the person’s preserved rent assistance”.

3. Subclause 27(5) of Schedule 1A:

Omit the subclause, substitute:

“(5) Subclause (1) or (3) ceases to apply to a person’s pension, benefit or allowance rate when the amount of rent assistance that the person would be entitled to because of that subclause is less than, or equal to, the amount of rent assistance that the person is entitled to under this Act apart from this clause.”.

4. Subclause 27(6) of Schedule 1A:

Omit “(2)”, substitute “(3)”.

SCHEDULE 5—continued

5. Subclause 28(2) of Schedule 1A:

Omit “property owner”, substitute “homeowner”.

6. Subclause 28(3) of Schedule 1A:

Omit “subsection”, substitute “subclause”.

7. Clause 28 of Schedule 1A:

Add at the end:

“(4) If a person is entitled to rent assistance because of subclause (1) or (2) , any amount that would (apart from this subclause) be payable to the person by way of rent assistance is to be reduced by the sum of the increases in the amount of the maximum fortnightly rate of any of the following payments to the person after 19 March 1996 (whether or not the type or amount of payment payable to the person varies after that day because the person’s circumstances change):

(a) a social security benefit;

(b) a social security pension;

(c) family payment;

(d) non-benefit parenting allowance;

(e) child disability allowance;

(f) double orphan pension;

(g) mobility allowance;

(h) youth training allowance.

“(5) Subclause (4) does not apply if the person is entitled to rent assistance because of subclause (1) or (2) and the amount payable by way of rent assistance is worked out under clause 63.

“(6) This clause ceases to apply (and cannot re-apply later) to a person if, as a result of the reduction required by subclause (4), no amount would be payable to the person by way of rent assistance.”.

8. After subclause 63(3) of Schedule 1A:

Insert:

“(3A) Subject to subclauses (7), (8) and (9), if this clause applies to a person, the amount by way of rent assistance to be used to calculate the person’s pension, benefit or payment rate is the amount (the floor amount) worked out using the formula:

where:

SCHEDULE 5—continued

preserved rent assistance is the amount worked out under subclause (4);

post-1995 increase is the sum of the increases in the amount of the maximum fortnightly rate of any of the following payments to the person after 19 March 1996 or the later day (the application day) this clause first applied to the person (whether or not the type or amount of payment payable to the person varies after 19 March 1996 or the application day because the person’s circumstances change):

(a) a social security benefit;

(b) a social security pension;

(c) family payment;

(d) non-benefit parenting allowance;

(e) child disability allowance;

(f) double orphan pension;

(g) mobility allowance;

(h) youth training allowance.”.

9. Subclause 63(4) of Schedule 1A:

Omit “Subject to subclauses (7), (8) and (9), if subclause (1) or (3) applies to a person, the amount by way of rent assistance to be used to calculate the person’s pension, benefit or payment rate”, substitute “For the purposes of subclause (3A), the preserved rent assistance”.

10. Paragraph 63(4)(b) of Schedule 1A:

Omit “(the ‘floor amount’)”.

SCHEDULE 5—continued

Part 2 — AMENDMENTS COMMENCING ON 19 MARCH 1996

11. Paragraph 27(3)(c) of Schedule 1A:

After “allowance” insert “or would not have ceased to apply to the person until then if the subsection had not been repealed”.

12. Paragraph 28(2)(c):

After “supplement” insert “or would have applied to the person at all those times if the subsection had not been repealed”.

13. Paragraph 63(8)(c) of Schedule 1A:

After “applies” insert “or would apply if it had not been repealed”.

14. Subclause 63(8) of Schedule 1A:

Omit “and the amount by way of rent assistance to be used to calculate the rate of the person’s partner’s pension under the Veterans’ Entitlements Act 1986".

15. Paragraph 63(9)(d):

After “applies” insert “or would apply if it had not been repealed”.

16. Subclause 63(9):

Omit “or of the person’s partner’s pension under Part III of that Act”.

––––––––––––

SCHEDULE 6 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 AND INCOME TAX ASSESSMENT ACT 1936 TO PROVIDE FOR RESIDENTIAL CARE ALLOWANCE

Part 1 — AMENDMENTS OF THE SOCIAL SECURITY ACT 1991

1. Section 3:

In the Index, insert the following entries in the appropriate alphabetical positions (determined on a letter-by-letter basis):

"excluded homeowner 13A(1)

in residential care 13A(5)

residential care charge 13A(2)

residential care charge paid or payable 13A(4)”.

2. Paragraph 13(8)(b):

Omit the paragraph.

3. Paragraph 13(8)(c):

Omit “hospital; or”, substitute “hospital.”.

4. Paragraph 13(8)(d):

Omit the paragraph.

5. After section 13:

Insert:

Residential care allowance definitions

Definitions

“13A.(1) In this Act, unless the contrary intention appears:

excluded homeowner means a homeowner other than a person who:

(a) is in residential care; and

(b) is not residing in a retirement village.

in residential care has the meaning given by subsection (5).

residential care charge has the meaning given by subsection (2).

residential care charge paid or payable has a meaning affected by subsection (4).

SCHEDULE 6—continued

Residential care charge

“(2) Amounts payable for accommodation of a person in residential care are residential care charge if:

(a) the amounts are payable every 3 months or more frequently; or

(b) the amounts are payable at regular intervals greater than 3 months and the Secretary is satisfied that the amounts should be treated as residential care charge for the purposes of this Act.

Amounts that are not residential care charge

“(3) Despite subsection (2), the following amounts are not residential

care charge:

(a) amounts payable under a scheme established by a law of the Commonwealth, or of a State or Territory, to pay all or part of the costs of persons in residential care;

(b) amounts payable for residential care of the person in residential care as compensation for an injury suffered by that person.

Proportion of total charge that is residential care charge

“(4) For the purposes of this Act, if:

(a) amounts are payable for accommodation and other services for a person who is in residential care; and

(b) it is not possible to work out the part of each of those amounts that is paid or payable for accommodation;

the amount of residential care charge paid or payable for the person is taken to be two-thirds of each of the amounts mentioned in paragraph (a).

When a person is in residential care

“(5) For the purposes of this Act, a person is in residential care if the person:

(a) is residing in premises that are:

(i) an approved nursing home for the purposes of the National Health Act 1953 or the Nursing Homes Assistance Act 1974; or

(ii) an approved home for the purposes of the Aged or Disabled Persons Care Act 1954; or

(iii) an approved hostel for the purposes of the Aged or Disabled Persons Hostels Act 1972; or

SCHEDULE 6—continued

(iv) made available for the accommodation of the person by an approved organisation providing hostel care services or personal care services to the person for the purposes of Part III of the Aged or Disabled Persons Care Act 1954; and

(b) has resided, or in the Secretary’s opinion is likely to reside, in premises described in paragraph (a) for at least 14 consecutive days.”.

