Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Act 2011

No. 50, 2011 as amended

Compilation start date: 28 June 2011

Includes amendments up to: Act No. 103, 2013

About this compilation

This compilation

This is a compilation of the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Act 2011 as in force on 28 June 2011. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 18 September 2013.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

Contents

1 Short title 1

2 Commencement 1

3 Schedule(s) 3

Schedule 1—Work bonus 4

Social Security Act 1991 4

Veterans’ Entitlements Act 1986 8

Schedule 2—Increasing FTB child rates for certain teenagers in secondary study 14

Part 1—Amendments 14

A New Tax System (Family Assistance) Act 1999 14

A New Tax System (Family Assistance) (Administration) Act 1999 18

Social Security Act 1991 19

Part 2—Application and transitional provisions 21

Schedule 3—Baby bonus 22

A New Tax System (Family Assistance) (Administration) Act 1999 22

Schedule 4—Thalidomide payments 24

Part 1—Main amendments 24

Income Tax Assessment Act 1997 24

Social Security Act 1991 25

Veterans’ Entitlements Act 1986 26

1 July 2014 27Part 2—Amendments commencing on

Income Tax Assessment Act 1997 27

Schedule 5—Income management 28

Part 1—General amendments 28

A New Tax System (Family Assistance) (Administration) Act 1999 28

Social Security Act 1991 28

Social Security (Administration) Act 1999 28

Part 2—Part 3B payment nominee amendments 35

Social Security (Administration) Act 1999 35

Endnotes 38

Endnote 1—About the endnotes 38

Endnote 2—Abbreviation key 40

Endnote 3—Legislation history 41

Endnote 4—Amendment history 42

Endnote 5—Uncommenced amendments [none] 43

Endnote 6—Modifications [none] 43

Endnote 7—Misdescribed amendments [none] 43

Endnote 8—Miscellaneous [none] 43

An Act to amend the law relating to family assistance, social security, taxation and veterans’ entitlements, and for related purposes
1 Short title

This Act may be cited as the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Act 2011.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provision(s) Commencement Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 27 June 2011
2. Schedule 1, items 1 and 2 1 July 2011. 1 July 2011
3. Schedule 1, item 3 The later of: (a) immediately after the commencement of the provision(s) covered by table item 2; and (b) immediately after the commencement of Schedule 6 to the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Budget and Other Measures) Act 2011. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 1 July 2011 (paragraph (a) applies)
4. Schedule 1, items 4 to 7 1 July 2011. 1 July 2011
5. Schedule 1, item 8 The later of: (a) immediately after the commencement of the provision(s) covered by table item 4; and (b) immediately after the commencement of Schedule 6 to the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Budget and Other Measures) Act 2011. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 1 July 2011 (paragraph (a) applies)
6. Schedule 1, items 9 to 12 1 July 2011. 1 July 2011
7. Schedule 2, items 1 to 3 1 January 2012. 1 January 2012
8. Schedule 2, item 4 The later of: (a) immediately after the commencement of the provision(s) covered by table item 7; and (b) the start of the day that Schedule 5 to the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Budget and Other Measures) Act 2011 commences. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 1 January 2012 (paragraph (a) applies)
9. Schedule 2, items 5 to 17 1 January 2012. 1 January 2012
10. Schedule 3 1 July 2011. 1 July 2011
11. Schedule 4, items 1 to 9 The day this Act receives the Royal Assent. 27 June 2011
12. Schedule 4, items 10 and 11 1 July 2014. 1 July 2014
13. Schedule 5 The day after this Act receives the Royal Assent. 28 June 2011

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 2

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedule(s)

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

Social Security Act 1991

 1 Subsections 1073AA(2) to (4)

Repeal the subsections, substitute:

Employment income greater than or equal to income concession amount

Example 1: David earns $2,250 of employment income in an instalment period of 14 days. David’s rate of social security pension for that period is greater than nil.

David’s employment income for that period is reduced by $250, leaving David $2,000 of employment income for that period.

Example 2: Amy earns $1,000 of employment income in an instalment period of 14 days. Amy’s rate of social security pension for that period is greater than nil.

Amy’s employment income for that period is reduced by $250, leaving Amy $750 of employment income for that period.

Example 1: To continue example 1 in subsection (2), assume David’s unused concession balance is $2,000. The current amount is $2,000.

David’s employment income for that period is further reduced to nil.

David’s unused concession balance is now nil.

Example 2: To continue example 2 in subsection (2), assume Amy’s unused concession balance is $1,600. The current amount is $750.

Amy’s employment income for that period is further reduced to nil.

Amy’s unused concession balance is now $850.

Example: Bill earns $1,250 of employment income in an instalment period of 14 days. Bill’s rate of social security pension for that period is greater than nil.

Under subsection (2), Bill’s employment income for that period is reduced by $250, leaving Bill $1,000 of employment income for that period.

Assume Bill’s unused concession balance is $800.

