Social Security Act 1991

43 Qualification for age pension

(1) A person is qualified for an age pension if the person has reached pension age and any of the following applies:

(a) the person has 10 years qualifying Australian residence;

(b) the person has a qualifying residence exemption for an age pension;

(c) the person was receiving a widow B pension, a widow allowance, a mature age allowance or a partner allowance, immediately before reaching that age;

(d) if the person reached pension age before 20 March 1997—the person was receiving a widow B pension, a widow allowance or a partner allowance, immediately before 20 March 1997.

Note 1: For qualifying Australian residence see section 7.

Note 2: For pension age see subsections 23(5A), (5B) (5C) and (5D).

(1A) A woman is qualified for an age pension if:

(a) the woman has reached pension age; and

(b) the woman’s partner has died; and

(d) the woman was an Australian resident for a continuous period of at least 104 weeks immediately before the day she lodged the claim for the age pension.

(3) Subsection (1) has effect subject to subsection 6(3) of the Social Security (International Agreements) Act 1999.

44 Age pension not payable if pension rate nil

(1) Subject to subsection (2), an age pension is not payable to a person if the person’s age pension rate would be nil.

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

47 Multiple entitlement exclusion

(1) An age pension is not payable to a person if the person is already receiving a service pension.

(2) If:

(a) a person is receiving an age pension; and

(b) another social security pension or a service pension becomes payable to the person;

the age pension is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: For social security pension see subsection 23(1).

(3) An age pension is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

(c) is receiving income support supplement under Part IIIA of that Act or would be eligible for income support supplement under that Part if he or she made a claim under section 45I of that Act.

(4) Subsection (3) does not apply if:

(a) the person:

(i) was on 20 March 1995 receiving; and

(ii) has from that day continuously received; and

(iii) is receiving;

the age pension; and

(b) the person elected under subsection 45E(2) of the Veterans’ Entitlements Act, or is taken under subsection 45E(3) of that Act to have elected, to continue to receive the age pension.

(5) Subsection (3) does not apply if:

(a) before 20 March 1995, the person had made a claim for age pension; and

(b) the person elected under subsection 45F(2) of the Veterans’ Entitlements Act, or is taken under subsection 45F(3) of that Act to have elected, to receive the pension in the event that it were granted to him or her; and

(d) the person has since that time continued to receive, and is receiving, the pension.

(6) Subsection (3) does not apply if:

(a) before 20 March 1995:

(i) the person had made a claim for age pension; and

(ii) the claim had been rejected; and

(iii) the person had applied, under Chapter 6, for a review of the decision to reject the claim; and

(b) the person elected under subsection 45G(2) of the Veterans’ Entitlements Act, or is taken under subsection 45G(3) of that Act to have elected, to receive the pension in the event that it were granted to him or her after review of the decision; and

(c) on or after 20 March 1995, the decision to reject the claim was set aside and the person was granted age pension; and

(d) the person has since that time continued to receive, and is receiving, the pension.

(7) An age pension is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA; and

(c) is receiving income support supplement or would be eligible for income support supplement if he or she made a claim under section 45I of the VEA.

Note 1: For armed services widow and armed services widower see subsection 4(1).

Note 2: For MRCA and VEA see subsection 23(1).

47A Exclusion of certain participants in ABSTUDY Scheme

(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(c) in the calculation of the payment, an amount identified as living allowance (the basic payment) is included; and

(d) the payment relates to a period;

age pension is not payable to the person in respect of any part of the period.

(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

age pension is not payable to the person in respect of any part of the period.

(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), age pension is payable to the person before the person starts the course.

Division 4—Rate of age pension

55 How to work out a person’s age pension rate

A person’s age pension rate is worked out:

(a) if the person is not permanently blind—using Pension Rate Calculator A at the end of section 1064 (see Part 3.2); or

(b) if the person is permanently blind—using Pension Rate Calculator B at the end of section 1065 (see Part 3.3).

Subdivision A—Death of partner

82 Qualification for payments under this Subdivision

(1) If:

(a) a person is receiving an age pension; and

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

(d) immediately before the partner died, the partner:

(i) was receiving a social security pension; or

(ii) was receiving a service pension or income support supplement; or

(iii) was a long‑term social security recipient; and

(e) on the person’s payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not qualified for payments under this Subdivision is less than the sum of:

(i) the amount that would otherwise be payable to the person under section 85 (person’s continued rate) on that payday; and

(ii) the amount that would otherwise be payable to the person under section 83 (continued payment of partner’s pension or benefit) on the partner’s payday immediately before the first available bereavement adjustment payday;

the person is qualified for payments under this Subdivision to cover the bereavement period.

Note 1: section 83 provides for the payment to the person, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the person’s partner during that period if the partner had not died.

Note 2: section 84 provides for a lump sum that represents the instalments that would have been paid to the person’s partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the partner had not died.

(1A) If:

(a) a person is receiving an age pension; and

(b) immediately before starting to receive the age pension the person was receiving partner bereavement payments; and

the person is qualified for payments under this Subdivision to cover the remainder of the bereavement period.

(2) A person who is qualified for payments under this Subdivision may choose not to receive payments under this Subdivision.

(3) An election under subsection (2):

(a) must be made by written notice to the Secretary; and

(b) may be made after the person has been paid an amount or amounts under this Subdivision; and

(4) If a person is qualified for payments under this Subdivision in relation to the partner’s death, the rate at which age pension is payable to the person during the bereavement period is, unless the person has made an election under subsection (2), governed by section 85.

(5) For the purposes of this section, a person is a long term social security recipient if:

(a) the person is receiving a social security benefit; and

(b) in respect of the previous 12 months, the person:

(i) was receiving a social security pension; or

(ii) was receiving a social security benefit; or

(iia) was receiving a youth training allowance; or

(iii) was receiving a service pension or income support supplement.

(6) A person is taken to satisfy the requirements of paragraph (5)(b) if:

(a) the person was receiving one or a combination of the payments referred to in that paragraph for a continuous period of 12 months; or

(b) the person was receiving one or a combination of the payments referred to in that paragraph for 46 weeks of the previous 52.

83 Continued payment of deceased partner’s previous entitlement

(1) If a person is qualified for payments under this Subdivision in relation to the death of the person’s partner, there is payable to the person, on each of the partner’s paydays in the bereavement rate continuation period the following amount:

(a) where the partner was receiving a social security pension or social security benefit—the amount that would have been payable to the partner on the payday if the partner had not died; or

(b) where the partner was receiving a service pension or income support supplement—the amount that would have been payable to the partner under Part III or IIIA of the Veterans’ Entitlements Act on the service payday that:

(i) where the first Thursday after the partner’s death was a service payday—precedes the partner’s payday; or

(ii) in any other case—follows the partner’s payday;

if the partner had not died.

(2) For the purposes of subsection (1), if the couple were, immediately before the partner’s death, an illness separated couple or a respite care couple, the amounts are to be worked out as if they were not such a couple.

84 Lump sum payable in some circumstances

If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) the first available bereavement adjustment payday occurs before the end of the bereavement period;

there is payable to the person as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1 Work out the amount that would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday if:

(a) the person’s partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2 Work out the amount that would have been payable to the person’s partner on the partner’s payday or service payday immediately before the first available bereavement adjustment payday if:

(a) the partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3 Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4. Work out the amount that, but for section 85, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday: the result is called the person’s individual rate.

Step 5. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 6. Work out the number of paydays of the partner in the bereavement lump sum period.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable to the person under this section.

85 Adjustment of person’s age pension rate

If:

(a) a person is qualified for payments under this Subdivision; and

(b) the person does not elect under subsection 82(2) not to receive payments under this Subdivision;

the rate of the person’s age pension during the bereavement period is worked out as follows:

(c) during the bereavement rate continuation period, the rate of age pension payable to the person is the rate at which the pension would have been payable to the person if:

(i) the person’s partner had not died; and

(ii) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple;

(d) during the bereavement lump sum period (if any), the rate at which age pension is payable to the person is the rate at which the age pension would be payable to the person apart from this Subdivision.

86 Effect of death of person entitled to payments under this Subdivision

If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) the person dies within the bereavement period; and

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1 Work out the amount that would have been payable to the person on the person’s payday immediately after the day on which the person died if:

(a) neither the person nor the person’s partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the partner on the person’s payday or service payday immediately after the day on which the person died if:

(a) neither the person nor the partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4. Work out the amount that, but for section 85, would have been payable to the person on the person’s payday immediately after the day on which the person died if the person had not died: the result is called the person’s individual rate.

Step 5. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 6. Work out the number of paydays of the partner in the period that commences on the day on which the person dies and ends on the day on which the bereavement period ends.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable under this section.

87 Matters affecting payment of benefits under this Subdivision

(1) If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) after the person’s partner died, an amount to which the partner would have been entitled if the partner had not died has been paid under this Act or under Part III of the Veterans’ Entitlements Act; and

the following provisions have effect:

(d) the amount referred to in paragraph (b) is not recoverable from the person or from the personal representative of the person’s partner, except to the extent (if any) that the amount exceeds the amount payable to the person under this Subdivision;

(e) the amount payable to the person under this Subdivision is to be reduced by the amount referred to in paragraph (b).

(2) If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) an amount to which the person’s partner would have been entitled if the person’s partner had not died has been paid under this Act or under Part III of the Veterans’ Entitlements Act, within the bereavement period, into an account with a bank; and

(c) the bank pays to the person, out of the account, an amount not exceeding the total of the amounts paid as mentioned in paragraph (b);

the bank is, in spite of anything in any other law, not liable to any action, claim or demand by the Commonwealth, the personal representative of the person’s partner or anyone else in respect of the payment of that money to the person.

Subdivision C—Death of recipient

91 Death of recipient

(1) If:

(a) a person is receiving age pension; and

(b) either:

(i) the person is not a member of a couple; or

(ii) the person is a member of a couple and the person’s partner:

(A) is not receiving a social security pension; and

there is payable, to such person as the Secretary thinks appropriate, an amount equal to the amount that would have been payable to the person under this Act on the person’s payday after the person’s death if the person had not died.

(2) If an amount is paid under subsection (1) in respect of a person, the Commonwealth is not liable to any action, claim or demand for any further payment under that subsection in respect of the person.

Note 1: for amounts owing to the recipient before the recipient’s death see section 65.

Note 2: for death of a person qualified for bereavement payments under Subdivision A see section 86.

Part 2.2A—Pension bonus

Division 1—Introduction

92A Simplified outline

The following is a simplified outline of this Part:

· A person who qualifies for an age pension but defers claiming that pension may be able to get a single lump‑sum pension bonus.

· A person who wants to get a pension bonus must register as a member of the pension bonus scheme.

· To get a pension bonus, a person must accrue between 1 and 5 bonus periods while deferring age pension.

· Generally, a bonus period runs for 1 year.

· To accrue a bonus period, the person must pass the work test for that period.

· To pass the work test for a year, either the person, or the person’s partner, must gainfully work for at least 960 hours during that year.

· The amount of a person’s pension bonus depends on the number of accrued bonus periods and the person’s annual rate of age pension. A person may get a bigger bonus by accruing more bonus periods.

92B Definitions

In this Part:

accruing member of the pension bonus scheme has the meaning given by section 92N.

bonus period has the meaning given by section 92T.

carer preclusion period has the meaning given by section 93W.

compensation preclusion period has the meaning given by section 93V.

disposal preclusion period has the meaning given by section 93U or 93UA.

full‑year period means a continuous period of 365 days.

gainful work has the meaning given by sections 92X to 93A (inclusive).

non‑accruing member of the pension bonus scheme has the meaning given by sections 92P and 92Q.

part‑year period means a continuous period of less than 365 days.

passing the work test has the meaning given by sections 92U and 92V.

post‑75 member of the pension bonus scheme has the meaning given by section 92S.

registration as a member of the pension bonus scheme means registration under section 92J.

Division 2—Qualification for pension bonus

92C Qualification for pension bonus

A person is qualified for a pension bonus if:

(a) both:

(i) the person starts to receive an age pension at or after the time when the person makes a claim for the pension bonus; and

(ii) that age pension is received otherwise than because of a scheduled international social security agreement (see section 5 of the Social Security (International Agreements) Act 1999); and

(b) the person has not received an age pension at any time before making a claim for the pension bonus; and

(d) the person has accrued at least one full‑year bonus period while registered as a member of the pension bonus scheme; and

(e) the person has not received:

(i) a social security pension (other than an age pension or a carer payment); or

(ii) a social security benefit; or

(iii) a service pension (other than a carer service pension); or

(iv) an income support supplement (other than an income support supplement that is payable as a result of the operation of subclause 8(3) of Schedule 5 to the Veterans’ Entitlements Act);

at any time after the person qualified for an age pension; and

Note: Even though the person may not have actually received an amount of social security pension or benefit because the rate of the pension or benefit was nil, in some cases the person will be taken to have received the pension or benefit if adjusted disability pension (within the meaning of section 118NA of the Veterans’ Entitlements Act) was payable to the person or the person’s partner: see subsection 23(1D) of this Act.

(f) the person has not already received:

(i) another pension bonus; or

(ii) a bonus under Part IIIAB of the Veterans’ Entitlements Act; or

(iii) DFISA bonus under Part VIIAB of the Veterans’ Entitlements Act.

Note: Subclause 8(3) of Schedule 5 to the Veterans’ Entitlements Act deals with income support supplement for carers.

Division 3—Registration as a member of the pension bonus scheme

Subdivision A—Membership of the pension bonus scheme

92D Application for registration

A person may apply for registration as a member of the pension bonus scheme.

92E Form of application

An application must be in writing and must be in accordance with a form approved by the Secretary.

92F Relevant information

(1) An approved form may require the applicant to provide relevant information (see subsection (4)).

(2) The Secretary may, by written notice given to the applicant, require the applicant to give the Secretary, within a specified period, further relevant information. The Secretary may refuse to register the applicant until the applicant gives the Secretary the information.

(3) A period specified for the purposes of subsection (2) must run for at least 14 days after the notice was given.

(4) For the purposes of this section, relevant information includes (but is not limited to):

(a) information that would be likely to assist the Secretary in advising the applicant about the operation of this Part; and

(b) information that is relevant to determining whether a disposal preclusion period, compensation preclusion period or carer preclusion period has arisen, or is likely to arise, in relation to the applicant; and

(i) the number of bonus periods that the person is likely to accrue while registered as a member of the pension bonus scheme;

(ii) the likely nature and extent of the person’s participation in the workforce during those periods;

(iii) if the person has a partner—the likely nature and extent of the partner’s participation in the workforce during those periods.

92G Lodgment of application

(1) An application must be lodged:

(a) at an office of the Department; or

(b) at a place approved by the Secretary; or

(2) A place or person approved under subsection (1) may be a place or person within or outside Australia.

92H Timing of application and registration

Age pension qualification date on or after 1 July 1998

(1) If a person’s date of qualification for the age pension occurs on or after 1 July 1998:

(a) the person must lodge an application during the period that begins 13 weeks before the person’s date of qualification for the age pension and ends 13 weeks after that date; and

(b) if registration occurs as a result of an application lodged within that period—the registration takes effect on the person’s date of qualification for the age pension.

Note: The Secretary may extend the period: see subsection (3).

Age pension qualification date before 1 July 1998

(2) If a person’s date of qualification for the age pension occurs before 1 July 1998:

(a) the person must lodge an application during the period that begins on the commencement of this section and ends 13 weeks after 1 July 1998; and

(b) if registration occurs as a result of an application lodged within that period—the registration takes effect on 1 July 1998.

Note: The Secretary may extend the period: see subsection (3).

Late applications

(3) The Secretary may extend the period within which a person must lodge an application. If registration occurs as a result of an application lodged during an extended period, the registration takes effect:

(a) on the date on which the application is lodged; or

(b) if the Secretary decides that it should take effect on another date—on that other date.

(4) The Secretary must not make a decision to extend the period within which a person must lodge an application unless, if it were assumed that the person had been a member of the pension bonus scheme throughout the pre‑application period:

(a) the person would have been a non‑accruing member for all of the pre‑application period; or

(b) both:

(i) the person would have been an accruing member for some or all of the pre‑application period; and

(ii) the person would have passed the work test for each test period that is applicable to the person.

Note 1: Pre‑application period is defined by subsection (5).

Note 2: Test period is defined by subsection (6).

(5) For the purposes of this section, the pre‑application period is the period beginning on:

(a) in the case of a person whose date of qualification for the age pension occurs on or after 1 July 1998—the person’s date of qualification for the age pension; or

(b) in the case of a person whose date of qualification for the age pension occurs before 1 July 1998—1 July 1998;

and ending on the date on which the person lodged the application.

(6) For the purposes of this section, to work out what is a test period:

(a) identify the overall accruing period, which is that part of the pre‑application period for which, if it were assumed that the person had been a member of the pension bonus scheme throughout the pre‑application period, the person would have been an accruing member of the scheme;

(b) if the overall accruing period is 365 days or less—the overall accruing period is the only test period;

(i) the full‑year period beginning at the start of the overall accruing period;

(ii) if 2 or more succeeding full‑year periods are included in the overall accruing period—each of those full‑year periods;

(iii) the remainder (if any) of the overall accruing period.

(7) For the purposes of subsection (4), the Secretary is taken to have waived compliance with the applicable record‑keeping requirements in relation to each test period.

Date of qualification for the age pension

(8) For the purposes of this section, a person’s date of qualification for the age pension is to be worked out on the assumption that being an Australian resident were an additional qualification for an age pension.

(9) For the purposes of this section, if a person would otherwise have 2 or more dates of qualification for the age pension, only the first date is to be counted.

92J Registration

(1) If an application is made in accordance with this Subdivision, the Secretary must register the applicant as a member of the pension bonus scheme.

(2) This section has effect subject to subsection 92F(2).

92K Duration of membership

A person’s membership of the pension bonus scheme begins on the date on which the registration of that membership takes effect and continues until the membership is cancelled under this Act.

92L Cancellation of membership

A person’s membership of the pension bonus scheme is cancelled if:

(a) the person’s claim for pension bonus is determined; or

(b) the person starts to receive:

(i) a social security pension (other than an age pension or a carer payment); or

(ii) a social security benefit; or

(iii) a service pension (other than a carer service pension); or

(iv) an income support supplement (other than an income support supplement that is payable as a result of the operation of subclause 8(3) of Schedule 5 to the Veterans’ Entitlements Act);

at any time after the person qualified for an age pension; or

(d) the person requests the Secretary, in writing, to cancel the person’s membership.

Note: Subclause 8(3) of Schedule 5 to the Veterans’ Entitlements Act deals with income support supplement for carers.

92M Application for registration is not to be treated as a claim

To avoid doubt, an application for registration as a member of the pension bonus scheme is not to be treated as a claim for the purposes of any law of the Commonwealth.

Subdivision B—Classification of membership of the pension bonus scheme

92N Accruing membership

For the purposes of this Part, a person’s membership of the pension bonus scheme at a particular time is accruing unless the person’s membership is non‑accruing or post‑75 at that time.

92P Non‑accruing membership—preclusion periods

Disposal preclusion period

(1) For the purposes of this Part, if a person is subject to a disposal preclusion period at a particular time when the person is a member of the pension bonus scheme, the person’s membership of the scheme is non‑accruing at that time.

Note: Disposal preclusion period is defined by section 93U.

Compensation preclusion period

(2) For the purposes of this Part, if a person is subject to a compensation preclusion period at a particular time when the person is a member of the pension bonus scheme, the person’s membership of the scheme is non‑accruing at that time.

Note: Compensation preclusion period is defined by section 93V.

Carer preclusion period

(3) For the purposes of this Part, if a person is subject to a carer preclusion period at a particular time when the person is a member of the pension bonus scheme, the person’s membership of the scheme is non‑accruing at that time.

Note: Carer preclusion period is defined by section 93W.

92Q Non‑accruing membership—Secretary’s discretion

(1) The Secretary may, by legislative instrument, declare that, for the purposes of this Part, a specified kind of member of the pension bonus scheme is a non‑accruing member throughout a period ascertained in accordance with the declaration.

(1A) Despite subsection 12(2) of the Legislative Instruments Act 2003, a period ascertained in accordance with a declaration made under subsection (1) may begin before the date on which the declaration is registered under that Act.

(2) The kinds of members that may be specified under subsection (1) include (but are not limited to):

(a) a member who is a participant in the Community Development Employment Program; and

(b) a member who is in gaol (see subsection 23(5)); and

(c) a member who is undergoing psychiatric confinement (see subsections 23(8) and (9)) because the member has been charged with committing an offence; and

(d) a member who is not a participant in the workforce, but whose partner:

(i) is a participant in the workforce; and

(ii) is not a registered member of the pension bonus scheme or of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act; and

(iii) intends to become a registered member of the pension bonus scheme or of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act; and

(e) a member who is on sick leave for a continuous period of at least 4 weeks and not more than 26 weeks.

92R Continuity of accruing membership is not broken by a period of non‑accruing membership

If:

(a) a person has been an accruing member of the pension bonus scheme for a continuous period (the first accruing membership period) (including a period that is applicable because of one or more applications of this section); and

(b) the first accruing membership period is followed by a continuous period of non‑accruing membership of the scheme; and

(c) the period of non‑accruing membership is followed by a further continuous period of accruing membership of the scheme (the second accruing membership period);

the first accruing membership period and the second accruing membership period are together taken to constitute a continuous period of accruing membership of the scheme.

92S Post‑75 membership

A person’s membership of the pension bonus scheme is post‑75 at all times after the person reaches age 75.

Division 4—Accrual of bonus periods

92T Accrual of bonus periods

Full‑year bonus period

(1) The first bonus period that accrues to a person is the full‑year period of the person’s accruing membership of the pension bonus scheme:

(a) that began on whichever of the following dates is applicable:

(i) if the person was an accruing member of the pension bonus scheme on the date the person’s registration as a member took effect—the date the registration took effect;

(ii) in any other case—the date on which the person first became an accruing member of the pension bonus scheme; and

(b) for which the person passes the work test.

Note: Accruing membership is defined by section 92N.

(2) Each succeeding full‑year period of the person’s accruing membership of the pension bonus scheme:

(a) that is specified in the person’s claim for pension bonus; and

(b) for which the person passes the work test;

is a bonus period that accrues to the person.

Part‑year bonus period

(3) A part‑year period of the person’s accruing membership of the pension bonus scheme is a bonus period that accrues to the person if:

(a) the person passes the work test for that period; and

(b) the person specifies the period in the person’s claim for pension bonus; and

(d) the period is the last bonus period that accrues to the person.

Note: Accruing membership is defined by section 92N.

Bonus periods must be consecutive

(4) A person cannot accrue more than one bonus period unless:

(a) the bonus periods are consecutive; or

(b) the bonus periods are separated only by a period of non‑accruing membership.

Division 5—Passing the work test

Subdivision A—The work test

92U Work test—full‑year period

For the purposes of this Part, a person passes the work test for a full‑year period of the person’s accruing membership of the pension bonus scheme if:

(a) in any case—the person satisfies the Secretary that the total number of hours gainfully worked by the person during that period was at least 960 and that at least 640 of that total number of hours were worked in Australia; or

(b) if the person had only one partner during that period—the person satisfies the Secretary that the total number of hours gainfully worked by the person’s partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

was at least 960 and that at least 640 of that total number of hours were worked in Australia; or

(c) if the person had 2 or more partners during that period—the person satisfies the Secretary that the total number of hours gainfully worked by those partners during that period while they were partners of the person and were:

(i) accruing members, or post‑75 members, of the pension bonus scheme; or

(ii) accruing members, or post‑70/75 members, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

was at least 960 and that at least 640 of that total number of hours were worked in Australia;

and either:

(d) the person satisfies the Secretary that the applicable record‑keeping requirements (see section 93C) have been complied with in relation to that period; or

(e) the Secretary decides to waive compliance with the applicable record‑keeping requirements in relation to that period.

92V Work test—part‑year period

(1) For the purposes of this Part, a person passes the work test for a part‑year period of the person’s accruing membership of the pension bonus scheme if:

(a) in any case—the person satisfies the Secretary that the total number of hours gainfully worked by the person during that period was at least the pro‑rated number of hours (see subsection (2)) and that at least two‑thirds of that total number of hours were worked in Australia; or

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

was at least the pro‑rated number of hours (see subsection (2)) and that at least two‑thirds of that total number of hours were worked in Australia; or

(i) accruing members, or post‑75 members, of the pension bonus scheme; or

(ii) accruing members, or post‑70/75 members, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

was at least the pro‑rated number of hours (see subsection (2)) and that at least two‑thirds of that total number of hours were worked in Australia;

and either:

(d) the person satisfies the Secretary that the applicable record‑keeping requirements (see section 93C) have been complied with in relation to that period; or

(e) the Secretary decides to waive compliance with the applicable record‑keeping requirements in relation to that period.