6. Subsection 664A(4) (paragraph (b) of definition of threshold amount ):

After “rent assistance” insert “or residential care allowance”.

7. Subsection 664C(4) (paragraph (b) of definition of threshold amount):

After “rent assistance” insert “or residential care allowance”.

8. Subsection 664E(4) (paragraph (b) of definition of threshold amount):

After “rent assistance” insert “or residential care allowance”.

9. Subsection 664G(4) (paragraph (b) of definition of threshold amount ):

After “rent assistance” insert “or residential care allowance”.

10. Subsection 664HA(4) (paragraph (b) of definition of threshold amount ):

After “rent assistance” insert “or residential care allowance”.

11. Point 796-C1 (Note):

Omit “rent assistance”, substitute “any rent assistance or residential care allowance and any”.

12. Point 1064-A1 (Method statement):

Omit Step 3, substitute:

“Step 3. Work out the amount per year (if any) for either rent assistance (using MODULE D) or residential care allowance (using Part 3.12B).”.

13. Point 1064-A1 (Note 2):

After “rent assistance” insert “or residential care allowance”.

14. After paragraph 1064-D1(a):

Insert:

SCHEDULE 6—continued

“(b) the person’s rate of payment does not include an amount of residential care allowance; and”.

15. Point 1066-A1 (Method statement):

Omit Step 3, substitute:

“Step 3. Work out the amount per year (if any) for either rent assistance (using MODULE D) or residential care allowance (using Part 3.12B).”.

16. Point 1066-A1 (Note 2):

After “rent assistance” insert “or residential care allowance”.

17. After paragraph 1066-Dl(a):

Insert:

“(aa) the person’s rate of payment does not include an amount of residential care allowance; and”.

18. Point 1066A-A1 (Method statement):

Omit Step 4, substitute:

"Step 4. Work out the amount per year (if any) for either rent assistance (using MODULE EA if the person is under 18, or MODULE EB if the person is at least 18) or residential care allowance (using Part 3.12B).”.

19. Point 1066A-A1 (Note 2):

After “rent assistance” insert “or residential care allowance”.

20. Point 1066A-EA2:

Add at the end:

“; and (i) the person’s rate of payment does not include an amount of residential care allowance.”.

21. Point 1066A-EB2:

Add at the end:

“; and (j) the person’s rate of payment does not include an amount of residential care allowance.”.

22. Point 1067-A1 (Method statement):

Omit Step 3, substitute:

“Step 3. Work out any applicable amount (if any) for either rent assistance (using MODULE F) or residential care allowance (using Part 3.12B).”.

SCHEDULE 6—continued

23. After paragraph 1067-F 1 (e):

Insert:

“(ea) the person’s rate of payment does not include an amount of residential care allowance; and”.

24. Point 1067E-A1 (Method statement):

Omit Step 3, substitute:

“Step 3. Work out the applicable amount (if any) for either rent assistance (using MODULE D) or residential care allowance (using Part 3.12B).”.

25. After paragraph 1067E-D 1 (c):

Insert:

“(ca) the person’s rate of payment does not include an amount of residential care allowance; and”.

26. Point 1068-A1 (Method statement):

Omit Step 3, substitute:

“Step 3. Work out the applicable amount (if any) for either rent assistance (using MODULE F) or residential care allowance (using Part 3.12B).”.

27. Point 1068-A1 (Note 1):

After “rent assistance” insert “or residential care allowance”.

28. After paragraph 1068-Fl(c):

Insert:

“(ca) the person’s rate of payment does not include an amount of residential care allowance; and”.

29. Paragraph (b) of Step 4 of Method statement in point 1068A-A3:

After “(see Module F below)” insert “or residential care allowance (see Part 3.12B)”.

30. Point 1068A-A3 (Note):

After “rent assistance” insert “or residential care allowance”.

31. After paragraph 1068A-F 1 (d):

Insert:

“(da) the person’s rate of payment does not include an amount of residential care allowance; and”.

SCHEDULE 6—continued

32. Point 1069-A1 (Method statement):

Omit Step 1, substitute:

“Step 1. Add the amounts worked out under the following Modules:

(a) MODULE B (standard family payment rate);

(b) MODULE C (large family supplement);

(c) MODULE D (multiple birth allowance);

(d) MODULE F (guardian allowance).

Step 1A. Work out the amount (if any) of either rent assistance (using MODULE E) or residential care allowance (using gross family payment rate.".Part 3.12B) and add the amount to the total from Step 1. The result is the person’s

33. After paragraph 1069-E2( 1 )(c):

Insert:

“(ca) an amount of residential care allowance is not being added to the person’s rate of payment; and”.

34. Paragraph 1069-K3(e):

After “rent assistance” insert “or residential care allowance”.

35. Point 1069-K3 (Note 1):

After “Part” insert “and residential care allowance is payable under Part 3.12B”.

36. Subsection 1147(2):

After “rent” insert “or residential care charge”.

37. After Part 3.12A:

Insert:

“ PART 3.12B—RESIDENTIAL CARE ALLOWANCE

Basic qualifications for residential care allowance

“1157W.(1) An additional amount (residential care allowance) to help cover the cost of residential care charge is to be included in a person’s rate of payment in accordance with the relevant Rate Calculator if:

(a) the person is in residential care; and

(b) the periodic residential care charge for the person exceeds the amount (the residential care charge threshold) shown in column 3 of the relevant item of the Table in subsection 1157Y(2); and

SCHEDULE 6—continued

(c) the person’s rate of payment does not include an amount of rent assistance; and

(d) the person is not an excluded homeowner; and

(e) one of the subsections of section 1157X applies to the person.

“(2) Inclusion of residential care allowance in family payment under subsection (1) is subject to point 1069-K3.

Special qualifications for residential care allowance

Qualification for residential care allo wance—Pension Rate Calculator A

“1157X.(1) This subsection applies to a person if:

(a) the person’s rate of payment is worked out using Pension Rate Calculator A; and

(b) the person is in Australia; and

(c) either of the following subparagraphs applies:

(i) neither the person nor the person’s partner has a dependent child who is an FP child;

(ii) the person is a member of an illness separated couple, a respite care couple or a temporarily separated couple and is the partner of a person who is receiving family payment in respect of a dependent child who is an FP child.

Qualification for residential care allo wance—Pension Rate Calculator C

“(2) This subsection applies to a person if:

(a) the person’s rate of payment is worked out using Pension Rate Calculator C; and

(b) the person is in Australia; and

(c) neither the person nor the person’s partner has a dependent child who is an FP child.