Under subsection (4), Bill’s employment income for that period is further reduced by $800 leaving Bill $200 of employment income for that period.

Bill’s unused concession balance is now nil.

Employment income less than income concession amount

Example: Emma earns $100 of employment income in an instalment period of 14 days. Emma’s rate of social security pension for that period is greater than nil.

Emma’s employment income for that period is reduced to nil.

Emma’s unused concession balance is increased by $150.

No employment income

the person’s unused concession balance (see section 1073AB) is increased, subject to subsection 1073AB(2), by an amount equal to the income concession amount for that period.

Definition

 2

If the person’s employment income for an instalment period is greater than or equal to the income concession amount for that period, then, for the purposes of Module E of that Rate Calculator, the amount of the person’s employment income for that period is reduced by an amount equal to the income concession amount.

 3

(3) If the person’s unused concession balance (see current amount) of the person’s employment income that remains after applying subsection (2) of this section in relation to an instalment period:section 1073AB) is greater than or equal to the amount (the

a

for the purposes of Module E of that Rate Calculator, the person’s employment income for that period is further reduced to nil; and

 b

if the person’s rate of social security pension for that period is greater than nil—the person’s unused concession balance is reduced by an amount equal to the current amount.

 4

If the person’s unused concession balance (see section 1073AB) is greater than nil but less than the amount of the person’s employment income that remains after applying subsection (2) of this section in relation to an instalment period:

 a

for the purposes of Module E of that Rate Calculator, the person’s employment income for that period is further reduced by an amount equal to that unused concession balance; and

 b

if the person’s rate of social security pension for that period is greater than nil—the person’s unused concession balance is reduced to nil.

 4A

If the person has employment income for an instalment period but that income is less than the income concession amount for that period:

 a

for the purposes of Module E of that Rate Calculator, the person’s employment income for that period is reduced to nil; and

 b

if the person’s rate of social security pension for that period is greater than nil—the person’s unused concession balance (see section 1073AB) is increased, subject to subsection 1073AB(2), by an amount equal to the difference between that income concession amount and that employment income (before it was reduced).

 4B

If:

 a

the person has no employment income for an instalment period; and

 b

the person’s rate of social security pension for that period is greater than nil;

 4C

(4C) The income concession amount is:

 a

for an instalment period of 14 days—$250; and

 b

for an instalment period of less than 14 days—the amount worked out using the following formula:

 2 Subsection 1073AA(6) (examples 1 and 2)

Repeal the examples.

 3 Subsection 1073AA(8)

Repeal the subsection, substitute:

then, in applying point 1064-E2 or point 1066-E2 (whichever is relevant), the ordinary income of the person’s partner is to be reduced by an amount equal to the total of the reduction amounts.

 8

If:

 a

the person is a member of a couple; and

 b

(b) the person’s partner’s employment income (Veterans’ Entitlements Act 1986) is reduced by one or more amounts (each of which is a reduction amount) under section 46AA of that Act;within the meaning of section 46AB of the

4 At the end of Division 1AAA of Part 3.10

Add:

 1073AB Unused concession balance

Initial unused concession balance of nil

Maximum unused concession balance

Example: John has an unused concession balance of $6,400. John earns $50 of employment income in an instalment period of 14 days.

Instead of John’s unused concession balance increasing to $6,600 under subsection 1073AA(4A), John’s unused concession balance increases to $6,500.

Effect of ceasing to receive social security pension

Note: If section 1073AA applies to the person again, the person’s unused concession balance will be that retained balance.

 1

A person has an unused concession balance of nil on the first day that is after 30 June 2011 and is a day on which section 1073AA applies to the person.

 2

If, apart from this subsection, the person’s unused concession balance would exceed $6,500, that balance is instead taken to be $6,500.

 3

If the person ceases to receive the social security pension referred to in paragraph 1073AA(1)(a), the person retains the person’s unused concession balance immediately before that cessation.

 5 Application

The amendments made by items 1, 2 and 4 apply in relation to the instalment period that includes 1 July 2011 and later instalment periods.

Veterans’ Entitlements Act 1986

 6 Subsections 46AA(2) to (4)

Repeal the subsections, substitute:

Employment income greater than or equal to income concession amount

Note: For employment income see section 46AB.

Example 1: David earns $2,250 of employment income in a pension period. David’s rate of service pension or income support supplement for that period is greater than nil.

David’s employment income for that period is reduced by $250, leaving David $2,000 of employment income for that period.

Example 2: Amy earns $1,000 of employment income in a pension period. Amy’s rate of service pension or income support supplement for that period is greater than nil.

Amy’s employment income for that period is reduced by $250, leaving Amy $750 of employment income for that period.

Example 1: To continue example 1 in subsection (2), assume David’s unused concession balance is $2,000. The current amount is $2,000.

David’s employment income for that period is further reduced to nil.

David’s unused concession balance is now nil.