(2) For the purposes of this section, the pro‑rated number of hours applicable to a period is worked out using the formula:

92W Secretary’s discretion to treat gainful work outside Australia as gainful work in Australia

(1) If a person satisfies the Secretary that:

(a) the person, or the person’s partner, has carried on gainful work outside Australia; and

(b) because of special circumstances, the gainful work should be treated as gainful work carried on in Australia;

the Secretary may determine that this Part has effect as if the gainful work were carried on in Australia.

(2) The determination has effect accordingly.

Subdivision B—Gainful work

92X Gainful work—basic rule

(1) For the purposes of this Part, gainful work is work for financial gain or reward, whether as an employee, a self‑employed person or otherwise, where:

(a) the work involves a substantial degree of personal exertion on the part of the person concerned; and

(b) the work is carried on within or outside Australia.

(2) Subsection (1) is to be ignored in determining the meaning of an expression used in a provision of this Act other than this Part.

92Y Secretary’s discretion to treat activity as gainful work

(1) If a person satisfies the Secretary that:

(a) the person, or the person’s partner, has engaged in a particular activity; and

(b) the activity involves a substantial degree of personal exertion on the part of the person or the person’s partner, as the case may be; and

(d) because of special circumstances, the activity should be treated as gainful work;

the Secretary may determine that this Part has effect as if the activity were gainful work.

(2) The determination has effect accordingly.

92Z Irregular, infrequent and minor absences from a workplace count as gainful work

For the purposes of this Part, if a person is engaged in gainful work, the total hours gainfully worked by the person during a period are to be determined as if the person had been engaged in gainful work during any absences from the workplace that are irregular, infrequent and minor.

93 Management of family financial investments does not count as gainful work

(1) Unless the Secretary otherwise determines, work undertaken by a person is taken not to be gainful work for the purposes of this Part to the extent to which the work consists of the management or administration of one or more financial investments in which any of the following has a legal or equitable interest:

(a) a member of the person’s family group (see subsection (2));

(b) a company that is a family company in relation to the person (see subsection (2));

Note: Financial investment is defined by section 9.

(2) In this section:

family company, in relation to a person, means a company where:

(a) the company is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of any or all of the members of the person’s family group; or

(b) any or all of the members of the person’s family group are in a position to cast, or control the casting of, more than 50% of the maximum number of votes that may be cast at a general meeting of the company; or

(i) the company has one or more shareholders; and

(ii) each shareholder is a member of the person’s family group.

family group, in relation to a person, means the group consisting of the person and the family members of the person. If the person has no family members, the person is taken to be a family group in his or her own right.

Note: Family member is defined by subsection 23(1).

family trust, in relation to a person, means a trust where a member of the person’s family group benefits, or is capable (whether by the exercise of a power of appointment or otherwise) of benefiting, under the trust.

93A Domestic duties in relation to a person’s place of residence do not count as gainful work

(1) Unless the Secretary otherwise determines, work undertaken by a person is taken not to be gainful work for the purposes of this Part if the work consists of carrying out:

(a) domestic tasks; or

(b) household maintenance tasks; or

(d) similar tasks;

in relation to:

(e) the person’s place of residence; or

(f) if the person has 2 or more places of residence—any of those places of residence.

(2) For the purposes of this section, a place of residence includes:

(a) if the place is a dwelling‑house—any land or building that is adjacent to the dwelling‑house and that is used primarily for private or domestic purposes in association with that dwelling‑house; or

(b) if the place is a flat or home unit—a garage or storeroom that is used for private or domestic purposes in association with the flat or home unit.

93B Evidentiary certificate

Hours worked during full‑year period

(1) The Secretary may, if requested to do so by a member of the pension bonus scheme, issue a written certificate stating that:

(a) the member was an accruing member of the scheme throughout a specified full‑year period; and

(b) the total number of hours gainfully worked by the member during that period was at least a specified number of hours; and

(c) the total number of hours gainfully worked in Australia by the member during that period was at least a specified number of hours.

(2) The Secretary may, if requested to do so by a member of the pension bonus scheme, issue a written certificate stating that:

(a) the member was an accruing member of the scheme throughout a specified full‑year period; and

(b) the total number of hours gainfully worked by a specified person during that period while the person was the partner of the member and was:

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

was at least a specified number of hours; and

(c) the total number of hours gainfully worked in Australia by a specified person during that period while the person was the partner of the member and was:

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

was at least a specified number of hours.

Hours worked during part‑year period

(3) The Secretary may, if requested to do so by a member of the pension bonus scheme, issue a written certificate stating:

(a) that the member was an accruing member of the scheme throughout a specified part‑year period; and

(b) the total number of hours gainfully worked by the member during that period; and

(4) The Secretary may, if requested to do so by a member of the pension bonus scheme, issue a written certificate stating:

(a) that the member was an accruing member of the scheme throughout a specified part‑year period; and

(b) the total number of hours gainfully worked by a specified person during that period while the person was the partner of the member and was:

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act; and

(c) the total number of hours gainfully worked in Australia by a specified person during that period while the person was the partner of the member and was:

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act.

Record‑keeping requirements

(5) If:

(a) a person makes a request for a certificate under subsection (1), (2), (3) or (4) relating to a particular period; and

(b) the applicable record‑keeping requirements have not been complied with in relation to that period (see section 93C);

the Secretary may refuse to issue the certificate.

Non‑accruing membership

(6) The Secretary may, if requested to do so by a member of the pension bonus scheme, issue a written certificate stating that the member was a non‑accruing member of the scheme throughout a specified period.

Evidence

(7) In any proceedings relating to this Part, a certificate under this section is prima facie evidence of the matters in the certificate.

Subdivision C—Record‑keeping requirements

93C Record‑keeping requirements

Record‑keeping requirements for person

(1) For the purposes of the application of paragraph 92U(a) or 92V(1)(a) or subsection 93B(1) or (3) to a person, the applicable record‑keeping requirements have been complied with in relation to a period of the person’s accruing membership of the pension bonus scheme if:

(a) in a case where the person has:

(i) been given a group certificate or payment summary (within the meaning of section 16‑170 in Schedule 1 to the Taxation Administration Act 1953) in respect of any gainful work carried on by the person during that period; or

(ii) lodged an income tax return that relates to any gainful work carried on by the person during that period;

the person would be in a position to produce a copy of the certificate or of the return, as the case may be, to the Secretary if the Secretary were to require the person to produce that copy; and

(b) both:

(i) the person has kept a recognised work record (see subsection (3)) in relation to gainful work carried on by the person during that period; and

(ii) the person would be in a position to produce that record to the Secretary if the Secretary were to require the person to produce that record.

Record‑keeping requirements for partner of person

(2) For the purposes of the application of paragraph 92U(b) or (c) or 92V(1)(b) or (c) or subsection 93B(2) or (4) to a partner of a person, the applicable record‑keeping requirements have been complied with in relation to a period of the person’s accruing membership of the pension bonus scheme if:

(a) in a case where the partner has been given a group certificate or payment summary (within the meaning of section 16‑170 in Schedule 1 to the Taxation Administration Act 1953) in respect of any gainful work carried on by the partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

the person would be in a position to produce a copy of the certificate to the Secretary if the Secretary were to require the person to produce that copy; and

(b) in a case where the partner has lodged an income tax return that relates to any gainful work carried on by the partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

the person would be in a position to produce a copy of the return to the Secretary if the Secretary were to require the person to produce that copy; and

(c) in any case—the partner has kept a recognised work record (see subsection (3)) in relation to any gainful work carried on by the partner during that period while the partner was a partner of the person and was:

(i) an accruing member, or a post‑75 member, of the pension bonus scheme; or

(ii) an accruing member, or a post‑70/75 member, of the corresponding scheme under Part IIIAB of the Veterans’ Entitlements Act;

and the person would be in a position to produce that record to the Secretary if the Secretary were to require the person to produce that record.

Recognised work record

(3) For the purposes of this section, a recognised work record, in relation to a person, is a written statement signed by the person that sets out, in relation to gainful work carried on by the person during a particular period:

(a) the nature of the gainful work; and

(b) the dates on which the gainful work was carried on; and

(d) the total number of hours gainfully worked in Australia; and

(e) in a case where any of the gainful work was carried on in the capacity of employee—the name or names of the employer or employers concerned; and

(f) such other particulars as the Secretary requires.

Division 6—Amount of pension bonus

93D How to calculate the amount of pension bonus

(1) To calculate the amount of a person’s pension bonus:

(a) work out which of the person’s bonus periods count as qualifying bonus periods (see section 93E);

(b) work out the person’s overall qualifying period (see section 93F);

(d) work out the person’s annual pension rate (see section 93H);

(e) apply the appropriate formula in section 93J.

Note: Bonus period is defined by section 92T.

(2) For the purposes of this Division, a number of years is to be calculated to 3 decimal places. However, if a number worked out in accordance with this subsection would, if it were calculated to 4 decimal places, end in a digit that is greater than 4, the number is to be increased by 0.001.

93E Qualifying bonus periods

(1) For the purposes of this Division, if a person has accrued only one bonus period, that bonus period is the person’s qualifying bonus period.

(2) For the purposes of this Division, if a person has accrued only 2 bonus periods, each of those bonus periods is a qualifying bonus period.

(3) For the purposes of this Division, if a person has accrued only 3 bonus periods, each of those bonus periods is a qualifying bonus period.

(4) For the purposes of this Division, if a person has accrued only 4 bonus periods, each of those bonus periods is a qualifying bonus period.

(5) For the purposes of this Division, if a person has accrued only 5 bonus periods, each of those bonus periods is a qualifying bonus period.

(6) For the purposes of this Division, if:

(a) a person has accrued more than 5 bonus periods; and

(b) the last bonus period is a full‑year period;

each of the 5 most recent bonus periods are qualifying bonus periods.

(7) For the purposes of this Division, if:

(a) a person has accrued more than 5 bonus periods; and

(b) the last bonus period is a part‑year period;

each of the 5 most recent full‑year bonus periods are qualifying bonus periods.

93F Overall qualifying period

(1) For the purposes of this Division, if a person has only one qualifying bonus period, that period is the person’s overall qualifying period.

(2) For the purposes of this Division, if a person has 2 or more qualifying bonus periods, the person’s overall qualifying period is the period:

(a) beginning at the start of the first qualifying bonus period; and

(b) ending at the end of the last qualifying bonus period.

However, any period of non‑accruing membership of the pension bonus scheme is taken not to form part of the person’s overall qualifying period.

93G Pension multiple

For the purposes of this Division, a person’s pension multiple is worked out using the formula:

93H Annual pension rate

For the purposes of this Division, a person’s annual pension rate is:

(a) if the person is not permanently blind—the rate that would be the person’s provisional annual payment rate under the method statement in point 1064‑A1, ascertained as at the start day for the age pension, if it were assumed that steps 2 and 3 were omitted from that method statement; or

(b) if the person is permanently blind—the sum of:

(i) the person’s maximum basic rate under Table B in point 1065‑B1; and

(ii) the person’s pension supplement worked out under point 1065‑BA2;

calculated in each case as at the start day for the age pension.

93J Amount of pension bonus

No change in marital status during overall qualifying period

(1) If:

(a) a person was a member of a couple throughout the person’s overall qualifying period; or

(b) a person was not a member of a couple at any time during the person’s overall qualifying period;

the amount of the person’s pension bonus is worked out using the following formula (for rounding up, see subsection (7)):

Change in marital status during overall qualifying period

(2) If subsection (1) does not apply to a person, the amount of the person’s pension bonus is worked out using the following formula (for rounding up, see subsection (7)):

(3) For the purposes of this section, a person’s annual notional single pension rate is equal to:

(a) if the person is not permanently blind—the adjusted percentage of the sum of:

(i) the person’s maximum basic rate under Table B in point 1064‑B1; and

(ii) the person’s pension supplement worked out under point 1064‑BA2;

calculated in each case as at the start day for the age pension and assuming that the person was not a member of a couple at that day; or

(b) if the person is permanently blind—the sum of:

(i) the person’s maximum basic rate under Table B in point 1065‑B1; and

(ii) the person’s pension supplement worked out under point 1065‑BA2;

calculated in each case as at the start day for the age pension and assuming that the person was not a member of a couple at that day.

(4) For the purposes of this section, a person’s annual notional partnered pension rate is equal to:

(a) if the person is not permanently blind—the adjusted percentage of the sum of:

(i) the person’s maximum basic rate under Table B in point 1064‑B1; and

(ii) the person’s pension supplement worked out under point 1064‑BA2;

calculated in each case as at the start day for the age pension and assuming that the person was a member of a couple at that day; or

(b) if the person is permanently blind—the sum of:

(i) the person’s maximum basic rate under Table B in point 1065‑B1; and

(ii) the person’s pension supplement worked out under point 1065‑BA2;

calculated in each case as at the start day for the age pension and assuming that the person was a member of a couple at that day.

(5) For the purposes of this section, a person’s adjusted percentage is the percentage worked out using the following formula (for rounding up, see subsection (8)):

where:

maximum basic rate is the sum of the amounts worked out under steps 1 and 1A of the method statement in point 1064‑A1.

(6) For the purposes of this section:

(a) the number of single years during the overall qualifying period is the number of years during the overall qualifying period when the person was not a member of a couple; and

(b) the number of partnered years during the overall qualifying period is the number of years during the overall qualifying period when the person was a member of a couple.

Rounding up

(7) An amount calculated under subsection (1) or (2) is to be rounded to the nearest 10 cents (with 5 cents being rounded up).

(8) A percentage worked out under subsection (5) is to be calculated to 3 decimal places. However, if a percentage worked out under subsection (5) would, if it were calculated to 4 decimal places, end in a digit that is greater than 4, the percentage is to be increased by 0.001.

93K Top up of pension bonus for increased rate of age pension

(1) The Secretary may determine (a top up determination) that a person’s pension bonus is to be increased if:

(a) the Secretary makes a determination (a rate determination) increasing the person’s rate of age pension; and

(b) the rate determination takes effect on a day that is not more than 13 weeks after the start day for the person’s pension bonus; and

(i) the value of the person’s assets;

(ii) the person’s ordinary income.

Note: Any reduction in the value of a person’s assets or the person’s income will be determined by applying the assets test and the ordinary income test in Pension Rate Calculator A in Part 2.3.

(2) The person’s pension bonus is increased by the difference between:

(a) the person’s amount of pension bonus on the start day; and

(b) the amount that would have been the person’s amount of pension bonus on the start day if the person’s rate of age pension on that day had been the highest rate at which age pension was payable to the person during the 13 weeks after the start day.

(3) A top up determination takes effect on the day on which the determination is made or on any earlier or later day specified in the determination.

(4) A top up determination is not a legislative instrument.

93L Top up of pension bonus in specified circumstances

(1) The Secretary may determine (a top up determination) that a person’s pension bonus is to be increased if:

(a) the Secretary makes a determination (a rate determination) increasing the person’s rate of age pension; and

(b) the rate of age pension is increased in circumstances specified in an instrument made under subsection (6).

(2) The person’s pension bonus is increased by the amount specified by the Secretary in the top up determination.

(3) The Secretary must not specify an increase that would be greater than the difference between:

(a) the person’s amount of pension bonus on the start day for the bonus; and

(b) the amount that would have been the person’s amount of pension bonus on the start day if the person’s rate of age pension on that day had been the rate specified in the rate determination.

(4) A top up determination takes effect on the day on which the determination is made or on any earlier or later day specified in the determination.

(5) A top up determination is not a legislative instrument.

(6) The Secretary may, by legislative instrument, specify circumstances (other than circumstances specified in subsection 93K(1)) for the purposes of paragraph (1)(b).

Division 11—Preclusion periods

93U Disposal preclusion period—disposals before 1 July 2002

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

(1) For the purposes of this Part, if:

(a) either:

(i) a person has, during a designated year of the person, disposed of an asset of the person; or

(ii) the partner of a person has, during a designated year of the person, disposed of an asset of the partner; 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 person and/or the person’s partner during that designated year, exceeds $10,000;

the person is subject to a disposal preclusion period throughout the period of 5 years that starts on the day on which the disposition referred to in paragraph (a) took place.

Note: Designated year is defined by subsection (3).

(2) For the purposes of this Part, if:

(a) a person ceases to be a member of a couple (whether because of the death of the person’s partner or for any other reason); and

(b) immediately before the cessation, the person was subject to a particular disposal preclusion period that arose wholly because the person’s partner disposed of a particular asset; and

then, despite subsection (1), that disposal preclusion period ends at the cessation.

(3) For the purposes of this section, a designated year of a person is:

(a) the 12‑month period ending on the day the person qualified for age pension; and

(b) each preceding 12‑month period; and

(4) This section applies to a disposal even if the disposal took place before the commencement of this section.

93UA Disposal preclusion period—disposals on or after 1 July 2002

A person is subject to a disposal preclusion period throughout any period for which an amount is included in the value of the person’s assets under section 1126AA, 1126AB, 1126AC or 1126AD.

93V Compensation preclusion period

(1) For the purposes of this Part, if a person receives a lump sum compensation payment, the person is subject to a compensation preclusion period throughout the lump sum preclusion period.

(2) For the purposes of this Part, if a person receives a series of periodic compensation payments, the person is subject to a compensation preclusion period throughout the periodic payments period.

(3) This section applies to a payment even if it was received before the commencement of this section.

93W Carer preclusion period

(1) For the purposes of this Part, if a person receives:

(a) a carer payment; or

(b) a carer service pension; or

(c) an income support supplement that is payable as a result of the operation of subclause 8(3) of Schedule 5 to the Veterans’ Entitlements Act;

during a particular period, the person is subject to a carer preclusion period throughout that period.

Note: Subclause 8(3) of Schedule 5 to the Veterans’ Entitlements Act deals with income support supplement for carers.

(2) This section applies to a carer payment, a carer service pension or an income support supplement even if it was received before the commencement of this section.

Division 12—Pension bonus bereavement payment

93WA Qualification for pension bonus bereavement payment

A person is qualified for a pension bonus bereavement payment if:

(a) the person stopped being a member of a couple because the person’s partner died; and

(b) immediately before the partner died, the partner was a registered member of the pension bonus scheme; and

93WB Amount of pension bonus bereavement payment

(1) The amount of a person’s pension bonus bereavement payment is worked out:

(a) by working out the amount of pension bonus that would have been payable to the legal personal representative of the partner had the partner made claims for age pension and pension bonus just before the partner died (see subsections 59(3) and (4) of the Administration Act); and

(b) by disregarding, in working out the amount referred to in paragraph (a):

(i) any PBBP employment income of the person (see section 93WC); and

(ii) any income of a kind specified in an instrument made under subsection (2).

(2) The Secretary may, by legislative instrument, specify kinds of income for the purposes of subparagraph (1)(b)(ii).

93WC Definition of PBBP employment income

(1) PBBP employment income, of a person:

(a) means ordinary income that is, or is taken to be, earned, derived or received by the person or the person’s partner from gainful work; and

(b) includes (without limitation) any of the following that is, or is taken to be, earned, derived or received by the person or the person’s partner:

(i) salary, wages, commissions and employment‑related fringe benefits;

(ii) leave payments;

(iii) payments to the person or the person’s partner by a former employer of the person or partner in relation to the termination of the person’s or partner’s employment.

(2) For the purposes of subparagraph (1)(b)(ii), a leave payment:

(a) includes a payment in respect of sick leave, personal leave, carer’s leave, annual leave, maternity leave, long service leave or special leave; and

(b) may be made as a lump sum payment, a series of regular payments or otherwise; and

(i) at the direction of the person or of a court; or

(ii) on behalf of the person; or

(iii) for the benefit of the person; or

(iv) if the person waives or assigns his or her right to the payment.

Part 2.2B—One‑off payment to the aged

93X One‑off payment to the aged

(1) A person is qualified for one‑off payment to the aged if:

(a) the person has reached pension age on or before 22 May 2001; and

(b) a social security pension or a social security benefit is payable to the person on 22 May 2001; and

(i) a veteran of pension age who is eligible to be paid an age service pension, or an invalidity service pension, under the Veterans’ Entitlements Act on 22 May 2001; or

(ii) a person (other than a veteran of pension age) who is eligible to be paid a partner service pension, or income support supplement, under the Veterans’ Entitlements Act on 22 May 2001; or

(iii) a person of pension age who is in receipt of a pension described in subsection 4(6) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986; or

(iv) a person who, under the ABSTUDY Scheme, has received a one‑off payment to the aged.

(2) The amount of the one‑off payment to the aged is a one‑off payment of $300.

Part 2.2C—2006 one‑off payment to older Australians

93Y 2006 one‑off payment to older Australians

Qualified if this section applies

(1) A person is qualified for a 2006 one‑off payment to older Australians if subsection (2), (3) or (4) applies to the person.

Qualified because of income support payments

(2) This subsection applies to a person if:

(a) the person has reached pension age on or before 9 May 2006; and

(b) the person was receiving an income support payment, other than service pension or income support supplement, in respect of a period that includes 9 May 2006; and

(d) on 9 May 2006, the person:

(i) was in Australia; or

(ii) was temporarily absent from Australia and had been so for a continuous period not exceeding 13 weeks.

Qualified because qualified for seniors concession allowance

(3) This subsection applies to a person if:

(a) on 9 May 2006, the person was qualified for seniors concession allowance under section 1061U; or

(b) both:

(i) on or before 9 May 2006, the person made a claim for a seniors health card under Division 1 of Part 3 of the Administration Act and had not withdrawn that claim on or before 9 May 2006; and

(ii) on 9 May 2006, the person either was qualified for the card or would have been so qualified but for being temporarily absent from Australia for a continuous period not exceeding 13 weeks.

Qualified because receiving certain allowances

(4) This subsection applies to a person if:

(a) the person was receiving a widow allowance, mature age allowance or partner allowance in respect of a period that includes 9 May 2006; and

(b) the person was receiving that allowance because of a claim the person made on or before 9 May 2006; and

(i) was in Australia; or

(ii) was temporarily absent from Australia and had been so for a continuous period not exceeding 13 weeks.

One one‑off payment only

(5) A person is entitled to one payment only under this section, regardless of how many times the person qualifies under this section.

(6) Despite anything else in this section, a person is not qualified for a payment under this section if the person is eligible for a payment under section 118ZZB of the Veterans’ Entitlements Act.

93Z Amount of the one‑off payment

(1) The amount of the one‑off payment under section 93Y to a person who qualifies for the payment because of subsection 93Y(2) or (4) is worked out using this table, having regard to the person’s situation on 9 May 2006:

Amount of the 2006 one‑off payment to older Australians
Item	Person’s situation on 9 May 2006	Amount of payment
1	not a member of a couple	$102.80
2	member of an illness separated couple	$102.80
3	member of a respite care couple	$102.80
4	member of a temporarily separated couple	$102.80
5	member of a couple (other than an illness separated couple, respite care couple or temporarily separated couple) the other member of which does not qualify for the one‑off payment	$102.80
6	member of a couple (other than an illness separated couple, respite care couple or temporarily separated couple) the other member of which also qualifies for the one‑off payment	$51.40

(2) The amount of the one‑off payment under section 93Y to a person who qualifies for the payment because of subsection 93Y(3) is $102.80.

Part 2.2D—2007 one‑off payment to older Australians

93ZA 2007 one‑off payment to older Australians

Qualified if this section applies

(1) A person is qualified for a 2007 one‑off payment to older Australians if subsection (2), (3) or (4) applies to the person.

Qualified because of income support payments

(2) This subsection applies to a person if:

(a) the person has reached pension age on or before 8 May 2007; and

(b) the person was receiving an income support payment, other than service pension or income support supplement, in respect of a period that includes 8 May 2007; and

(d) on 8 May 2007, the person:

(i) was in Australia; or

(ii) was temporarily absent from Australia and had been so for a continuous period not exceeding 13 weeks.

Qualified because qualified for seniors concession allowance

(3) This subsection applies to a person if:

(a) on 8 May 2007, the person was qualified for seniors concession allowance under section 1061U; or

(b) both:

(i) on or before 8 May 2007, the person made a claim for a seniors health card under Division 1 of Part 3 of the Administration Act and had not withdrawn that claim on or before 8 May 2007; and

(ii) on 8 May 2007, the person either was qualified for the card or would have been so qualified but for being temporarily absent from Australia for a continuous period not exceeding 13 weeks.

Qualified because receiving certain allowances

(4) This subsection applies to a person if:

(a) the person was receiving a widow allowance, mature age allowance or partner allowance in respect of a period that includes 8 May 2007; and

(b) the person was receiving that allowance because of a claim the person made on or before 8 May 2007; and

(i) was in Australia; or

(ii) was temporarily absent from Australia and had been so for a continuous period not exceeding 13 weeks.

One one‑off payment only

(5) A person is entitled to one payment only under this section, regardless of how many times the person qualifies under this section.