Qualification for residential care allowance—Pension Rate Calculator D (under 18)

“(3) This subsection applies to a person if:

(a) the person’s rate of payment is worked out using Pension Rate Calculator D; and

SCHEDULE 6—continued

(b) the person is under 18; and

(c) the person is not permanently blind; and

(d) the person is:

(i) a member of a couple; or

(ii) in disability accommodation; or

(iii) a homeless person; or

(iv) an independent young person; or

(v) a person who is living away from the person’s parental home because of a medical condition of the person; and

(e) the person is in Australia; and

(f) neither the person nor the person’s partner has a dependent child who is an FP child.

Qualification for residential care allowance—Pension Rate Calculator D (18 or over)

“(4) This subsection applies to a person if:

(a) the person’s rate of payment is worked out using Pension Rate Calculator D; and

(b) the person is at least 18; and

(c) the person is not permanently blind; and

(d) the person is:

(i) a member of a couple; or

(ii) living permanently or indefinitely away from the person’s parental home; or

(iii) in disability accommodation; and

(e) the person is in Australia; and

(f) neither the person nor the person’s partner has a dependent child who is an FP child.

Qualification for residential care allowance— Benefit Rate Calculator A

“(5) This subsection applies to a person if:

(a) the person’s rate of payment is worked out using Benefit Rate Calculator A; and

SCHEDULE 6—continued

(b) the person is:

(i) a member of a couple; or

(ii) a homeless person; or

(iii) an independent young person; and

(c) the person will be in Australia throughout the period for which the payment is to be made; and

(d) neither the person nor the person’s partner has a dependent child who is an FP child.

Qualification for residential care allowance—Sickness Allowance Rate Calculator

“(6) This subsection applies to a person if:

(a) the person’s rate of payment is worked out using the Sickness Allowance Rate Calculator; and

(b) the person will be in Australia throughout the period for which the payment is to be made; and

(c) neither the person nor the person’s partner has a dependent child who is an FP child.

Qualification for residential care allo wance—Benefit Rate Calculator B

“(7) This subsection applies to a person if:

(a) the person’s rate of payment is worked out using Benefit Rate Calculator B; and

(b) the person will be in Australia throughout the period for which the payment is to be made; and

(c) neither the person nor the person’s partner has a dependent child who is an FP child.

Qualification for residential care allowance—parenting allowance recipient

“(8) This subsection applies to a person if:

(a) the person is receiving parenting allowance; and

(b) the person will be in Australia throughout the period for which the payment of parenting allowance is to be made; and

(c) neither the person nor the person’s partner has a dependent child who is an FP child.

SCHEDULE 6—continued

Qualification for residential care allowance-family payment recipient

“(9) This subsection applies to a person if the person is receiving family payment and neither the person nor the person’s partner is receiving payments of incentive allowance.

Amount of residential care allowance

“1157Y.(1) The amount of residential care allowance for a person is worked out using the following formula, up to the maximum amount applicable to the person shown in column 4 of the Table in subsection (2):

“(2) The following Table sets out amounts of residential care charge threshold and maximum amounts of residential care allowance:

SCHEDULE 6—continued

RESIDENTIAL CARE CHARGE THRESHOLD AND MAXIMUM RESIDENTIAL CARE ALLOWANCE TABLE

“(3) The periodic residential care charge for a person is:

(a) if the person’s rate of payment is worked out using Pension Rate Calculator A, C or D—the annual residential care charge paid or payable for the person; or

SCHEDULE 6—continued

(b) if the person’s rate of payment is worked out using Benefit Rate Calculator A or B, the Sickness Allowance Rate Calculator, the Parenting Allowance Rate Calculator or the Family Payment Rate Calculator—the fortnightly residential care charge paid or payable for the person.

“(4) If the Secretary makes a written determination specifying for the purposes of a particular entry in the Table in subsection (2) an amount greater than the amount shown in the entry, that entry has effect from the commencement of this Part as if the greater amount were substituted for the amount shown in the entry. The Secretary must not determine for an entry an amount greater than the amount of rent assistance threshold or maximum amount of rent assistance (as the case requires) corresponding to the situation described for the entry.

“(5) A determination is a disallowable instrument.

“(6) On and after 1 January 1997, subsection (2) has effect as if, immediately after indexation on 20 March 1996:

(a) each of the amounts of residential care charge threshold shown in column 3 of items 1,2,3 and 4 of the Table in subsection (2) had been increased by $130.00; and

(b) each of the amounts of residential care charge threshold shown in column 3 of items 5, 6, 7, 8,9 and 10 of the Table in subsection (2) had been increased by $5.00; and

(c) each of the amounts of maximum amount of residential care allowance shown in column 4 of items 8, 9 and 10 of the Table in subsection (2) had been increased by $5.00.”.

38. Section 1190 (Table):

After item 19A insert:

SCHEDULE 6—continued

“.

39. Subsection 1191(1) (Table):

After item 13A insert:

SCHEDULE 6—continued

SCHEDULE 6—continued

”.

40. Paragraph 1207(1)(a):

Omit “or the rent assistance Module of a Rate Calculator”, substitute the rent assistance Module of a Rate Calculator or Part 3.12B (which deals with residential care allowance)”.

41. Paragraph 1207(1)(c):

Omit “or the rent assistance Module”, substitute “, the rent assistance Module or Part 3.12B (residential care allowance)”.

42. Paragraph 1207(1)(d):

After “Module” insert “or Part 3.12B (residential care allowance)”.

43. Point 1210-A1 (Note 2):

After “rent assistance” insert “or residential care allowance”.

44. Subclauses 28(1) and (2) of Schedule 1A:

After “ineligible homeowner” insert “or excluded homeowner”.

45. Subclause 28(4) of Schedule 1A:

After “rent assistance” (wherever occurring) insert “or residential care allowance”.

46. Subclause 28(5) of Schedule 1A:

Omit the subclause, substitute:

SCHEDULE 6—continued

“(5) Subclause (4) does not apply if the person is entitled to rent assistance or residential care allowance because of subclause (1) or (2) and either:

(a) the amount of rent assistance payable is worked out under clause 63; or

(b) the amount of residential care allowance payable is worked out under clause 63A.".

47. Subclause 28(6) of Schedule 1A:

After "rent assistance” insert “or residential care allowance”.

48. Subclause 36(3) of Schedule 1A:

After “rent assistance" insert "or residential care allowance”.

49. After clause 63 of Schedule 1 A:

Insert:

Residential care allowance for persons with rent assistance preserved under clause 63

“63A.(1) If clause 63 applies to a person immediately before the person starts to receive residential care allowance, the first amount of residential care allowance payable to the person is to equal the amount of rent assistance that would have been payable to the person under that clause when the person starts to receive residential care allowance had rent assistance continued to be payable to the person then.