Example 2: To continue example 2 in subsection (2), assume Amy’s unused concession balance is $1,600. The current amount is $750.

Amy’s employment income for that period is further reduced to nil.

Amy’s unused concession balance is now $850.

Example: Bill earns $1,250 of employment income in a pension period. Bill’s rate of service pension or income support supplement for that period is greater than nil.

Under subsection (2), Bill’s employment income for that period is reduced by $250, leaving Bill $1,000 of employment income for that period.

Assume Bill’s unused concession balance is $800.

Under subsection (4), Bill’s employment income for that period is further reduced by $800 leaving Bill $200 of employment income for that period.

Bill’s unused concession balance is now nil.

Employment income less than income concession amount

Note: For employment income see section 46AB.

Example: Emma earns $100 of employment income in a pension period. Emma’s rate of service pension or income support supplement for that period is greater than nil.

Emma’s employment income for that period is reduced to nil.

Emma’s unused concession balance is increased by $150.

No employment income

the person’s unused concession balance (see section 46AC) is increased, subject to subsection 46AC(2), by an amount equal to the income concession amount for that period.

Note: For employment income see section 46AB.

Definition

 2

If the person’s employment income for a pension period is greater than or equal to the income concession amount for that period, then, for the purposes of Module E of that Rate Calculator, the amount of the person’s employment income for that period is reduced by an amount equal to the income concession amount.

 3

(3) If the person’s unused concession balance (see current amount) of the person’s employment income that remains after applying subsection (2) of this section in relation to a pension period:section 46AC) is greater than or equal to the amount (the

a

for the purposes of Module E of that Rate Calculator, the person’s employment income for that period is further reduced to nil; and

 b

if the person’s rate of service pension or income support supplement for that period is greater than nil—the person’s unused concession balance is reduced by an amount equal to the current amount.

 4

If the person’s unused concession balance (see section 46AC) is greater than nil but less than the amount of the person’s employment income that remains after applying subsection (2) of this section in relation to a pension period:

 a

for the purposes of Module E of that Rate Calculator, the person’s employment income for that period is further reduced by an amount equal to that unused concession balance; and

 b

if the person’s rate of service pension or income support supplement for that period is greater than nil—the person’s unused concession balance is reduced to nil.

 4A

If the person has employment income for a pension period but that income is less than the income concession amount for that period:

 a

for the purposes of Module E of that Rate Calculator, the person’s employment income for that period is reduced to nil; and

 b

if the person’s rate of service pension or income support supplement for that period is greater than nil—the person’s unused concession balance (see section 46AC) is increased, subject to subsection 46AC(2), by an amount equal to the difference between that income concession amount and that employment income (before it was reduced).

 4B

If:

 a

the person has no employment income for a pension period; and

 b

the person’s rate of service pension or income support supplement for that period is greater than nil;

 4C

(4C) The income concession amount for a pension period is $250.

 7 Subsection 46AA(5) (examples 1 and 2)

Repeal the examples.

 8 Subsection 46AA(5A)

Repeal the subsection, substitute:

then, in applying point SCH6-E3 of Schedule 6, the ordinary/adjusted income of the person’s partner is to be reduced by an amount equal to the total of the reduction amounts.

 5A

If:

 a

the person is a member of a couple; and

 b

(b) the person’s partner’s employment income (within the meaning of the Social Security Act 1991) is reduced by one or more amounts (each of which is a reduction amount) under section 1073AA of that Act;

 9 Subsection 46AA(6)

Repeal the subsection, substitute:

 6

This section is subject to section 46AD (about no double income reductions under this section and section 115G).

 10 At the end of Division 1A of Part IIIB

Add:

 46AC Unused concession balance

Initial unused concession balance of nil

Maximum unused concession balance

Example: John has an unused concession balance of $6,400. John earns $50 of employment income in a pension period.

Instead of John’s unused concession balance increasing to $6,600 under subsection 46AA(4A), John’s unused concession balance increases to $6,500.

Effect of ceasing to receive service pension or income support supplement

Note: If section 46AA applies to the person again, the person’s unused concession balance will be that retained balance.

 1

A person has an unused concession balance of nil on the first day that is after 30 June 2011 and is a day on which section 46AA applies to the person.

 2

If, apart from this subsection, the person’s unused concession balance would exceed $6,500, that balance is instead taken to be $6,500.

 3

If the person ceases to receive service pension or income support supplement, the person retains the person’s unused concession balance immediately before that cessation.

 46AD No double income reductions under sections 46AA and 115G

Scope

Income reduction under section 46AA

Income reduction under section 115G

Note: Subsections 115G(1) and (2) are about excluding income amounts for certain veterans.

Example: Jim earns $100 of employment income in a pension period. Jim’s rate of service pension or income support supplement for that period is greater than nil. Assume Jim also has an amount of $100 worked out under subsection 115G(1) in relation to that period.

There is no reduction in Jim’s employment income under section 46AA for that period, but $100 is excluded under subsection 115G(1).

Under subsection 46AA(4A), Jim’s unused concession balance is increased by $150.

 1

This section applies if, apart from this section:

 a

(a) an amount (the initial amount) would be an excluded amount under subsection 115G(1) or (2) in respect of a veteran and a pension period; and

 b

(b) the veteran’s employment income would be reduced by one or more amounts (each of which is a reduction amount) under section 46AA in relation to that period.

 2

If the total of the reduction amounts is more than the initial amount:

 a

subsection 115G(1) or (2), as the case may be, does not apply in relation to that veteran and that period; and

 b

subsections 46AA(2) to (4A) do apply in relation to that veteran and that period.

 3

If the total of the reduction amounts is less than or equal to the initial amount:

 a

subsections 46AA(2) to (4A) do not apply to reduce the veteran’s employment income in relation to that period, but they do apply for the purposes of working out any adjustment to the veteran’s unused concession balance in relation to that period (as if those reductions had occurred); and

 b

subsection 115G(1) or (2), as the case may be, does apply in relation to that veteran and that period.

 11 Subsection 115G(4)

Repeal the subsection, substitute:

 4

This section is subject to section 46AD (about no double income reductions under this section and section 46AA).

 12 Application

The amendments made by items 6, 7, 9, 10 and 11 apply in relation to the pension period that includes 1 July 2011 and later pension periods.

 Increasing FTB child rates for certain teenagers in secondary study

A New Tax System (Family Assistance) Act 1999

 1 Subsection 3(1)

Insert:

senior secondary school child has the meaning given by section 22B.

 2 Subsection 22A(1) (paragraph (a) of the cell at table item 2, column headed “then the individual cannot be an FTB child of the adult if:”)

Before “the individual”, insert “if the individual is not a senior secondary school child—”.

 3 After section 22A

Insert:

 22B Meaning of senior secondary school child 1

(1) An individual is a senior secondary school child if:

 a

the following requirement is satisfied:

 i

for the purposes of subclause 29(3) or 36(2) of Schedule 1—the individual is aged 16 or 17 or is aged 18 and the calendar year in which the individual turned 18 has not ended;

 ii

for the purposes of any other provision of this Act—the individual is aged 16, 17 or 18 or is aged 19 and the calendar year in which the individual turned 19 has not ended; and

 b

one of the following applies:

 i

the individual is undertaking full-time study in an approved course of education or study that would, in the Secretary’s opinion, assist or allow the individual to complete the final year of secondary school or an equivalent level of education;

 ii

except for the purposes of subsection 22A(1) or 35(1) of this Act or paragraph 32L(1)(aa) of the Family Assistance Administration Act—the individual is exempt from the FTB activity test.

 2

Subsection 17B(3) applies in relation to subsection (1) of this section in the same way as it applies in relation to subsection 17B(1).

 3

(3) If, apart from this subsection, an individual would cease to be a senior secondary school child because the individual completes the final year of secondary school or an equivalent level of education, then the individual is taken to be a senior secondary school child until the end of:

 a

if the day the individual completes that final year of secondary school or equivalent level of education is in December in a calendar year—31 December of that year; or

 b

if the day the individual completes that final year of secondary school or equivalent level of education is before December—the period of 28 days beginning on the day after that day.

 4

(4) An individual completes the final year of secondary school or an equivalent level of education on the day worked out in accordance with the following table:

 5

To avoid doubt, if an individual ceases to be a senior secondary school child, nothing in this section prevents the individual again becoming a senior secondary school child.

 4 After subparagraph 22B(1)(b)(i)

Insert:

 ia

the individual is studying overseas full-time in a way that would, in the Secretary’s opinion, assist or allow the individual to complete the final year of secondary school or an equivalent level of education;

 5 Subsection 35(1) (paragraph (a) of the cell at table item 2, column headed “then the approved care organisation is not eligible for family tax benefit in respect of the individual if:”)

Before “the individual”, insert “if the individual is not a senior secondary school child—”.

 6 Clause 7 of Schedule 1 (table)

Repeal the table, substitute:

 7 Subclause 26(2) of Schedule 1

Repeal the subclause, substitute:

 2

(2) The FTB child rate for the purpose of subclause (1) is:

 a

for an FTB child who has not turned 18, or who has turned 18 and who is a senior secondary school child—$1,372.40; or

 b

for an FTB child who has turned 18 and who is not a senior secondary school child—$1,839.60.

 8 Subclause 29(3) of Schedule 1

Repeal the subclause, substitute:

 3

In applying this Part to an individual, disregard an FTB child who has turned 16 years of age unless the FTB child is a senior secondary school child. If disregarding the FTB child means that neither item 1 nor item 2 in the table in clause 30 applies to the individual, the individual’s Part B rate is nil.

 9 Paragraph 36(2)(b) of Schedule 1

Repeal the paragraph, substitute:

 b

the child has turned 16 and is a senior secondary school child.

 10 Paragraph 38B(3)(a) of Schedule 1

Repeal the paragraph, substitute:

 a

either:

 i

the regular care child is under 16 years of age; or

 ii

the regular care child has turned 16 and is a senior secondary school child; and

 11 Clause 2 of Schedule 4 (table items 1, 2 and 3)

Repeal the items, substitute:

 12 Subclause 3(1) of Schedule 4 (table items 1, 2 and 3)

Repeal the items, substitute:

A New Tax System (Family Assistance) (Administration) Act 1999

 13 After paragraph 32L(1)(a)

Insert:

Social Security Act 1991

 aa

the other individual is not a senior secondary school child;

 14 Subsection 543A(2)

After “subsections”, insert “(2AA),”.

 15 After subsection 543A(2)

Insert:

(2AA) Paragraph (2)(b) does not apply to a person who is aged 16 or 17 and who is undertaking full-time study in respect of a secondary course at a secondary school (within the meaning of the Student Assistance Act 1973) or at a TAFE institution unless:

(2AB) For the purposes of subsection (2AA), a secondary course is a course that is determined, under section 5D of the Student Assistance Act 1973, to be a secondary course for the purposes of that Act.

 a

the person is independent (see section 1067A); or

 b

the person is taken by section 1067D to be required to live away from home; or

 c

the person was receiving youth allowance immediately before starting that course.

 16 Section 1067G (at the end of Module F of the Youth Allowance Rate Calculator)

Add:

Extension to senior secondary school FTB children

1067G-F31 This Submodule applies in relation to a person who is an FTB child aged 16 or more and who is a senior secondary school child as if:

1067G-F32 For the purposes of point 1067G-F31, senior secondary school child has the meaning given by section 22B of the Family Assistance Act (disregarding subparagraph 22B(1)(a)(i) of that Act).

 a

the parental income test under this Module applied to the person; and

 b

the following amount were the maximum payment rate for the person for the purposes of this Submodule:

 i

if the person is aged less than 18—the amount specified in column 3 of item 1 of the table in point 1067G-B2 (as indexed);

 ii

if the person is aged 18 or more—the amount specified in column 3 of item 2 of the table in point 1067G-B2 (as indexed).

 17 Application and transitional provisions 1

The amendment made by item 2 applies in relation to working out if an individual is an FTB child for days on or after 1 January 2012.

 2

The amendment made by item 5 applies in relation to working out if an approved care organisation is eligible for family tax benefit for days on or after 1 January 2012.

 3

The amendments made by items 6 to 10 apply in relation to working out the rate of family tax benefit for days on or after 1 January 2012.

 4

If:

 a

(a) on or after 1 January 2012, it is necessary to work out an individual’s standard rate under A New Tax System (Family Assistance) Act 1999 in relation to an FTB child who turned 18 before 1 January 2012; andDivision 2 of Part 3 of Schedule 1 to the

b

apart from this subitem, paragraph 26(2)(a) of that Schedule would apply to the FTB child;

then paragraph 26(2)(a) of that Schedule does not apply to the FTB child and paragraph 26(2)(b) of that Schedule applies to the FTB child instead.

 5

The amendment made by item 13 applies in relation to same-rate benefit periods beginning on or after 1 January 2012.

 6

The amendments made by items 14 and 15 do not apply in relation to:

 a

a person who was receiving youth allowance immediately before the commencement of those items; or

 b

a person who would have been receiving youth allowance immediately before the commencement of those items except for the application of a compliance penalty period.

 Baby bonus

A New Tax System (Family Assistance) (Administration) Act 1999

 1 Subsections 47(1) and (2)

Repeal the subsections, substitute:

Payment over 13 fortnightly instalment periods

Note: Section 47AB provides for rounding of the amounts of payments.

Payment over 26 weekly instalment periods

the Secretary must:

Note: Section 47AB provides for rounding of the amounts of payments.

Upfront part

 1

The Secretary must:

 a

after the first fortnightly instalment period ending after he or she determines the claimant is entitled to be paid baby bonus, pay the claimant the upfront part of the amount of baby bonus the claimant is entitled to; and

 b

after each of the next 12 fortnightly instalment periods, pay the claimant 1/12 of the amount of baby bonus remaining after the application of paragraph (a).

 2

However, if the Secretary:

 a

determines that the claimant has a weekly instalment period; and

 b

makes that determination before the end of what would, apart from that determination, be the end of the claimant’s first fortnightly instalment period ending after the making of the determination that the claimant is entitled to be paid baby bonus;

 c

after each of the first 2 weekly instalment periods ending after the determination of entitlement is made, pay the claimant 1/2 of the upfront part of the amount of baby bonus the claimant is entitled to; and

 d

after each of the next 24 weekly instalment periods, pay the claimant 1/24 of the amount of baby bonus remaining after the application of paragraph (c).

 2A

(2A) The upfront part is the following amount:

 a

if the claimant becomes eligible for baby bonus in the 2011-2012 financial year—$879.77;

 b

if the claimant becomes eligible for baby bonus in the 2012-2013 financial year or a later financial year—the amount worked out as follows:

 2 Application

The amendment made by item 1 applies in relation to individuals who become eligible for baby bonus on or after 1 July 2011.

 Thalidomide payments

Income Tax Assessment Act 1997

 1 Section 11-15 (table item headed “welfare”)

After:

insert:

 2 Section 51-30 (at the end of the table)

Add:

 3 Application of amendments 1

The amendments made by items 1 and 2 of this Schedule in relation to ex-gratia thalidomide payments apply to assessments for the 2010-11 and 2011-12 income years.

 2

The amendments made by items 1 and 2 of this Schedule in relation to payments from the Thalidomide Australia Fixed Trust apply to assessments for the 2010-11 income year and later income years.

Social Security Act 1991

 4 After paragraph 8(8)(vb)

Insert:

 vc

a payment by the Thalidomide Australia Fixed Trust:

 i

made to, or applied for the benefit of, a beneficiary of the Trust; or

 ii

made to a person in respect of a beneficiary of the Trust;

 5 Paragraph 146(1)(b) of Schedule 1A

Repeal the paragraph, substitute:

 b

either:

 i

the person continues (without a break) to receive one of those payments (whether or not of the same sort as the one the person received on that day); or

 ii

subclause (1A) applies to the person.

 6 After subclause 146(1) of Schedule 1A

Insert:

Veterans’ Entitlements Act 1986

 1A

This subclause applies to a person if:

 a

a payment by the Thalidomide Australia Fixed Trust:

 i

is made to, or applied for the benefit of, the person as a beneficiary of the Trust; or

 ii

is made to, or applied for the benefit of, the person’s partner as a beneficiary of the Trust; or

 iii

is made to the person or the person’s partner in respect of a beneficiary of the Trust; and

 b

subparagraph (1)(b)(i) applies to the person immediately before the payment is made; and

 c

(c) the person receives any of the payments mentioned in paragraph (1)(a) at the commencement of item 4 of Schedule 4 to the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Act 2011; and

 d

after that commencement, the person continues (without a break) to receive that payment, or any of the other payments referred to in paragraph (1)(a).

 7 After paragraph 5H(8)(xa)

Insert:

 xb

a payment by the Thalidomide Australia Fixed Trust:

 i

made to, or applied for the benefit of, a beneficiary of the Trust; or

 ii

made to a person in respect of a beneficiary of the Trust;

 8 Paragraph 30(1)(b) of Schedule 5

Repeal the paragraph, substitute:

 b

either:

 i

the person continues (without a break) to receive one of those payments (whether or not of the same sort as the one the person received on that day); or

 ii

subclause (1A) applies to the person.

 9 After subclause 30(1) of Schedule 5

Insert:

Income Tax Assessment Act 1997

 1A

This subclause applies to a person if:

 a

a payment by the Thalidomide Australia Fixed Trust:

 i

is made to, or applied for the benefit of, the person as a beneficiary of the Trust; or

 ii

is made to, or applied for the benefit of, the person’s partner as a beneficiary of the Trust; or

 iii

is made to the person or the person’s partner in respect of a beneficiary of the Trust; and

 b

subparagraph (1)(b)(i) applies to the person immediately before the payment is made; and

 c

(c) any of the payments mentioned in paragraph (1)(a) is payable to the person at the commencement of item 7 of Schedule 4 to the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Act 2011; and

 d

after that commencement, that payment, or any of the other payments referred to in paragraph (1)(a), continues (without a break) to be payable to the person.

 10 Section 11-15 (table item headed “welfare”)

Omit:

 11 Section 51-30 (table item 5.5)

Repeal the item.

 Income management

A New Tax System (Family Assistance) (Administration) Act 1999

 1 Subsection 219TE(1A)

Repeal the subsection.

Social Security Act 1991

 2 Subparagraph 1061WG(1)(b)(i)

Omit “commenced”, substitute “is registered for”.

Social Security (Administration) Act 1999

 3 Subsection 123E(1A)

Repeal the subsection.

 4 Section 123TC (definition of designated nominee)

Repeal the definition.

 5 Section 123TC

Insert:

excluded Part 3B payment nominee means:

 a

the Public Trustee (however described) of a State or Territory; or

 b

a Part 3B payment nominee who is not subject to the income management regime.

 6 Section 123TC (definition of excluded payment nominee)

Repeal the definition.

 7 Section 123TC

Insert:

Part 3B payment nominee means:

 a

a person who is, by virtue of an appointment in force under section 123B of this Act or section 219TB of the Family Assistance Administration Act, the payment nominee of another person; or

 b

a person to whom payment of another person’s service pension is made by virtue of an approval in force under section 58D of the Veterans’ Entitlements Act; or

 c

a person to whom payment of another person’s service pension is made by virtue of an appointment in force under section 202 of the Veterans’ Entitlements Act; or

 d

a person to whom another person’s instalments of youth allowance are to be paid in accordance with subsection 45(1) of this Act.

 8 Section 123TC (definition of payment nominee)

Repeal the definition.

 9 Section 123UC

Before “For the purposes”, insert “(1)”.

 10 At the end of section 123UC

Add:

 2

(2) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if:

 a

at the test time, the person is not subject to the income management regime under any other provision of this Subdivision; and

 b

at the test time, the person has a Part 3B payment nominee; and

 c

at the test time, the Part 3B payment nominee is subject to the income management regime under subsection (1).

 11 Paragraph 123UM(3)(c)

Repeal the paragraph, substitute:

 c

if the first person has a Part 3B payment nominee—the Part 3B payment nominee is not an excluded Part 3B payment nominee.

 12 Paragraph 123UM(3)(d)

Repeal the paragraph.

 13 Subparagraph 123UN(1)(a)(iv)

Repeal the subparagraph.

 14 Subparagraph 123UO(3)(b)(iv)

Repeal the subparagraph.

 15 Section 123UP

Repeal the section.

 16 Paragraph 123YE(2)(b)

Repeal the paragraph.

 17 Subparagraph 123YE(2)(c)(ii)

Omit “or” (second occurring).

 18 Paragraph 123YE(2)(d)

Repeal the paragraph.

 19 Paragraph 123YE(2)(e)

Omit “or (b)”.

 20 Paragraph 123YE(2)(f)

Omit “or (d)”.

 21 Subsections 123YE(4) to (7)

Omit “or a third person”.

 22 Paragraph 123YE(8)(a)

Omit “or a third person”.

 23 Subsection 123YE(9)

Omit “or a third person”.

 24 Subsection 123YE(9)

Omit “or the third person, as the case may be”.

 25 Subsection 123YE(10)

Omit “or a third person”.

 26 Subsection 123YE(10)

Omit “or the third person, as the case may be”.

 27 Paragraph 123YF(2)(b)

Omit “a third person a stored value card that enables the third person”, substitute “the first person a stored value card that enables the first person”.

 28 Paragraph 123YF(2)(d)

Omit “a third person”, substitute “the first person”.

 29 Subparagraph 123YF(2)(d)(ii)

Omit “the third person”, substitute “the first person”.

 30 Subsections 123YF(4) to (7)

Omit “a third person”, substitute “the first person”.

 31 Paragraph 123YF(8)(a)

Omit “a third person”, substitute “the first person”.

 32 Subsection 123YF(9)

Omit “a third person”, substitute “the first person”.

 33 Subsection 123YF(9)

Omit “, the first person or the third person”, substitute “or the first person”.

 34 Subsection 123YF(10)

Omit “a third person”, substitute “the first person”.

 35 Subsection 123YF(10)

Omit “, the first person or the third person”, substitute “or the first person”.

 36 Subparagraph 123YL(2)(b)(ii)

Omit “Minister”, substitute “Secretary”.

 37 Paragraph 123YM(2)(h)

Omit “or”.

 38 Paragraph 123YM(2)(i)

Repeal the paragraph.

 39 Paragraph 123YM(2)(k)

Omit “or (i)”.

 40 Subsections 123YM(4) and (6)

Omit “or (i), the Secretary gives the first person or a third person”, substitute “, the Secretary gives the first person”.

 41 Subsection 123YM(8)

Omit “or a third person a stored value card under paragraph (2)(h) or (i)”, substitute “a stored value card under paragraph (2)(h)”.

 42 Subsection 123YM(11)

Omit “or (i), the Secretary gives the first person or a third person”, substitute “, the Secretary gives the first person”.

 43 Subsection 123YM(11)

Omit “or the third person, as the case may be”.

 44 Paragraph 123YN(2)(i)

Omit “a third person a stored value card that enables the third person”, substitute “the first person a stored value card that enables the first person”.

 45 Subsections 123YN(4) and (6)

Omit “a third person”, substitute “the first person”.

 46 Subsection 123YN(8)

Omit “the designated nominee”, substitute “the Part 3B payment nominee or the first person”.

 47 Subsection 123YN(10)

Omit “, the first person or the third person”, substitute “or the first person”.

 48 Subsection 123YN(11)

Omit “a third person”, substitute “the first person”.

 49 Subsection 123YN(11)

Omit “, the first person or the third person”, substitute “or the first person”.

 50 Paragraph 123YO(2)(g)

Omit “or”.

 51 Paragraph 123YO(2)(h)

Repeal the paragraph.

 52 Paragraph 123YO(2)(j)

Omit “or (h)”.

 53 Subsections 123YO(5), (7) and (10)

Omit “or (h), the Secretary gives the first person or a third person”, substitute “, the Secretary gives the first person”.

 54 Subsection 123YO(10)

Omit “or the third person, as the case may be”.