(6) Despite anything else in this section, a person is not qualified for a payment under this section if the person is eligible for a payment under section 118ZZG of the Veterans’ Entitlements Act.

93ZB Amount of the one‑off payment

The amount of the one‑off payment under section 93ZA is $500.

Part 2.3—Disability support pension

Division 1—Qualification for and payability of disability support pension

94 Qualification for disability support pension

(1) A person is qualified for disability support pension if:

(a) the person has a physical, intellectual or psychiatric impairment; and

(b) the person’s impairment is of 20 points or more under the Impairment Tables; and

(i) the person has a continuing inability to work;

(ii) the Health Secretary has informed the Secretary that the person is participating in the supported wage system administered by the Health Department, stating the period for which the person is to participate in the system; and

(d) the person has turned 16; and

(e) the person either:

(i) is an Australian resident at the time when the person first satisfies paragraph (c); or

(ii) has 10 years qualifying Australian residence, or has a qualifying residence exemption for a disability support pension; or

(iii) is born outside Australia and, at the time when the person first satisfies paragraph (c) the person:

(A) is not an Australian resident; and

(B) is a dependent child of an Australian resident;

and the person becomes an Australian resident while a dependent child of an Australian resident; and

(f) the person is not qualified for disability support pension under section 94A.

Note 1: For Australian resident, qualifying Australian residence and qualifying residence exemption see section 7.

Note 2: for Impairment Tables see section 23(1) and Schedule 1B.

(2) A person has a continuing inability to work because of an impairment if the Secretary is satisfied that:

(a) the impairment is of itself sufficient to prevent the person from doing any work independently of a program of support within the next 2 years; and

(b) either:

(i) the impairment is of itself sufficient to prevent the person from undertaking a training activity during the next 2 years; or

(ii) if the impairment does not prevent the person from undertaking a training activity—such activity is unlikely (because of the impairment) to enable the person to do any work independently of a program of support within the next 2 years.

Note: For work see subsection (5).

(3) In deciding whether or not a person has a continuing inability to work because of an impairment, the Secretary is not to have regard to:

(a) the availability to the person of a training activity; or

(b) the availability to the person of work in the person’s locally accessible labour market.

(4) A person is treated as doing work independently of a program of support if the Secretary is satisfied that to do the work the person:

(a) is unlikely to need a program of support that:

(i) is designed to assist the person to prepare for, find or maintain work; and

(ii) is funded (wholly or partly) by the Commonwealth or is of a type that the Secretary considers is similar to a program of support that is funded (wholly or partly) by the Commonwealth; or

(b) is likely to need such a program of support provided occasionally; or

(4A) The Secretary must comply with the guidelines (if any) determined and in force under subsection (4B) in deciding the following:

(a) whether paragraph (1)(b) applies to a person;

(b) whether the Secretary is satisfied as mentioned in subsection (2) or (4).

(4B) The Minister may, by legislative instrument, determine guidelines to be complied with by the Secretary in making a decision referred to in subsection (4A).

(5) In this section:

training activity means one or more of the following activities, whether or not the activity is designed specifically for people with physical, intellectual or psychiatric impairments:

(a) education;

(b) pre‑vocational training;

(d) vocational rehabilitation;

(e) work‑related training (including on‑the‑job training).

work means work:

(a) that is for at least 15 hours per week on wages that are at or above the relevant minimum wage; and

(b) that exists in Australia, even if not within the person’s locally accessible labour market.

Person not qualified in certain circumstances

(6) A person is not qualified for a disability support pension on the basis of a continuing inability to work if the person brought about the inability with a view to obtaining a disability support pension or a sickness allowance or with a view to obtaining an exemption, because of the person’s incapacity, from the requirement to satisfy the activity test for the purposes of job search allowance, newstart allowance, youth training allowance, youth allowance or austudy payment.

94A Qualification for disability support pension—person transferring to that pension

Qualification

(1) Subject to subsections (6) and (7), a person is qualified for a disability support pension if:

(a) either:

(i) on or after 1 July 2006, the Secretary considered or reviewed the person’s capacity to work in connection with a social security benefit or social security entitlement; or

(ii) if the person has previously qualified for disability support pension under this section—the Secretary last considered or reviewed the person’s capacity to work in connection with a social security benefit or social security entitlement; and

(b) as at the date of that consideration or review, the Secretary was satisfied that the person had a current inability to work because of a physical, intellectual or psychiatric impairment; and

(c) immediately before qualifying for disability support pension under this section, the person was receiving a social security benefit or a social security entitlement (other than a disability support pension); and

(d) the person has a physical, intellectual or psychiatric impairment that is 20 points or more under the Impairment Tables; and

Note: For Impairment Tables see subsection 23(1) and Schedule 1B.

(e) after the end of a period of at least 2 years (the 2 year period) since the date of the consideration or review, the Secretary reviews the person’s capacity to work (the 2 year review) in connection with the benefit or entitlement referred to in paragraph (c); and

(f) the 2 year review is the first review, after the end of the 2 year period, of the person’s capacity to work in connection with that benefit or entitlement; and

(g) the Secretary is satisfied that the person has a current inability to work because of the impairment mentioned in paragraph (d); and

(h) the person has been receiving a social security benefit or a social security entitlement in respect of a continuous period between the date of the consideration or review and the date of the 2 year review (whether or not the kind of payment received has changed over the period); and

Note: For the determination of whether a person received income support payments in respect of a continuous period of at least 12 months see section 38B.

(i) either:

(i) the person undertook such training activities during the 2 year period as were required under an agreement with the Secretary; or

(ii) if the person was not required (whether under an agreement with the Secretary or not) to undertake training activities during the 2 year period—the person undertook during that period the type and number of training activities that the Secretary considers were appropriate for the person; and

(j) the person meets the residency test in subsection (5); and

(k) the person has turned 16.

(2) A person has a current inability to work because of an impairment if the Secretary is satisfied that the impairment is of itself sufficient to prevent the person from doing any work independently of a program of support.

Note: For work see subsection (8).

(3) A person is treated as doing work independently of a program of support if the Secretary is satisfied that to do the work the person:

(a) is unlikely to need a program of support that:

(i) is designed to assist the person to prepare for, find or maintain work; and

(ii) is funded (wholly or partly) by the Commonwealth or is of a type that the Secretary considers is similar to a program of support that is funded (wholly or partly) by the Commonwealth; or

(b) is likely to need such a program of support provided occasionally; or

(4) In deciding whether or not a person has a current inability to work because of an impairment, the Secretary is not to have regard to the availability to the person of work in the person’s locally accessible labour market.

(4A) The Secretary must comply with the guidelines (if any) determined and in force under subsection (4B) in deciding the following:

(a) whether paragraph (1)(d) applies to a person;

(b) whether the Secretary is satisfied as mentioned in paragraph (1)(g) or subsection (2) or (3).

(4B) The Minister may, by legislative instrument, determine guidelines to be complied with by the Secretary in making a decision referred to in subsection (4A).

(5) A person meets the residency test if the person:

(a) is an Australian resident at the time when the person first satisfies paragraph (1)(b); or

(b) has 10 years qualifying Australian residence, or has a qualifying residence exemption for a disability support pension; or

(i) is not an Australian resident; and

(ii) is a dependent child of an Australian resident;

and the person becomes an Australian resident while a dependent child of an Australian resident.

Note: For Australian resident, qualifying Australian residence and qualifying residence exemption see section 7.

Person not qualified in certain circumstances

(6) A person is not qualified for a disability support pension on the basis of a current inability to work if the person brought about the inability with a view to obtaining:

(a) a disability support pension or a sickness allowance; or

(b) an exemption, because of the person’s incapacity, from the requirement to satisfy the activity test for the purposes of a social security benefit or a social security entitlement (other than a disability support pension).

When person ceases to be qualified

(7) Unless ceasing to be qualified for a disability support pension under this section sooner, a person ceases to be so qualified from the date of effect of the first decision about the person’s capacity to work following a review of that capacity.

Definitions

(8) In this section:

training activity means one or more of the following activities, whether or not the activity is designed specifically for people with physical, intellectual or psychiatric impairments:

(a) education;

(b) pre‑vocational training;

(d) vocational rehabilitation;

(e) work‑related training (including on‑the‑job training).

work means work:

(a) that is for at least 15 hours per week on wages that are at or above the relevant minimum wage; and

(b) that exists in Australia, even if not within the person’s locally accessible labour market.

95 Qualification for disability support pension—permanent blindness

(1) A person is qualified for a disability support pension if:

(a) the person is permanently blind; and

(b) the person has turned 16; and

(i) is an Australian resident at the time when the person first satisfies paragraph (a); or

(ii) has 10 years qualifying Australian residence; or

(iia) has a qualifying residence exemption for a disability support pension; or

(iii) is born outside Australia and, at the time when the person first satisfies paragraph (a), the person:

(A) is not an Australian resident; and

(B) is a dependent child of an Australian resident;

and the person becomes an Australian resident while a dependent child of an Australian resident.

Note: for Australian resident and qualifying Australian residence see section 7.

Person not qualified in certain circumstances

(2) A person is not qualified for a disability support pension on the basis of blindness if the person brought about the blindness with a view to obtaining a disability support pension or a sickness allowance or with a view to obtaining an exemption, because of the person’s blindness, from the requirement to satisfy the activity test for the purposes of job search allowance, newstart allowance, youth training allowance, youth allowance or austudy payment.

98 Disability support pension not payable if pension rate nil

(1) Subject to subsection (2), a disability support pension is not payable to a person if the person’s disability support pension rate would be nil.

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

103 Multiple entitlement exclusion

(1) A disability support pension is not payable to a person if the person is already receiving a service pension.

(2) If:

(a) a person is receiving a disability support pension; and

(b) another social security pension or a social security benefit or service pension becomes payable to the person;

the disability support pension is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: social security benefit includes newstart allowance.

(3) A disability support pension is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

(c) is receiving income support supplement under Part IIIA of that Act or would be eligible for income support supplement under that Part if he or she made a claim under section 45I of that Act.

(4) Subsection (3) does not apply if:

(a) the person:

(i) was on 20 March 1995 receiving; and

(ii) has from that day continuously received; and

(iii) is receiving;

the disability support pension; and

(b) the person elected under subsection 45E(2) of the Veterans’ Entitlements Act, or is taken under subsection 45E(3) of that Act to have elected, to continue to receive the disability support pension.

(5) Subsection (3) does not apply if:

(a) before 20 March 1995, the person had made a claim for disability support pension; and

(d) the person has since that time continued to receive, and is receiving, the pension.

(6) Subsection (3) does not apply if:

(a) before 20 March 1995:

(i) the person had made a claim for disability support pension; and

(ii) the claim had been rejected; and

(iii) the person had applied, under Chapter 6, for a review of the decision to reject the claim; and

(c) on or after 20 March 1995, the decision to reject the claim was set aside and the person was granted disability support pension; and

(d) the person has since that time continued to receive, and is receiving, the pension.

(7) A disability support pension is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA; and

(c) is receiving income support supplement or would be eligible for income support supplement if he or she made a claim under section 45I of the VEA.

Note 1: For armed services widow and armed services widower see subsection 4(1).

Note 2: For MRCA and VEA see subsection 23(1).

103A Exclusion of certain participants in ABSTUDY Scheme

(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(c) in the calculation of the payment, an amount identified as living allowance (the basic payment) is included; and

(d) the payment relates to a period;

disability support pension is not payable to the person in respect of any part of the period.

(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

disability support pension is not payable to the person in respect of any part of the period.

(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), disability support pension is payable to the person before the person starts the course.

104 Seasonal workers—preclusion period

(1) This section applies if:

(a) a person has lodged a claim for disability support pension; and

(b) the person qualifies, under section 94, for disability support pension; and

(c) at any time during the 6 months immediately before the day on which the person lodged the claim, the person, or the person’s partner, has been engaged in seasonal work.

Note: For seasonal work see subsection 16A(1).

(2) Disability support pension is not payable to the person:

(a) if the person is subject to a seasonal work preclusion period (whether in relation to the claim referred to in subsection (1) or any other claim under this Act) and the Secretary has not made a determination under subsection (3) in relation to the person—for the person’s seasonal work preclusion period; or

(b) if the Secretary has made a determination under subsection (3) in relation to the person—for that part (if any) of the person’s seasonal work preclusion period to which the person is subject as a result of the determination.

Note: For seasonal work preclusion period see subsection 16A(1).

(3) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while the person is subject to a seasonal work preclusion period (whether in relation to the claim referred to in subsection (1) or any other claim under this Act):

(a) the Secretary may determine that the person is not subject to the whole, or any part, of the preclusion period; and

(b) the determination has effect accordingly.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) or subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Division 5—Rate of disability support pension

117 How to work out a person’s disability support pension rate

A person’s disability support pension rate is worked out:

(a) if the person is not permanently blind and paragraph (b) does not apply to the person—using Pension Rate Calculator A at the end of section 1064 (see Part 3.2); or

(b) if the person is not permanently blind and has not turned 21—using Pension Rate Calculator D at the end of section 1066A (see Part 3.4A); or

(c) if the person is permanently blind and paragraph (d) does not apply to the person—using Pension Rate Calculator B at the end of section 1065 (see Part 3.3); or

(d) if the person is permanently blind and has not turned 21—using Pension Rate Calculator E at the end of section 1066B (see Part 3.4B).

118 Approved program of work supplement

If a person:

(a) is receiving a disability support pension; and

(b) is participating in an approved program of work for income support payment;

the rate of the person’s disability support pension is increased by an amount of $20.80, to be known as the approved program of work supplement, for each fortnight during which the person participates in the program.

119 Approved program of work supplement not payable in certain circumstances

An approved program of work supplement is not payable to a person in respect of a fortnight if pensioner education supplement under Part 2.24A or under ABSTUDY is payable to the person in respect of a day in the fortnight.

120 Effect of participation in an approved program of work for income support payment

A person is not taken to be:

(a) an employee within the meaning of section 9 of the Occupational Health and Safety Act 1991; or

(b) an employee within the meaning of section 5 of the Safety, Rehabilitation and Compensation Act 1988; or

(d) an employee for the purposes of the Workplace Relations Act 1996;

merely by participating in an approved program of work for income support payment in accordance with the terms of an agreement with the Secretary for the purposes of this Part.

Division 10—Bereavement payments

Subdivision A—Death of partner

146F Qualification for payments under this Subdivision

(1) If:

(a) a person is receiving disability support pension; and

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

(d) immediately before the partner died, the partner:

(i) was receiving a social security pension; or

(ii) was receiving a service pension or income support supplement; or

(iii) was a long‑term social security recipient; and

(i) the amount that would otherwise be payable to the person under section 146J (person’s continued rate) on that payday; and

(ii) the amount that would otherwise be payable to the person under section 146G (continued payment of partner’s pension or benefit) on the partner’s payday immediately before the first available bereavement adjustment payday;

the person is qualified for payments under this Subdivision to cover the bereavement period.

Note 1: section 146G provides for the payment to the person, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the person’s partner during that period if the partner had not died.

Note 2: section 146H provides for a lump sum that represents the instalments that would have been paid to the person’s partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the partner had not died.

(1A) If:

(a) a person is receiving a disability support pension; and

(b) immediately before starting to receive the disability support pension the person was receiving partner bereavement payments; and

the person is qualified for payments under this Subdivision to cover the remainder of the bereavement period.

(2) A person who is qualified for payments under this Subdivision may choose not to receive payments under this Subdivision.

Note: if a person makes an election, the date of effect of any determination to increase the person’s rate of age pension may, in some circumstances, be the day on which the person’s partner died (see subsection 146D(5A)).

(3) An election under subsection (2):

(a) must be made by written notice to the Secretary; and

(b) may be made after the person has been paid an amount or amounts under this Subdivision; and

(4) If a person is qualified for payments under this Subdivision in relation to the partner’s death, the rate at which disability support pension is payable to the person during the bereavement period is, unless the person has made an election under subsection (2), governed by section 146J.

(5) For the purposes of this section, a person is a long‑term social security recipient if:

(a) the person is receiving a social security benefit; and

(b) in respect of the previous 12 months, the person:

(i) was receiving a social security pension; or

(ii) was receiving a social security benefit; or

(iia) was receiving a youth training allowance; or

(iii) was receiving a service pension or income support supplement.

(6) A person is taken to satisfy the requirements of paragraph (5)(b) if:

(a) the person was receiving one or a combination of the payments referred to in that paragraph for a continuous period of 12 months; or

(b) the person was receiving one or a combination of the payments referred to in that paragraph for 46 weeks of the previous 52.

146G Continued payment of deceased partner’s previous entitlement

(a) where the partner was receiving a social security pension or social security benefit—the amount that would have been payable to the partner on the payday if the partner had not died; or

(i) where the first Thursday after the partner’s death was a service payday—precedes the partner’s payday; or

(ii) in any other case—follows the partner’s payday;

if the partner had not died.

146H Lump sum payable in some circumstances

If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) the first available bereavement adjustment payday occurs before the end of the bereavement period;

there is payable to the person as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the amount that would have been payable to the person on the partner’s payday immediately before the first available bereavement adjustment payday if:

(a) the person’s partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the person’s partner on the partner’s payday or service payday immediately before the first available bereavement adjustment payday if:

(a) the partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4. Work out the amount that, but for section 146J, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday: the result is called the person’s individual rate.

Step 5. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 6. Work out the number of paydays of the partner in the bereavement lump sum period.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable to the person under this section.

146J Adjustment of person’s disability support pension rate

If:

(a) a person is qualified for payments under this Subdivision; and

(b) the person does not elect under subsection 146F(2) not to receive payments under this Subdivision;

the rate of the person’s disability support pension during the bereavement period is worked out as follows:

(c) during the bereavement rate continuation period, the rate of disability support pension payable to the person is the rate at which the pension would have been payable to the person if:

(i) the person’s partner had not died; and

(ii) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple;

(d) during the bereavement lump sum period (if any), the rate at which disability support pension is payable to the person is the rate at which the disability support pension would be payable to the person apart from this Subdivision.

146K Effect of death of person entitled to payments under this Subdivision

If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) the person dies within the bereavement period; and

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the amount that would have been payable to the person on the person’s payday immediately after the day on which the person died if:

(a) neither the person nor the person’s partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the partner on the partner’s payday or service payday immediately after the day on which the person died if:

(a) neither the person nor the partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4. Work out the amount that, but for section 97 of the Administration Act, would have been payable to the person on the person’s payday immediately after the day on which the person died if the person had not died: the result is called the person’s individual rate.

Step 5. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 6. Work out the number of paydays of the partner in the period that commences on the day on which the person dies and ends on the day on which the bereavement period ends.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable under this section.

146L Matters affecting payment of benefits under this Subdivision

(1) If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

the following provisions have effect:

(e) the amount payable to the person under this Subdivision is to be reduced by the amount referred to in paragraph (b).

(2) If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(c) the bank pays to the person, out of that account, an amount not exceeding the total of the amounts paid as mentioned in paragraph (b);

Subdivision C—Death of recipient

146Q Death of recipient

(1) If:

(a) a person is receiving disability support pension; and

(b) either:

(i) the person is not a member of a couple; or

(ii) the person is a member of a couple and the person’s partner:

(A) is not receiving a social security pension; and

Note 2: for death of a person qualified for bereavement payments under Subdivision A see section 146K.

Part 2.4—Wife pension

Division 1A—Time limit on grant of wife pension

146V Wife pension not to be granted after 30 June 1995

(1) In spite of any other provision of the social security law, other than section 85 of the Administration Act, a woman is not to be granted a wife pension unless:

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

(b) all the following subparagraphs apply:

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

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

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

(2) For the purposes of paragraph (1)(a), if a provision of section 15 of the Administration Act applies, the woman is taken to have lodged her claim for a wife pension on the day on which she lodged her incorrect claim or her initial claim, as the case may be.

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

incorrect claim or initial claim has the same meaning as in the provision of section 15 of the Administration Act that applies as referred to in subsection (2).

Division 1—Qualification for and payability of wife pension

147 Qualification for wife pension

(1) A woman is qualified for a wife pension if the woman:

(a) is a member of a couple; and

(b) has a partner who:

(i) is receiving an age pension, disability support pension or disability wage supplement; or

(ii) is receiving a rehabilitation allowance and was, immediately before he became qualified for that allowance, receiving an invalid pension.

Note: for member of a couple see section 4.

148 Wife pension not payable if pension rate nil

(1) Subject to subsection (2), a wife pension is not payable to a person if the person’s wife pension rate would be nil.

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

151 Multiple entitlement exclusion

(1) A wife pension is not payable to a woman if the woman is already receiving a service pension.

(2) If:

(a) a woman is receiving a wife pension; and

(b) another social security pension or a social security benefit or service pension becomes payable to the woman;

the wife pension is not payable to the woman.

Note 1: another payment type will generally not become payable to the woman until the woman claims it.

Note 2: For social security pension and social security benefit see subsection 23(1).

(3) A wife pension is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

(c) is receiving income support supplement under Part IIIA of that Act or would be eligible for income support supplement under that Part if he or she made a claim under section 45I of that Act.

(4) Subsection (3) does not apply if:

(a) the person:

(i) was on 20 March 1995 receiving; and

(ii) has from that day continuously received; and

(iii) is receiving;

the wife pension; and

(b) the person elected under subsection 45E(2) of the Veterans’ Entitlements Act, or is taken under subsection 45E(3) of that Act to have elected, to continue to receive the wife pension.

(5) Subsection (3) does not apply if:

(a) before 20 March 1995, the person had made a claim for wife pension; and

(d) the person has since that time continued to receive, and is receiving, the pension.

(6) Subsection (3) does not apply if:

(a) before 20 March 1995:

(i) the person had made a claim for wife pension; and

(ii) the claim had been rejected; and

(iii) the person had applied, under Chapter 6, for a review of the decision to reject the claim; and

(c) on or after 20 March 1995, the decision to reject the claim was set aside and the person was granted wife pension; and

(d) the person has since that time continued to receive, and is receiving, the pension.

(7) A wife pension is not payable to a woman who:

(a) is an armed services widow; and

(b) has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA; and

(c) is receiving income support supplement or would be eligible for income support supplement if she made a claim under section 45I of the VEA.

Note 1: For armed services widow see subsection 4(1).

Note 2: For MRCA and VEA see subsection 23(1).

151A Exclusion of certain participants in ABSTUDY Scheme

(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(c) in the calculation of the payment, an amount identified as living allowance (the basic payment) is included; and

(d) the payment relates to a period;

wife pension is not payable to the person in respect of any part of the period.

(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

wife pension is not payable to the person in respect of any part of the period.

(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), wife pension is payable to the person before the person starts the course.

Division 4—Rate of wife pension

159 How to work out the rate of wife pension

A woman’s wife pension rate is worked out using Pension Rate Calculator A at the end of section 1064 (see Part 3.2).

Subdivision A—Continuation of wife pension where partner dies

186 Continuation of wife pension for bereavement period

(1) If:

(a) a woman is receiving a wife pension; and

(b) the woman’s partner dies;

the woman remains qualified for the wife pension during the bereavement period as if:

(d) the partner had continued to receive age or disability support pension, disability wage supplement or rehabilitation allowance; and

(e) the woman and the partner had continued to be members of a couple.

Note: a woman who remains qualified for a wife pension for the bereavement period may, in some circumstances, be automatically transferred to a parenting payment after the end of the bereavement period without making a claim for that payment (see subsection 501(3)).

187 Continued wife pension rate

Where a woman is qualified for a wife pension because of section 186, the woman’s wife pension rate is worked out as follows:

(a) during the bereavement rate continuation period, the rate of wife pension is the rate that would have been payable to the woman if:

(i) her partner had not died; and

(ii) where the couple had been an illness separated couple or a respite care couple—they had not been such a couple;

(b) during the bereavement lump sum period (if any), the rate of payments under this Subdivision is the rate at which a widow B pension would have been payable to the woman if she had been qualified for a widow B pension.

Subdivision B—Death of pensioner partner

188 Qualification for payments under this Subdivision

(1) If:

(a) a woman is receiving a wife pension; and

(b) the woman’s partner dies;

the woman is qualified for payments under this Subdivision to cover the bereavement period.

Note 1: section 189 provides for the payment to the woman, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the woman’s partner during that period if the partner had not died.

Note 2: section 190 provides for a lump sum that represents the instalments that would have been paid to the woman’s partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the partner had not died.

(2) A woman who is qualified for payments under this Subdivision may choose not to receive payments under this Subdivision.

(3) An election under subsection (2):

(a) must be made by written notice to the Secretary; and

(b) may be made after the woman has been paid an amount or amounts under this Subdivision; and

189 Continued payment of partner’s pension or allowance

If a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner, there is payable to the woman, on each day that would have been a payday of the partner in the bereavement rate continuation period, an amount equal to the amount that would have been payable to the woman’s partner on that day if the partner had not died.

190 Lump sum payable in some circumstances

If:

(a) a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner; and

(b) the first available bereavement adjustment payday occurs before the end of the bereavement period;

there is payable to the woman as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the amount that would have been payable to the woman on the woman’s payday immediately before the first available bereavement adjustment payday if:

(a) the woman’s partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the woman’s partner on the first day that would have been a payday of the partner on or after the first available bereavement adjustment payday if:

(a) the partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined pensioner couple rate.

Step 4. Work out the amount of widow B pension that would have been payable to the woman on her payday immediately before the first available bereavement adjustment payday if a widow B pension had been payable to the woman on that payday: the result is called the woman’s individual rate.

Step 5. Take the woman’s individual rate away from the combined pensioner couple rate: the result is called the partner’s instalment component.

Step 6. Work out the number of the partner’s paydays in the bereavement lump sum period.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable to the woman under this section.

191 Effect of death of person entitled to payments under this Subdivision

If:

(a) a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner; and

(b) the woman dies within the bereavement period; and

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the amount that would have been payable to the woman on the woman’s payday immediately after the day on which the woman died if:

(a) neither the woman nor the woman’s partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the partner on the first day that would have been a payday of the partner on or after the woman’s payday referred to in Step 1 if:

(a) neither the woman nor the partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined pensioner couple rate.

Step 4. Work out the amount that, but for sections 186 and 187, would have been payable to the woman on the woman’s payday immediately after the day on which the woman died if the woman had not died: the result is called the woman’s individual rate.

Step 5. Take the woman’s individual rate away from the combined pensioner couple rate: the result is called the partner’s instalment component.

Step 6. Work out the number of the partner’s paydays in the period that commences on the day on which the woman dies and ends on the day on which the bereavement period ends.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable under this section.

192 Matters affecting payment of benefits under this Subdivision

(1) If:

(a) a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner; and

(b) after the woman’s partner died, an amount to which the partner would have been entitled if the partner had not died has been paid under this Act or under Part III of the Veterans’ Entitlements Act; and

the following provisions have effect:

(d) the amount referred to in paragraph (b) is not recoverable from the woman or from the personal representative of the woman’s partner, except to the extent (if any) that the amount exceeds the amount payable to the woman under this Subdivision;

(e) the amount payable to the woman under this Subdivision is to be reduced by the amount referred to in paragraph (b).

(2) If:

(a) a woman is qualified for payments under this Subdivision in relation to the death of the woman’s partner; and

(b) an amount to which the woman’s partner would have been entitled if the woman’s partner had not died has been paid under this Act or under Part III of the Veterans’ Entitlements Act, within the bereavement period, into an account with a bank; and

(c) the bank pays to the woman, out of that account, an amount not exceeding the total of the amounts paid as mentioned in paragraph (b);

the bank is, in spite of anything in any other law, not liable to any action, claim or demand by the Commonwealth, the personal representative of the woman’s partner or anyone else in respect of the payment of that money to the woman.

Part 2.5—Carer payment

Division 1A—Interpretation

197 Definitions

(1) In this Part, unless the contrary intention appears:

Adult Disability Assessment Tool has the meaning given by subsection 38C(3).

care includes attention and supervision.

care receiver has the meaning given by subsection 198(2).

disabled adult means a person aged 16 or more who:

(a) has a physical, intellectual or psychiatric disability; and

(b) is likely to suffer from that disability permanently or for an extended period.

guardian, in relation to a profoundly disabled child or a disabled child, means a person who has been granted guardianship of the child under a law of the Commonwealth, a State or a Territory.

higher ADAT score adult means a disabled adult who is a care receiver because paragraph 198(2)(a) applies.

lower ADAT score adult means a disabled adult who is a care receiver because paragraph 198(2)(d) applies.

profoundly disabled child has the meaning given by subsection (2), (2AA) or (2A).

(2) A child is a profoundly disabled child if:

(a) the child has either:

(i) a severe multiple disability; or

(ii) a severe medical condition; and

(b) the child, because of that disability or condition, needs continuous personal care for:

(i) 6 months or more; or

(ii) if the child’s condition is terminal and the child’s life expectancy is less than 6 months—the remainder of the child’s life; and

(i) the child receives all food and fluids by nasogastric or percutaneous enterogastric tube;

(ii) the child has a tracheostomy;

(iii) the child must use a ventilator for at least 8 hours each day;

(iv) the child:

(A) has faecal incontinence day and night; and

(B) if under 3 years of age, is expected to have faecal incontinence day and night at the age of 3;

(v) the child:

(A) cannot stand without support; and

(B) if under 2 years of age, is expected to be unable to stand without support at the age of 2;

(vi) a medical practitioner has certified in writing that the child has a terminal condition for which palliative care has replaced active treatment;

(vii) the child:

(A) requires personal care on 2 or more occasions between 10 pm and 6 am each day; and

(B) if under 6 months of age, is expected to require care as described in sub-subparagraph (A) at the age of 6 months.

(2AA) A child is a profoundly disabled child if:

(a) the child has either:

(i) a severe intellectual, psychiatric or behavioural disability; or

(ii) a severe intellectual, psychiatric or behavioural medical condition; and

(b) the child, because of the disability or condition, needs continuous personal care for:

(i) 6 months or more; or

(ii) if the child’s condition is terminal and the child’s life expectancy is less than 6 months—the remainder of the child’s life; and

(d) because of the child’s disability or condition, the child does one or more of the following:

(i) repeatedly engages in dangerous behaviour that is, or that gives rise to, a significant risk (whether immediate or long‑term) to the child’s health or safety and that, without carer intervention, would result in the child suffering sustained tissue or bodily damage, or death;

(ii) repeatedly engages in aggressive or violent behaviour that is, or that gives rise to, a significant risk to the health or safety of others, or that results in significant property damage, as a result of which the child is regularly or permanently excluded from community programs, activities, services or facilities;

(iii) repeatedly engages in severe sexually deviant or sexually inappropriate behaviour, as a result of which the child is regularly or permanently excluded from community programs, activities, services or facilities.

(2A) A child is a profoundly disabled child if a medical practitioner has certified in writing that:

(a) the child:

(i) has a terminal condition; and

(ii) is in the advanced phase of that condition; and

(b) either:

(i) the child has a life expectancy measured in weeks or months; or

(ii) it is possible that the child will live for more than 12 months but unlikely that he or she will live for a period substantially greater than 12 months; and

(c) because of the condition referred to in paragraph (a), the child will need continuous personal care for the remainder of his or her life.

(3) A reference in this Part to a parent includes a reference to a guardian.

Division 1—Qualification for and payability of carer payment

198 Qualification for carer payment

(1) A person is qualified for a carer payment if the requirements of this section are met.

Note: Sections 198AA, 198AB and 198AC allow the person to qualify in certain short‑term circumstances where the requirements would not be met.

Constant care of disabled etc. persons

(2) The person must personally provide constant care for:

(a) either:

(i) if the person is the only person providing the constant care—a disabled adult (the care receiver) who has been assessed and rated under the Adult Disability Assessment Tool and given a score under that assessment tool of at least 25, being a score calculated on the basis of a total professional questionnaire score of at least 10; or

(ii) if not—a disabled adult (the care receiver) who has been assessed and rated under the Adult Disability Assessment Tool and given a score under that assessment tool of at least 80, being a score calculated on the basis of a total professional questionnaire score of at least 32; or

(b) a profoundly disabled child (the care receiver) aged under 16; or

(d) a disabled adult and a dependent child of the adult (the care receivers), where:

(i) the disabled adult has been assessed and rated under the Adult Disability Assessment Tool and given a score under that assessment tool of at least 20, being a score calculated on the basis of a total professional questionnaire score of at least 8; and

(ii) the child is aged under 16; and

(iii) if the child is aged 6 or more—carer allowance is payable for the child.

Note 1: In a paragraph (c) case, subsection (8) contains an additional requirement about care that must be satisfied.

Note 2: In a paragraph (d) case, subsection (9) deems certain supervision to constitute care.

Care in home

(3) The care must be provided in a private residence that is the home of the care receiver or care receivers.

Carer in Australia

(4) The person must be an Australian resident, unless:

(a) the person is in a country in which carer payment may be granted to the person under a scheduled international social security agreement; and

(b) the scheduled international social security agreement entered into force on or before 24 December 1992.

Income and assets tests etc.

(5) The care receiver or care receivers must:

(a) if the care receiver is a profoundly disabled child or the care receivers are 2 or more disabled children—require constant care; and

(b) subject to subsection (6), be Australian residents; and

Note: For Australian resident see section 7.

(d) subject to subsection (7), either:

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

(ii) be the subject of a decision in force under subsection 198N(2), (3) or (4) that subparagraph (i) does not disqualify the person providing the constant care from carer payment.

Alternative to Australian residence test for higher ADAT score adults

(6) Paragraph (5)(b) does not apply if:

(a) the care receiver is the higher ADAT score adult mentioned in paragraph (2)(a); and

(b) the adult is receiving a social security pension; and

(c) carer payment may be granted to another person for the adult under a scheduled international social security agreement.

Alternative to income/assets test for higher ADAT score adults

(7) Paragraphs (5)(c) and (d) do not apply if the care receiver is the higher ADAT score adult mentioned in paragraph (2)(a) and the adult:

(a) is receiving a social security pension or benefit, a service pension or income support supplement; or

(b) would be receiving a social security or service pension or income support supplement if he or she had been an Australian resident for a long enough period.

Level of care requirement for 2 or more disabled children

(8) If the care receivers are the 2 or more disabled children mentioned in paragraph (2)(c), the Secretary must be of the opinion that the children require a level of care that is at least equivalent to the level of care required by a profoundly disabled child within the meaning of subsection 197(2) or (2A).

Deemed personal care of disabled adult and dependent child

(9) For the purposes of paragraph (2)(d) and other references in this Part that relate to that paragraph, if a disabled adult is providing care of a dependent child of the adult at a particular time and another person is supervising the provision of that care at that time, the other person is taken personally to provide care of the adult and child at that time.

Carers of certain profoundly disabled children

(10) If the care receiver is a profoundly disabled child within the meaning of subsection 197(2AA):

(a) the person must provide continuous personal care for the child within the meaning of paragraph (b) of that subsection; and

(b) the provision of that care by the person must severely restrict the person’s capacity to undertake paid employment.

198AAA Continuation of qualification when person receiving care admitted to institution

(1) This section applies if:

(a) carer payment is payable to a person who has ordinarily been providing constant care for a care receiver or care receivers; and

(b) the person ceases to be qualified for the payment because he or she ceases to provide constant care for the care receiver or any of the care receivers as a result of the care receiver being admitted permanently to an institution where care is provided for the care receiver.

(2) The carer payment continues to be payable to the person for 14 weeks after the person ceases to be qualified, and then ceases to be payable.

198AA Qualification for carer payment—hospitalisation

(1) If:

(a) a person (the carer) is participating in the care of a disabled adult, a profoundly disabled child, a disabled child, or a dependent child of a disabled adult, (the hospitalised person) in hospital; and

(b) it is reasonable to assume that, if the hospitalised person were not in hospital, the carer would qualify for carer payment for the hospitalised person or for the hospitalised person and another person or persons; and

(i) the hospitalised person is terminally ill; or

(ii) it is reasonable to expect that he or she will reside in his or her private home upon leaving hospital;

then the carer qualifies for carer payment.

Limit on qualification under subsection (1)

(2) However, the period, or the sum of the periods, for which the person can be qualified under subsection (1) is 63 days in any calendar year.

198AB Care not required to be in private residence during portability period

During any period of absence from Australia:

(a) throughout which Division 2 of Part 4.2 applies to the person; and

(b) that is before the end of the person’s portability period for carer payment (within the meaning of that Division);

the person does not cease to be qualified for carer payment merely because the constant care of the care receiver or care receivers is not provided in a private residence that is the home of the care receiver or care receivers.

198AC Effect of cessation of care etc. on carer payment

Continuation of payment where temporary cessation of care

(1) Subject to subsection (3), if:

(a) a person is qualified for carer payment because the person is personally providing constant care for a care receiver or care receivers; and

(b) the person temporarily ceases to provide that care for the care receiver or care receivers;

the person does not cease to be qualified for the carer payment merely because of that cessation.

Continuation of payment after hospitalisation—section 198AA ceases to apply

(2) Subject to subsection (3), if:

(a) a person is qualified for carer payment under section 198AA because the person is participating in the care of an adult or child in hospital; and

(b) apart from this subsection, the person would later cease to be qualified for carer payment under that section; and

(c) the person would not cease to be qualified for carer payment if the person were providing constant care for the adult or child, or the adult or child and another person;

the person does not cease to be qualified for carer payment merely because of the lack of provision of constant care.

Limit on subsections (1) and (2)

(3) However, the period, or the sum of the periods, for which subsection (1) or (2), or a combination of those subsections, can apply is:

(a) 63 days in any calendar year; or

(b) another period that the Secretary, for any special reason in the particular case, decides to be appropriate.

Cessation of constant personal care in order to undertake training etc.

(4) If:

(a) a person is qualified for carer payment because the person is personally providing constant care for a care receiver or care receivers; and

(b) the person temporarily ceases to provide that care in order to undertake training, education, unpaid voluntary work or paid employment; and

the person does not cease to be qualified for the carer payment merely because of the cessation.

Cessation of participation in hospital care in order to undertake training etc.

(5) If:

(a) a person is qualified for carer payment because the person is participating in the care of another person in hospital; and

(b) the person temporarily ceases to participate in the care in order to undertake training, education, unpaid voluntary work or paid employment; and

the person does not cease to be qualified for the carer payment merely because of the cessation.

198A Income test
[see Appendix for CPI adjusted figures]

Passing the income test

(1) A care receiver or care receivers pass the income test if the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, worked out under section 198B for the appropriate tax year determined under section 198C is not more than $66,403 (the income ceiling).

Income test failed where no taxable income for appropriate tax year

(2) A care receiver or care receivers do not pass the income test if any person (whether or not a care receiver) whose taxable income is required to be taken into account in applying section 198B does not have an assessed taxable income or an accepted estimated taxable income for the appropriate tax year.

198B Taxable income

Rules that apply for the purposes of this Subdivision

(1) For the purposes of this Subdivision, the rules set out in subsections (1A), (1B), (1BA), (1C) and (6) apply.

Taxable income of higher ADAT score adult

(1A) If a care receiver who is a higher ADAT score adult is a member of a couple, the care receiver’s taxable income includes the taxable income of the care receiver’s partner.

Taxable income of profoundly disabled child or disabled child

(1B) If a care receiver is a profoundly disabled child, or a disabled child, who lives with his or her parent, the taxable income of the care receiver includes the taxable income of the following people:

(a) the parent;

(b) if the parent is a member of a couple—the parent’s partner;

However, if the care receiver is a disabled child who is one of 2 or more care receivers, the taxable income of the same person is not to be included in the taxable income of any of the other care receivers.

Taxable income of lower ADAT score adult

(1BA) If a care receiver is a lower ADAT score adult, the care receiver’s taxable income includes the taxable income of the following people:

(a) if the adult is a member of a couple—the adult’s partner and any FTB child (except the other care receiver) of the adult or of the partner;

(b) in any other case—any FTB child (except the other care receiver) of the adult.

Taxable income

(1C) A person’s taxable income for a tax year is:

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

(b) 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.

Note: For accepted estimated taxable income see subsection (5).

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, or, if the person is a child—the child’s parent or carer, 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

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 under subsection (3) and accepted by the Secretary.

Nil amounts of taxable income

(6) A person’s assessed taxable income or accepted estimate of taxable income may be a nil amount.

198C Appropriate tax year

Appropriate tax year in ordinary cases

(1) Subject to this section, the appropriate tax year for a day is the base tax year for that day.

Note: For base tax year see subsection (6).

(2) If:

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

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

(c) the request is given to the Secretary by the person, any care receiver who is 16 or over or a parent of any care receiver who is under 16; and

(d) the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, 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 or care receivers on or after the day on which the request is given, is the tax year in which the request is made.

Note 1: For taxable income see section 198B.

Note 2: For income ceiling see subsection 198A(1).

(3) If:

(a) an instalment of carer payment (the first payment) is paid to a person on a day in one calendar year; and

(b) the next instalment of carer payment (the second payment) is paid to a person on a day in the next calendar year; and

(i) commences immediately after the end of the instalment period to which the first payment related; and

(ii) includes the first day of the calendar year referred to in paragraph (b); and

(d) the person’s carer payment is payable in relation to the period referred to in subparagraph (c)(i) because, as a result of a request under paragraph (2)(b), the appropriate tax year is the tax year in which that period occurs (the current tax year); and

(e) the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the current tax year is less than the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, 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.

Note 1: For base tax year see subsection (6).

Note 2: For income ceiling see subsection 198A(1).

Change to appropriate tax year because of notifiable event

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

(a) a notifiable event occurs in relation to a care receiver or any of 2 or more care receivers; and

(b) the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, 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.

Note 1: For notifiable event see subsection (6).

Note 2: For taxable income see section 198B.

Note 3: For income ceiling see subsection 198A(1).

Note 4: The effect of subsection (4) is that the person caring for the care receiver or care receivers will cease to be qualified for carer payment because the care receiver or care receivers will not pass the income test under subsection 198A(1).

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 or any of 2 or more care receivers; and

(b) the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, 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, or the sum of the taxable incomes of the care receivers, 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.

Note 1: For notifiable event see subsection (6).

Note 2: For taxable income see section 198B.

Definitions

(6) For the purposes of this section:

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

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

(i) is specified in a notice under section 70 of the Administration Act; and

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

Example: Suppose 4 April 1996 is a carer payment payday. It falls in the calendar year 1 January to 31 December 1996, so the base tax year for that payday is the tax year that ended on 30 June 1995 (i.e. the year of income beginning on 1 July 1994).

198D Assets test
[see Appendix for CPI adjusted figures]

Higher ADAT score adult passing the assets test

(1) A care receiver who is a higher ADAT score adult 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;

Note: The amount specified in subsection (1) is indexed on each 1 January (see sections 1190 and 1191).

Profoundly disabled child passing the assets test

(1A) A care receiver who is a profoundly disabled child passes the assets test if the total value of the following assets is less than $410,000:

(a) the disabled child’s assets;

(b) if the disabled child lives with his or her parent:

(i) the assets of the parent;

(ii) if the parent is a member of a couple—the assets of the parent’s partner;

(iii) if the parent or the partner has one or more FTB children—the assets of those FTB children.

(1B) For the purposes of this Division (other than subsection (1A)), if the disabled child lives with his or her parent, the disabled child’s assets are taken to include the assets listed in subsection (1A).

Disabled children passing the assets test

(1C) Care receivers who are 2 or more disabled children pass the assets test if the total value of the following assets is less than $410,000:

(a) the assets of all of the disabled children;

(b) if any of the disabled children lives with his or her parent:

(i) the assets of the parent;

(ii) if the parent is a member of a couple—the assets of the parent’s partner;

(iii) if the parent or the partner has one or more FTB children—the assets of those FTB children.

However, assets of the same person are not to be taken into account more than once.

(1D) For the purposes of this Division (other than subsection (1C)), if any of the disabled children lives with his or her parent, the disabled child’s assets are taken to include the assets listed in paragraph (1C)(b) in relation to the child. However, assets of the same person are not to be included in the assets of more than one child.

Lower ADAT score adult and dependent child passing the assets test

(1E) Care receivers who are a lower ADAT score adult and a dependent child pass the assets test if the total value of the assets of the following people is less than $410,000:

(a) the adult;

(b) the dependent child;

(d) if the adult or the partner has one or more FTB children—the FTB children.

198E Working out the value of assets

For the purposes of subsection 198D(1), (1A), (1C) or (1E), 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 198MA (inclusive); and

Note: Sections 198F to 198MA (inclusive) make special provision for the assets test for care receivers in relation to subjects covered more generally by Division 2 of Part 3.12.

198F Disposal of assets—care receiver assets test

(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 payment.

(1A) For the purposes of this Division, a person disposes of assets of a profoundly disabled child, a disabled child or a dependent child if:

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

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

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

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

(b) one of the following paragraphs 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 the person who provides care for the child to obtain a carer payment.

Note: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be the assets of the child.

(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.

Note: For granny flat interest see subsection 12A(2).

198G Amount of disposition—care receiver assets test

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.

198H Disposal of assets in pre‑pension years—individual higher ADAT score adults

(1) This section applies in determining whether a person (the carer) qualifies for a carer payment when claiming it for caring for a care receiver who:

(a) is a higher ADAT score adult; and

(b) is not a member of a couple when the claim is made.

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

(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:

(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 care receiver during that pre‑pension year exceeds $10,000.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

(3) In this section:

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

(a) the 12 months ending on the carer’s start day for carer payment; or

(b) any preceding period of 12 months.

198HA Disposal of assets in pre‑pension years—profoundly disabled child or disabled children

(1) This section applies in determining whether a person (the carer) qualifies for a carer payment when claiming it for caring for a care receiver who is a profoundly disabled child or care receivers each of whom is a disabled child.

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

(2) If:

(a) a person has disposed of one or more of the child’s assets 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 the child’s assets previously made during that pre‑pension year, exceeds $10,000;

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

(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 during that pre‑pension year exceeds $10,000.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Note 3: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

(3) In this section:

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

(a) the 12 months ending on the carer’s start day for carer payment; or

(b) any preceding period of 12 months.

198HB Disposal of assets in pre‑pension years—lower ADAT score adult and dependent child

Application

(1) This section applies in determining whether a person (the carer) qualifies for a carer payment when claiming it for caring for care receivers who are a lower ADAT score adult and a dependent child.

Disposals before 1 July 2002

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

Increase in value of assets of lower ADAT score adult

(2) Subject to subsection (3), if:

(a) there has been a disposal, during a pre‑pension year of the carer, of an asset of any of the following persons (a qualifying person):

(i) the lower ADAT score adult;

(ii) the dependent child;

(iii) if the adult is a member of a couple—the adult’s partner and any FTB child of the adult or of the partner;

(iv) if the adult is not a member of a couple—any FTB child of the adult; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets of any of the qualifying persons during the pre‑pension year, exceeds $10,000;

the lesser of the following amounts is to be included in the value of the assets of the lower ADAT score adult, for the period of 5 years that starts on the day on which the disposition took place:

(d) 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 of the qualifying persons during that pre‑pension year exceeds $10,000.

Note 1: For disposition of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Effect of ceasing to be member of couple or death of FTB child after disposal of assets

(3) If:

(a) an amount is included under subsection (2) in the value of the assets of the lower ADAT score adult because of the disposition of an asset of any of the qualifying persons; and

(b) if the lower ADAT score adult is a member of a couple—either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FTB children dies; and

then, for the purposes of subsection (2), the following are to be disregarded:

(d) in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposition of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposition of his or her assets.

Pre‑pension year

(4) In this section:

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

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

(b) any preceding period of 12 months.

198J Disposal of assets before 1 July 2002—individual higher ADAT score adults

(1) This section applies in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who:

(a) is a higher ADAT score adult; and

(b) is not a member of a couple;

continues to qualify for the pension.

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

(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:

(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.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

(3) In this section:

pension year, in relation to a carer, means:

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

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

198JA Disposal of assets before 1 July 2002—profoundly disabled children or disabled children

(1) This section applies in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who is a profoundly disabled child or care receivers each of whom is a disabled child continues to qualify for the pension.

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

(2) If:

(a) a person has disposed of one or more of the child’s assets 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 the child’s assets previously made during that pension year, exceeds $10,000;

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

(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 during that pension year exceeds $10,000.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Note 3: Subsections 198D(1B) and (1D) provide that if the child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

(3) In this section:

pension year, in relation to a carer, means:

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

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

198JB Disposal of assets before 1 July 2002—lower ADAT score adult and dependent child

Application

(1) This section applies in determining whether a person (the carer) who has been receiving a carer payment for caring for care receivers who are a lower ADAT score adult and a dependent child continues to qualify for the pension.

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

Increase in value of assets of lower ADAT score adult

(2) Subject to subsection (3), if:

(a) there has been a disposal, during a pension year of the carer, of an asset of any of the following persons (a qualifying person):

(i) the lower ADAT score adult;

(ii) the dependent child;

(iii) if the adult is a member of a couple—the adult’s partner and any FTB child of the adult or of the partner;

(iv) if the adult is not a member of a couple—any FTB child of the adult; and

(b) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets of any of the qualifying persons during the pension year exceeds $10,000;

the lesser of the following amounts is to be included in the value of the assets of the lower ADAT score adult, for the period of 5 years that starts on the day on which the disposition took place:

(d) 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 of the qualifying persons during that pension year exceeds $10,000.

Note 1: For disposition of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Effect of ceasing to be member of couple or death of FTB child after disposal of assets

(3) If:

(a) an amount is included under subsection (2) in the value of the assets of the lower ADAT score adult because of the disposition of an asset of any of the qualifying persons; and

(b) if the lower ADAT score adult is a member of a couple—either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FTB children dies; and

then, for the purposes of subsection (2), the following are to be disregarded:

(d) in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposition of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposition of his or her assets.

Pension year

(4) In this section:

pension year, in relation to a carer, means:

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

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

198JC Disposal of assets in income year—individual higher ADAT score adults

Application

(1) This section has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who:

(a) is a higher ADAT score adult; and

(b) is not a member of a couple;

continues to qualify for the payment.

Disposals to which section applies

(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 by the care receiver of an asset of the care receiver.

Increase in value of assets of higher ADAT score adult

(3) If the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets previously made by the care receiver during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, 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 starting on the day on which the relevant disposal took place:

(a) the amount of the relevant disposal;

(b) the amount by which the sum of the amount of the relevant disposal, and the amounts (if any) of other disposals of assets previously made by the care receiver during the income year in which the relevant disposal took place, exceeds $10,000.

198JD Disposal of assets in 5 year period—individual higher ADAT score adults

Application

(1) This section also has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who:

(a) is a higher ADAT score adult; and

(b) is not a member of a couple;

continues to qualify for the payment.

Disposals to which section applies

(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 by the care receiver of an asset of the care receiver.

Increase in value of assets of higher ADAT score adult

(3) If:

(a) the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period by the care receiver of assets of the care receiver;

less

(b) the sum of any amounts included in the value of the care receiver’s assets during the rolling period under section 198JC or any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, an amount equal to the excess is to be included in the value of the care receiver’s assets for the period of 5 years starting on the day on which the relevant disposal took place.

Rolling period

(4) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.

198JE Disposal of assets in income year—profoundly disabled children

Application

(1) This section has effect in determining whether a person who has been receiving a carer payment for caring for a care receiver who is a profoundly disabled child continues to qualify for the payment.

Disposals to which section applies

(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 by a person of one or more of the disabled child’s assets.

Increase in value of assets of profoundly disabled child

(3) If the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of the disabled child’s assets previously made by a person during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the disabled child’s assets for the period of 5 years starting on the day on which the relevant disposal took place:

(a) the amount of the relevant disposal;

(b) the amount by which the sum of the amount of the relevant disposal, and the amounts (if any) of other disposals of the disabled child’s assets previously made during the income year in which the relevant disposal took place, exceeds $10,000.

198JF Disposal of assets in 5 year period—profoundly disabled children

Application

(1) This section also has effect in determining whether a person who has been receiving a carer payment for caring for a care receiver who is a profoundly disabled child continues to qualify for the payment.

Disposals to which section applies

(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 by a person of one or more of the disabled child’s assets.

Increase in value of assets of profoundly disabled child

(3) If:

(a) the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period by a person of any of the disabled child’s assets;

less

(b) the sum of any amounts included in the value of the disabled child’s assets during the rolling period under section 198JE or any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, an amount equal to the excess is to be included in the value of the disabled child’s assets for the period of 5 years starting on the day on which the relevant disposal took place.

Rolling period

198JG Disposal of assets in income year—lower ADAT score adult and dependent child

Application

(1) This section has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for care receivers who are a lower ADAT score adult and a dependent child continues to qualify for the payment.

Disposals to which section applies

(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset of any of the following persons (each of whom is called a qualifying person):

(a) the lower ADAT score adult;

(b) the dependent child;

(d) if the adult is not a member of a couple—any FTB child of the adult.

Increase in value of assets of lower ADAT score adult

(3) Subject to subsection (4), if the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets of any of the qualifying persons previously made during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the assets of the lower ADAT score adult for the period of 5 years starting on the day on which the relevant disposal took place:

(a) the amount of the relevant disposal;

(b) the amount by which the sum of the amount of the relevant disposal and the amounts (if any) of other disposals of assets of the qualifying persons previously made during the income year in which the relevant disposal took place, exceeds $10,000.

Effect of ceasing to be member of couple or death of FTB child after disposal of assets

(4) If:

(a) an amount is included under subsection (3) in the value of the assets of the lower ADAT score adult because of the relevant disposal; and

(b) if the lower ADAT score adult is a member of a couple—either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FTB children dies; and

then, for the purposes of subsection (3), the following are to be disregarded:

(d) in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposal of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposal of his or her assets.

198JH Disposal of assets in 5 year period—lower ADAT score adult and dependent child

Application

(1) This section also has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for care receivers who are a lower ADAT score adult and a dependent child continues to qualify for the payment.

Disposals to which section applies

(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset of any of the following persons (each of whom is called a qualifying person):

(a) the lower ADAT score adult;

(b) the dependent child;

(d) if the adult is not a member of a couple—any FTB child of the adult.

Increase in value of assets of lower ADAT score adult

(3) Subject to subsection (4), if:

(a) the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period of assets of any of the qualifying persons;

less

(b) the sum of any amounts included in the value of the assets of the lower ADAT score adult during the rolling period under section 198JG or any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, an amount equal to the excess is to be included in the value of the assets of the lower of the ADAT score adult for the period of 5 years starting on the day on which the relevant disposal took place.

Effect of ceasing to be member of couple or death of FTB child after disposal of assets

(4) If:

(a) an amount is included under subsection (3) in the value of the assets of the lower ADAT score adult because of the relevant disposal; and

(b) if the lower ADAT score adult is a member of a couple—either:

(i) the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or

(ii) any of the FTB children dies; and

then, for the purposes of subsection (3), the following are to be disregarded:

(d) in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposal of their assets; or

(e) in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposal of his or her assets.

Rolling period

(5) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.

198K Disposal of assets in pre‑pension years—members of couples including higher ADAT score adults

(1) This section applies in determining whether a person (the carer) qualifies for carer payment when claiming it for caring for a higher ADAT score adult who is a member of a couple when the claim is made.

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

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:

(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.

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Effect of separation of couple after disposal 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:

(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 start day for the carer payment; or

(b) any preceding period of 12 months.

198L Disposal of assets before 1 July 2002—members of couples including higher ADAT score adults

(1) This section applies in determining whether a person (the carer) who has been receiving a carer payment for caring for a higher ADAT score adult who is a member of a couple continues to qualify for the pension.

(1A) This section applies only to disposals of assets that took place before 1 July 2002.

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

(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;

Note 1: For disposes of assets see section 198F.

Note 2: For amount of disposition see section 198G.

Effect of separation of couple after disposal of care receiver’s asset

(3) If:

(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:

(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:

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

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

198LA Disposal of assets in income year—members of couples including higher ADAT score adults

Application

(1) This section has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who is a higher ADAT score adult and is a member of a couple continues to qualify for the payment.

Disposals to which section applies

(2) This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset by the care receiver, the care receiver’s partner, or the care receiver and the care receiver’s partner.

Increase in value of assets

(3) If the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets previously made by the care receiver, the care receiver’s partner, or the care receiver and the care receiver’s partner (whether before or after they became members of the couple), during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the assets of the care receiver and in the value of the assets of the partner for the period of 5 years starting on the day on which the relevant disposal took place:

(a) one‑half of the amount of the relevant disposal;

(b) one‑half of the amount by which the sum of the amount of the relevant disposal and the amounts (if any) of other disposals of assets previously made by the care receiver, the partner, or the care receiver and the partner, during the income year in which the relevant disposal took place, exceeds $10,000.

Effect of ceasing to be a member of couple after disposal by care receiver

(4) If:

(a) the relevant disposal is the disposal of an asset by the care receiver; and

(b) after the relevant disposal, the care receiver and the care receiver’s 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 assets of the partner because of the relevant disposal is to be included in the value of the assets of the care receiver.

Effect of ceasing to be a member of couple after disposal by care receiver’s partner

(5) If:

(a) the relevant disposal is the disposal of an asset by the care receiver’s partner; and

(b) after the relevant disposal, 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 assets of the care receiver because of the relevant disposal is no longer to be included in the value of the assets of the care receiver.

198LB Disposal of assets in 5 year period—members of couples including higher ADAT score adults

Application

(1) This section also has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for a care receiver who is a higher ADAT score adult and is a member of a couple continues to qualify for the payment.

Disposals to which section applies

Increase in value of assets

(3) If:

(a) the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period of assets by the care receiver, the care receiver’s partner, or the care receiver and the care receiver’s partner;

less

(b) the sum of any amounts included in the value of the assets of the care receiver or the partner during the rolling period under a provision of this Subdivision other than this section or under any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, an amount equal to one‑half of the excess is to be included in the value of the assets of the care receiver and in the value of the assets of the partner for the period of 5 years starting on the day on which the relevant disposal took place.

Effect of ceasing to be member of couple after disposal by care receiver

(4) If:

(a) the relevant disposal is a disposal of an asset by the care receiver; and

(b) after the relevant disposal, the care receiver and the care receiver’s 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 assets of the partner because of the relevant disposal is to be included in the value of the assets of the care receiver.

Effect of ceasing to be member of couple after disposal by care receiver’s partner

(5) If:

(a) the relevant disposal is a disposal of an asset by the care receiver’s partner; and

(b) after the relevant disposal, 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 assets of the care receiver because of the relevant disposal is no longer to be included in the value of the assets of the care receiver.

Rolling period

(6) For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.

198M Certain dispositions to be disregarded for care receiver assets test

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 payment:

(i) because the carer was providing care for the disposer and the disposer was a care receiver or one of 2 or more care receivers; 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 one of 2 or more care receivers; 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 payment for a reason described in paragraph (a); or

198MA Other dispositions to be disregarded for care receiver assets test

This Division does not apply to a disposition of an asset of a profoundly disabled child, a disabled child or a dependent child by a person (the disposer):

(a) more than 5 years before the carer became qualified for a carer payment because:

(i) the carer was providing care for the profoundly disabled child, and the child was a care receiver; or

(ii) the carer was providing care for the disabled child, and the child and one or more other disabled children were care receivers; or

(iii) the carer was providing care for the dependent child and a lower ADAT score adult and the dependent child and adult were care receivers; or

Note: Subsections 198D(1B) and (1D) provide that if the profoundly disabled child or the disabled child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be the assets of the child.

198N Exemption from care receiver assets test
[see Appendix for CPI adjusted figures]

Application by higher ADAT score adult

(1) If:

(a) subparagraph 198(5)(d)(i) would disqualify for carer payment a person caring for a care receiver who is a higher ADAT score adult; and

(b) the higher ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the adult not be disqualified by that subparagraph; and

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

(d) the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Application by parent or carer of profoundly disabled child or disabled child

(1A) If:

(a) subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for a care receiver who is a profoundly disabled child or care receivers each of whom is a disabled child; and

(b) the parent or the carer of the profoundly disabled child or of any of the disabled children lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

(c) the request includes a written estimate of the taxable income of the profoundly disabled child, or written estimates of the taxable incomes of the disabled children, for the current financial year under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Application by lower ADAT score adult

(1B) If:

(a) subparagraph 198(5)(d)(i) would disqualify from carer payment a person caring for care receivers who are a lower ADAT score adult and a dependent child; and

(b) the lower ADAT score adult lodges with the Department, in a form approved by the Secretary, a request that the carer not be disqualified by that subparagraph; and

(c) the request includes written estimates of the taxable incomes of the lower ADAT score adult and the dependent child under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4);

subsections (2), (3), (4), (5) and (6) have effect.

Failing assets test but passing special income test

(2) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if:

(a) the value of the assets of the care receiver or the sum of the values of the assets of the care receivers is more than $410,000 but not more than $608,500; and

(b) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

(c) the amount of the accepted estimated taxable income of the care receiver, or the sum of the amounts of the accepted estimated taxable incomes of the care receivers, for the current financial year is less than the threshold amount worked out under subsection (6).

Note 1: The amounts specified in paragraph (2)(a) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

Failing assets and special income tests

(3) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $410,000 and not more than $608,500 and:

(a) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is equal to or greater than the liquid assets limit; or

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

Note 1: The amounts specified in subsection (3) are indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

Failing assets test by large margin but passing special income test

(4) The Secretary may decide that subparagraph 198(5)(d)(i) does not disqualify the person from carer payment if:

(a) the value of the assets of the care receiver, or the sum of the values of the assets of the care receivers, is more than $608,500; and

(b) the value of the liquid assets of the care receiver, or the sum of the values of the liquid assets of the care receivers, is less than the liquid assets limit; and

Note 1: The amount specified in paragraph (4)(a) is indexed each year on 1 January (see sections 1190 and 1191).

Note 2: For calculating the value of assets and liquid assets, see paragraph (5)(a).

Note 3: For liquid assets see subsection 19B(1).

Note 4: For liquid assets limit see paragraph (5)(b).

Note 5: For accepted estimated taxable income see subsection 198B(5).

Definitions—assets and income

(5) For the purposes of this section:

(a) the value of the assets or liquid assets of a care receiver who is a higher ADAT score adult 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 FTB children—those FTB children; and

(aa) the value of the liquid assets of a care receiver who is a profoundly disabled child or a disabled child is the sum of the values of the liquid assets of the following people:

(i) the care receiver;

(ii) if the care receiver lives with his or her parent—the parent;

(iii) if the parent with whom the care receiver lives is a member of a couple—the parent’s partner;

(iv) if the parent with whom the care receiver lives or the parent’s partner has one or more FTB children—those FTB children.

However, if the care receiver is one of 2 or more care receivers each of whom is a disabled child, liquid assets of the same person are not to be taken into account in respect of any of the other care receivers; and

(ab) the value of the liquid assets of a care receiver who is a lower ADAT score adult is the sum of the values of the liquid assets of the following people:

(i) the care receiver;

(ii) if the care receiver is a member of a couple—the care receiver’s partner and any FTB child (except the dependent child who is the other care receiver) of the care receiver or the care receiver’s partner;

(iii) if the care receiver is not a member of a couple—any FTB child (except the dependent child who is the other care receiver); and

Note: The value of the liquid assets of the dependent child who is the other care receiver is not adjusted by adding any other person’s liquid assets.

(b) the liquid assets limit is $10,000 if the care receiver or any of the care receivers is a member of a couple, or $6,000 if not; and

(c) the taxable income of a care receiver or of any of 2 or more care receivers for a particular financial year is the taxable income of the care receiver for that year as worked out under section 198B.

Note 1: For liquid assets see subsection 19B(1).

Note 2: Subsections 198D(1B) and (1D) provide that if a profoundly disabled or a disabled child lives with a parent, the assets listed in subsection 198D(1A) and paragraph (1C)(b) are taken to be assets of the child.

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:

(a) in the case of a care receiver who is a higher ADAT score adult—the number of FTB children of the care receiver or the care receiver’s partner (if the care receiver has a partner); or

(b) in the case of a care receiver who is a profoundly disabled child who lives with his or her parent—the number of FTB children of the parent or the parent’s partner (if the parent has a partner); or

(d) in the case of care receivers who are 2 or more disabled children:

(i) if any of the children lives with his or her parent—the sum of the number of FTB children of each such parent or of the partner (if the parent has a partner) of each such parent; or

(ii) in any other case—0; or

(e) in the case of care receivers who are a lower ADAT score adult and a dependent child—the number of FTB children of the care receiver or the care receiver’s partner (if the care receiver has a partner).

Note: For the maximum basic rate of age pension see point 1064‑B1 of Pension Rate Calculator A in section 1064.

198P Date of effect of favourable decision under section 198N

Date of effect

(1) If the Secretary decides under subsection 198N(2), (3) or (4) that subparagraph 198(5)(d)(i) does not disqualify a person from carer payment, the day on which the 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 or care receivers; and

(b) notice of the making of the previous decision is given:

(i) in the case of a care receiver who is a higher ADAT score adult—to the adult or the person caring for the adult; or

(ii) in the case of a care receiver who is a profoundly disabled child—to the parent or carer of the disabled child; or

(iii) in the case of care receivers who are 2 or more disabled children—to the carer of the children or to the parent of any of the children; or

(iv) in the case of care receivers who are a lower ADAT score adult and a dependent child—to the lower ADAT score adult or the person caring for that adult; and

(c) within 3 months after the notice is given, a person applies to the Secretary under section 129 of the Administration Act for review of the previous decision; and

(d) a decision favourable to the person caring for the care receiver or care receivers (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 or care receivers; and

(b) notice of the making of the previous decision is given:

(i) in the case of a care receiver who is a higher ADAT score adult—to the adult or the person caring for the adult; or

(ii) in the case of a care receiver who is a profoundly disabled child—to the parent of the disabled child or the person who is caring for the disabled child; or

(iii) in the case of care receivers who are 2 or more disabled children—to the carer of the children or to the parent of any of the children; or

(iv) in the case of care receivers who are a lower ADAT score adult and a dependent child—to the lower ADAT score adult or the person caring for that adult; and

(c) more than 3 months after the notice is given, a person applies to the Secretary under section 129 of the Administration Act for review of the previous decision; and

(d) a decision favourable to the person caring for the care receiver or care receivers (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.

Decision not notified

(5) If:

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

(b) notice of the making of the previous decision is not given to a person specified in paragraph (4)(b) as a person to whom notice is to be given; and

(c) a person applies to the Secretary under section 129 of the Administration Act for review of the previous decision; and

(d) a decision favourable to the person caring for the care receiver or care receivers (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.

198Q Date of effect of adverse decision under section 198N

If the Secretary decides under subsection 198N(2), (3) or (4) that subparagraph 198(5)(d)(i) disqualifies a person from carer payment, the decision takes effect:

(a) on the day on which the request under section 198N in respect of the care receiver or care receivers was lodged with the Department; or

(b) if the request was lodged after the Secretary rejected a claim for carer payment by a person caring for the care receiver or care receivers—on the day on which the decision to reject the claim took effect.

199 Carer payment not payable if payment rate nil

(1) Subject to subsection (2), a carer payment is not payable to a person if the person’s carer payment rate would be nil.

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

201AA Newly arrived resident’s waiting period

(1) A person is subject to a newly arrived resident’s waiting period if the person:

(a) enters Australia on or after 4 March 1997; and

(b) has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

Note: For Australian resident see subsection 7(2).

(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a carer payment.

(3) Subsection (1) does not apply to a person who is:

(a) the holder of a subclass 104 visa—Preferential family; and

(b) either a carer or a special need relative.

(4) Subsection (1) does not apply to a person who is:

(a) the holder of a subclass 806 visa—Family; and

(b) either a carer or a special need relative.

(5) Subsection (1) does not apply to a person if:

(a) the person is already subject to a newly arrived resident’s waiting period; or

(b) the person has already served a newly arrived resident’s waiting period; or

(c) at the commencement of this subsection, the person has already been an Australian resident for a period of, or periods totalling, 104 weeks; or

(d) the person holds a visa that is in a class of visas determined in writing by the Minister for the purposes of this paragraph.

(6) In this section:

carer has the same meaning as in the Migration Regulations.

special need relative has the same meaning as in the Migration Regulations as in force on 30 November 1998.

201AB Duration of newly arrived resident’s waiting period

If a person is subject to a newly arrived resident’s waiting period, the period:

(a) starts on the day the person first became an Australian resident; and

(b) ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

202 Multiple entitlement exclusion

(1) A carer payment is not payable to a person if the person is already receiving a service pension.

(2) If:

(a) a person is receiving a carer payment; and

(b) another social security pension or a social security benefit or service pension becomes payable to the person;

the carer payment is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: For social security pension and social security benefit see subsection 23(1).

(3) A carer payment is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

(c) is receiving income support supplement under Part IIIA of that Act or would be eligible for income support supplement under that Part if he or she made a claim under section 45I of that Act.

(4) Subsection (3) does not apply if:

(a) the person:

(i) was on 20 March 1995 receiving; and

(ii) has from that day continuously received; and

(iii) is receiving;

the carer payment; and

(b) the person elected under subsection 45E(2) of the Veterans’ Entitlements Act, or is taken under subsection 45E(3) of that Act to have elected, to continue to receive the carer payment.

(5) Subsection (3) does not apply if:

(a) before 20 March 1995, the person had made a claim for carer payment; and

(d) the person has since that time continued to receive, and is receiving, the pension.

(6) Subsection (3) does not apply if:

(a) before 20 March 1995:

(i) the person had made a claim for wife pension; and

(ii) the claim had been rejected; and

(iii) the person had applied, under Chapter 6, for a review of the decision to reject the claim; and

(c) on or after 20 March 1995, the decision to reject the claim was set aside and the person was granted wife pension; and

(d) the person has since that time continued to receive, and is receiving, the pension.

(7) A carer payment is not payable to a person who:

(a) is an armed services widow or an armed services widower; and

(b) has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA; and

(c) is receiving income support supplement or would be eligible for income support supplement if he or she made a claim under section 45I of the VEA.

Note 1: For armed services widow and armed services widower see subsection 4(1).

Note 2: For MRCA and VEA see subsection 23(1).

202A Exclusion of certain participants in ABSTUDY Scheme

(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(c) in the calculation of the payment, an amount identified as living allowance (the basic payment) is included; and

(d) the payment relates to a period;

carer payment is not payable to the person in respect of any part of the period.

(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

carer payment is not payable to the person in respect of any part of the period.

(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), carer payment is payable to the person before the person starts the course.

203 Seasonal workers—preclusion period

(1) This section applies if:

(a) a person has lodged a claim for carer payment; and

(b) at any time during the 6 months immediately before the day on which the person lodged the claim, the person, or the person’s partner, has been engaged in seasonal work.

Note: For seasonal work see subsection 16A(1).

(2) Carer payment is not payable to the person:

Note: For seasonal work preclusion period see subsection 16A(1).

(a) the Secretary may determine that the person is not subject to the whole, or any part, of the preclusion period; and

(b) the determination has effect accordingly.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) or subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Division 4—Rate of carer payment

210 How to work out a person’s carer payment rate

A person’s carer payment rate is worked out using Pension Rate Calculator A at the end of section 1064 (see Part 3.2).

Subdivision A—Continuation of carer payment

235 Continuation of carer payment for bereavement period where person cared for dies

(1) If:

(a) a person is receiving carer payment because he or she ordinarily cares for a care receiver or care receivers; and

(b) the person is caring for the care receiver or care receivers or has temporarily ceased to care for the care receiver or care receivers; and

(d) the care receiver who dies is not the person’s partner; and

(e) because of the death, the person would, apart from this subsection, cease to be qualified for the carer payment;

the person remains qualified for the carer payment during the bereavement period as if the death had not occurred.

(1A) If:

(a) a person (the carer) is receiving a carer payment only because section 198AA or subsection 198AC(2) applies; and

(b) the death occurs of:

(i) the person or any of the persons for whom the person would qualify for carer payment as mentioned in paragraph 198AA(1)(b); or

(ii) the person or any of the persons for whom the constant care mentioned in paragraph 198AC(2)(c) is assumed to be provided; and

the carer remains qualified for carer payment during the bereavement period as if the death had not occurred.

(3) A person to whom subsection (1) applies may, by written notice to the Secretary, choose not to receive payments under this Subdivision and to receive instead any payments to which the person would be otherwise entitled.

(4) If a person makes an election under subsection (3):

(a) this Act, or Part III or IIIA of the Veterans’ Entitlements Act, has effect accordingly; and

(b) the person may not withdraw the election after the Department has taken all the action required to give effect to the election.

236 Continued carer payment rate

If a person is qualified for a carer payment solely because of section 235, the rate at which the pension is payable is to be determined having regard to the person’s actual circumstances.

236A Lump sum payable in some circumstances

(1) A lump sum is payable to a person under this section if:

(a) the person remains qualified for carer payment because subsection 235(1) or (1A) applies; and

(b) immediately before the death of the person mentioned in that subsection, the person who died was not a member of a couple, or was a member of a couple and his or her partner:

(i) was not receiving a social security pension; and

(ii) was not receiving a social security benefit; and

(iii) was not receiving a service pension or income support supplement.

(1A) However, if subsection (1) would apply where 2 or more persons die at the same time, only one payment is payable under that subsection.

(2) The amount of the lump sum under this section is the lesser of the amount worked out under subsection (3) and the amount worked out under subsection (4).

(3) The amount under this subsection is:

where:

partnered MBR is the maximum basic rate applicable, on the day that the person dies, to a person covered by item 2 of the Maximum Basic Rate Table in point 1064‑B1 of Pension Rate Calculator A in section 1064.

pension supplement is the person’s pension supplement worked out under point 1064‑BA2.

(4) The amount under this subsection is:

where:

carer’s current instalment is the amount of the last instalment of carer payment paid to the carer before the person died.

236B Subdivision not to apply in certain cases involving simultaneous death

If:

(a) a lower ADAT score adult and a dependent child of the adult die at the same time; and

(b) apart from this subsection and section 243, because of those deaths, a person would continue to qualify for carer payment under section 235 and would be qualified for payments under Subdivision B; and

(c) the sum of the carer payments for which the person would continue to qualify under section 235 and any lump sum payable to the person under section 236A is less than the sum of the amounts payable to the person under Subdivision B;

the person does not continue to qualify for carer payment under section 235 and no lump sum is payable to the person under section 236A.

Subdivision B—Death of partner

237 Qualification for payments under this Subdivision

(1) If:

(a) a person is receiving a carer payment; and

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

(d) immediately before the partner died, the partner:

(i) was receiving a social security pension; or

(ii) was receiving a service pension or income support supplement; or

(iii) was a long‑term social security recipient; and

(i) the amount that would otherwise be payable to the person under section 238 (continued payment of partner’s pension or allowance); and

(ii) the amount that would otherwise be payable to the person under section 240 (person’s continued rate);

the person is qualified for payments under this Subdivision to cover the bereavement period.

Note 1: section 238 provides for the payment to the person, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the person’s partner during that period if the partner had not died.

Note 2: section 239 provides for a lump sum that represents the instalments that would have been paid to the person’s partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the partner had not died.

Note 3: a person who is qualified for payments under this Subdivision for the death of the person’s partner may, in some circumstances, be automatically transferred to a parenting payment after the end of the bereavement period without making a claim for that payment (see subsection 501(4)).

(1A) If:

(a) a person is receiving a carer payment; and

(b) immediately before starting to receive the carer payment the person was receiving partner bereavement payments; and

the person is qualified for payments under this Subdivision to cover the remainder of the bereavement period.

(1B) Subsection (1) or (1A) does not apply if:

(a) the person is receiving carer payment under section 235 because of the death of a care receiver who is a dependent child of a lower ADAT score adult; and

(b) the person’s partner is the lower ADAT score adult.

(2) A person who is qualified for payments under this Subdivision may choose not to receive payments under this Subdivision.

(3) An election under subsection (2):

(a) must be made by written notice to the Secretary; and

(b) may be made after the person has been paid an amount or amounts under this Subdivision; and

(4) If a person is qualified for payments under this Subdivision in relation to the partner’s death, the rate at which carer payment is payable to the person during the bereavement period is, unless the person has made an election under subsection (2), governed by section 240.

(5) For the purposes of this section, a person is a long‑term social security recipient if:

(a) the person is receiving a social security benefit; and

(b) in respect of the previous 12 months, the person:

(i) was receiving a social security pension; or

(ii) was receiving a social security benefit; or

(iii) was receiving a youth training allowance; or

(iv) was receiving a service pension or income support supplement.

(6) A person is taken to satisfy the requirements of paragraph (5)(b) if:

(a) the person was receiving one or a combination of the payments referred to in that paragraph for a continuous period of 12 months; or

(b) the person was receiving one or a combination of the payments referred to in that paragraph for 46 weeks of the previous 52.

238 Continued payment of deceased partner’s previous entitlement

(a) where the partner was receiving a social security pension or social security benefit—the amount that would have been payable to the partner on the payday if the partner had not died; or

(b) where the partner was receiving a service pension or income support supplement—the amount that would have been payable to the partner under Part III or IIIA (as the case may be) of the Veterans’ Entitlements Act on the service payday that:

(i) where the first Thursday after the partner’s death was a service payday—precedes the pension payday; or

(ii) in any other case—follows the pension payday;

if the partner had not died.

Note: For bereavement rate continuation period see section 21.

239 Lump sum payable in some circumstances

If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) the first available bereavement adjustment payday occurs before the end of the bereavement period;

there is payable to the person as a lump sum an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the amount that would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday if:

(a) the person’s partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

(a) the partner had not died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4. Work out the amount that, but for section 240, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday: the result is called the person’s individual rate.

Step 5. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 6. Work out the number of the partner’s paydays in the bereavement lump sum period.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable to the person under this section.

240 Adjustment of person’s carer payment rate

If:

(a) a person is qualified for payments under this Subdivision; and

(b) the person does not elect under subsection 237(2) not to receive payments under this Subdivision;

the rate of the person’s carer payment during the bereavement period is worked out as follows:

(c) during the bereavement rate continuation period, the rate of carer payment payable to the person is the rate at which the pension would have been payable to the person if:

(i) the person’s partner had not died; and

(ii) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple;

(d) during the bereavement lump sum period (if any), the rate at which carer payment is payable to the person is the rate at which the carer payment would be payable to the person apart from this Subdivision.

241 Effect of death of person entitled to payments under this Subdivision

If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) the person dies within the bereavement period; and

there is payable, to such person as the Secretary thinks appropriate, as a lump sum, an amount worked out using the lump sum calculator at the end of this section.

LUMP SUM CALCULATOR

This is how to work out the amount of the lump sum:

Method statement

Step 1. Work out the amount that would have been payable to the person on the person’s payday immediately after the day on which the person died if:

(a) neither the person nor the person’s partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 2. Work out the amount that would have been payable to the partner on the partner’s payday or service payday immediately after the day on which the person died if:

(a) neither the person nor the partner had died; and

(b) where immediately before the partner’s death the couple were an illness separated couple or a respite care couple—they were not such a couple.

Step 3. Add the results of Step 1 and Step 2: the result is called the combined rate.

Step 4. Work out the amount that, but for section 240, would have been payable to the person on the person’s payday immediately after the day on which the person died if the person had not died: the result is called the person’s individual rate.

Step 5. Take the person’s individual rate away from the combined rate: the result is called the partner’s instalment component.

Step 6. Work out the number of partner’s paydays in the period that commences on the day on which the person dies and ends on the day on which the bereavement period ends.

Step 7. Multiply the partner’s instalment component by the number obtained in Step 6: the result is the amount of the lump sum payable under this section.

242 Benefits under this Subdivision

(1) If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) after the person’s partner died, an amount to which the partner would have been entitled if the partner had not died has been paid under this Act or under Part III or IIIA of the Veterans’ Entitlements Act; and

the following provisions have effect:

(e) the amount payable to the person under this Subdivision is to be reduced by the amount referred to in paragraph (b).

(2) If:

(a) a person is qualified for payments under this Subdivision in relation to the death of the person’s partner; and

(b) an amount to which the person’s partner would have been entitled if the person’s partner had not died has been paid under this Act or under Part III or IIIA of the Veterans’ Entitlements Act 1986, within the bereavement period, into an account with a bank; and

(c) the bank pays to the person, out of that account, an amount not exceeding the total of the amounts paid as mentioned in paragraph (b);

243 Subdivision not to apply in certain cases involving simultaneous death

If:

(a) a lower ADAT score adult and a dependent child of the adult die at the same time; and

(b) apart from this subsection and section 236B, because of those deaths a person would be qualified for payments under this Subdivision and would continue to qualify for carer payment under section 235; and

(c) the sum of the amounts payable to the person under this Subdivision is less than or equal to the sum of the carer payments for which the person would continue to qualify under section 235 and any lump sum payable to the person under section 236A;

no amounts are payable to the person under this Subdivision.

Subdivision D—Death of recipient

246 Death of recipient

(1) If:

(a) a person is receiving carer payment; and

(b) either:

(i) the person is not a member of a couple; or

(ii) the person is a member of a couple and the person’s partner:

(A) is not receiving a social security pension; and

Note: for death of a person qualified for bereavement payments under Subdivision B see section 241.

Part 2.5A—One‑off payment to people eligible for carer payment

247 One‑off payment to carers (carer payment related)

A person (the qualified person) is qualified for a one‑off payment to carers (carer payment related) if the person has been paid an instalment of carer payment in respect of a period that includes 11 May 2004.

Note: The person may also be qualified for a one‑off payment to carers (carer allowance related) under Part 2.19A.

248 What is the amount of the payment?

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5B—2005 one‑off payment to people eligible for carer payment

249 2005 one‑off payment to carers (carer payment related)

A person (the qualified person) is qualified for a 2005 one‑off payment to carers (carer payment related) if the person has been paid an instalment of carer payment in respect of a period that includes 10 May 2005.

Note: The person may also be qualified for a 2005 one‑off payment to carers (carer allowance related) under Part 2.19B.

250 What is the amount of the payment?

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5C—2005 one‑off payment to people eligible for carer service pension

251 2005 one‑off payment to carers (carer service pension related)

A person (the qualified person) is qualified for a 2005 one‑off payment to carers (carer service pension related) if the person has been paid an instalment of carer service pension as a result of the operation of subclause 8(2) or (4) of Schedule 5 to the Veterans’ Entitlements Act 1986 in respect of a period that includes 10 May 2005.

252 What is the amount of the payment?

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5D—2006 one‑off payment to carers eligible for carer payment

253 2006 one‑off payment to carers (carer payment related)

A person (the qualified person) is qualified for a 2006 one‑off payment to carers (carer payment related) if:

(a) the person has been paid an instalment of carer payment in respect of a period that includes 9 May 2006; and

(b) the person was paid that instalment because of a claim the person made on or before 9 May 2006.

254 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5E—2006 one‑off payment to carers eligible for wife pension

255 2006 one‑off payment to carers (wife pension related)

A person (the qualified person) is qualified for a 2006 one‑off payment to carers (wife pension related) if:

(a) the person:

(i) has been paid an instalment of wife pension in respect of a period that includes 9 May 2006; and

(ii) was paid that instalment because of a claim the person made on or before 9 May 2006; and

(b) the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(i) the instalment was in respect of a period that includes 9 May 2006;

(ii) the reason why that instalment covered 9 May 2006 was not only because of clause 16 or 17 of Schedule 2 to the Administration Act;

(iii) the person was paid that instalment because of a claim the person made on or before 9 May 2006.

256 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5F—2006 one‑off payment to carers eligible for partner service pension

257 2006 one‑off payment to carers (partner service pension related)

A person (the qualified person) is qualified for a 2006 one‑off payment to carers (partner service pension related) if:

(a) the person:

(i) has been paid an instalment of partner service pension under Part III of the Veterans’ Entitlements Act in respect of a period that includes 9 May 2006; and

(ii) was paid that instalment because of a claim the person made on or before 9 May 2006; and

(b) the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(i) the instalment was in respect of a period that includes 9 May 2006;

(ii) the reason why that instalment covered 9 May 2006 was not only because of clause 16 or 17 of Schedule 2 to the Administration Act;

(iii) the person was paid that instalment because of a claim the person made on or before 9 May 2006.

258 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5G—2006 one‑off payment to carers eligible for carer service pension

259 2006 one‑off payment to carers (carer service pension related)

A person (the qualified person) is qualified for a 2006 one‑off payment to carers (carer service pension related) if:

(a) the person has been paid an instalment of carer service pension as a result of the operation of subclause 8(2) or (4) of Schedule 5 to the Veterans’ Entitlements Act in respect of a period that includes 9 May 2006; and

(b) the person was paid that instalment because of a claim the person made on or before 9 May 2006.

260 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5H—2007 one‑off payment to carers eligible for carer payment

261 2007 one‑off payment to carers (carer payment related)

A person (the qualified person) is qualified for a 2007 one‑off payment to carers (carer payment related) if:

(a) the person has been paid an instalment of carer payment in respect of a period that includes 8 May 2007; and

(b) the person was paid that instalment because of a claim the person made on or before 8 May 2007.

262 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5J—2007 one‑off payment to carers eligible for wife pension

263 2007 one‑off payment to carers (wife pension related)

A person (the qualified person) is qualified for a 2007 one‑off payment to carers (wife pension related) if:

(a) the person:

(i) has been paid an instalment of wife pension in respect of a period that includes 8 May 2007; and

(ii) was paid that instalment because of a claim the person made on or before 8 May 2007; and

(b) the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(i) the instalment was in respect of a period that includes 8 May 2007;

(ii) the reason why that instalment covered 8 May 2007 was not only because of clause 16 or 17 of Schedule 2 to the Administration Act;

(iii) the person was paid that instalment because of a claim the person made on or before 8 May 2007.

264 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5K—2007 one‑off payment to carers eligible for partner service pension

265 2007 one‑off payment to carers (partner service pension related)

A person (the qualified person) is qualified for a 2007 one‑off payment to carers (partner service pension related) if:

(a) the person:

(i) has been paid an instalment of partner service pension under Part III of the Veterans’ Entitlements Act in respect of a period that includes 8 May 2007; and

(ii) was paid that instalment because of a claim the person made on or before 8 May 2007; and

(b) the following conditions are satisfied in relation to one or more instalments of carer allowance that have been paid to the person:

(i) the instalment was in respect of a period that includes 8 May 2007;

(ii) the reason why that instalment covered 8 May 2007 was not only because of clause 16 or 17 of Schedule 2 to the Administration Act;

(iii) the person was paid that instalment because of a claim the person made on or before 8 May 2007.

266 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.5L—2007 one‑off payment to carers eligible for carer service pension

267 2007 one‑off payment to carers (carer service pension related)

A person (the qualified person) is qualified for a 2007 one‑off payment to carers (carer service pension related) if:

(b) the person was paid that instalment because of a claim the person made on or before 8 May 2007.

268 Amount of the one‑off payment

The amount of the one‑off payment to the qualified person is $1000.

Note: The amount is $1000, regardless of the number of people for whom the qualified person provides care.

Part 2.7—Bereavement allowance

Division 1—Qualification for and payability of bereavement allowance

315 Qualification for bereavement allowance

(1) A person is qualified for a bereavement allowance on a day if:

(a) the person:

(i) was a member of a couple; and

(ii) stopped being a member of a couple because the person’s partner died; and

(b) the person is not a member of a couple; and

(d) at least one of the following conditions is satisfied:

(i) when the person’s partner died, both the person and the person’s partner were Australian residents;

(ii) the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks; or

(iiia) the person has a qualifying residence exemption for a bereavement allowance;

(iv) the person is a woman:

(A) to whom a wife pension, or a partner service pension under Part III of the Veterans’ Entitlements Act, was payable immediately before her partner died; and

(B) who was not in Australia when her partner died; and

(e) the day occurs:

(i) if the person is a man, or a woman who was not pregnant when her partner died—in the period of 14 weeks starting on the day of the death of the partner; or

(ii) if the person is a woman who was pregnant when her partner died:

(A) in the period of 14 weeks starting on the day of the death of the partner; or

(B) in the period starting on the day of the death of the partner and ending when the child is born or the woman otherwise stops being pregnant;

whichever ends later.

Note: For Australian resident and qualifying residence exemption see section 7.

316 Bereavement allowance not payable if allowance rate nil

(1) Subject to subsection (2), a bereavement allowance is not payable to a person if the person’s bereavement allowance rate would be nil.

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

321 Multiple entitlement exclusion

(1) A bereavement allowance is not payable to a person if the person is already receiving a service pension.

(2) If:

(a) a person is receiving a bereavement allowance; and

(b) another social security pension or a social security benefit or service pension becomes payable to the person;

the bereavement allowance is not payable to the person.

Note 1: another payment type will generally not become payable to the person until the person claims it.

Note 2: For social security pension and social security benefit see subsection 23(1).

(3) A bereavement allowance is not payable to a woman if:

(a) the woman is an armed services widow; and

(b) the woman is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: for armed services widow see subsection 4(1).

(4) A bereavement allowance is not payable to a man if:

(a) the man is an armed services widower; and

(b) the man is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: for armed services widower see subsection 4(1).

321A Exclusion of certain participants in ABSTUDY Scheme

(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(c) in the calculation of the payment, an amount identified as living allowance (the basic payment) is included; and

(d) the payment relates to a period;

bereavement allowance is not payable to the person in respect of any part of the period.

(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

bereavement allowance is not payable to the person in respect of any part of the period.

(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), bereavement allowance is payable to the person before the person starts the course.

Division 4—Rate of bereavement allowance

329 How to work out a person’s bereavement allowance rate

A person’s rate of bereavement allowance is worked out using Pension Rate Calculator C at the end of section 1066 (see Part 3.4).

Subdivision B—Death of recipient

359 Death of recipient

(1) If:

(a) a person is receiving bereavement allowance; and

(b) the person dies;

Part 2.8—Widow B pension

Division 1—Qualification for and payability of widow B pension

362A Widow B pension not to be granted in certain cases

(1) In spite of anything else in this Part, a widow B pension must not be granted to a woman unless:

(a) the woman’s claim for the pension is lodged before 20 March 1997; and

(b) the woman is qualified for the pension before that day.

(2) For the purposes of subsection (1), if a provision of section 15 of the Administration Act applies, the woman is taken to have lodged her claim for a widow B pension on the day on which she lodged her incorrect claim or her initial claim, as the case may be.

(3) This section does not apply in relation to a determination by the Secretary under section 85 of the Administration Act.

(4) For the purposes of subsection (2):

incorrect claim or initial claim has the same meaning as in the provision of section 15 of the Administration Act that applies as referred to in subsection (2).

362 Qualification for widow B pension

(1) A woman is qualified for a widow B pension if:

(a) the woman:

(i) was, immediately before 1 July 1987, receiving a widow’s pension as a class B widow under the 1947 Act; or

(ii) on 1 July 1987 had turned 45 years old and:

(A) was receiving a supporting parent’s benefit or a widow’s pension as a class A widow on or after that day; or

(B) was receiving a sole parent’s pension after 1 March 1989; or

(iii) on 1 July 1987 had turned 50 years old; and

(b) the woman is not qualified for parenting payment; and

(i) was legally married and her husband has died; or

(ii) was a dependent female, that is:

(A) she was a member of a couple and her partner has died; and

(B) she was a member of the couple for 3 years immediately before her partner died; and

(iii) is divorced from her husband; or

(iv) was legally married and her husband has deserted her without just cause for a period of at least 6 months; or

(v) is legally married to a man who is in gaol and has been in gaol continuously for at least 6 months; or

(vi) was:

(A) a party to a purported marriage that is void; and

(B) the man who was the other party to the purported marriage has deserted her without just cause for a period of at least 6 months; and

(d) the woman is not a member of another couple; and

(e) either:

(i) the woman had been an Australian resident for a continuous period of at least 5 years immediately before the day she lodged the claim for the widow B pension; or

(ii) the woman has, at any time, been an Australian resident for a continuous period of at least 10 years; or

(iia) the woman has a qualifying residence exemption for a widow B pension; or

(iii) both the woman and her partner were Australian residents at the time:

(A) if she was legally married and her husband has died—when he died; or

(B) if she was a dependent female—when her partner died; or

(D) if she was legally married and her husband has deserted her—when she was deserted; or

(E) if she was a party to a purported marriage and the man who was the other party has deserted her—when she was deserted; or

(F) if she was legally married and her husband has been in gaol for a period of at least 6 months—when that period began.

Note: For Australian resident and qualifying residence exemption see section 7.

(2) A woman does not have to satisfy paragraph (1)(e) in order to be qualified for a widow B pension if:

(a) the woman became a person to whom paragraph (1)(c) applied because of the death of a man; and

(b) the woman was, immediately before the man died, receiving:

(i) a wife pension because the man was receiving:

(A) an age pension; or

(B) an invalid pension or a disability support pension; or

(D) a special needs invalid pension or a special needs disability support pension; or

(ii) a partner service pension under Part III of the Veterans’ Entitlements Act because the man was receiving a service pension under that Part; and

(3) Subsection (1) has effect subject to:

(a) sections 1215 to 1216B (limits on portability); and

(b) sections 1218, 1218A, 1218B, 1218C and 1219 (departure certificate requirements for people leaving Australia).

364 Widow B pension not payable if pension rate nil

(1) Subject to subsection (2), a Widow B pension is not payable to a person if the person’s Widow B pension rate would be nil.

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

368 Multiple entitlement exclusion

(1) A widow B pension is not payable to a woman if the woman is already receiving a service pension.

(2) If:

(a) a woman is receiving a widow B pension; and

(b) another social security pension or a social security benefit or service pension becomes payable to the woman;

the widow B pension is not payable to the woman.

Note 1: another payment type will generally not become payable to the woman until the woman claims it.

Note 2: For social security pension and social security benefit see subsection 23(1).

(3) A widow B pension is not payable to a woman if:

(a) the woman is an armed services widow; and

(b) the woman is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: for armed services widow see subsection 4(1).

368A Exclusion of certain participants in ABSTUDY Scheme

(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(c) in the calculation of the payment, an amount identified as living allowance (the basic payment) is included; and

(d) the payment relates to a period;

widow B pension is not payable to the person in respect of any part of the period.

(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

widow B pension is not payable to the person in respect of any part of the period.

(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), widow B pension is payable to the person before the person starts the course.

Division 4—Rate of widow B pension

376 How to work out the rate of widow B pension

A woman’s widow B pension rate is worked out using Pension Rate Calculator C at the end of section 1066 (see Part 3.4).

Subdivision B—Death of recipient

407 Death of recipient

(1) If:

(a) a person is receiving widow B pension; and

(b) the person dies;

Note: for amounts owing to the recipient before the recipient’s death see section 386.

Part 2.8A—Widow allowance

Division 1—Time limit on grants of widow allowance

408AA Time limit on grants

A woman is not to be granted widow allowance on or after 1 July 2005 unless she was born on or before 1 July 1955.

Division 2—Qualification for and payability of widow allowance

408BA Qualification for widow allowance

(2) Subject to section 408BB, a woman is qualified for widow allowance in respect of a period if:

(a) she has turned 50; and

(b) she was a member of a couple and since turning 40:

(i) her partner died; or

(ii) she separated from her partner; or

(iii) she divorced from her husband; and

(c) she satisfies the Secretary that she has no recent workforce experience on the day when she makes her claim for the allowance; and

(d) at least one of the following is satisfied:

(i) if the woman entered Australia before 1 April 1996—the woman has been an Australian resident for a continuous period of at least 26 weeks immediately before the day she lodged the claim for the allowance; or

(ia) if the woman entered Australia on or after 1 April 1996 and before the commencement day—the woman has been an Australian resident for a period of, or periods totalling, 104 weeks before the day she lodged the claim for the allowance; or

(ib) if the woman entered Australia on or after the commencement day—the woman has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks before the day she lodged the claim for the allowance; or

(ii) she has 10 years qualifying Australian residence; or

(iii) she has a qualifying residence exemption for widow allowance; or

(iv) both the woman and her partner were Australian residents at the time when the qualifying event under paragraph (b) occurred; and

(e) throughout the period, she:

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

(ii) throughout the period, she is an Australian resident.

Note 1: For recent workforce experience see subsection (3).

Note 2: For Australian resident and qualifying residence exemption see section 7.

Note 4: For member of a couple see section 4.

(3) For the purposes of subsection (2), recent workforce experience is employment of 20 hours or more a week for a total of 13 weeks or more at any time during the 12 months immediately before the day the woman lodged the claim for the allowance.

(6) In this section:

commencement day means the day on which Schedule 5 to the Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999 commences.

408BB Assurance of support

A woman is not qualified for widow allowance in respect of a period if the Secretary is satisfied that:

(a) an assurance of support is in force in respect of the woman for that period; and

(b) throughout the period the person who gave the assurance of support is likely to be willing and able to provide an adequate level of support to the woman; and

Note: For assurance of support see subsection 23(1).

408CA Widow allowance not payable if allowance rate nil

(1) Subject to subsection (2), a widow allowance is not payable to a person if the person’s widow allowance rate would be nil.

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

408CE Assets test—allowance not payable if assets value limit exceeded [see Appendix for CPI adjusted figures]

(1) Widow allowance is not payable to a woman if the value of her assets exceeds her assets value limit.

(2) A woman’s assets value limit is worked out using the following Table:

Assets value limit table
Column 1 Item	Column 2 Woman’s situation	Column 3 Assets value limit
1	Woman is a homeowner	$115,000
2	Woman is not a homeowner	$197,000

Note 1: For homeowner see section 11.

Note 2: The assets value limit in column 3 of item 1 is indexed annually in line with CPI increases (see sections 1190 to 1194).

Note 3: The assets value limit in column 3 of item 2 is adjusted annually (see subsection 1204(1)).

Note 4: If widow allowance is not payable to a woman because of the value of the her assets, she may be able to take advantage of provisions dealing with financial hardship (see sections 1131 and 1132).

408CF Multiple entitlement exclusion

(1) Widow allowance is not payable to a woman if she is already receiving a service pension or income support supplement.

(2) If:

(a) a woman is receiving widow allowance; and

(b) a social security pension, another social security benefit, a service pension or income support supplement becomes payable to her;

widow allowance is not payable to her.

Note 1: Another payment type will generally not become payable to the woman until the woman claims it.

(3) Widow allowance is not payable to a woman if:

(a) she is an armed services widow; and

(b) she is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act;

unless:

(d) before 1 November 1986 she was also receiving a social security benefit.

Note 1: For armed services widow see subsection 4(1).

Note 2: A widow receiving a payment under the Veterans’ Entitlements Act who is not covered by paragraph (b) may be paid at a lower rate—see subsection 1068(3).

(4) Subject to subsections (5) and (6), widow allowance is not payable to a woman for a period if a payment has been or may be made in respect of the woman for that period under:

(a) a prescribed educational scheme other than the ABSTUDY Scheme to the extent that it applies to part‑time students; or

(b) the scheme to provide an allowance known as the Maintenance Allowance for Refugees.

Note 1: For prescribed educational scheme see section 5.

(5) If:

(a) a woman enrols in a full‑time course of education; and

(b) a payment under a scheme referred to in subsection (4) may be made in respect of her;

the Secretary may decide that, in spite of subsection (4), widow allowance is payable to her for a period before she starts the course.

(6) If:

(a) a woman enrols in a full‑time course of education; and

(b) the course is to last for 6 months or more; and

(ii) the ABSTUDY Schools Scheme; or

(iii) the ABSTUDY Tertiary Scheme; and

(d) she was receiving widow allowance immediately before the start of the course;

the Secretary may decide that, in spite of subsection (4), widow allowance is payable to her until:

(e) the application is determined; or

(f) the end of 3 weeks commencing on the day on which the course starts;

whichever happens first.

408CG Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

The maximum basic rate, and the remote area allowance, of widow allowance for a period are not payable to a woman who is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1: For remote area allowance see Module J of Benefit Rate Calculator B.

Note 2: For CDEP Scheme participant see subsection 23(1).

408CH Seasonal workers

(1) This section applies if, at any time during the 6 months immediately before the day on which a woman lodges a claim for widow allowance, she has been engaged in seasonal work.

Note: For seasonal work see subsection 16A(1).

(2) Widow allowance is not payable to the woman:

(a) if she is subject to a seasonal work preclusion period (whether in relation to the claim referred to in subsection (1) or any other claim under this Act) and the Secretary has not made a determination under subsection (3) in relation to her—for her seasonal work preclusion period; or

(b) if the Secretary has made a determination under subsection (3) in relation to her—for that part (if any) of her seasonal work preclusion period to which she is subject as a result of the determination.

Note: For seasonal work preclusion period see subsection 16A(1).

(3) If the Secretary is satisfied that a woman is in severe financial hardship because she has incurred unavoidable or reasonable expenditure while she is subject to a seasonal work preclusion period (whether in relation to the claim referred to in subsection (1) or any other claim under this Act):

(a) the Secretary may determine that she is not subject to the whole, or any part, of the preclusion period; and

(b) the determination has effect accordingly.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Division 5—Rate of widow allowance

408FA How to work out a woman’s widow allowance rate

A woman’s widow allowance rate is worked out using the Benefit Rate Calculator B at the end of section 1068.

408GI CDEP Scheme participant may accumulate widow allowance

(1) A person who is a CDEP Scheme participant in respect of the whole or a part of a quarter may, by written notice given to the Secretary, choose to accumulate the amounts of any widow allowance that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

(2) If a person to whom subsection (1) applies makes a choice under that subsection, the sum of the accumulated amounts payable to the person in respect of a quarter is to be paid on, or as soon as practicable after, the first payday after:

(a) unless paragraph (b) applies, the last day of the quarter; or

(b) if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

(3) In this section:

quarter means a CDEP Scheme quarter.

Note 1: For CDEP Scheme participant see section 1188B.

Note 2: For CDEP Scheme quarter see subsection 23(1).

Part 2.10—Parenting payment

Division 1—Qualification for and payability of parenting payment

500 Qualification for parenting payment

(1) A person is qualified for parenting payment if:

(a) the person has at least one PP child (see sections 500D and 500F to 500H); and

(b) the person is an Australian resident; and

(c) in a case where the person is not a member of a couple and does not have at least one PP child who has not turned 6—the person meets any participation requirements that apply to the person under section 500A; and

(d) at least one of the following conditions is satisfied:

(i) the person is not a member of a couple and the person was not a lone parent at the start of the person’s current period as an Australian resident;

(ii) the person has, at any time, been in Australia for a period of, or periods adding up to, at least 104 weeks during a continuous period throughout which the person was an Australian resident;

(iii) the person has a qualifying residence exemption for parenting payment.

Note 1: For Australian resident and qualifying residence exemption see section 7.

Note 2: If a person is claiming parenting payment under a scheduled international social security agreement, the requirements of this subsection could be modified by section 1208A.

Note 3: For lone parent and current period as an Australian resident see subsection 23(1).

500A Participation requirements

The participation requirements are as follows:

(a) the person must enter into a Parenting Payment Activity Agreement when the person is required by the Secretary under section 501 to do so;

(b) while the agreement is in force the person must comply with its terms;

(c) at any time while the agreement is in force the person must be prepared to enter into another such agreement, instead of the existing agreement, if required to do so by the Secretary under section 501;

(d) the person must comply with any requirements that the Secretary notifies to the person under subsection 502(1).

500B Qualification affecting member of couple—assurance of support

A person who is a member of a couple is not qualified for parenting payment if the Secretary is satisfied that:

(a) an assurance of support is in force in respect of the person (the assuree); and

(b) the person who gave the assurance of support is willing and able to provide an adequate level of support to the assuree; and

Note: For assurance of support see subsection 23(1).

500C Qualification affecting member of couple—unemployment due to industrial action

(1) If:

(a) a person (claimant) who is a member of a couple has claimed but has not yet received parenting payment; and

(b) when the claim was lodged, the claimant was unemployed;

the claimant is not qualified for parenting payment unless the Secretary is satisfied that the claimant’s unemployment is not due to the fact that the claimant is, or has been, engaged in industrial action or a series of industrial actions.

(2) For the purposes of subsection (1) and without limiting that subsection, a claimant is taken not to be, or not to have been, engaged in industrial action or a series of industrial actions if the Secretary is satisfied that the claimant’s unemployment is due to the fact that other persons are, or have been, engaged in industrial action or in a series of industrial actions, and that:

(a) if industrial action is still being engaged in:

(i) those persons, or some of those persons, are members of a trade union that is involved in the industrial action, or have been such members at any time since industrial action started; and

(ii) the claimant has not been a member of that trade union at any time since industrial action started; or

(b) if industrial action has stopped:

(i) at any time while industrial action was being engaged in, those persons, or some of those persons, were members of a trade union that was involved in the industrial action; and

(ii) the claimant was not a member of that trade union at any time while industrial action was being engaged in.

(3) Subsection (1) does not prevent a person from being qualified for parenting payment after the relevant industrial action or series of industrial actions has stopped.

Note: For industrial action, trade union and unemployment see section 16 and for PP (partnered) payday see section 18.

500D PP child

(1) A child is a PP child of a person if:

(a) the child is a child of the person; and

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

(d) the person is the principal carer of the child.

(2) A child is a PP child of a person if:

(a) the child is a child of the person; and

(b) the person is not a member of a couple; and

(d) the person is the principal carer of the child.

(3) A child is a PP child of a person if:

(a) the child is a child of the person; and

(b) the child has not turned 16; and

(d) the person is covered by the parenting payment transitional arrangement in relation to that child or any other child (see section 500F); and

(e) since 1 July 2006, there has not been any continuous period of more than 12 weeks during which the person has not at any time been covered by the parenting payment transitional arrangement in relation to that child or any other child (see section 500F).

Note: For principal carer see subsections 5(15) to (24).

500E Prospective determinations for some recipients

(1) A person is qualified for parenting payment for a period determined by the Secretary if:

(a) the person is receiving parenting payment; and

(b) the Secretary considers at the start of the period that:

(i) the person may reasonably be expected to satisfy the qualification requirements for parenting payment (see sections 500 to 500C) during the period; and

(ii) it is reasonable to expect that parenting payment will be payable to the person for the period; and

(iii) the person will comply with the Act during the period; and

(c) except where the person is a CDEP Scheme participant in respect of the period, the person is not indebted at the start of the period to the Commonwealth under or as a result of this Act; and

(d) the Secretary is satisfied that the person should be qualified under this section for a parenting payment for the period.

(2) The Minister:

(a) must determine, by legislative instrument, guidelines for making decisions under paragraph (1)(b); and

(b) may revoke or vary the determination.

If the Minister revokes a determination, the Minister must determine, by legislative instrument, guidelines that take effect immediately after the revocation.

Subdivision AA—Parenting payment transitional arrangement

500F When a person is covered by the parenting payment transitional arrangement

Person is not a member of a couple

(1) Subject to subsection (3), a person is covered by the parenting payment transitional arrangement in relation to a child if:

(a) immediately before 1 July 2006, the person was not a member of a couple; and

(b) immediately before 1 July 2006, that child (or any other child) was a PP child of the person in respect of whom:

(i) a determination under section 37 of the Administration Act was in force granting a claim for a parenting payment to the person; or

(ii) a determination under section 80, 81 or 82 of the Administration Act was in force suspending payment of a parenting payment to the person; and

Note: Section 500G expands the scope of subparagraph (i). Subsection 500G(4) deals with the effect of backdated start dates on that subparagraph.

(d) in a case where the child has not turned 8—the person is qualified for parenting payment in relation to the child; and

(e) in a case where the child has turned 8—the person would be qualified for parenting payment in relation to the child if the child had not turned 8; and

(f) the person meets any participation requirements that apply to the person under section 500A.

Person is a member of a couple

(2) Subject to subsection (3), a person is covered by the parenting payment transitional arrangement in relation to a child if:

(a) immediately before 1 July 2006, the person was a member of a couple; and

(b) immediately before 1 July 2006, that child (or any other child) was a PP child of the person in respect of whom:

(i) a determination under section 37 of the Administration Act was in force granting a claim for a parenting payment to the person; or

(ii) a determination under section 80, 81 or 82 of the Administration Act was in force suspending payment of a parenting payment to the person; and

Note: Section 500G expands the scope of subparagraph (i). Subsection 500G(4) deals with the effect of backdated start dates on that subparagraph.

(d) in a case where the child has not turned 6—the person is qualified for parenting payment in relation to the child; and

(e) in a case where the child has turned 6—the person would be qualified for parenting payment in relation to the child if the child had not turned 6; and

(f) the person meets any participation requirements that apply to the person under section 500A.

Parenting payment transitional arrangement taken never to have covered person

(3) If:

(a) but for this subsection, a person would be covered by the parenting payment transitional arrangement in relation to a child; and

(b) the Secretary determines that the person’s parenting payment is to be cancelled with effect from a day before 1 July 2006;

the person is taken never to have been covered by that arrangement.

Circumstances in which participation requirements need not be met

(4) Paragraph (1)(f) or (2)(f) (as the case requires) does not apply to the person:

(a) before 1 July 2007; or

(b) while the person has a PP child who has not turned 7.

Note: For PP child see section 500D.

500G When determinations are taken to be in force

Expanded scope of subparagraphs 500F(1)(b)(i) and (2)(b)(i)

(1) A reference in subparagraph 500F(1)(b)(i) or (2)(b)(i) to a determination under section 37 of the Administration Act that is in force granting a claim for a parenting payment to a person includes a reference to a determination that:

(a) would have been made granting a claim for that payment to the person; and

(b) would have been in force;

but for one or more of the circumstances specified in an instrument made under subsection (2).

(2) The Secretary may specify, by legislative instrument, circumstances to which subsection (1) applies. The Secretary may specify different circumstances in relation to each of the subparagraphs referred to in subsection (1).

(3) A reference in subparagraph 500F(1)(b)(i) or (2)(b)(i) to a determination under section 37 of the Administration Act that is in force granting a claim for a parenting payment to a person includes a reference to a determination that would have been in force, but for the operation of subsection 500(4) as in force immediately before 1 July 2006.

Backdated start date

(4) If:

(a) a determination is made on or after 1 July 2006 under section 37 of the Administration Act granting a claim for a parenting payment to a person; and

(b) the person’s start date in relation to the payment is before 1 July 2006; and

(c) the Secretary has not determined that the parenting payment is to be cancelled with effect from a day before 1 July 2006;

the determination is taken, for the purposes of subparagraph 500F(1)(b)(i) or (2)(b)(i), to have been in force immediately before 1 July 2006.

500H The effect of cancellation

(1) A reference in paragraph 500F(1)(d) or (e) or (2)(d) or (e) to a person being qualified for parenting payment does not include a reference to a person if:

(a) the person’s parenting payment has been cancelled; and

(b) no determination is in force granting another claim for parenting payment to the person.

(2) A reference in subsection (1) to the cancellation of a person’s parenting payment does not include a reference to a cancellation of that payment because of one or more of the circumstances specified in an instrument made under subsection (3).

(3) The Secretary may, by legislative instrument, specify circumstances to which subsection (2) applies. The Secretary may specify different circumstances in relation to one or more of the paragraphs referred to in subsection (1).

(4) For the purposes of paragraph (1)(b), a determination granting another claim for parenting payment to a person is taken to be in force from the person’s start date in relation to that parenting payment.

Subdivision B—General principles relating to payability

500I Parenting payment not payable if payment rate nil

(1) Subject to subsection (2), a parenting payment is not payable to a person if the person’s parenting payment rate would be nil.

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

(a) the social security law; or

(b) Division 2 of Part VIIA of the Veterans’ Entitlements Act.

500J Situations where payment not payable for failure to comply with certain requirements

Parenting payment is not payable to a person if the person refuses or fails, without reasonable excuse, to comply with a requirement made of the person under section 67, 68 or 192 of the Administration Act.

500Q Assets test—payment not payable if assets value limit exceeded
[see Appendix for CPI adjusted figures]

(1) Parenting payment is not payable to a person if the value of the person’s assets exceeds the person’s assets value limit.

(2) The assets value limit of a person who is not a member of a couple is worked out using the following table:

Table—Assets value limits for person who is not a member of a couple
Column 1 Item	Column 2 Person’s situation	Column 3 Assets value limit
1	Person is a homeowner	$125,750
2	Person is not a homeowner	$215,750

Note 1: For homeowner see section 11.

Note 2: The assets value limit in Column 3 of Item 1 is indexed annually in line with CPI increases (see sections 1190 to 1194).

Note 3: The assets value limit in Column 3 of Item 2 is adjusted annually (see subsection 1204(1)).

Note 4: If parenting payment is not payable to a person because of the value of the person’s assets, the person may be able to take advantage of provisions dealing with financial hardship (see sections 1130B and 1130C).

(3) The assets value limit of a person who is a member of a couple is worked out using the following table:

Table—Assets value limits for person who is a member of a couple
Column 1 Item	Column 2 Person’s situation	Column 3 Assets value limit
		Column 3A Either person or partner homeowner	Column 3B Neither person nor partner homeowner
1	Person is partnered (partner getting neither pension nor benefit)	$178,500	$268,500
2	Person is partnered (partner getting pension or benefit)	$89,250	$134,250

Note 1: For partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see subsection 4(11).

Note 2: For homeowner see subsection 11(4).

Note 3: If item 1 applies to a person, the value of all the assets of the person’s partner are to be taken as being included in the value of the person’s assets (see subsection (4)). If item 2 applies to a person, the value of the person’s assets is only half the combined value of the person’s assets and the assets of the person’s partner (see subsection (5)).

Note 4: If benefit PP (partnered) is not payable to a person because of the value of the person’s assets, the person may be able to take advantage of provisions dealing with financial hardship (see sections 1131 and 1132).

Note 5: The assets value limits of item 2 are indexed annually in line with CPI increases (see sections 1191 to 1194).

Note 6: The item 1 assets value limits are adjusted annually so that they are twice the corresponding item 2 limits (see subsections 1204(2) and (3)).

(4) For the purposes of subsection (3), if the person is partnered (partner getting neither pension nor benefit):

(a) the value of the person’s assets includes the value of the partner’s assets; and

(b) the value of assets of a particular kind of the person includes the assets of that kind of the partner.

Note: For partnered (partner getting neither pension nor benefit) see subsection 4(11).

(5) For the purposes of subsection (3), if the person is partnered (partner getting pension or benefit):

(a) the value of the person’s assets is taken to be 50% of the sum of the value of the assets of the person and the value of the assets of the person’s partner; and

(b) the value of the person’s assets of a particular kind are taken to be 50% of the sum of the value of the assets of that kind of the person and the value of the assets of that kind of the person’s partner.

Note: For partnered (partner getting pension or benefit) see subsection 4(11).

(7) On 1 July 2000, each amount specified in a column in item 2 in the table in subsection (3) is taken to have been replaced with the amount (adjusted in accordance with section 1206GC) that was specified in the equivalent column in item 2 in the table in point 1068B‑B3 immediately before that table was repealed by the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 1) 1999.

500S Multiple entitlement exclusion

(1) Parenting payment is not payable to a person if the person is already receiving a service pension.

(2) If:

(a) a person is receiving parenting payment; and

(b) a social security pension other than a pension PP (single) or a social security benefit other than a benefit PP (partnered) or service pension becomes payable to the person;

parenting payment is not payable to the person.

Note 1: Another payment type will generally not become payable to the person until the person claims it.

Note 2: For social security pension and social security benefit see subsection 23(1).

(3) Parenting payment is not payable to a woman if:

(a) the woman is an armed services widow; and

(b) the woman is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: For armed services widower see subsection 4(1).

(4) Parenting payment is not payable to a man if:

(a) the man is an armed services widower; and

(b) the man is receiving a pension under Part II or IV of the Veterans’ Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act.

Note: For armed services widower see subsection 4(1).

(5) Parenting payment is not payable to a person if:

(a) the person is an armed services widow or an armed services widower; and

(b) the person has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA.

Note 1: For armed services widow and armed services widower see subsection 4(1).

Note 2: For MRCA see subsection 23(1).

500V Educational schemes exclusion—person member of a couple

(1) This section applies to a person who is a member of a couple.

(2) Parenting payment is not payable to the person if the person is receiving:

(b) payments under the ABSTUDY Scheme (other than payments under the ABSTUDY Scheme as a part‑time student); or

500VA Exclusion of certain participants in ABSTUDY Scheme

(1) If:

(a) a payment is made in respect of a person under the ABSTUDY Scheme; and

(b) the payment is made on the basis that the person is a full‑time student; and

(c) in the calculation of the payment, an amount identified as living allowance (the basic payment) is included; and

(d) the payment relates to a period;

pension PP (single) is not payable to the person in respect of any part of the period.

(2) If:

(a) a person is qualified for a payment under the ABSTUDY Scheme; and

(b) the payment for which the person is qualified is a payment that:

(i) is made on the basis that the person is a full‑time student; and

(ii) is calculated on the basis that an amount identified as living allowance (the basic payment) is included; and

(iii) relates to a period;

pension PP (single) is not payable to the person in respect of any part of the period.

(3) If:

(a) a person may enrol in a full‑time course of education; and

(b) a payment referred to in subsection (2) may be made in respect of the person;

the Secretary may decide that, in spite of subsection (2), pension PP (single) is payable to the person before the person starts the course.

500W Maximum basic rate and remote area allowance not payable to CDEP Scheme participant who is a member of a couple

The maximum basic rate, and the remote area allowance, of a parenting payment for a period is not payable to a person who is a member of a couple and is a CDEP Scheme participant in respect of the whole or a part of the period.

Note 1: For CDEP Scheme participant see subsection 23(1).

Note 2: For remote area allowance see Module G of Benefit PP (partnered) Rate Calculator.

500Z Seasonal workers—preclusion period

(1) This section applies if:

(a) a person has lodged a claim for parenting payment; and

(b) at any time during the 6 months immediately before the day on which the person lodged the claim, the person, or the person’s partner, has been engaged in seasonal work.

Note: For seasonal work see subsection 16A(1).

(2) Parenting payment is not payable to the person:

Note 1: For seasonal work preclusion period see subsection 16A(1).

(a) the Secretary may determine that the person is not subject to the whole, or any part, of the preclusion period; and

(b) the determination has effect accordingly.

Note 1: For in severe financial hardship see subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Subdivision C—Situations where payment not payable because of parenting payment participation failure

500ZA Parenting payment participation failures

(1) A person commits a parenting payment participation failure if the person is subject to participation requirements and the person:

(a) fails to comply with a requirement:

(i) that was notified to the person under subsection 63(2) or 64(2) of the Administration Act; and

(ii) that was reasonable; and

(iii) the notification of which included a statement to the effect that a failure to comply with the requirement could constitute a parenting payment participation failure; or

(b) fails to comply with a requirement to enter into a Parenting Payment Activity Agreement; or

(d) fails to comply with a requirement that the Secretary notifies to the person under subsection 502(1); or

(e) fails to attend a job interview; or

(f) fails:

(i) to commence, complete or participate in an approved program of work for income support payment that the person is required to undertake; or

(ii) to comply with the conditions of such a program; or

(g) fails to continue his or her involvement in a labour market program because he or she:

(i) voluntarily ceases to take part in the program; or

(ii) is dismissed from the program for misconduct; or

(h) fails to comply with a requirement to undertake another activity referred to in paragraph 500ZB(1)(b).

Note: For when a person is subject to participation requirements see subsection 23(1).

(2) Despite subsection (1), a failure of a kind referred to in that subsection is not a parenting payment participation failure if the person satisfies the Secretary that the person had a reasonable excuse for the failure.

(2A) The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of subsection (2), a person had a reasonable excuse for committing a parenting payment participation failure.

(2B) To avoid doubt, a determination under subsection (2A) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of subsection (2), a person had a reasonable excuse for committing the parenting payment participation failure referred to in subsection (1).

(3) Despite subsection (1), if a failure of a kind referred to in that subsection occurs in an instalment period of the person in which the person has already committed a parenting payment participation failure, the failure is not a parenting payment participation failure if:

(a) the instalment period is the person’s first instalment period for parenting payment; or

(b) the instalment period is not the person’s first instalment period for parenting payment, and:

(i) the person did not commit a parenting payment participation failure in the immediately preceding instalment period of the person; or

(ii) in respect of each parenting payment participation failure that the person committed in the immediately preceding instalment period of the person, the person acted in accordance with a requirement of the Secretary that was notified in respect of that failure.

(4) Subsection (1) does not apply to a failure if the person is a new apprentice.

Note: For new apprentice see subsection 23(1).

(5) Paragraph (1)(f) does not apply to a failure if:

(a) the person is under 60; and

(b) a determination under paragraph 28(4)(b) is in force in relation to the person.

500ZB Payment not payable because of parenting payment participation failure

(1) A parenting payment is not payable to a person, for the period starting in accordance with section 500ZC and ending in accordance with section 500ZD, if:

(a) the person commits a parenting payment participation failure; and

(b) the Secretary requires the person:

(i) to comply with the requirement, or undertake the activity, to which the parenting payment participation failure relates; or

(ii) to comply with a particular requirement, or undertake a particular activity, in place of the requirement or activity to which the failure relates;

during the participation failure instalment period for the failure, or at a particular time during that period; and

(2) This section does not apply in relation to the failure if:

(a) the Secretary is satisfied that the person had a reasonable excuse for the failure referred to paragraph (1)(c); or

(b) the Secretary is for any other reason satisfied that subsection (1) should not apply to the failure.

(2A) The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph (2)(a), a person had a reasonable excuse for a failure of a kind referred to in paragraph (1)(c).

(2B) To avoid doubt, a determination under subsection (2A) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph (2)(a), a person had a reasonable excuse for the failure referred to in paragraph (1)(c).

(3) The participation failure instalment period for the parenting payment participation failure is the next instalment period of the person to start after the day on which the Secretary first became aware that the person committed the failure.

(4) This section does not apply to a parenting payment participation failure if section 500ZE applies to the failure.

500ZC When the period of non‑payment starts

The period for which parenting payment is not payable to the person because of section 500ZB is taken to have started at the start of the participation failure instalment period for the parenting payment participation failure.

500ZD When the period of non‑payment ends

The period for which parenting payment is not payable to the person because of section 500ZB ends when:

(a) in accordance with a requirement of the Secretary that the person comply with the requirement, or undertake the activity, to which the parenting payment participation failure related, the person has complied with the requirement or undertaken the activity; or

(b) in accordance with a requirement of the Secretary that the person undertake another activity in place of the requirement or activity to which the parenting payment participation failure related, the person has undertaken the other activity; or

(c) in accordance with a requirement of the Secretary that the person comply with another requirement in place of the requirement or activity to which the parenting payment participation failure related, the person has complied with the other requirement.

Subdivision CA—Situations where payment not payable because of repeated or more serious failure

500ZE Payment not payable because of repeated or more serious failure

(1) A parenting payment is not payable to a person, for the period of 8 weeks starting in accordance with section 500ZF, if the person:

(a) commits a parenting payment participation failure (the repeated failure), having committed parenting payment participation failures (the earlier failures) on 2 or more other occasions during the period of 12 months preceding that failure; or

(b) is unemployed due, either directly or indirectly, to a voluntary act of the person; or

(d) has refused or failed, without reasonable excuse, to accept a suitable offer of employment; or

(e) fails, without reasonable excuse:

(i) to commence, complete or participate in an approved program of work for income support payment that the person is required to undertake; or

(ii) to comply with the conditions of such a program.

(1A) The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph (1)(d), a person had a reasonable excuse for refusing or failing to accept a suitable offer of employment.

(1B) To avoid doubt, a determination under subsection (1A) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph (1)(d), a person had a reasonable excuse for refusing or failing to accept a suitable offer of employment referred to in that paragraph.

(2) For the purposes of paragraph (1)(a), disregard any earlier failure that is a failure to which subsection 500ZB(1) does not apply because of subsection 500ZB(2).

(3) Subsection (1) does not apply in relation to the repeated failure if the Secretary is for any other reason satisfied that subsection (1) should not apply to the failure.

(4) Paragraph (1)(b) does not apply if the Secretary is satisfied that the person’s voluntary act was reasonable.

(5) Paragraph (1)(e) applies only if:

(a) the person is under 60; and

(b) a determination under paragraph 28(4)(b) is in force in relation to the person.

500ZF When the period of non‑payment starts

(1) The period for which parenting payment is not payable to the person because of paragraph 500ZE(1)(a) is taken to start, or to have started:

(a) if the repeated failure occurs during a participation failure instalment period for an earlier failure—at the start of the participation failure instalment period for the earlier failure; or

(b) otherwise—at the start of the next instalment period of the person to start after the day on which the Secretary first became aware that the person committed the failure.

Note: For participation failure instalment period see subsection 500ZB(3).

(2) The period for which parenting payment is not payable to the person because of section 500ZE (other than because of paragraph 500ZE(1)(a)) starts on the day the Secretary determines that section 500ZE applies to the person.

(3) However, if:

(a) section 500ZE would not apply to the person but for the application of paragraph 500ZE(1)(b) or (c), or both; and

(b) at the time of the voluntary act or misconduct in question, the person was not receiving parenting payment;

the period for which parenting payment is not payable to the person starts at the time the person became unemployed as a result of the voluntary act or misconduct.

Division 2—Parenting Payment Activity Agreements

501 Parenting Payment Activity Agreements

(1) The Secretary may require a person who is subject to participation requirements to enter into a Parenting Payment Activity Agreement under this section.

Note: For when a person is subject to participation requirements see subsection 23(1).

(2) The Secretary may require a person who is a party to a Parenting Payment Activity Agreement under this section that is in force to enter into another such agreement instead of the existing one.

(3) Subject to subsection (4), subsections (1 ) and (2) do not apply to a person at any time during which the person is covered by a participation exemption under Division 3A.

(4) If a person is covered by a participation exemption under Division 3A only because of the application of section 502H, subsections (1) and (2) apply to the person only if subsection 502J(1) applies to the person.

(5) The Secretary is to give a person who is required to enter into a Parenting Payment Activity Agreement notice of:

(a) the requirement; and

(b) the places and times at which the agreement is to be negotiated.

(6) A Parenting Payment Activity Agreement is a written agreement in a form approved by the Secretary. The agreement is between the person and the Secretary.

501A Parenting Payment Activity Agreement—terms

(1) Subject to subsections (2) and (3) and sections 501B to 501E, a Parenting Payment Activity Agreement with a person is to require the person to undertake one or more activities that the Secretary regards as suitable for the person.

(2) If a Parenting Payment Activity Agreement requires a person, during a period, to engage for at least 30 hours per fortnight in paid work that the Secretary regards as suitable, the agreement must not require the person to undertake any other activities.

(3) An agreement must not contain a requirement of a kind that the Secretary determines under subsection (4).

(4) The Secretary must determine, by legislative instrument, kinds of requirements that agreements must not contain.

(4A) To avoid doubt, a determination under subsection (4) does not limit the Secretary’s discretion to exclude other kinds of requirements from a particular agreement under subsection (1).

(5) The terms of an agreement, which include the specification of the activities that the person is to be required to undertake, are to be approved by the Secretary.

(6) In considering whether to approve the terms of an agreement with a person, the Secretary is to have regard to the person’s capacity to comply with the proposed agreement and the person’s needs.

(7) In having regard to a person’s capacity to comply with an agreement, the Secretary is to take into account, but is not limited to, the following matters:

(a) the person’s education, experience, skills and age;

(b) the impact of any disability, illness, mental condition or physical condition of the person on the person’s ability to work, to look for work or to participate in training activities;

(d) the participation opportunities available to the person;

(e) the family and caring responsibilities of the person;

(f) the length of travel time required for compliance with the agreement;

(g) the financial costs of compliance with the agreement, such as travel costs, and the capacity to pay for such compliance;

(h) any other matters that the Secretary or the person considers relevant in the circumstances.

(8) An agreement with a person:

(a) may be varied (in negotiation with the person) or suspended; and

(b) if another Parenting Payment Activity Agreement is made with the person, may be cancelled; and

(d) may be cancelled by the Secretary after a review under paragraph (c).

(9) A recipient of parenting payment who is a party to an agreement is to notify the Secretary of any circumstances preventing or affecting the recipient’s compliance with the agreement.

501B Parenting Payment Activity Agreements—requirement to look for work of appropriate number of hours per week

(1) A Parenting Payment Activity Agreement that requires a person to undertake, as an activity, looking for part‑time paid work that the Secretary regards as suitable must require the person to undertake looking for such part‑time paid work of at least the appropriate number of hours per week.

(2) The appropriate number of hours per week is:

(a) 15; or

(b) such other number as the Secretary determines to be appropriate having regard to the person’s circumstances.

501C Parenting Payment Activity Agreements—people with partial capacity to work

(1) A Parenting Payment Activity Agreement that:

(a) is between the Secretary and a person who has a partial capacity to work; and

(b) requires the person to undertake, as an activity, looking for part‑time paid work that the Secretary regards as suitable;

must require the person to undertake looking for such part‑time paid work of at least the appropriate number of hours per week.

Note: For partial capacity to work see section 16B.

(2) The appropriate number of hours per week is:

(a) 15; or

(b) such other number as the Secretary determines to be appropriate having regard to the person’s circumstances.

501D Parenting Payment Activity Agreements—requirement to participate in an approved program of work

(1) A Parenting Payment Activity Agreement between the Secretary and a person must not require the person to participate in an approved program of work for income support payment if:

(a) either:

(i) if the person’s rate of parenting payment is worked out under the Pension PP (Single) Rate Calculator in section 1068A—because of the application of Module E of that rate calculator, the person is receiving a parenting payment at a rate that has been reduced; or

(ii) if the person’s rate of parenting payment is worked out under the Benefit PP (Partnered) Rate Calculator in section 1068B—because of the application of Module D of that rate calculator, the person is receiving a parenting payment at a rate that has been reduced; or

(b) in the Secretary’s opinion:

(i) it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

(ii) performing the work in the conditions in which the work would be performed would constitute a risk to health or safety or would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or

(2) The Secretary may, by notice given to a person whom a Parenting Payment Activity Agreement requires to participate in an approved program of work for income support payment, revoke the requirement to participate in the program if the Secretary:

(a) is satisfied that:

(b) forms the opinion that:

(i) it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

(3) Upon the Secretary so notifying the person, the requirement is taken to have been revoked with effect from the day specified in the notice.

(4) A person is not to be taken, merely by participating in an approved program of work for income support payment in accordance with the terms of a Parenting Payment Activity Agreement under this section, to be:

(a) an employee within the meaning of section 9 of the Occupational Health and Safety Act 1991; or

(b) an employee within the meaning of section 5 of the Safety, Rehabilitation and Compensation Act 1988; or

(d) an employee for the purposes of the Workplace Relations Act 1996.

501E Parenting Payment Activity Agreements—suspension of agreements in cases of domestic violence etc.

A Parenting Payment Activity Agreement between the Secretary and a person is taken to be suspended during any period during which the person is covered by a participation exemption under Division 3A because of section 502C or 502D.

Division 3—Additional participation requirements

502 Secretary may impose additional participation requirements

(1) Subject to sections 502A and 502B, if the Secretary is of the opinion that, throughout a period, a person who:

(a) is subject to participation requirements; and

(b) is not covered by a participation exemption under Division 3A;

should undertake particular paid work, other than paid work that is unsuitable to be done by the person, the Secretary may notify the person that the person is required to act in accordance with the opinion.

Note 1: For when a person is subject to participation requirements see subsection 23(1).

Note 2: See subsection (4) on what paid work is unsuitable.

(2) To avoid doubt, the work that the person is required to undertake under subsection (1) may involve a number of hours per week that differs from the number of hours of work per week that the person is required to seek to comply with a Parenting Payment Activity Agreement between the Secretary and the person.

(3) The person can be taken not to have complied with requirements notified to the person under subsection (1) whether or not the person has complied with requirements to enter into a Parenting Payment Activity Agreement and comply with its terms.

(4) Subject to subsections (7) and (8), for the purposes of this section, particular paid work is unsuitable for a person if and only if, in the Secretary’s opinion:

(a) the person lacks the particular skills, experience or qualifications that are needed to perform the work and no training will be provided by the employer; or

(b) it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

(c) the person does not have access to appropriate care and supervision, for the one or more children for whom the person is the principal carer, at the times when the person would be required to undertake the work; or

Note: For principal carer see subsections 5(15) to (24).

(d) performing the work in the conditions in which the work would be performed would constitute a risk to health or safety and would contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety; or

(e) the terms and conditions for the work would be less generous than the applicable statutory conditions; or

(g) commuting between the person’s home and the place of work would be unreasonably difficult; or

(h) the work would require enlistment in the Defence Force or the Reserves; or

(i) the work requires the person to move from a home in one place to a home in another place; or

(j) for any other reason, the work is unsuitable for the person.

(4A) The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph (4)(j), particular paid work is unsuitable for a person.

(4B) To avoid doubt, a determination under subsection (4A) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph (4)(j), particular paid work is unsuitable for a person.

(5) A person has, for the purposes of paragraph (4)(c), access to appropriate care and supervision for a child at a particular time if, at that time:

(a) the child could be provided with care by an approved child care service (within the meaning of the Family Assistance Administration Act), and provision of that care would, in the Secretary’s opinion, be appropriate in the circumstances; or

(b) the child could be provided with other care that the person considers to be suitable; or

(c) the child could be attending school, and attendance at that school would, in the Secretary’s opinion, be appropriate in the circumstances.

(6) For the purposes of paragraph (4)(c), a time when the person would be required to undertake the work includes reasonable amounts of time that would be needed for the person to travel from the person’s home to the place of work and from the place of work to the person’s home.

(7) If:

(a) a person seeks work in an area (the new area) that is outside the area (the old area) in which the person’s home is situated; and

(b) the person is offered permanent work (whether or not work of the kind sought) in the new area;

the work offered is not unsuitable for the person because of paragraph (4)(g) or (i) unless:

(d) the person or the person’s partner is pregnant; or

(e) the person or the person’s partner has a severe medical condition and the condition makes it unreasonable for the person to accept the offer; or

(f) the acceptance of the offer would jeopardise the current employment, or the employment prospects, of the person’s partner; or

(g) the person or the person’s partner has a child under the age of 16 years who is living with them or is living somewhere else in the old area; or

(h) the person or the person’s partner has significant caring responsibilities in the old area; or

(i) the educational, cultural or religious background of the person makes it unreasonable for the person to accept the offer; or

(j) it is more appropriate for the person to participate in education or training than to accept the offer; or

(k) the person would suffer severe financial hardship if the person were to accept the offer.

(8) Without affecting what would otherwise constitute a person seeking work outside the area in which the person’s home is situated, if a person, when seeking employment through an employment service provider, represents to the provider that the person is willing to undertake work outside the area in which the person’s home is situated, the person is taken for the purposes of subsection (7) to seek work outside the area at the time when the representation is made.

(9) A reference in subsection (4) to remuneration for work is a reference to any income derived from the work that is income from personal exertion.

Note: For income from personal exertion see subsection 8(1).

502A People 55 and over who are engaged in work

(1) Subject to subsection (2), the Secretary must not notify under subsection 502(1) a person in respect of a period (the relevant period) if the person has reached 55 years and:

(a) is engaged in approved unpaid voluntary work for an approved organisation for at least 30 hours in the period; or

(b) is engaged, for at least 30 hours in the period in a combination of:

(i) approved unpaid voluntary work for an approved organisation; and

(ii) paid work that the Secretary regards as suitable; or

(2) This section does not apply to a person in respect of a day in a relevant period if, in respect of the person, having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that this section is not to apply to the person in respect of that day.

(3) For the purposes of this section:

(a) approved voluntary unpaid work is work that has been approved by the Secretary for the purposes of this section; and

(b) an approved organisation is an organisation that has been approved by the Secretary for the purposes of this section.

502B Persons engaged in suitable paid work for at least 30 hours per fortnight

The Secretary must not notify under subsection 502(1) a person who is engaged for at least 30 hours per fortnight in paid work that the Secretary regards as suitable.

Division 3A—Participation exemptions

502C Domestic violence etc.

(1) A person is covered by a participation exemption under this Division in respect of a period that the Secretary determines under this section in relation to the person.

(2) The Secretary may make a determination under this section in relation to the person if the Secretary is satisfied that:

(a) the person:

(i) has ceased to be a member of a couple in the period of 26 weeks before the determination; and

(ii) was subjected to domestic violence in that period of 26 weeks (whether or not the domestic violence was connected with ceasing to be a member of that or any other couple); and

(iii) has not again become a member of a couple; or

(b) there are special circumstances relating to the person’s family that make it appropriate to make the determination.

(2A) The Secretary must, by legislative instrument, specify matters that the Secretary must take into account in deciding whether there are special circumstances relating to a person’s family that make it appropriate to make a determination under this section.

(2B) To avoid doubt, an instrument made under subsection (2A) does not limit the matters that the Secretary may take into account in making a determination under subsection (2).

(3) The period that the Secretary determines under this section must be the lesser of:

(a) the period that the Secretary considers to be appropriate; or

(b) 16 weeks.

(4) Any such period may be followed by one or more other periods (not exceeding 16 weeks) determined under this section in relation to the person.

(5) The period that the Secretary determines under this section must, despite subsection (3), be 16 weeks if the determination:

(a) is made on grounds referred to in paragraph (2)(a) (or on grounds that include those grounds); and

(b) is the first determination made on those grounds (or on grounds that include those grounds) in connection with the particular cessation referred to in subparagraph (2)(a)(i).

(6) The Secretary may revoke a determination under this section in relation to a person if the Secretary is satisfied that the grounds on which the determination was made no longer exist.

(7) Subsection (6) does not affect any operation that subsection 33(3) of the Acts Interpretation Act 1901 has in relation to a determination under this section.

502D People with disabled children and other circumstances

(1) A person is covered by a participation exemption under this Division in respect of a period that the Secretary determines under this section in relation to the person.

(2) The Secretary may make a determination under this section in relation to the person if the Secretary is satisfied that the person is the principal carer of one or more children:

(a) who suffer from a physical, intellectual or psychiatric disability or illness; and

(b) whose care needs are such that the person should, for the period specified in the determination, not be required to meet participation requirements.

Note: For principal carer see subsections 5(15) to (24).

(3) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that the person is the principal carer of one or more children, and that:

(a) the person is a registered and active foster carer; or

(b) the person is a home educator of that child, or one or more of those children; or

(d) under a family law order that the person is complying with, a child, of whom the person is a relative (other than a parent), is to live with the person.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For registered and active foster carer see section 5B.

Note 3: For home educator see section 5C.

Note 4: For distance educator see section 5D.

Note 5: For family law order see subsection 23(1).

Note 6: For relative (other than a parent) see section 5E.

(3A) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that the person is the principal carer of 4 or more children.

Note: For principal carer see subsections 5(15) to (24).

(4) The Secretary may make a determination under this section in relation to the person if the Secretary is satisfied that:

(a) the person is a person included in a class of persons specified under subsection (5); and

(b) the person’s circumstances are such that the person should not be required to meet any of the participation requirements.

(5) The Secretary may, by legislative instrument, specify classes of persons in respect of whom determinations under this section may be made.

(6) The period that the Secretary determines under this section must be the lesser of:

(a) the period that the Secretary considers to be appropriate; or

(b) 12 months.

(7) Any such period may be followed by one or more other periods (not exceeding 12 months) determined under this section in relation to the person.

(8) The Secretary may revoke a determination under this section in relation to a person if the Secretary is satisfied that the grounds on which the determination was made no longer exist.

(9) Subsection (8) does not affect any operation that subsection 33(3) of the Acts Interpretation Act 1901 has in relation to a determination under this section.

502E Training camps

A person is covered by a participation exemption under this Division in respect of a period when the person is attending a training camp as a member of:

(a) the Naval Reserve; or

(b) the Army Reserve; or

502F Special circumstances

(1) A person is covered by a participation exemption under this Division in respect of a period if:

(a) the Secretary is satisfied that special circumstances, beyond the person’s control, exist; and

(b) the Secretary is satisfied that in those circumstances it would be unreasonable to expect the person to meet participation requirements for that period.

(2) The period referred to in subsection (1) is not to exceed 13 weeks.

(3) If:

(a) the Secretary makes a number of determinations under any one or more of the following provisions:

(i) subsection 525AA(3) of this Act as previously in force;

(ii) subsection 542H(1) of this Act;

(iii) subsection 603A(1) of this Act;

(iv) subsection 731E(1) of this Act;

(v) subsection (1) of this section; and

(b) the periods to which the determinations relate form a continuous period;

the continuous period is not to exceed 13 weeks, unless the Secretary determines otherwise, having regard to the continued existence, or likely continued existence, of the special circumstances on which the last preceding determination was based.

502G Pre‑natal and post‑natal relief

(1) A pregnant woman is covered by a participation exemption under this Division for the period that starts 6 weeks before the woman’s expected date of confinement and ends on the day on which the woman gives birth to the child (whether or not the child is born alive).

(2) If a woman gives birth to a child (whether or not the child is born alive), the woman is covered by a participation exemption under this Division for the period that starts on the day on which she gives birth to the child and ends 6 weeks after that day.

502H Temporary incapacity

(1) Subject to sections 502J and 502K, a person is covered by a participation exemption under this Division in respect of a period if:

(a) throughout the period the person is incapacitated for work because of sickness or an accident; and

(b) the incapacity is caused wholly, or virtually wholly, by a medical condition arising from the sickness or accident; and

(d) the person has, whether before or after the commencement of this section, given the Secretary a certificate of a medical practitioner, in a form approved by the Secretary, stating:

(i) the medical practitioner’s diagnosis; and

(ii) the medical practitioner’s prognosis; and

(iii) that the person is incapacitated for work; and

(iv) the period for which the person is incapacitated for work; and

(e) the Secretary is satisfied that the incapacity has not been brought about with a view to obtaining an exemption from meeting the participation requirements.

(1A) The Secretary must comply with the guidelines (if any) determined and in force under subsection (1B) in deciding the following:

(a) whether paragraph (1)(a), (b) or (c) applies to a person in respect of a period;

(b) whether, for the purposes of paragraph (a) of the definition of work in subsection (2), work is of a kind that a person could be reasonably expected to do.

(1B) The Minister may, by legislative instrument, determine guidelines to be complied with by the Secretary in making a decision referred to in subsection (1A).

(2) In this section:

work, in relation to a person, means work (whether full‑time, part‑time, permanent or casual) that:

(a) is of a kind that the person could, in the Secretary’s opinion, be reasonably expected to do; and

(b) is for at least 8 hours per week on wages that are at or above the relevant minimum wage.

502J Time limit for temporary incapacity exemption—Secretary satisfied person can undertake activity

(1) Section 502H ceases to apply to a person if the Secretary is satisfied that, although the person meets the requirements of that section, the person should undertake one or more activities that the Secretary regards as suitable for the person.

(2) The cessation occurs:

(a) if the person has failed to comply with a requirement to enter into a Parenting Payment Activity Agreement—when the person so failed; or

(b) in any other case—when the person has entered into such an agreement.

(3) This section does not prevent section 502H ceasing to apply to a person under section 502K.

502K Time limit for temporary incapacity exemption—end of person’s maximum exemption period

(1) Section 502H ceases to apply to a person if the person’s maximum exemption period ends.

(2) Subject to this section, a person’s maximum exemption period is:

(a) if the person has, whether before or after the commencement of this section, given the Secretary a medical certificate for the purpose of enabling the Secretary to decide whether section 502H applies to the person—the lesser of the following periods:

(i) the period stated in the certificate as the period for which the person would be incapacitated for work;

(ii) the period of 13 weeks that started or starts on the first day of the period so stated in the certificate; or

(b) otherwise—the period of 4 weeks that started or starts on the day determined by the Secretary to have been the day on which the person’s incapacity for work began.

(3) If:

(a) section 502H applies to a person; and

(b) the person has, whether before or after the commencement of this section, given the Secretary a certificate of a medical practitioner that states the matters listed in paragraph 502H(1)(d) and is in accordance with the form approved under that paragraph; and

(c) the Secretary is satisfied that the person’s incapacity for work will continue after the end of the person’s maximum exemption period;

the Secretary may extend the person’s maximum exemption period by a period that is not more than the lesser of the following periods:

(d) a period equal to the period stated in the certificate as the period for which the person would be incapacitated for work;

(e) 13 weeks.

(4) If:

(a) section 502H applied to a person; and

(b) within 14 days after the end of the person’s maximum exemption period the person gives the Secretary a certificate of a medical practitioner that states the matters listed in paragraph 502H(1)(d) and is in accordance with a form approved under that paragraph; and

(c) the Secretary is satisfied that the person’s incapacity for work has continued after the end of the person’s maximum exemption period and that the incapacity will continue;

the Secretary may extend the maximum exemption period by a period that is not more than the lesser of the following periods:

(d) a period equal to the period stated in the certificate as the period for which the person would be incapacitated for work;

(e) 13 weeks.

(5) If:

(a) section 502H applies to a person; and

(b) the person gives the Secretary written evidence (other than a certificate referred to in paragraph (3)(b)) that the person’s incapacity for work will continue after the end of the person’s maximum exemption period; and

(i) the person’s circumstances make it unreasonable to expect the person to obtain a certificate referred to in paragraph (3)(b) before the end of the maximum exemption period; and

(ii) the person’s incapacity for work will continue after the end of the person’s maximum exemption period;

the Secretary may extend the person’s maximum exemption period by not more than 4 weeks.

(6) If:

(a) section 502H applied to a person; and

(b) within 14 days after the end of the person’s maximum exemption period the person gives the Secretary written evidence (other than a certificate referred to in paragraph (4)(b)) that the person’s incapacity for work will continue after the end of the person’s maximum exemption period; and

(i) the person’s circumstances make it unreasonable to expect the person to obtain a certificate referred to in paragraph (4)(b); and

(ii) the person’s incapacity for work has continued after the end of the person’s maximum exemption period and that the incapacity will continue;

the Secretary may extend the maximum exemption period by a period of not more than 4 weeks from the end of the previous maximum exemption period.

(7) If:

(a) section 502H applies to a person; and

(b) the person has, whether before or after the commencement of this section, given the Secretary a certificate referred to in paragraph (3)(b) before the end of the person’s maximum exemption period; and

(c) before the end of the person’s maximum exemption period, the Secretary does not satisfy himself or herself that the person’s incapacity for work will continue after the end of that period; and

(d) the sole or dominant cause of the Secretary failing so to satisfy himself or herself is an act or omission of an officer of the Department;

the Secretary may extend the person’s maximum exemption period by not more than 4 weeks.

(8) This section does not prevent section 502H ceasing to apply to a person under section 502J.

Division 4—Rate of parenting payment

Subdivision A—Rate of parenting payment

503 How to work out a person’s parenting payment rate

A person’s parenting payment rate is worked out using:

(a) if the person is not a member of a couple—the Pension PP (Single) Rate Calculator at the end of section 1068A (see Part 3.6A); or

(b) if the person is a member of a couple—the Benefit PP (Partnered) Rate Calculator at the end of section 1068B (see Part 3.6A).

503A Approved program of work supplement

If a person:

(a) is receiving a parenting payment; and

(b) is participating in an approved program of work for income support payment;

the rate of the person’s parenting payment is increased by an amount of $20.80, to be known as the approved program of work supplement, for each fortnight during which the person participates in the program.

503AA Approved program of work supplement not payable in certain circumstances

Subdivision C—Accumulation of parenting payments by CDEP Scheme participants

504N CDEP Scheme participant may accumulate parenting payment

(1) A person who is a member of a couple, and is a CDEP Scheme participant in respect of the whole or a part of a quarter, may, by written notice given to the Secretary, choose to accumulate the amounts of any parenting payment that become payable to the person in respect of that quarter, or any later quarter in respect of the whole or a part of which the person is a CDEP Scheme participant, and have not already been paid.

(a) unless paragraph (b) applies, the last day of the quarter; or

(b) if the person ceases to be a CDEP Scheme participant before the end of the quarter—the day on which the person so ceases.

(3) In this section:

quarter means a CDEP Scheme quarter.

Note 1: For CDEP Scheme participant see section 1188B.

Note 2: For CDEP Scheme quarter see subsection 23(1).