“(2) Each later amount of residential care allowance payable to the person is to be worked out using the formula:

where:

initial residential care allowance is the amount worked out under subclause (1).

post-1996 increase is the sum of the increases in the amount of the maximum fortnightly rate of any of the following payments to the person after 31 December 1996 or the later day (the application day) this clause first applied to the person (whether or not the type or amount of payment payable to the person varies after 31 December 1996 or the application day because the person’s circumstances change):

(a) a social security benefit;

(b) a social security pension;

SCHEDULE 6—continued

(c) family payment;

(d) non-benefit parenting allowance;

(e) child disability allowance;

(f) double orphan pension;

(g) mobility allowance;

(h) youth training allowance.

“(3) This clause does not apply (and cannot apply later) to a person when the amount of residential care allowance payable to the person under subclause (1) would be less than or equal to the amount of residential care allowance that would otherwise be payable to the person.

“(4) This clause ceases to apply (and cannot re-apply) to a person if:

(a) the person ceases to receive a social security pension, social security benefit or family payment; or

(b) the person ceases to be qualified for residential care allowance; or

(c) the Secretary considers that there is a significant change in the person’s circumstances that would affect the amount of residential care allowance that is payable to the person apart from this clause; or

(d) the amount of residential care allowance that would be payable to the person if this clause applied is less than or equal to the amount of residential care allowance that would otherwise be payable.”.

SCHEDULE 6—continued

Part 2 — AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

50. Subsection 24ABA(1) (Table):

After paragraph (a) in each item of the Table, insert:

“(aa) the amount included in the payment because residential care charge was paid or payable for the taxpayer;”.

––––––––––––

SCHEDULE 7 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO PROVIDE FOR IMMEDIATE RENT ASSISTANCE FOR THOSE LEAVING HOME TO RECEIVE OR GIVE COMMUNITY-BASED CARE

1. Section 3:

Insert in the Index after the entry for “Impairment Tables”:

“in a care situation 13(9)”.

2. Subsection 13(1) (paragraphs (b) and (c) of definition of ineligible homeowner ):

Omit the paragraphs, substitute:

“(b) a person who:

(i) is absent from the person’s principal home, in relation to which the person is a homeowner; and

(ii) is personally providing a substantial level of care in another private residence for another person who needs, or in the Secretary’s opinion is likely to need, that level of care in a private residence for at least 14 consecutive days; and

(iii) has been absent from the principal home for less than 2 years while providing care as described in subparagraph (ii); or

(c) a person who is in a care situation but is not residing in a retirement village; or”.

3. Subsection 13(1) (Note after definition of ineligible homeowner ):

After “subsection 4(9),” insert “for in a care situation see subsection 13(9),”.

4. After subparagraph 13(2)(a)(i):

Insert:

“(ia) as a condition of occupancy of premises, or of a part of premises, occupied by the person to allow him or her to provide personally a substantial level of care in a private residence for another person who needs, or in the Secretary’s opinion is likely to need, that level of care in a private residence for at least 14 consecutive days; or”.

5. Subparagraph 13(2)(a)(iii):

Omit the subparagraph, substitute:

SCHEDULE 7—continued

“(iii) if the person is in a care situation and the place where the person receives the care is the person’s principal home or would be the person’s principal home apart from subsection 11(7)—for accommodation in the place where the person receives care; or”.

6. After subsection 13(3):

Insert:

“(3A) If a person is in a care situation and the person’s principal home is not the place where the person receives the care, the person’s rent may be an amount described in any of the subparagraphs of paragraph 13(2)(a) that applies to the person but cannot include amounts described in different subparagraphs of paragraph 13(2)(a).

“(3B) If an amount described in subparagraph 13(2)(a)(ia) and an amount described in another subparagraph of paragraph 13(2)(a) are payable by a person, the person’s rent may be an amount described in either of those subparagraphs but cannot include amounts described in different subparagraphs.

7. Paragraph 13(7)(a):

Omit the paragraph, substitute:

“(a) a person in a care situation pays, or is liable to pay, amounts for accommodation and other services in the care situation; and”.

8. Section 13:

Add at the end:

“(9) For the purposes of this Act, unless the contrary intention appears, a person is in a care situation if:

(a) the person is residing in a nursing home; or

(b) the person needs and has been receiving a substantial level of care in a private residence for at least 14 consecutive days; or

(c) in the Secretary’s opinion, the person needs and is likely to receive, a substantial level of care in a private residence for at least 14 consecutive days.”.

––––––––––––

SCHEDULE 8 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO EXTEND DISREGARD OF HOMES OF PERSONS WHO ARE RECEIVING OR GIVING COMMUNITY-BASED CARE OR ARE IN RESIDENTIAL CARE

1. Paragraph 11(7)(b):

Omit the paragraph, substitute:

“(b) if the person is in a care situation or residential care—the period of 2 years beginning when the person started to be in a care situation or residential care; and”.

2. Subparagraph 11(7)(c)(i):

Omit “residing in a nursing home”, substitute “in a care situation or residential care”.

3. Paragraph 11(7)(d):

Omit the paragraph, substitute:

“(d) if:

(i) the person is in a care situation or residential care; and

(ii) the person’s partner dies while in a care situation or residential care; and

(iii) the person’s partner had been in a care situation or residential care for less than 2 years;

the period of 2 years beginning at the time the person’s partner started to be in a care situation or residential care; and”.

4. Subparagraphs 11(7)(e)(i) and (ii):

Omit “residing in a nursing home”, substitute “in a care situation or residential care”.

5. Application of amendments made by items 1, 2, 3 and 4

Subsection 11(7) of the Social Security Act 1991 (as amended by items 1, 2, 3 and 4) extends to periods beginning before the commencement of this item. However, the amendments made by those items do not affect a person’s entitlement (or lack of entitlement) to an amount by way of rent assistance in relation to a time before the commencement of this item.

SCHEDULE 8—continued

6. Subsection 11(7):

Add at the end:

“; and (f) any period of up to 2 years while the person is absent from the residence and is personally providing a substantial level of care in another private residence for another person who needs, or in the Secretary’s opinion is likely to need, that level of care in a private residence for at least 14 consecutive days.”.

7. Application of amendment made by item 6

Paragraph 11(7)(f) of the Social Security Act 1991 extends to periods that began when a person started to provide a substantial level of care before the commencement of this item. However, the amendment made by item 6 does not affect a person’s entitlement (or lack of entitlement) to an amount by way of rent assistance in relation to a time before the commencement of this item.

8. Subsection 11(7):

Omit the Note, substitute:

“Note: For in a care situation, see subsection 13(9); for in residential care see subsection 13A(5).”.

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SCHEDULE 9 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO CONTINUE PAYMENT OF CARER PENSION AFTER PERSON RECEIVING CARE IS ADMITTED TO AN INSTITUTION

1. Section 211:

Add at the end:

“Note 3: For the impact on payment of carer pension when a person ceases to be qualified in certain circumstances, see section 225AA.”.