 55 Paragraph 123YP(2)(h)

Omit “a third person a stored value card that enables the third person”, substitute “the first person a stored value card that enables the first person”.

 56 Subsections 123YP(5), (7) and (10)

Omit “a third person”, substitute “the first person”.

 57 Subsection 123YP(10)

Omit “, the first person or the third person”, substitute “or the first person”.

 58 Paragraph 123ZC(1)(b)

Omit “123UC(b)”, substitute “123UC(1)(b)”.

 59 Subparagraph 123ZE(1)(a)(ii)

Omit “123UC(b)”, substitute “123UC(1)(b)”.

 60 Subsections 123ZF(3) and (4)

Repeal the subsections, substitute:

Crediting of amounts

 3

The Secretary may determine, in writing, that the first person’s income management account is to be credited by an amount equal to the amount of the cheque.

 4

If the Secretary makes a determination under subsection (3), then an amount equal to the amount of the cheque is:

 a

credited to the Income Management Record; and

 b

credited to the first person’s income management account.

 61 Application

The amendment made by item 60 applies in relation to:

Social Security (Administration) Act 1999

 a

an amount paid by cheque at or after the commencement of that item; and

 b

(b) an amount paid by cheque before that commencement, unless before that commencement an amount had been received by the Commonwealth under subsection 123ZF(2) of the Social Security (Administration) Act 1999 in relation to that payment.

 62 Multiple amendments

The provisions of the Social Security (Administration) Act 1999 listed in this Part are amended by:

 a

omitting “payment nominee” (wherever occurring) and substituting “Part 3B payment nominee”; and

 b

omitting “designated nominee” (wherever occurring) and substituting “Part 3B payment nominee”.

 63 Paragraph 123UC(f) 64 Paragraph 123UCA(d) 65 Paragraphs 123UCB(1)(e) and (2)(b) and (c) 66 Paragraphs 123UCC(1)(e) and (2)(b) and (c) 67 Paragraphs 123UD(1)(f) and (4)(b) and (c) 68 Paragraphs 123UE(1)(i) and (4)(b) and (c) 69 Paragraphs 123UF(1)(f), (2)(g) and (3)(b) and (c) 70 Subparagraph 123UN(1)(a)(iii) 71 Subparagraph 123UO(3)(b)(iii) 72 Paragraph 123YC(1)(c) 73 Paragraphs 123YD(1)(c) and (2)(a) and (b)

Note: The heading to designated nominee” and substituting “Part 3B payment nominee”.section 123YD is altered by omitting “

 74 Subsections 123YD(4) to (7) 75 Paragraph 123YE(1)(c) 76 Paragraphs 123YF(1)(c) and (2)(a) to (d)

Note: The heading to designated nominee” and substituting “Part 3B payment nominee”.section 123YF is altered by omitting “

 77 Subsections 123YF(4) to (7) 78 Paragraph 123YF(8)(a) 79 Subsections 123YF(9) and (10) 80 Paragraph 123YG(1)(c) 81 Paragraphs 123YH(1)(c) and (2)(a) and (b)

Note: The heading to designated nominee” and substituting “Part 3B payment nominee”.section 123YH is altered by omitting “

 82 Subsection 123YH(6) 83 Paragraph 123YI(1)(c) 84 Paragraph 123YJ(1)(c)

Note: The heading to designated nominee” and substituting “Part 3B payment nominee”.section 123YJ is altered by omitting “

 85 Subparagraphs 123YJ(2)(a)(i), (ii) and (iii) 86 Paragraph 123YJ(2)(b) 87 Subsection 123YJ(7) 88 Paragraph 123YK(1)(c) 89 Paragraphs 123YL(1)(c) and (2)(a) and (b)

Note: The heading to designated nominee” and substituting “Part 3B payment nominee”.section 123YL is altered by omitting “

 90 Subsection 123YL(7) 91 Paragraph 123YM(1)(c) 92 Paragraphs 123YN(1)(c) and (2)(a), (b) and (d) to (i)

Note: The heading to designated nominee” and substituting “Part 3B payment nominee”.section 123YN is altered by omitting “

 93 Subsections 123YN(4), (6), (9), (10) and (11) 94 Paragraph 123YO(1)(c) 95 Paragraphs 123YP(1)(c) and (2)(a) to (h)

Note: The heading to designated nominee” and substituting “Part 3B payment nominee”.section 123YP is altered by omitting “

 96 Subsections 123YP(5) and (7) to (10)

Endnotes

Endnote 1—About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

Abbreviation key— E ndnote 2

The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history— E ndnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

Uncommenced amendments— E ndnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law, but the text of the amendments is included in endnote 5.

Modifications— E ndnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

Misdescribed amendments— E ndnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

Miscellaneous— E ndnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

This endnote sets out details of the legislation history of the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Act 2011.

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]

 a

(a) Subsection 2(1) (item 9) of the Statute Law Revision Act 2013 provides as follows:

 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.