2. Paragraph 225( 1 )(c):

After “section” insert “225AA,”.

3. Before section 225A:

Insert in Subdivision B of Division 8 of Part 2.5:

Effect on carer pension when person being cared for by carer is admitted to an institution

“225AA.(1) This section applies if:

(a) a carer pension is payable to a person (the carer) who has ordinarily been providing constant care for a severely handicapped person; and

(b) the carer ceases to be qualified for the pension because the carer ceases to provide constant care for the severely handicapped person because the person is admitted permanently to an institution where care is provided for the person.

“(2) The carer pension continues to be payable to the carer on each of the first 7 pension paydays after the carer ceases to be qualified, and then ceases to be payable.”.

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SCHEDULE 10 Section 3

AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 TO PROVIDE CARER PENSION FOR PERSONS CARING FOR PERSONS WHO DO NOT RECEIVE PENSIONS OR BENEFITS

1. Section 3:

After the entry in the Index relating to “care” insert:

“care receiver 23(1)”.

2. Subsection 19B(1):

Omit “section”, substitute “sections 198N (exemption from care receiver assets test) and”.

3. Subsection 19B(1):

After “Subdivision AA” insert “of Division 2”.

4. Subsection 23(1) (paragraph (d) of definition of recipient notification notice ):

Omit “section 222”, substitute “subsection 222(1)”.

5. Subsection 23(1):

Insert:

“care receiver means a person referred to in subsection 198(1B).”.

6. Subparagraph 198(1)(d)(ii):

After “test)” insert “or subsection (1B) (description of care receiver)”.

7. After subsection 198(1A):

Insert:

“(1B) This subsection applies to a severely handicapped person if the person:

(a) requires constant care; and

(b) is at least 16; and

(c) is an Australian resident; and

(d) is not receiving a social security pension, social security benefit or service pension; and

(e) passes the income test under section 198A; and

(f) either:

(i) passes the assets test under section 198D; or

(ii) is the subject of a decision in force under subsection 198N(2), (3) or (4) that the person is taken to satisfy subparagraph (i).

SCHEDULE 10—continued

8. After section 198:

Insert in Subdivision A of Division 1 of Part 2.5:

Income test

Passing the income test

“198A.(1) A care receiver passes the income test if his or her taxable income worked out under income ceiling).section 198B for the appropriate tax year determined under section 198C is not more than $61,020.00 (the

Some grounds for failing income test

“(2) A care receiver does not pass the income test if:

(a) the care receiver does not have an assessed taxable income or an accepted estimated taxable income for the appropriate tax year; or

(b) any partner of the care receiver does not have an assessed taxable income or an accepted estimated taxable income for the appropriate tax year.

Initial income ceiling

“(3) If the Secretary determines in writing that the income ceiling should be more than $61,020.00, subsection (1) has effect from the commencement of this section as if it specified that higher amount.

Limit on determination of initial income ceiling

“(4) The Secretary must not determine an amount more than the basic ceiling amount taken to be specified in column 1 of Table H1 in Module H of the Family Payment Rate Calculator on 1 January 1996 after indexation.

Determination is disallowable

“(5) A determination is a disallowable instrument.

Taxable income

Taxable income of care receiver and partner

“198B.(1) For the purposes of this Subdivision:

(a) if a care receiver is a member of a couple, the care receiver’s taxable income includes the taxable income of the care receiver’s partner; and

(b) a person’s taxable income for a tax year is:

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

SCHEDULE 10—continued

(ii) if the Commissioner of Taxation has not made an assessment of the person’s taxable income for the tax year—the person’s accepted estimated taxable income for the tax year.

Assessed taxable income

"(2) At a particular time, a person’s assessed taxable income for a tax year is the taxable income according to whichever of the following was made most recently:

(a) an assessment of the person’s taxable income for the tax year made by the Commissioner of Taxation;

(b) an amended assessment of the person’s taxable income for the tax year made by the Commissioner of Taxation;

(c) an amendment made by a tribunal of an assessment or amended assessment of the person’s taxable income for the tax year made by the Commissioner of Taxation;

(d) an amendment made by a court of:

(i) an assessment or amended assessment of the person’s taxable income for the tax year made by the Commissioner of Taxation; or

(ii) an amended assessment of the person’s taxable income for the tax year made by a tribunal.

Estimating taxable income

“(3) A person may give the Secretary a written estimate of the person’s taxable income for a tax year.

Accepting estimate of taxable income

“(4) The Secretary may accept the estimate only if:

(a) the person does not have an assessed taxable income for the tax year; and

(b) one of the following applies:

(i) the tax year has not ended;

(ii) the Secretary is satisfied that the person is not required to lodge a return of income for the tax year under the Income Tax Assessment Act;

(iii) the Secretary is satisfied that the person has lodged, or proposes to lodge, a return of income for the tax year under the Income Tax Assessment Act; and

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

SCHEDULE 10—continued

Accepted estimated taxable income

“(5) A person’s accepted estimated taxable income for a tax year is the taxable income according to the estimate that was most recently given to the Secretary by the person under subsection (3) and accepted by the Secretary.

Nil amounts of taxable income

“(6) For the purposes of this Subdivision, a person’s assessed taxable income or accepted estimate of taxable income may be a nil amount.

Appropriate tax year

Appropriate tax year in ordinary cases

“198C.(1) Subject to this section, the appropriate tax year for a carer pension payday is the base tax year for that payday.

Change of appropriate tax year on request

“(2) If:

(a) carer pension would not be payable to a person (the carer) because a care receiver would not pass the income test under subsection 198A(1) apart from this subsection; and

(b) the carer or the care receiver gives the Secretary a written request to treat the care receiver as if the tax year in which the request is given were the appropriate tax year; and

(c) the care receiver’s taxable income for the tax year in which the request is made is likely to be less than the income ceiling;

the appropriate tax year, for the purposes of applying subsection 198A(1) to the care receiver for a payday on or after the day on which the request is given, is the tax year in which the request is made.

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

“(3) If:

(a) carer pension is payable to a person:

(i) on the last carer pension payday in one calendar year; and

(ii) on the first carer pension payday in the next calendar year;

because the person cares for a person to whom subsection 198(1B) applies (the care recipient); and

SCHEDULE 10—continued

(b) the carer pension is payable on the last carer pension payday in the earlier of the 2 calendar years because, as a result of a request under paragraph (2)(b), the care recipient’s appropriate tax year is the tax year in which that payday occurs (the current tax year); and

(c) the care recipient’s taxable income for the current tax year is less than the care recipient’s taxable income for the base tax year;

the care recipient’s appropriate tax year, as from the beginning of the later calendar year, is the current tax year and not the base tax year unless the care recipient’s taxable income for the base tax year is less than the income ceiling.

Change to appropriate tax y ear because of notifiable event

“(4) For the purposes of section 198A, if:

(a) a notifiable event occurs in relation to a care receiver; and

(b) the care receiver’s taxable income for the tax year in which the notifiable event occurs exceeds the income ceiling;

the appropriate tax year is the tax year in which the notifiable event occurs.

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

“(5) For the purposes of section 198A, if:

(a) a notifiable event occurs in relation to a care receiver; and

(b) the care receiver’s taxable income for the tax year in which the notifiable event occurs (the event tax year) does not exceed the income ceiling; and

(c) the care receiver’s taxable income for the tax year that follows the event tax year is likely to exceed the income ceiling;

the appropriate tax year is the year that follows the event tax year.

Definitions

“(6) For the purposes of this section:

SCHEDULE 10—continued

(a) the base tax year for a carer pension payday is the tax year that ended on 30 June in the calendar year immediately before the calendar year in which the carer pension payday falls; and

(b) a notifiable event is an event or change of circumstances that:

(i) is specified in a notice under subsection 222(1A); and

(ii) is described by the notice as a notifiable event.

Assets test

Passing the assets test

“198D.(1) A care receiver passes the assets test if the total value of the following assets is less than $376,750:

(a) the care receiver’s assets;

(b) if the care receiver has a partner—any assets of the partner;

(c) if the care receiver or the care receiver’s partner has one or more FP children—any assets of the FP children.

Determination of initial assets limit

“(2) If the Secretary makes a determination specifying an amount more than $376,750 for the purposes of subsection (1), that subsection has effect from its commencement as if it specified the larger amount.

Limit on determination

“(3) The Secretary must not make a determination specifying an amount more than the amount taken to be specified by paragraph 838(1)(d) (the assets value limit for family payment) on 1 January 1996 after indexation.

Determination is disallowable

“(4) A determination under subsection (2) is a disallowable instrument.

Working out the value of assets

“198E. For the purposes of subsection 198D(1), the value of assets is to be worked out in accordance with:

(a) Part 3.12, except Divisions 2, 3 and 4 of that Part; and

(b) sections 198F to 198M (inclusive).

SCHEDULE 10—continued

Disposal of assets—care receiver assets test

“198F.(1) For the purposes of this Division, a person disposes of assets of the person if:

(a) the person engages in a course of conduct that directly or indirectly:

(i) destroys all or some of the person’s assets; or

(ii) disposes of all or some of the person’s assets; or

(iii) diminishes the value of all or some of the person’s assets; and

(b) one of the following subparagraphs is satisfied:

(i) the person receives no consideration in money or money’s worth for the destruction, disposal or diminution;

(ii) the person receives inadequate consideration in money or money’s worth for the destruction, disposal or diminution;

(iii) the Secretary is satisfied that the person’s purpose, or dominant purpose, in engaging in that course of conduct was to enable another person who provides care for the person to obtain a carer pension.

“(2) If, under subsection 1147(1A), the value of a granny flat interest is less than the amount paid, or agreed to be paid, for the interest, then, for the purposes of this section, so much of the amount paid, or agreed to be paid, as exceeds the value of the interest is not consideration for the interest.

Amount of disposition—care receiver assets test

“198G. If a person disposes of assets, the amount of the disposition is:

(a) if the person receives no consideration for the destruction, disposal or diminution—an amount equal to:

(i) the value of the assets that are destroyed; or

(ii) the value of the assets that are disposed of; or

(iii) the amount of the diminution in the value of the assets whose value is diminished; or

(b) if the person receives consideration for the destruction, disposal or diminution—an amount equal to:

(i) the value of the assets that are destroyed; or

(ii) the value of the assets that are disposed of; or

(iii) the amount of the diminution in the value of the assets whose value is diminished;

less the amount of the consideration received by the person in respect of the destruction, disposal or diminution.

SCHEDULE 10—continued

Disposal of assets in pre-pension years—individual care receivers

“198H.(1) This section applies in determining whether a person (the carer) qualifies for a carer pension when claiming it for caring for a care receiver who is not a member of a couple when the claim is made.

“(2) If:

(a) the care receiver has disposed of an asset of the care receiver during a pre-pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the care receiver during that pre-pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of the care receiver’s assets for the period of 5 years that starts on the day on which the disposition took place:

(a) the amount of the first-mentioned disposition;

(b) the amount by which the sum of the amount of the first-mentioned disposition of assets and of the amounts (if any) of other dispositions of assets previously made by the care receiver during that pre-pension year exceeds $10,000.

“(3) In this section:

pre-pension year, in relation to a carer, means:

(a) the 12 months ending on the carer’s provisional commencement day for carer pension; or

(b) any preceding period of 12 months.

Disposal of assets—individual care receivers

“198J.(1) This section applies in determining whether a person (the carer) who has been receiving a carer pension for caring for a care receiver who is not a member of a couple continues to qualify for the pension.

“(2) If:

(a) the care receiver has disposed of an asset of the care receiver during a pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the care receiver during that pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of the care receiver’s assets for the period of 5 years that starts on the day on which the disposition takes place:

SCHEDULE 10—continued

(c) the amount of the first-mentioned disposition;

(d) the amount by which the sum of the amount of the first-mentioned disposition of assets, and of the amounts (if any) of other dispositions of assets previously made by the person during that pension year, exceeds $10,000.

“(3) In this section:

pension year, in relation to a carer, means:

(a) the 12 months starting on the day the carer pension first became payable to the carer; or

(b) any preceding or following period of 12 months.

Disposal of assets in pre-pension years—members of couples including care receivers

Application

“198K.(1) This section applies in determining whether a person (the carer) qualifies for a carer pension when claiming it for caring for a care receiver who is a member of a couple when the claim is made.

Increase in value of assets of care receiver and of care receiver’s partner

“(2) Subject to subsections (3) and (4), if:

(a) the care receiver or the care receiver’s partner has disposed of an asset during a pre-pension year of the carer; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the care receiver or the partner during that pre-pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of both the assets of the care receiver and the assets of the partner, for the period of 5 years that starts on the day on which the disposition took place:

(c) 50% of the amount of the first-mentioned disposition;

(d) 50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the care receiver or the care receiver’s partner during that pre-pension year exceeds $10,000.

SCHEDULE 10—continued

Effect of separation of couple after di sposal of care receiver’s asset

“(3) If:

(a) an amount is included under subsection (2) in the value of both the assets of the care receiver and the assets of the care receiver’s partner because of a disposition of an asset by the care receiver; and

(b) the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the partner’s assets because of that disposition is to be included in the assets of the care receiver.

Effect of separation of couple after disposal of partner's asset

“(4) If:

(a) an amount is included under subsection (2) in the value of both the assets of the care receiver and the assets of the care receiver’s partner because of a disposition of an asset by the partner; and

(b) the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the care receiver’s assets because of that disposition is no longer to be included in the assets of the care receiver.

Pre-pension year

“(5) In this section:

pre-pension year, in relation to a carer, means:

(a) the 12 months ending on the carer’s provisional commencement day for the carer pension; or

(b) any preceding period of 12 months.

Disposal of assets—members of couples including care receivers

Application

“198L.(1) This section applies in determining whether a person (the carer) who has been receiving a carer pension for caring for a care receiver who is a member of a couple continues to qualify for the pension.

Increase in value of assets of care receiver and of care receiver’s partner

“(2) Subject to subsections (3) and (4), if:

(a) the care receiver or the care receiver’s partner disposed of an asset during a pension year of the carer; and

SCHEDULE 10—continued

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the care receiver or the care receiver’s partner during that pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of both the assets of the care receiver and the assets of the partner, for the period of 5 years that starts on the day on which the disposition took place:

(c) 50% of the amount of the first-mentioned disposition;

(d) 50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the care receiver or the care receiver’s partner during that pre-pension year exceeds $10,000.

Effect of separation of couple after di sposal of care receiver's asset

“(3) If:

(a) an amount is included under subsection (2) in the value of both the assets of the care receiver and the assets of the care receiver’s partner because of a disposition of an asset by the care receiver; and

(b) the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the partner’s assets because of that disposition is to be included in the assets of the care receiver.

Effect of separation of couple after disposal of partner’s asset

“(4) If:

(a) an amount is included under subsection (2) in the value of both the assets of the care receiver and the assets of the care receiver’s partner because of a disposition of an asset by the partner; and

(b) the care receiver and the partner cease to be members of the same couple (either because the partner dies or for another reason);

the amount that was included in the value of the care receiver’s assets because of that disposition is no longer to be included in the assets of the care receiver.

Pension year

“(5) In this section:

pension year, in relation to a carer, means:

SCHEDULE 10—continued

(a) the 12 months starting on the day the carer pension first became payable to the carer; or

(b) any preceding or following period of 12 months.

Certain dispositions to b e disregarded for care receiver assets test

“198M. This Division does not apply to a disposition of an asset by a person (the disposer):

(a) more than 5 years before the time when another person (the carer) became qualified for a carer pension:

(i) because the carer was providing care for the disposer and the disposer was a care receiver; or

(ii) because the carer was providing care for the person who was the disposer’s partner at the time of the disposition and that person was a care receiver; or

(b) less than 5 years before the time referred to in paragraph (a) but before the time when the disposer could, in the Secretary’s opinion, reasonably have expected that the carer would become qualified for carer pension for a reason described in paragraph (a); or

(c) before 9 May 1995.

Exemption from care receiver assets test

Application

“198N.(1) If:

(a) subparagraph 198(1B)(f)(i) would disqualify for carer pension a person caring for a care receiver; and

(b) the care receiver lodges with the Department, in a form approved by the Secretary, a request that the care receiver be taken to satisfy subparagraph 198(1B)(f)(i); and

(c) the request includes a written estimate of the care receiver’s taxable income for the current financial year under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4); the following provisions of this section have effect.

Failing assets test but passing special income test

“(2) The Secretary may decide that the care receiver is taken to satisfy subparagraph 198(1B)(f)(i) if:

(a) the value of the care receiver’s assets is more than $376,750 and not more than $559,250; and

(b) the value of the care receiver’s liquid assets is less than the liquid assets limit; and

SCHEDULE 10—continued

(c) the amount of the care receiver’s accepted estimated taxable income for the current financial year is less than the threshold amount worked out under subsection (6).

Failing assets and special income tests

“(3) The Secretary may decide that the care receiver is taken to satisfy subparagraph 198(1B)(f)(i) if the value of the care receiver’s assets is more than $376,750 and not more than $559,250 and:

(a) the value of the care receiver’s liquid assets is equal to or greater than the liquid assets limit; or

(b) the amount of the care receiver’s accepted estimated taxable income for the current financial year is equal to or more than the threshold amount worked out under subsection (6).

Failing assets test by large margin but passing special income test

“(4) The Secretary may decide that the care receiver is taken to satisfy subparagraph 198(1B)(f)(i) if:

(a) the value of the care receiver’s assets is more than $559,250; and

(b) the value of the care receiver’s liquid assets is less than the liquid assets limit; and

(c) the amount of the care receiver’s accepted estimated taxable income for the current financial year is less than the threshold amount worked out under subsection (6).

Definitions—assets and income

“(5) For the purposes of this section:

SCHEDULE 10—continued

(a) the value of the care receiver’s assets or liquid assets is the sum of the values of the assets or liquid assets (as the case requires) of the following people:

(i) the care receiver;

(ii) if the care receiver has a partner—the partner;

(iii) if the care receiver or the care receiver’s partner has one or more FP children—those FP children; and

(b) the liquid assets limit for a care receiver is:

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

(ii) if the care receiver is not a member of a couple—$6,000; and

(c) the care receiver’s taxable income for a particular financial year is the care receiver’s taxable income for that year as worked out under section 198B.

Working out the threshold amount

“(6) For the purposes of paragraphs (2)(c), (3)(b) and (4)(c), the threshold amount is the amount worked out using the following formula:

where:

MBR is the maximum basic rate of age pension payable, as at the last 1 January, to a person who has a partner.

FPC is the number of FP children of the care receiver or the care receiver’s partner (if the care receiver has a partner).

Determination of initial amounts

“(7) If the Secretary determines in writing that a specified higher amount is to be substituted for a specified amount in subsection (2), (3) or (4), that subsection has effect from the commencement of this section as if the subsection specified that higher amount. The Secretary must not determine an amount greater than the corresponding amount taken to be specified by subsection 1132A(1A), (1B) or (1C) on 1 January 1996 after indexation. A determination under this subsection is a disallowable instrument.

SCHEDULE 10—continued

Date of effect of favourable decision under section 198N

Date of effect

“198P.(1) If the Secretary decides, under subsection 198N(2), (3) or (3) , that a care receiver is taken to satisfy subparagraph 198(1B)(f)(i), the day on which that decision takes effect is worked out under this section.

Basic rule

“(2) Subject to subsections (3), (4) and (5), the decision takes effect on the day on which the decision was made or on such later or earlier day (not being a day more than 3 months before the decision was made) as is specified in the decision.

Notified decision—review sought within 3 months

“(3) If:

(a) a decision (the previous decision) is made under subsection 198N(2), (3) or (4) about a care receiver; and

(b) notice of the making of the previous decision is given to the care receiver or the person caring for the care receiver; and

(c) within 3 months after the notice is given, a person applies to the Secretary under section 1240 for review of the previous decision; and

(d) a decision favourable to the person caring for the care receiver (the favourable decision) is made as a result of the application for review;

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

Notified decision—review sought after 3 months

“(4) If:

(a) a decision (the previous decision) is made under subsection 198N(2), (3) or (4) about a care receiver; and

(b) notice of the making of the previous decision is given to the care receiver or the person caring for the care receiver; and

(c) more than 3 months after the notice is given, a person applies to the Secretary under section 1240 for review of the previous decision; and

(d) a decision favourable to the person caring for the care receiver (the favourable decision) is made as a result of the application for review;

the favourable decision takes effect on the day on which the person sought the review.

SCHEDULE 10—continued

Decision not notified

“(5) If:

(a) a decision (the previous decision) is made under subsection 198N(2), (3) or (4) about a care receiver; and

(b) notice of the making of the previous decision is not given to either the care receiver or the person caring for the care receiver; and

(c) a person applies to the Secretary under section 1240 for review of the previous decision; and

(d) a decision favourable to the person caring for the care receiver (the favourable decision) is made as a result of the application for review;

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

Date of effect of adverse decision under section 198N

“198Q. If the Secretary decides under subsection 198N(2), (3) or (4) that a care receiver is not taken to satisfy subparagraph 198(1B)(f)(i), the decision takes effect:

(a) on the day on which the care receiver’s request under section 198N was lodged with the Department; or

(b) if the care receiver’s request under the Secretary had rejected a claim for carer pension by a person caring for the care receiver—on the day on which the decision to reject the claim took effect.”.section 198N was lodged after

9. After subsection 222(1):

Insert:

“(1A) If a person is being paid a carer pension because he or she is providing constant care for a person to whom subsection 198(1B) applies (the care recipient), the Secretary may give the care recipient a notice that requires the care recipient to inform the Department if:

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

(b) the care recipient becomes aware that a specified event or change of circumstances is likely to occur.”.

10. Subsection 222(2):

After “subsection (1)” insert “or (1A)”.

11. After subsection 222(3A):

Insert:

“(3B) A notice under subsection (1A):

SCHEDULE 10—continued

(a) must be in writing; and

(b) may describe the event or change of circumstances specified in the notice as a notifiable event for the purposes of section 198C; and

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

(d) must specify how the care recipient is to give the information to the Department; and

(e) must specify the period within which the care recipient is to give the information to the Department.

However, a notice is not invalid merely because it fails to comply with paragraph (d).”.

12. Subsection 222(4):

After “paragraph (3)(d)” insert “or (3B)(e)”.

13. Paragraph 222(4)(b):

After “person” insert “to whom the notice is given”.

14. Sections 226 and 227:

Repeal the sections, substitute;

Automatic termination where notification obligations are met

“226. If:

(a) either:

(i) a person who is receiving a carer pension is given a notice under subsection 222(1); or

(ii) a care receiver being cared for by a person who is receiving a carer pension is given a notice under subsection 222(1A); and

(b) the notice requires the person who is given the notice to inform the Department of the occurrence of an event or change in circumstances within a specified period (the notification period); and

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

(d) the person to whom the notice is given informs the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

(e) because of the occurrence of the event or change in circumstances:

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

(ii) the carer pension would, but for this section, cease to be payable to that person; and

SCHEDULE 10—continued

(f) the carer pension is not cancelled before the end of the notification period;

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

Automatic termination where notification obligations are not met

“227. If:

(a) either:

(i) a person who is receiving a carer pension is given a notice under subsection 222(1); or

(ii) a care receiver being cared for by a person who is receiving a carer pension is given a notice under subsection 222(1A); and

(b) the notice requires the person who is given the notice to inform the Department of the occurrence of an event or change in circumstances within a specified period (the notification period); and

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

(d) the person to whom the notice is given does not inform the Department of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

(e) because of the occurrence of the event or the change in circumstances:

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

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

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

15. Subsection 234(3):

Omit “and (8)”, substitute (8), (9), (10) and (11)”.

16. Section 234:

Add at the end:

SCHEDULE 10—continued

Cancellation or suspension—amendment of assessed taxable income

“(9) If:

(a) the Secretary makes a determination (the earlier determination) that a person (the carer) is entitled to carer pension because the carer is providing care for a person to whom subsection 198(1B) applies (the care recipient); and

(b) the determination is based on an assessment of the care recipient’s taxable income for a tax year; and

(c) the assessment is subsequently amended by the Commissioner of Taxation, a tribunal or a court; and

(d) the taxable income for that year according to the assessment as amended is more than the income ceiling (under section 198A); and

(e) the Secretary makes a determination under section 231 cancelling or suspending the pension;

the day specified under paragraph (2)(b) must be the day on which the earlier determination took effect.

Cancellation or suspension—underestimate of taxable income

“(10) If:

(a) the Secretary makes a determination (the earlier determination) that a person (the carer) is entitled to carer pension because the carer is providing care for a person to whom subsection 198(1B) applies (the care recipient); and

(b) in making the determination, the Secretary had regard to the care recipient’s taxable income for a tax year; and

(c) that taxable income is or includes an amount estimated by the care recipient or the care recipient’s partner; and

(d) the Commissioner of Taxation subsequently makes an assessment of that taxable income; and

(e) the amount assessed by the Commissioner is more than the income ceiling (under section 198A); and

(f) the Secretary makes a determination under section 231 cancelling or suspending the carer pension;

the day specified under paragraph (2)(b) must be the day on which the earlier determination took effect.

SCHEDULE 10—continued

Cancellation or suspension—care receiver’s taxable income exceeding income ceiling

“(11) If:

(a) on the basis of a care receiver’s taxable income for a tax year, the Secretary makes a determination that a person (the carer) is entitled to carer pension because the carer is providing care for the care receiver; and

(b) the care receiver’s taxable income for a later tax year exceeds the income ceiling (under section 198A); and

(c) the Secretary makes a determination under section 231 cancelling or suspending the carer’s carer pension;

the day specified under paragraph (2)(b) must be:

(d) if the Secretary made the determination under section 231 after the carer or care receiver informed the Department that the care receiver’s taxable income exceeded the income ceiling—the day on which the carer or care receiver informed the Department; or

(e) if the Department had not been informed by the carer or the care receiver that the care receiver’s taxable income exceeded the income ceiling when the Secretary made the determination under section 231—the day on which the care receiver’s income exceeded the income ceiling.

17. Subsection 1118(1):

Omit “subparagraph 263(1)(d)(iv)”, substitute “sections 198J and 198L, subparagraph 263(1)(d)(iv)”.

18. Subsection 1118(2A):

After “sections” insert “198F to 198M or”.

19. Subsection 1119(1):

Omit “subparagraph 263(1)(c)(iv)”, substitute “sections 198J and 198L, subparagraph 263(1)(d)(iv)”.

20. After section 1127:

Insert: