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 election by the person under subsection 1061VA(1) is in force.

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

(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.

(1A) However, the Secretary must not register a person as a member of the pension bonus scheme if the person’s date of qualification for the age pension occurs on or after 20 September 2009.

(1B) For the purposes of subsection (1A), subsections 92H(8) and (9) apply in a way corresponding to the way in which they apply for the purposes of section 92H.

(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

Application

(1) This section sets a person’s annual pension rate for the purposes of this Division if the start day for the age pension is on or after 20 September 2009.

Note: See clause 144 of Schedule 1A if the start day is before 20 September 2009.

If person is not permanently blind

(2) If the person is not permanently blind, the person’s annual pension rate is the rate that would be the person’s provisional annual payment rate under step 11 of the method statement in point 1064‑A1, worked out as at the start day for the age pension, if the maximum payment rate under step 4 of the method statement were the total of:

(a) the person’s maximum basic rate under point 1064‑B1; and

(b) the amount worked out for the person using the table in subsection (4).

If person is permanently blind

(3) If the person is permanently blind, the person’s annual pension rate is the sum of the following, worked out as at the start day for the age pension:

(a) the person’s maximum basic rate in the table in point 1065‑B1;

(b) the amount worked out for the person using the table in subsection (4).

Amount for paragraphs (2)(b) and (3)(b)

(4) For the purposes of paragraphs (2)(b) and (3)(b), the table is as follows:

Amount for paragraphs (2)(b) and (3)(b)
Column 1 Item	Column 2 Person’s family situation	Column 3 Amount
1	Not member of a couple	$507.00
2	Partnered	$423.80
3	Member of illness separated couple	$507.00
4	Member of respite care couple	$507.00
5	Partnered (partner in gaol)	$507.00

Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.

Note 2: The amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

93J Amount of pension bonus

No change in couple 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 couple 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 amount worked out for the person using the table in subsection 93H(4);

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 amount worked out for the person using the table in subsection 93H(4);

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 amount worked out for the person using the table in subsection 93H(4);

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 amount worked out for the person using the table in subsection 93H(4);

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 person’s maximum basic rate worked out using Module B of Pension Rate Calculator A in section 1064 and the amount worked out for the person using the table in subsection 93H(4).

(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 3.2 (including because of the operation of Pension Rate Calculator B in Part 3.3).

(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, 1126AD or 1126E (so far as section 1126E relates to 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

(aa) includes an instalment of parental leave pay; 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 payments to the aged and older Australians

Division 1—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.

Division 2—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.

Division 3—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.

Division 4—2008 one‑off payment to older Australians

93ZC 2008 one‑off payment to older Australians

Qualified if this section applies

(1) A person is qualified for a 2008 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 13 May 2008; and

(b) the person was receiving an income support payment, other than service pension or income support supplement, in respect of an instalment period that includes 13 May 2008; and

(d) on 13 May 2008, 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 13 May 2008, the person was qualified for seniors concession allowance under section 1061U; or

(b) both:

(i) on or before 13 May 2008, 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 13 May 2008; and

(ii) on 13 May 2008, 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, partner allowance, wife pension or widow B pension in respect of an instalment period that includes 13 May 2008; and

(b) the person was receiving that allowance or pension because of a claim the person made on or before 13 May 2008; 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 may receive 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 118ZZL of the Veterans’ Entitlements Act.

93ZD Amount of the one‑off payment

The amount of the one‑off payment under section 93ZC 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

(ea) either:

(i) the person is an Australian resident; or

(ii) the person is absent from Australia and all the circumstances described in paragraphs 1218AA(1)(a), (b), (c), (d) and (e) exist in relation to the person; 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

(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

(ja) either:

(i) the person is an Australian resident; or

(ii) the person is absent from Australia and all the circumstances described in paragraphs 1218AA(1)(a), (b), (c), (d) and (e) exist in relation to the person; and

(k) the person has turned 16.

Note: For Australian resident see section 7.

(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; and

(d) either:

(i) the person is an Australian resident; or

(ii) the person is absent from Australia and all the circumstances described in paragraphs 1218AA(1)(a), (b), (c), (d) and (e) exist in relation to the person.

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 election by the person under subsection 1061VA(1) is in force.

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

(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, has not turned 21 and does not have any dependent children—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, has not turned 21 and does not have any dependent children—using Pension Rate Calculator E at the end of section 1066B (see Part 3.4B).

Note: For dependent child see section 5.

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 Fair Work Act 2009;

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

A woman is qualified for a wife pension if the woman:

(a) is a member of a couple; and

(b) has a partner who is receiving an age pension or disability support 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 election by the person under subsection 1061VA(1) is in force.

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

(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

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; 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 child means:

(a) a sole care child; or

(b) a combined care child; or

care receiver has the meaning given by subsection 197B(1), 197C(1), 197D(1), 197E(1), 197G(1), 197H(1) or 198(2).

combined care child has the meaning given by subsection (4).

Disability Care Load Assessment (Child) Determination has the meaning given by subsection 38E(1).

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.

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 subparagraph 197D(1)(a)(i), or paragraph 198(2)(d) applies.

multiple care child has the meaning given by subsection (5).

parent of:

(a) a child with a severe disability or severe medical condition; or

(b) a child with a disability or medical condition; or

includes a person who has been granted guardianship of the child under a law of the Commonwealth, a State or a Territory.

sole care child has the meaning given by subsections (2) and (3).

treating health professional means a person who is determined under section 38F to be a treating health professional.

Sole care child

(2) Subject to subsections (6) and (7), a person with a severe disability or severe medical condition is a sole care child if the provisions listed in one of the following paragraphs apply in relation to him or her as a care receiver:

(a) paragraphs 197B(1)(a), (b) and (c);

(b) subparagraph 197G(1)(a)(i) and paragraphs 197G(1)(b) and (c);

(3) Subject to subsection (7), a person who has a terminal condition is a sole care child if paragraphs 197E(1)(a) and (b) apply in relation to the person as a care receiver. For the purposes of this subsection, assume that paragraph 197E(1)(a) continues to apply in relation to the person if:

(a) the person has turned 16; and

(b) subsection 197E(2) applies in relation to him or her as a care receiver.

Combined care child

(4) Subject to subsections (6) and (7), a person with a disability or medical condition is a combined care child if the provisions listed in one of the following paragraphs apply in relation to him or her as a care receiver or as one of 2 or more care receivers:

(a) paragraphs 197C(1)(a), (b) and (c);

(b) subparagraph 197G(1)(a)(ii) and paragraphs 197G(1)(b) and (c);

Multiple care child

(5) Subject to subsections (6) and (7), a person with a disability or medical condition is a multiple care child if the provisions listed in one of the following paragraphs apply in relation to him or her as a care receiver or as one of 2 or more care receivers:

(a) subparagraph 197D(1)(a)(ii) and paragraphs 197D(1)(b) and (c);

(b) subparagraph 197G(1)(a)(ii) and paragraphs 197G(1)(b) and (c);

Person may be over 16

(6) For the purposes of subsections (2), (4) and (5), assume that paragraph 197B(1)(a) or 197C(1)(a), subparagraph 197D(1)(a)(ii) or paragraph 197G(1)(b) or 197H(1)(b) (as the case requires) continues to apply in relation to the person if:

(a) the person has turned 16; and

(b) the person has not been assessed and rated and given a score under the Adult Disability Assessment Tool.

Constant care

(7) If section 197F applies in relation to the person as a care receiver or as one of 2 or more care receivers, it does not matter that the care provided for the person is not constant care.

Division 1—Qualification for and payability of carer payment

197A Overview—circumstances in which person is qualified for carer payment

(1) The following sections set out the circumstances in which a person is qualified for a carer payment:

(a) section 197B (child with a severe disability or severe medical condition);

(b) section 197C (2 or more children each with a disability or medical condition);

(d) section 197E (child who has a terminal condition);

(e) section 197F (exchanged care of children);

(f) section 197G (short term or episodic care of children);

(g) section 197H (extension of short term or episodic care of children);

(h) section 198 (disabled adult, or disabled adult and dependent child);

(i) section 198AA (hospitalisation).

(2) In addition, sections 198AB and 198AC allow a person to continue to qualify for a carer payment in certain short‑term circumstances.

197B Qualification—child with a severe disability or severe medical condition

Child with a severe disability or severe medical condition

(1) A person is qualified for a carer payment if:

(a) the person personally provides constant care for a person (the care receiver) aged under 16 with a severe disability or severe medical condition; and

(b) the person has been given a qualifying rating of intense under the Disability Care Load Assessment (Child) Determination for caring for the care receiver; and

(i) the care receiver will need personal care for 6 months or more; and

(ii) the personal care is required to be provided by a specified number of persons; and

(d) the provision of constant care by the person severely restricts the person’s capacity to undertake paid employment; and

(e) the requirements of subsections (2), (3) and (4) are met.

Constant care in home

(2) The constant care must be provided in a private residence that is the home of the care receiver.

Person must be Australian resident

(3) The person must be an Australian resident.

Note: For Australian resident see section 7.

Care receiver: residence and income and assets tests etc.

(4) The care receiver must:

(a) require constant care; and

(b) be an Australian resident; and

(d) 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.

197C Qualification—2 or more children each with a disability or medical condition

Children each with a disability or medical condition

(1) A person is qualified for a carer payment if:

(a) the person personally provides constant care for 2 or more persons (the care receivers) aged under 16 each with a disability or medical condition; and

(b) the person has been given a qualifying rating of intense under the Disability Care Load Assessment (Child) Determination for caring for the care receivers; and

(c) in relation to each care receiver—a treating health professional has certified in writing that, because of that disability or condition:

(i) the care receiver will need personal care for 6 months or more; and

(ii) the personal care is required to be provided by a specified number of persons; and

(d) the provision of constant care by the person severely restricts the person’s capacity to undertake paid employment; and

(e) the requirements of subsections (2), (3) and (4) are met.

Constant care in home

(2) The constant care must be provided in a private residence that is the home of the care receivers.

Person must be Australian resident

(3) The person must be an Australian resident.

Note: For Australian resident see section 7.

Care receivers: residence and income and assets tests etc.

(4) The care receivers must:

(a) require constant care; and

(b) be Australian residents; and

(d) 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.

197D Qualification—disabled adult and one or more children each with a disability or medical condition

Disabled adult and one or more children each with a disability or medical condition

(1) A person is qualified for a carer payment if:

(a) the person personally provides constant care for both or all of the following persons (the care receivers):

(i) a disabled adult who 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;

(ii) one or more persons aged under 16 each with a disability or medical condition; and

(b) the person has been given a qualifying rating of intense under the Disability Care Load Assessment (Child) Determination for caring for the care receivers; and

(c) in relation to each care receiver who is aged under 16—a treating health professional has certified in writing that, because of that disability or condition:

(i) the care receiver will need personal care for 6 months or more; and

(ii) the personal care is required to be provided by a specified number of persons; and

(d) the provision of constant care by the person severely restricts the person’s capacity to undertake paid employment; and

(e) the person is not qualified for a carer payment under section 198 because of paragraph 198(2)(a) for caring for the care receiver who is the disabled adult; and

(f) the requirements of subsections (2), (3) and (4) are met.

Constant care in home

(2) The constant care must be provided in a private residence that is the home of the care receivers.

Person must be Australian resident

(3) The person must be an Australian resident.

Note: For Australian resident see section 7.

Care receivers: residence and income and assets tests etc.

(4) The care receivers must:

(a) require constant care; and

(b) be Australian residents; and

(d) 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.

197E Qualification—child who has a terminal condition

(1) A person is qualified for a carer payment if:

(a) the person personally provides constant care for a person (the care receiver) aged under 16; and

(b) a medical practitioner certifies in relation to the care receiver that:

(i) the care receiver has a terminal condition; and

(ii) the average life expectancy for a child with the same or a similar condition is not substantially longer than 24 months; and

(iii) because of the condition the care receiver will need personal care for the remainder of his or her life; and

(iv) the personal care is required to be provided by a specified number of persons; and

(c) the provision of constant care by the person severely restricts the person’s capacity to undertake paid employment; and

(d) the requirements of subsections (3), (4) and (5) are met.

(2) Despite paragraph (1)(a), the person remains qualified for a carer payment under this section after the care receiver turns 16 until the earlier of the following:

(a) the person no longer otherwise qualifies for a carer payment under this section for caring for the care receiver;

(b) the care receiver turns 18.

Constant care in home

(3) The constant care must be provided in a private residence that is the home of the care receiver.

Person must be Australian resident

(4) The person must be an Australian resident.

Note: For Australian resident see section 7.

Care receiver: residence and income and assets tests etc.

(5) The care receiver must:

(a) require constant care; and

(b) be an Australian resident; and

(d) 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.

197F Qualification—exchanged care of children

Purpose of section

(1) The purpose of this section is to allow a person to qualify under section 197B, 197C, 197D, 197E, 197G or 197H, or a combination of them, for a carer payment for caring for persons who are or include 2 or more persons aged under 16 despite the fact that the person is not personally providing constant care for the same persons.

When section applies

(2) This section applies if:

(a) the person is a parent of 2 or more persons aged under 16; and

(b) the person (the carer) is personally providing care for at least 2 of those persons (the care receivers); and

(c) the care receivers would qualify the carer for a carer payment under section 197B, 197C, 197D, 197E, 197G or 197H, apart from:

(i) the fact that the carer is not personally providing constant care for the care receivers; and

(ii) the fact that each care receiver has or may have more than one home; and

(d) the circumstances in subsection (3) apply in relation to each of the care receivers.

Circumstances—family law arrangements

(3) The circumstances are:

(a) under one or more registered parenting plans, parenting plans or parenting orders that are in force, the care receiver is to live with, or spend time with the carer and the care receiver’s other parent (whether or not the care receiver is to live with, or spend time with, someone else); and

(b) the length or percentage of time (however described) that the care receiver is to live with, or spend time with, the carer and the other parent is specified in, or worked out in accordance with, the plans or orders; and

(c) the carer personally provides constant care for the care receiver when the care receiver is living with, or spending time with, the carer; and

(d) the carer does not personally provide constant care for the care receiver only because the terms of the plans or orders require the care receiver to live with, or spend time with, the other parent or someone else; and

(e) when the carer is not personally providing care for the care receiver, the carer is personally providing care for one or more other care receivers in relation to whom this subsection also applies.

Qualification for a carer payment

(4) If this section applies, the carer is taken to be qualified for a carer payment under section 197B, 197C, 197D, 197E, 197G or 197H, or a combination of them, for caring for the care receivers or for persons who include the care receivers, as the case requires.

Example: The parents of 3 children each with a disability or medical condition are divorced. Under a registered parenting plan covering all 3 children, one parent (the first parent) personally provides care in week 1 to:

(a) one of the children covered by the plan; and

(b) another child who is similarly disabled but who is not covered by the plan.

The other parent personally provides care for the other 2 children covered by the plan. In week 2, the parents swap care arrangements for the children covered by the plan.

The first parent would not qualify for a carer payment under section 197C because he or she is not providing constant care for the same children. However, this section allows the first parent to qualify for a carer payment for providing care for different children.

Application of income and assets tests

(5) In applying the income and assets tests under section 198A or 198D in working out whether a parent qualifies under section 197B, 197C, 197D, 197E, 197G or 197H because of this section, disregard the other parent for the purposes of the following:

(a) subsections 198B(1B) and 198D(1A), (1C) and (1DA);

(b) subparagraph 198N(5)(aa)(ii);

197G Qualification—short term or episodic care of children

Secretary’s determination

(1) The Secretary may determine that a person is qualified for a carer payment for a period if:

(a) the person is personally providing constant care for one or more persons (the care receiver or care receivers) each with:

(i) a severe disability or severe medical condition; or

(ii) a disability or medical condition; and

(b) each care receiver is aged under 16 at the start of the period; and

(c) in relation to each care receiver—a treating health professional has certified in writing that, because of the severe disability or severe medical condition, or because of the disability or medical condition:

(i) the care receiver will need personal care for at least 3 months but less than 6 months; and

(ii) the care is required to be provided by a specified number of persons; and

(d) apart from the fact that the care receiver, or care receivers, will need personal care for less than 6 months, the person would qualify for a carer payment:

(i) under section 197B or 197C (whether or not because of section 197F) for caring for the care receiver or care receivers; or

(ii) under section 197D (whether or not because of section 197F) for caring for the care receiver and another person.

Limits on period determined

(2) The period determined by the Secretary:

(a) must be 3 months or more and less than 6 months; and

(b) must not begin before the person’s start day.

Person may remain qualified until end of period even if care receiver turns 16

(3) A person does not cease to be qualified for a carer payment under this section only because the care receiver (or any of them) turns 16 before the end of the period determined by the Secretary.

197H Qualification—extension of short term or episodic care

Extension of qualification under section 197G

(1) This section applies if:

(a) a person is qualified for a carer payment for caring for one or more persons (the care receiver or care receivers) aged under 16 for a period (the preceding period):

(i) under section 197G; or

(ii) if this section has previously applied to the person and the care receiver or care receivers—under the most recent application of this section; and

(b) in relation to each care receiver—before the end of the preceding period, and before the care receiver (or any of them) turns 16, the person gives the Secretary a certificate from a treating health professional certifying that:

(i) because of a severe disability or severe medical condition, or a disability or medical condition, the care receiver will need personal care for a further period of less than 3 months starting immediately after the end of the preceding period; and

(ii) the severe disability or severe medical condition, or disability or medical condition, is the same as, or related to, the severe disability or severe medical condition, or disability or medical condition, that necessitated the care for the preceding period; and

(iii) the care is required to be provided by a specified number of persons.

Person qualified for further period determined by Secretary

(2) The person is qualified for a carer payment for a further period if:

(a) apart from the fact that the care receiver or care receivers will need personal care for less than 6 months, the person would qualify for a carer payment:

(i) under section 197B or 197C (whether or not because of section 197F) for caring for the care receiver or care receivers; or

(ii) under section 197D (whether or not because of section 197F) for caring for the care receiver and another person; and

(b) the Secretary determines that a carer payment should be granted to the person for the period.

(3) The period determined must end not later than 6 months after the first day on which the person started to receive a carer payment under section 197G.

Person may remain qualified until end of period even if care receiver turns 16

(4) A person does not cease to be qualified for a carer payment under this section only because the care receiver (or any of them) turns 16 before the end of the period determined by the Secretary.

197J Qualification following qualification for short term or episodic care

Purpose of section

(1) The purpose of this section is to treat a person as qualified for a carer payment under section 197B, 197C or 197D, or because of 197F, for caring for:

(a) one or more persons aged under 16; or

(b) persons who include one or more persons aged under 16;

if, immediately beforehand, the carer was qualified for a carer payment under section 197G or 197H (whether or not because of section 197F) for caring for the person or persons aged under 16.

Person taken to be qualified

(2) If:

(a) a person is qualified for a carer payment for caring for one or more care receivers aged under 16 for a period (the preceding period):

(i) under section 197G; or

(ii) if section 197H has applied to the person and the care receiver or care receivers—under the most recent application of that section; and

(b) before the end of the preceding period, and before the care receiver (or any of them) turns 16, the person gives the Secretary a certificate in relation to each of them as required by whichever of subsection (3) or (4) applies; and

(c) apart from paragraph 197B(1)(c), 197C(1)(c) or 197D(1)(c), the person would be qualified (whether or not because of section 197F) for a carer payment for caring for the care receiver or care receivers or for persons who include at least one of them;

the person is taken to qualify under section 197B, 197C or 197D (as the case requires) for caring for the care receiver or care receivers or for persons who include at least one of them.

Note: Paragraphs 197B(1)(c), 197C(1)(c) and 197D(1)(c) require that a treating health professional has certified that the care receiver, or each of them, will need personal care for 6 months or more.

(3) If the person was qualified for a carer payment under section 197G or 197H for caring for a care receiver with a severe disability or severe medical condition, there must be a certificate from a treating health professional certifying that:

(a) because of a severe disability or severe medical condition the duration of the personal care needed by the care receiver is 6 months or more; and

(b) the severe disability or severe medical condition is the same as, or related to, the severe disability or severe medical condition that necessitated the care for the preceding period; and

(4) If the person was qualified for a carer payment under section 197G or 197H for caring for one or more care receivers aged under 16 each with a disability or medical condition, there must be a certificate in relation to each care receiver from a treating health professional certifying that:

(a) because of a disability or medical condition, the duration of the personal care needed by the care receiver is 6 months or more; and

(b) the disability or condition is the same as, or related to, the disability or condition that necessitated the care for the preceding period; and

(5) For the purposes of paragraphs (3)(a) and (4)(a):

(a) the 6 months includes any preceding periods under section 197G or under an application of section 197H; and

(b) it does not matter if the treating health professional who certified under those sections is the same treating health professional referred to in subsection (3) or (4) or not.

197K Remaining qualified for up to 3 months after child turns 16

(1) This section applies if:

(a) a person is qualified for a carer payment for caring for a care receiver aged under 16 under one of the following provisions:

(i) section 197B, 197C or 197D (whether or not because of section 197F);

(ii) paragraph 198(2)(d); and

(b) the care receiver turns 16; and

(2) If, apart from the care receiver turning 16, the person would remain qualified for a carer payment under that provision, the person remains qualified under that provision for 3 months after the care receiver turns 16.

198 Qualification—disabled adult or disabled adult and dependent child

(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 for disabled adult or disabled adult and a dependent child

(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

(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; and

(iv) section 197D does not apply in respect of the care receivers.

Note: 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:

(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.

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.

198AAA Continuation of qualification when person receiving care admitted to institution

(1) This section applies if:

(a) carer payment is payable:

(i) to a person who has ordinarily been providing constant care for a care receiver or care receivers; or

(ii) because of section 197F, to a person who has ordinarily been providing care for a care receiver or care receivers; and

(b) the person would, apart from this section, cease to be qualified for the payment because he or she ceases to provide constant care (or, if section 197F applies to the person, 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 person remains qualified for the carer payment during the 14 weeks after the care receiver is admitted permanently to an institution.

198AA Qualification for carer payment—hospitalisation

Participating in care of person in hospital (not qualified under section 197G or 197H)

(1) A person (the carer) is qualified for a carer payment if:

(a) the carer is participating in the care, in hospital, of one of the following persons (the hospitalised person):

(i) a disabled adult;

(ii) a child with a severe disability or medical condition;

(iii) a child with a disability or medical condition;

(iv) a child who has a terminal condition;

(v) a dependent child of a disabled adult; and

(b) it is reasonable to assume that, if the hospitalised person were not in hospital, the carer would qualify, except under section 197G or 197H (whether or not because of section 197F), for a carer payment for:

(i) the hospitalised person; or

(ii) the hospitalised person and another person or persons; and

(2) For the purposes of paragraph (1)(c), the requirements are that either:

(a) the hospitalised person is terminally ill; or

(b) it is reasonable to expect that, upon leaving hospital, the hospitalised person:

(i) will reside in a private residence that is the home of the hospitalised person; or

(ii) if the carer would qualify for a carer payment because of section 197F for the hospitalised person—will reside in a private residence that is a home of the hospitalised person.

Limit on qualification under subsection (1)

(3) However, the period, or the sum of the periods, for which the carer can be qualified under subsection (1) for a hospitalised person who is a disabled adult is 63 days in any calendar year.

Note: There is no limit under subsection (1) for a hospitalised person who is a child.

Short term or episodic care of child (qualified under section 197G or 197H)

(4) A person (the carer) qualifies for a carer payment if:

(a) the carer is participating in the care, in hospital, of one of the following persons (the hospitalised person):

(i) a child with a severe disability or medical condition;

(ii) a child with a disability or medical condition; and

(b) the Secretary determines in writing that, if the hospitalised person were not in hospital, the carer would qualify under section 197G or 197H (whether or not because of section 197F) for a carer payment for a period or periods for:

(i) the hospitalised person; or

(ii) the hospitalised person and another person or persons; and

(i) will reside in a private residence that is the home of the hospitalised person; or

(ii) if the carer would qualify for a carer payment because of section 197F for the hospitalised person—will reside in a private residence that is a home of the hospitalised person.

However, the period, or the sum of the periods, for which the carer can be qualified under this subsection for the hospitalised person must not exceed the period, or the sum of the periods, determined under paragraph (b).

(5) A person (the carer) qualifies for a carer payment if:

(a) the carer is participating in the care, in hospital, of one of the following persons (the hospitalised person):

(i) a child with a severe disability or medical condition;

(ii) a child with a disability or medical condition; and

(b) immediately before the carer began participating in that care, the carer was qualified under section 197G or 197H (whether or not because of section 197F) for a carer payment for a period for:

(i) the hospitalised person; or

(ii) the hospitalised person and another person or persons; and

(c) the person would cease to be qualified under section 197G or 197H for a carer payment for the balance of the period only because the person is participating in the care of the hospitalised person in hospital; and

(d) it is reasonable to expect that, upon leaving hospital, the hospitalised person:

(i) will reside in a private residence that is the home of the hospitalised person; or

(ii) if the carer would qualify for a carer payment because of section 197F for the hospitalised person—will reside in a private residence that is a home of the hospitalised person.

However, the period, or the sum of the periods, for which the carer can be qualified under this subsection for the hospitalised person must not exceed the balance of the period referred to in paragraph (c).

198AB Care not required to be in private residence during portability period

(1) This section applies if a person:

(a) is qualified for a carer payment; and

(b) is absent from Australia for a period:

(i) throughout which Division 2 of Part 4.2 applies to the person; and

(ii) that is before the end of the person’s portability period for carer payment (within the meaning of that Division).

(2) The person does not cease to be qualified for a carer payment:

(a) merely because the constant care for the care receiver or care receivers is not provided in a private residence that is the home of the care receiver or care receivers; or

(b) if the person is qualified because of section 197F—merely because the care for the care receiver or care receivers is not provided in a private residence that is a 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 (except under section 197G or 197H) for a carer payment:

(i) because the person is personally providing constant care for a care receiver or care receivers; or

(ii) if the person is qualified because of section 197F—because the person is personally providing care for 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.

(1A) Subject to subsections (3) and (3A), if:

(a) a person is qualified for a carer payment:

(i) under section 197G or 197H because the person is personally providing constant care for a care receiver or care receivers; or

(ii) under section 197G or 197H because of section 197F because the person is personally providing care for 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 subsections (3) and (3A), if:

(a) a person is qualified for a 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

(i) the person would not cease to be qualified for a carer payment if the person were providing constant care for the adult or child, or the adult or child and another person; or

(ii) if the person qualified under section 198AA because of section 197F—the person would not cease to be qualified for a carer payment if the person were providing 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 that care.

Limit on subsections (1) and (2)

(3) Subject to subsection (3B), 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.

(3A) The period (or the sum of the periods) for which subsection (1A) or (2) (or a combination of those subsections) can apply to the person in a calendar year is the number of whole days worked out in accordance with the formula:

where:

carer payment period, in relation to a calendar year, means:

(a) if only 197G applied to the person to any extent in the calendar year—the number of days in the period determined under that section that fall in the calendar year; or

(b) if sections 197G and 197H applied to the person to any extent in the calendar year—the number of days worked out by adding the days in each period determined under those sections to the extent that those days fall in the calendar year.

It does not matter whether section 197G or 197H (or both of them) apply because of section 197F or not.

limit, in relation to a calendar year, means:

(a) 63 days; or

(b) another number of days in the calendar year that the Secretary, for any special reason in the particular case, decides to be appropriate.

(3B) If:

(a) because of subsection (1A), the person does not cease to be qualified in a calendar year for a carer payment under section 197G or 197H for a care receiver or care receivers; and

(b) the number of days (the qualifying days) for which the person does not cease to be qualified (whether under subsection (1A) or (2), or a combination of them) in the calendar year is not more than the number of days worked out under subsection (3A) in relation to the person; and

(c) subsequently in the calendar year, the person begins to qualify for a carer payment because of section 197J for the care receiver or care receivers;

subsection (3) applies as if the periods referred to in whichever of paragraphs (a) and (b) of that subsection apply were reduced by the number of qualifying days.

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 sole care child, combined care child or multiple care child

(1B) If a care receiver is a sole care child, combined care child or multiple care 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 combined care child or a multiple care 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.

Note: See also subsection 197F(5).

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 or other care receivers) 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.

(3A) If the care receivers are a lower ADAT score adult and one or more multiple care children, the lower ADAT score adult may give the Secretary a written estimate of each child’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) or (3A) 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).

Sole care child passing the assets test

(1A) A care receiver who is a sole care child passes the assets test if the total value of the following assets is less than $410,000:

(a) the child’s assets;

(b) if the 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.

Note: See also subsection 197F(5).

(1B) For the purposes of this Division (other than subsection (1A)), if the child lives with his or her parent, the child’s assets are taken to include the assets listed in subsection (1A).

Combined care children passing the assets test

(1C) Care receivers who are 2 or more combined care 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 children;

(b) if any of the 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.

Note: See also subsection 197F(5).

(1D) For the purposes of this Division (other than subsection (1C)), if any of the children lives with his or her parent, the 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 multiple care child or children passing the assets test

(1DA) Care receivers who are a lower ADAT score adult and one or more multiple care children pass the assets test if the total value of the assets of the following people is less than $571,500:

(a) the adult;

(b) each child;

(i) the parent; and

(ii) if the parent is a member of a couple—the parent’s partner; and

(iii) if the parent or the partner has one or more FTB children—those FTB children;

(d) if the adult is a member of a couple—the adult’s partner;

(e) if the adult or the partner has one or more FTB children—the FTB children.

However, assets of the same person are not to be taken into account more than once.

(1DB) For the purposes of this Division (other than subsection (1DA)), if any of the multiple care children lives with his or her parent, the child’s assets are taken to include the assets listed in paragraph (1DA)(c) 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 care 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—sole care 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 sole care 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 child’s assets.

Increase in value of child’s assets

(3) If the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of the 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 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 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—sole care child

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 sole care 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 child’s assets.

Increase in value of child’s assets

(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 child’s assets;

less

(b) the sum of any amounts included in the value of the 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 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 child or children

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 one or more multiple care children, or 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) each multiple care child or 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 child or children

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 one or more multiple care children, or 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) each multiple care child or 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 disposals to be disregarded for care receiver assets test

This Division does not apply to a disposal by a person (the disposer) of an asset of a child:

(a) more than 5 years before the carer became qualified for a carer payment because the carer was providing care for the child and the child was a care receiver or one of 2 or more care receivers; and

Note: Subsections 198D(1B), (1D) and (1DB) provide that if a sole care child, a combined care child or a multiple care child lives with a parent, the assets listed in subsection 198D(1A) and paragraphs 198D(1C)(b) and (1DA)(c) are taken to be the assets of the child.

198N Exemption from care receiver assets test
[see Appendix for CPI adjusted figures]

Application by parent or carer of sole care child

(1AA) Subsections (2), (3), (4), (5) and (6) have effect if:

(a) subparagraph 197B(4)(d)(i) or 197E(5)(d)(i) would disqualify from carer payment a person caring for a care receiver who is a sole care child; and

(b) the parent or the carer of the care receiver 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 care receiver for the current financial year under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4).

Application by parent or carer of combined care children

(1AB) Subsections (2), (3), (4), (5) and (6) have effect if:

(a) subparagraph 197C(4)(d)(i) would disqualify from carer payment a person caring for 2 or more care receivers each of whom is a combined care child; and

(b) the parent or the carer of any of the care receivers 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 care receivers for the current financial year under subsection 198B(3); and

(d) the Secretary accepts the estimate under subsection 198B(4).

Application by lower ADAT score adult (multiple care child or children)

(1AC) Subsections (2), (3), (4), (5) and (6) have effect if:

(a) subparagraph 197D(4)(d)(i) would disqualify from carer payment a person caring for care receivers who are a lower ADAT score adult and one or more multiple care children; 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 each child under subsection 198B(3A); and

(d) the Secretary accepts the estimate under subsection 198B(4).

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 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 197B(4)(d)(i), 197C(4)(d)(i), 197D(4)(d)(i), 197E(5)(d)(i) or 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 197B(4)(d)(i), 197C(4)(d)(i), 197D(4)(d)(i), 197E(5)(d)(i) or 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 197B(4)(d)(i), 197C(4)(d)(i), 197D(4)(d)(i), 197E(5)(d)(i) or 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 sole care child, combined care child or multiple care 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 combined care child or a multiple care 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 child who is the other care receiver or the children who are the other care receivers) 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 child who is the other care receiver or the children who are the other care receivers).

However, liquid assets of the same person are not to be taken into account in respect of any of the other care receivers; and

Note: The value of the liquid assets of the child who is the other care receiver or the children who are the other care receivers 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), (1D) and (1DB) provide that if a sole care child, a combined care child or a multiple care child lives with a parent, the assets listed in subsection 198D(1A) and paragraphs 198D(1C)(b) and (1DA)(c) are taken to be assets of the child.

Note 3: For subparagraph (5)(aa)(ii), see also subsection 197F(5).

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 sole care 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 combined care 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 one or more multiple care children, or 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 1: For the maximum basic rate of age pension see point 1064‑B1 of Pension Rate Calculator A in section 1064.

Note 2: For paragraphs (b), (d) and (e) of the definition of FPC, see also subsection 197F(5).

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 197B(4)(d)(i), 197C(4)(d)(i), 197D(4)(d)(i), 197E(5)(d)(i) or 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 sole care child—to his or her parent or carer; or

(iii) in the case of care receivers who are 2 or more combined care children—to the carer of the children or to the parent of any of the children; or

(iiia) in the case of care receivers who are a lower ADAT score adult and one or more multiple care children—to the lower ADAT score adult or the person caring for that adult; 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 sole care child—to his or her parent or carer; or

(iii) in the case of care receivers who are 2 or more combined care children—to the carer of the children or to the parent of any of the children; or

(iiia) in the case of care receivers who are a lower ADAT score adult and one or more multiple care children—to the lower ADAT score adult or the person caring for that adult; or

(iv) in the case of care receivers who are a lower ADAT score adult and one or more multiple care children, or 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 197B(4)(d)(i), 197C(4)(d)(i), 197D(4)(d)(i), 197E(5)(d)(i) or 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 election by the person under subsection 1061VA(1) is in force.

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

(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

(ia) the person or any of the persons for whom the carer would qualify for carer payment as mentioned in subsection 198AA(4) or (5); or

(ii) the person or any of the persons for whom the 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 Module BA of Pension Rate Calculator A.

(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) either:

(i) a lower ADAT score adult and one or more multiple care children die at the same time; or

(ii) 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.

(1AB) Subsection (1) or (1A) does not apply in relation to care receivers who are a lower ADAT score adult and one or more multiple care children if:

(a) the person is receiving carer payment under section 235 because of the death of the child or children; and

(b) the person’s partner is the lower ADAT score adult.

(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.

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 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) either:

(i) a lower ADAT score adult and one or more multiple care children die at the same time; or

(ii) 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 payments to carers eligible for carer payment

Division 1—One‑off payment to carers 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 Division 1 of 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.

Division 2—2005 one‑off payment to carers 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 Division 2 of Part 2.19A.

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.

Division 3—2005 one‑off payment to carers 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.

Division 4—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.

Division 5—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.

Division 6—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.

Division 7—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.

Division 8—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.

Division 9—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.

Division 10—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.

Division 11—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.

Division 12—2008 one‑off payment to carers eligible for carer payment

269 2008 one‑off payment to carers (carer payment related)

A person (the qualified person) is qualified for a 2008 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 13 May 2008; and

(b) the person was paid that instalment because of a claim the person made on or before 13 May 2008.

270 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.

Division 13—2008 one‑off payment to carers eligible for wife pension

271 2008 one‑off payment to carers (wife pension related)

A person (the qualified person) is qualified for a 2008 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 13 May 2008; and

(ii) was paid that instalment because of a claim the person made on or before 13 May 2008; 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 13 May 2008;

(ii) the reason why that instalment covered 13 May 2008 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 13 May 2008.

272 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.

Division 14—2008 one‑off payment to carers eligible for partner service pension

273 2008 one‑off payment to carers (partner service pension related)

A person (the qualified person) is qualified for a 2008 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 13 May 2008; and

(ii) was paid that instalment because of a claim the person made on or before 13 May 2008; 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 13 May 2008;

(ii) the reason why that instalment covered 13 May 2008 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 13 May 2008.

274 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.

Division 15—2008 one‑off payment to carers eligible for carer service pension

275 2008 one‑off payment to carers (carer service pension related)

A person (the qualified person) is qualified for a 2008 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 13 May 2008.

276 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 election by the person under subsection 1061VA(1) is in force.

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

(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 election by the person under subsection 1061VA(1) is in force.

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

(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) 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:

(a) an election by the person under subsection 1061VA(1) is in force; or

(b) the person has been paid an advance pharmaceutical allowance under the social security law.

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 10 of the Social Security (International Agreements) Act 1999.

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 Employment Pathway Plan when the person is required by the Secretary under section 501 to do so;

(b) while the plan is in force, the person must comply with the requirements in the plan;

(c) at any time while the plan is in force the person must be prepared to enter into another such plan, instead of the existing plan, 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—assurance of support

A person 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

(ca) the person was the principal carer of the child immediately before 1 July 2011; 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:

(a) an election by the person under subsection 1061VA(1) is in force; or

(b) the person has been paid an advance pharmaceutical allowance under the social security law.

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

(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).

Division 2—Parenting Payment Employment Pathway Plans

501 Parenting Payment Employment Pathway Plans

(1) The Secretary may require a person who is subject to participation requirements to enter into a Parenting Payment Employment Pathway Plan under this section.

Note: For when a person is subject to participation requirements see subsection 23(1).

(2) If a Parenting Payment Employment Pathway Plan is in force in relation to a person, the Secretary may require the person to enter into another plan 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 Employment Pathway Plan notice of:

(a) the requirement; and

(b) the places and times at which the plan is to be negotiated.

(6) A Parenting Payment Employment Pathway Plan must be in a form approved by the Secretary.

501A Parenting Payment Employment Pathway Plan—terms

Suitable requirements

(1) Subject to subsections (2) and (3) and sections 501B to 501E, a Parenting Payment Employment Pathway Plan that is in force in relation to a person is to contain one or more terms (the requirements) that:

(a) the person is required to comply with; and

(b) the Secretary regards as suitable for the person.

(2) If a Parenting Payment Employment Pathway Plan 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 plan must not require the person to undertake any other activities.

(3) A plan 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 plans 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 plan under subsection (1).

Optional terms

(4B) A plan may also contain one or more terms that the person may, but is not required to, comply with.

Approval of requirements

(5) The requirements in a plan are to be approved by the Secretary.

(6) In considering whether to approve the requirements in a plan that will be in force in relation to a person, the Secretary is to have regard to:

(a) the person’s capacity to comply with the requirements; and

(b) the person’s needs.

(7) In having regard to a person’s capacity to comply with the requirements in a plan, 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 to comply with the requirements;

(g) the financial costs (such as travel costs) of complying with the requirements, and the person’s capacity to pay for such costs;

(h) any other matters that the Secretary or the person considers relevant in the circumstances.

Variation, suspension, cancellation and review

(8) A plan that is in force in relation to a person:

(a) may be varied (in negotiation with the person) or suspended by the Secretary; and

(b) must be cancelled by the Secretary if the person enters into another Parenting Payment Employment Pathway Plan; and

(d) may be cancelled by the Secretary after a review under paragraph (c).

Circumstances preventing or affecting compliance

(9) If a plan is in force in relation to a person, the person must notify the Secretary of any circumstances preventing or affecting the person’s capacity to comply with the requirements in the plan.

501B Parenting Payment Employment Pathway Plans—requirement to look for work of appropriate number of hours per week

(1) A Parenting Payment Employment Pathway Plan 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 Employment Pathway Plans—people with partial capacity to work

(1) A Parenting Payment Employment Pathway Plan that:

(a) is in force in relation to 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 Employment Pathway Plans—requirement to participate in an approved program of work

(1) A Parenting Payment Employment Pathway Plan that is in force in relation to 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) If a Parenting Payment Employment Pathway Plan that is in force in relation to a person requires the person to participate in an approved program of work for income support payment, the Secretary may, by notice given to the person, 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 to be one of the following merely because the person participates in an approved program of work for income support payment, or undertakes an activity (other than suitable paid work), in accordance with a term (including an optional term) of a Parenting Payment Employment Pathway Plan under this section:

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

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

(d) an employee for the purposes of the Fair Work Act 2009.

501E Parenting Payment Employment Pathway Plans—suspension of plans in cases of domestic violence etc.

A Parenting Payment Employment Pathway Plan that is in force in relation to 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 Employment Pathway Plan that is in force in relation to 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:

(a) any requirement to enter into a Parenting Payment Employment Pathway Plan; and

(b) the requirements in the plan.

(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 was subjected to domestic violence in the 26 weeks before the making of the determination; 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 relation to the person on or after 1 July 2010.

(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:

(a) the person is the principal carer of a child; and

(b) the person is one or both of the following:

(i) the principal carer of one or more other children;

(ii) the main supporter of one or more secondary pupil children; and

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For main supporter see section 5G.

Note 3: For secondary pupil child see section 5F.

(3B) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that:

(a) the person is the main supporter of one or more secondary pupil children; and

(b) the person is a home educator or distance educator of one or more of those children.

Note 1: For main supporter see section 5G.

Note 2: For secondary pupil child see section 5F.

Note 3: For home educator see section 5C.

Note 4: For distance educator see section 5D.

(3C) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that:

(a) the person is the principal carer of one or more children; and

(b) the person is a relative (other than a parent) of a child (the kin child); and

(i) provides for the kin child to live with the person for the care and wellbeing of the kin child; and

(ii) is prepared or accepted by an authority of a State or Territory that has responsibility for the wellbeing of children; and

(d) the person is acting in accordance with the document.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For relative (other than a parent) see section 5E.

(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 Employment Pathway Plan—when the person so failed; or

(b) in any other case—when the person has entered into such a plan.

(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

(1) 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.

(2) An approved program of work supplement under section 503A is not payable to a person in respect of a fortnight if a training supplement is payable to the person in respect of the fortnight.

503B Training supplement

(1) This section applies if a person:

(a) is receiving a parenting payment; and

(b) is subject to participation requirements; and

(d) started participating in the course during the period beginning on the day on which this section commenced and ending on 30 June 2011.

Note: For when a person is subject to participation requirements, see subsection 23(1).

(2) The rate of the person’s parenting payment is increased by an amount of $41.60 (to be known as a training supplement) for each fortnight during which the person participates in the course.

(3) However, a training supplement is not payable for a fortnight during which the person participates in the course if:

(a) a Parenting Payment Employment Pathway Plan is in force in relation to the person; and

(b) during the fortnight, the person ceases to participate in the course in circumstances that constitute a failure to comply with the plan.

503C National Green Jobs Corps supplement

(1) This section applies if a person:

(a) is receiving a parenting payment; and

(b) has reached 17, but is under 25, years of age; and

(d) started participating in that program before 2012.

(2) The rate of the person’s parenting payment is increased by an amount of $41.60 (to be known as a National Green Jobs Corps supplement) for each fortnight during which the person participates in the National Green Jobs Corps program.

(3) However, a National Green Jobs Corps supplement is not payable for a fortnight during which the person participates in the National Green Jobs Corps program if:

(a) both:

(i) a Parenting Payment Employment Pathway Plan is in force in relation to the person; and

(ii) during the fortnight, the person ceases to participate in that program in circumstances that constitute a failure to comply with the plan; or

(b) the rate of the person’s parenting payment is increased by training supplement for the fortnight.

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).

Subdivision A—Continuation of parenting payment after death of child

512 Death of PP child—continuation of qualification for 14 weeks

(1) If:

(a) a person is receiving parenting payment for a dependent child; and

(b) the child dies; and

the person is qualified for parenting payment in respect of the child, for the period of 14 weeks that starts on the day of the child’s death.

(2) If a person is qualified under subsection (1), the person’s parenting payment rate during the 14 weeks is to be worked out as if the child had not died.

Subdivision B—Death of recipient

513 Death of recipient—recipient not member of a couple

(1) If:

(a) a person is receiving parenting payment; and

(b) the person is not a member of a couple; 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 payday after the person’s death if the person had not died.

Note 2: For death of a person qualified for bereavement payments under Subdivision C see section 514E.

513A Death of recipient—recipient member of a couple

If:

(a) a person is receiving parenting payment; and

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

(d) the person:

(i) was qualified at the time of the person’s death for payments under Subdivision A in relation to the death of a PP child; or

(ii) would have been qualified if the person had not died; and

(e) the person’s partner claims the payments referred to in paragraph (d) within 13 weeks after the death of the child;

there is payable to the partner of the person an amount equal to the amount of parenting payment that would have been payable to the person under Subdivision A if the person had not died.

Subdivision C—Death of partner

514 Surviving partner and deceased partner

If:

(a) a person is receiving parenting payment; and

(b) the person’s partner dies;

then, for the purposes of this Division:

(d) the person’s partner is the deceased partner.

514A Qualification for payments under this Subdivision

(1) If:

(a) a person is receiving a benefit PP (partnered); and

(b) the person’s partner dies; and

(i) was a long‑term social security recipient; or

(ii) was receiving a social security pension, a service pension or income support supplement; and

(d) immediately before the deceased partner died, the surviving partner was a long‑term social security recipient;

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

Note 1: For benefit PP (partnered) see section 18 and for long‑term social security recipient see subsection 23(1).

Note 2: Section 514B provides for the payment to the surviving partner, up to the first available bereavement adjustment payday, of amounts equal to the instalments that would have been paid to the deceased partner during that period if the partner had not died.

Note 3: Section 514C provides for payment to the surviving partner of a lump sum that represents the instalments that would have been paid to the deceased partner, between the first available bereavement adjustment payday and the end of the bereavement period, if the deceased partner had not died.

Note 4: For bereavement period see section 21.

(2) A surviving partner 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 surviving partner has been paid an amount or amounts under this Subdivision; and

514B Continued payment of deceased partner’s previous entitlement

If a surviving partner is qualified for payments under this Subdivision in relation to the death of the deceased partner, there is payable to the surviving partner, on each of the deceased partner’s paydays in the bereavement rate continuation period, an amount equal to the amount that would have been payable to the deceased partner on that payday if he or she had not died.

Note: For bereavement rate continuation period see section 21.

514C Lump sum payable in some circumstances

If:

(a) a surviving partner is qualified for payments under this Subdivision in relation to the death of the deceased partner; and

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

there is payable to the surviving partner as a lump sum an amount worked out using the following Lump Sum Calculator:

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 surviving partner on the surviving partner’s payday immediately before the first available bereavement adjustment payday if:

(a) the deceased partner had not died; and

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

Note: For illness separated couple and respite care couple see subsections 4(7) and (8).

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

(a) the deceased partner had not died; and

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

Note: For illness separated couple and respite care couple see subsections 4(7) and (8).

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

Step 4. Work out the amount of pension PP (single) that would, if section 514D did not apply, have been payable to the surviving partner on the surviving partner’s payday immediately before the first available bereavement adjustment payday: the result is called the surviving partner’s individual rate.

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

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

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

514D Adjustment of person’s parenting payment rate

(1) This section applies if a surviving partner:

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

(b) does not elect under subsection 514A(2) not to receive payments under this Subdivision.

(2) The surviving partner’s parenting payment rate during the bereavement rate continuation period is the benefit PP (partnered) rate that would have been payable to the surviving partner if:

(a) the deceased partner had not died; and

(b) if the couple had been an illness separated couple or a respite care couple—they had not been such a couple.

(3) The surviving partner’s parenting payment rate during the bereavement lump sum period (if any) is the pension PP (single) rate.

Note 1: For bereavement period, bereavement rate continuation period, bereavement lump sum period and first available bereavement adjustment payday see section 21.

Note 2: For illness separated couple and respite care couple see subsections 4(7) and (8) respectively.

Note 3: For pension PP (single) and benefit PP (partnered) see section 18.

514E Effect of death of surviving partner

If:

(a) a surviving partner is qualified for payments under this Subdivision in relation to the death of the deceased partner; and

(b) the surviving partner dies within the bereavement period; and

there is payable, as a lump sum, to any person that the Secretary thinks appropriate, an amount worked out using the following Lump Sum Calculator:

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 surviving partner on the surviving partner’s payday immediately after the day on which the surviving partner died if:

(a) neither the surviving partner nor the deceased partner had died; and

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

Note: For illness separated couple and respite care couple see subsections 4(7) and (8).

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

(a) neither the surviving partner nor the deceased partner had died; and

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

Note: For illness separated couple and respite care couple see subsections 4(7) and (8).

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

Step 4. Work out the amount of pension PP (single) that would, if section 514D did not apply, have been payable to the surviving partner on the surviving partner’s payday immediately after the day on which the surviving partner died if the surviving partner had not died: the result is called the surviving partner’s individual rate.

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

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

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

Note: For bereavement period and first available bereavement adjustment payday see section 21.

514F Matters affecting payments under this Subdivision

(1) If:

(a) the surviving partner is qualified for payments under this Subdivision; and

(b) after the deceased partner died, an amount to which the deceased partner would have been entitled if he or she 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 surviving partner or from the personal representative of the deceased partner, except to the extent (if any) that the amount exceeds the amount payable to the surviving partner under this Subdivision;

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

(2) If:

(a) the surviving partner is qualified for payments under this Subdivision; and

(b) an amount to which the deceased partner would have been entitled if the deceased 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 surviving partner, 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 deceased partner or anyone else in respect of the payment of that money to the surviving partner.

Note: For bereavement period see section 21.

Subdivision D—Bereavement payment in respect of a person who was a CDEP Scheme participant

514FA Calculation of bereavement payment in respect of former CDEP Scheme participant

If a benefit becomes payable under this Division in respect of a person who was a CDEP Scheme participant in respect of the day on which the benefit becomes payable, the amount of the benefit is to be the amount that would have been the amount of the benefit if section 500W had not been enacted.

Note: For CDEP Scheme participant see section 1188B.

Part 2.11—Youth allowance

Division 1—Qualification for youth allowance

Subdivision A—Basic qualifications

540 Qualification for youth allowance—general rule

Subject to this Subdivision, a person is qualified for a youth allowance in respect of a period if:

(a) either of the following applies:

(i) throughout the period the person satisfies the activity test (see Subdivision B) or is not required to satisfy the activity test (see Subdivision C);

(ii) the person is a CDEP Scheme participant (see section 1188B) in respect of the period;

(b) throughout the period the person is of youth allowance age (see Subdivision D); and

(c) throughout the period the person satisfies any requirements relating to Youth Allowance Employment Pathway Plans that apply to the person under Subdivision E; and

(d) throughout the period, the person:

(i) is an Australian resident; or

(ii) is exempt from the residence requirement within the meaning of subsection 7(7).

Note 1: Subdivision G provides for prospective qualification for youth allowance.

Note 2: Division 2 sets out situations in which youth allowance is not payable even if the person qualifies for it.

540A Qualification for youth allowance—claimants for disability support pension

General rule

(1) Subject to this Subdivision, a person is qualified for a youth allowance in respect of a period if:

(b) throughout the period, the person is of youth allowance age (see Subdivision D); and

(c) the person made a claim for disability support pension at or before the start of the period and the claim was not determined before the end of the period; and

(d) the Secretary is satisfied that, throughout the period, the person suffers from a medical condition that had a significant adverse effect on the person’s ability to work or study; and

(e) throughout the period, the person satisfies the residency requirements that apply to the person under Subdivision F; and

(f) the person satisfies any one of the conditions in subsection (2).

Conditions for qualification

(2) The conditions referred to in paragraph (1)(f) are:

(a) a condition that the person was an Australian resident when the significant adverse effect of the medical condition on the person’s ability to work or study first occurred; and

(b) a condition that at the start of the period the person had 10 years qualifying Australian residence or had a qualifying residence exemption for a social security benefit or youth training allowance; and

(i) the person was born outside Australia; and

(ii) when the significant adverse effect of the medical condition first occurred the person was not an Australian resident but was a dependent child of an Australian resident; and

(iii) the person became an Australian resident while a dependent child of an Australian resident.

Note 1: Subdivision G provides for prospective qualification for youth allowance.

Note 2: Division 2 sets out situations in which youth allowance is not payable even if the person qualifies for it.

540AA Qualification for youth allowance—new apprentices

Subject to this Subdivision, a person is qualified for a youth allowance in respect of a period if, throughout the period:

(a) the person is a new apprentice; and

(b) the person is of youth allowance age (see Subdivision D); and

(i) is an Australian resident; or

(ii) is exempt from the residence requirement within the meaning of subsection 7(7).

Note 1: Subdivision G provides for prospective qualification for youth allowance.

Note 2: Division 2 sets out situations in which youth allowance is not payable even if the person qualifies for it.

540AB Qualification for youth allowance—claimants with medical conditions affecting their capacity to work

General rule

(1) Subject to this Subdivision, a person is qualified for a youth allowance in respect of the period starting in accordance with subsection (2) and ending in accordance with subsection (3) if:

(a) the person satisfies the Secretary that throughout the period the person is unemployed; and

(b) throughout the period, the person is of youth allowance age (see Subdivision D); and

(d) the person satisfies the Secretary that it is likely that the person has a permanent medical condition that would prevent the person from undertaking full‑time work; and

(e) the person satisfies the Secretary that it would be unreasonable to expect the person to satisfy the activity test until an assessment of the person’s capacity to work has been undertaken; and

(f) throughout the period, the person:

(i) is an Australian resident; or

(ii) is exempt from the residence requirement within the meaning of subsection 7(7).

Note 1: Subdivision G provides for prospective qualification for youth allowance.

Note 2: Division 2 sets out situations in which youth allowance is not payable even if the person qualifies for it.

Period for which person is qualified

(2) The period for which the person is qualified for a youth allowance under this section starts:

(a) if the person is already receiving youth allowance when the Secretary becomes aware of the medical condition referred to in paragraph (1)(d)—when the Secretary becomes aware of the medical condition; or

(b) otherwise—when the person made, or is taken to have made, the claim for youth allowance.

(3) The period for which the person is qualified for a youth allowance under this section ends:

(a) if the person has failed to comply with a requirement to enter into a Youth Allowance Employment Pathway Plan—on the day on which the person so failed; or

(b) in any other case—when the person enters into a Youth Allowance Employment Pathway Plan.

Extending the meaning of who is unemployed

(4) The Secretary may, for the purposes of this section, treat a person as being unemployed throughout a period if:

(a) during the period, the person undertakes:

(i) paid work that, in the Secretary’s opinion, is suitable for the person to undertake; or

(ii) any other activity;

as a result of which he or she would, but for this subsection, not be taken to be unemployed; and

(b) the Secretary is of the opinion that, taking into account:

(i) the nature of the work or other activity; and

(ii) the duration of the work or other activity; and

(iii) any remuneration received for the work or other activity; and

(iv) any other matters relating to the work or other activity, or to the person’s circumstances, that the Secretary considers relevant;

the activity should be disregarded.

(5) However, the activity must not be or include an activity of a kind that the Secretary determines under subsection (6).

(6) The Secretary may determine, by legislative instrument, kinds of activities that are not to be taken into account for the purposes of subsection (4).

540B Qualification for youth allowance—transferee from social security pension

If:

(a) a person was receiving a social security pension; and

(b) the person claims a youth allowance within 14 days after the day on which the last instalment of the person’s pension was paid; and

(c) the person becomes qualified for a youth allowance at some time during the 14 day period but after the first day of that period;

the person is taken to be qualified for a youth allowance for the whole of the 14 day period.

540C Qualification for youth allowance may continue to end of payment period

If:

(a) a person is receiving a youth allowance; and

(b) apart from this section, the person would cease on a particular day to be qualified for the allowance because the person has attained the maximum age for youth allowance; and

(c) the day falls in, but is not the last day of, a period for which an instalment of youth allowance is payable to the person;

the person continues to be qualified for the allowance until the end of that period.

Subdivision B—Activity test

541 Activity test

General

(1) Subject to section 541A and subsection (3) of this section, a person satisfies the activity test in respect of a period if:

(a) the person satisfies the Secretary that, throughout the period, the person is undertaking full‑time study (see section 541B); or

(b) subject to subsection (4), the person (not being an early school leaver) satisfies the Secretary that, throughout the period, the person is actively seeking, and willing to undertake, paid work in Australia (other than paid work that is unsuitable for the person).

Note: See section 541D on paid work that is unsuitable.

Persons who comply with Employment Pathway Plan

(1AA) Subject to section 541A and subsection (3) of this section, a person also satisfies the activity test in respect of a period if:

(a) throughout the period, the person complies with the terms of a Youth Allowance Employment Pathway Plan that is in force in relation to the person; and

(b) any of the following subparagraphs applies in relation to the person:

(ia) the person is an early school leaver;

(i) the person is included in a class of persons specified in an instrument made under subsection (1AB);

(ii) the Secretary determines that the person should be taken to satisfy the activity test in respect of that period.

(1AB) The Secretary may, by legislative instrument, specify classes of persons for the purposes of subparagraph (1AA)(b)(i).

Certain principal carers and people with partial capacity to work

(1B) A person who:

(a) is the principal carer of at least one child; or

(b) has a partial capacity to work;

is taken to satisfy the activity test in respect of a period if, during the period, the person is engaged for at least 30 hours per fortnight in paid work that the Secretary regards as suitable.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For partial capacity to work see section 16B.

Participation in the National Green Jobs Corps program

(1C) A person also satisfies the activity test in respect of a period if, throughout the period, the person is participating in the National Green Jobs Corps program.

Requirement to undertake paid work

(2) A person also satisfies the activity test in respect of a period if:

(aa) the person is not an early school leaver; and

(a) the Secretary is of the opinion that, throughout the period, the person should undertake particular paid work, other than paid work that is unsuitable to be done by the person; and

Note: See section 541D on paid work that is unsuitable.

(b) the Secretary notifies the person that the person is required to act in accordance with the opinion; and

(2A) To avoid doubt, the work that the person is required to undertake under subsection (2) 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 Youth Allowance Employment Pathway Plan that is in force in relation to the person.

(2B) A person cannot be taken to satisfy the activity test throughout a period if the person fails to comply with a requirement under subsection (2):

(a) whether or not the person complies with subsection (1) or (1AA); and

(b) whether or not another provision of this Act under which the activity test is satisfied, or taken to be satisfied, applies (or would apart from this section apply) to the person.

Full‑time employees etc.

(3) A person cannot be taken to satisfy the activity test if:

(a) the person is a new apprentice; or

(b) except in the case of a person who is undertaking full‑time study—the person is employed in full‑time paid work for at least:

(i) 35 hours per week; or

(ii) such lesser period per week as is, in the Secretary’s opinion, the normal number of hours per week that constitutes full‑time work in the industry in which the person is employed; or

(c) except in the case of a person who is undertaking full‑time study—the person is, in the Secretary’s opinion, involved to a substantial degree in the operation of a family business and, in the Secretary’s opinion, should not be taken to satisfy the activity test.

People who cease undertaking full‑time study

(4) For the purposes of paragraph (1)(b), a person who has:

(a) ceased undertaking full‑time study; and

(b) been given a notice under section 68 of the Administration Act that has the effect of requiring the person to inform the Department of that cessation; and

cannot satisfy the Secretary that, at a particular time after the refusal or failure, the person is actively seeking, and willing to undertake, paid work in Australia unless, before that time, the person has informed the Department of that cessation or the Department has become aware of that cessation.

Note: For undertaking full‑time study see section 541B.

541A Failure to satisfy the activity test

(1) A person cannot be taken to satisfy the activity test in respect of a period if:

(a) the person fails to comply, throughout the period, with a requirement of the Secretary under subsection 541(2); or

(b) the person fails, throughout the period, to comply with the requirements in a Youth Allowance Employment Pathway Plan applying to the person; or

(c) the person (not being an early school leaver) refuses or fails, without reasonable excuse, to attend a job interview; or

(d) the person voluntarily ceases, without reasonable excuse, to take part in, or is dismissed for misconduct from, a labour market program; or

(e) the person refuses or fails to commence, or to complete, an approved program of work for income support payment that the person is required to undertake; or

(f) the person refuses or fails to comply with the conditions of such a program.

(2) Paragraphs (1)(d) to (f) apply in relation to a person who is an early school leaver only if:

(a) a Youth Allowance Employment Pathway Plan is in force in relation to the person; and

(b) the plan requires the person to take part in a labour market program or, as the case may be, to undertake an approved program of work for income support payment.

541B Undertaking full‑time study

General

(1) For the purposes of this Act, a person is undertaking full‑time study if:

(a) the person:

(i) is enrolled in a course of education at an educational institution; or

(ii) was enrolled in the course and satisfies the Secretary that he or she intends, and has (since no longer being enrolled) always intended, to re‑enrol in the course when re‑enrolments in the course are next accepted; or

(iii) was enrolled in the course and satisfies the Secretary that he or she intends, and has (since no longer being enrolled) always intended, to enrol in another course of education (at the same or a different educational institution) when enrolments in the other course are next accepted; and

(b) the person:

(i) is undertaking in the particular study period (such as, for example, a semester) for which he or she is enrolled for the course; or

(ii) intends to undertake in the next study period for which he or she intends to enrol for the course;

either:

(iii) in a case to which subsection (1A) does not apply—at least three‑quarters of the normal amount of full‑time study in respect of the course for that period (see subsections (2) to (4)); or

(iv) in a case to which subsection (1A) applies—at least two‑thirds of the normal amount of full‑time study in respect of the course for that period (see subsections (2) to (4)); and

(d) in the Secretary’s opinion, the person is making satisfactory progress towards completing the course.

When two‑thirds study load applies

(1A) This subsection applies for the purposes of subparagraph (1)(b)(iv) if the person cannot undertake the normal amount of full‑time study in respect of the course for that period:

(a) because of the usual requirements of the institution in question in respect of the course; or

(b) because of a specific direction in writing to the student from the academic registrar, or an equivalent officer, of the institution in question; or

(c) because the academic registrar, or an equivalent officer, of the institution in question recommends in writing that the person undertake the amount of study mentioned in subparagraph (1)(b)(iv) in respect of the course for specified academic or vocational reasons.

Paragraph (c) applies for no longer than half of the academic year.

Meaning of normal amount of full‑time study

(2) For the purposes of paragraph (1)(b), the normal amount of full‑time study in respect of a course is:

(a) if:

(i) the course is a course of study within the meaning of the Higher Education Support Act 2003; and

(ii) there are Commonwealth supported students (within the meaning of that Act) enrolled in the course;

the full‑time student load for the course; or

(b) if the course is not such a course and the institution defines an amount of full‑time study that a full‑time student should typically undertake in respect of the course—the amount so defined; or

(c) otherwise—an amount of full‑time study equivalent to the average amount of full‑time study that a person would have to undertake for the duration of the course in order to complete the course in the minimum amount of time needed to complete it.

Alternative meaning of normal amount of full‑time study

(3) For the purposes of paragraph (1)(b), and without limiting subsection (2), the normal amount of full‑time study in respect of a course is an average, taken over the duration of the period for which the person in question is enrolled in the course, of 20 contact hours per week.

Meaning of satisfactory progress

(3A) In forming an opinion about whether a person is making satisfactory progress for the purpose of paragraph (1)(d), the Secretary is to have regard to the guidelines.

(3B) The Minister, by legislative instrument:

(a) is to set guidelines for the exercise of the Secretary’s discretion under subsection (3A); and

(b) may revoke or vary those guidelines.

First fortnight of classes

(4) For the purposes of paragraph (1)(b), a person is taken to be undertaking full‑time study in respect of a course during the period (the relevant period):

(a) starting on the first day of classes in a study period; and

(b) ending on the Friday of the second week of classes in the study period;

if the person is enrolled in the course and undertakes study in respect of the course on at least one day in the relevant period.

Meaning of approved course of education or study

(5) For the purposes of paragraph (1)(c), the course is an approved course of education or study if it is a course determined, under section 5D of the Student Assistance Act 1973, to be a secondary course or a tertiary course for the purposes of that Act.

541D Unsuitable paid work

What is unsuitable paid work

(1) Subject to subsections (1A) and (1B), for the purposes of section 541, 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

(ba) the person is the principal carer for one or more children, and does not have access to appropriate care and supervision for the children at the times when the person would be required to undertake the work; or

Note: For principal carer see subsections 5(15) to (24).

(c) 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

(ga) the place of work is not accessible by public transport services and the person does not have access to alternative transport facilities and could not reasonably be expected to travel to the place of work; or

(h) the work would require enlistment in the Defence Force or the Reserves; or

(ha) the work requires the person to move from a home in one place to a home in another place; or

(i) for any other reason, the work is unsuitable for the person.

(1AA) A person has, for the purposes of paragraph (1)(ba), access to appropriate care and supervision for a child at a particular time if, at that time:

(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.

(1AB) For the purposes of paragraph (1)(ba), 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.

(1AC) The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph (1)(i), particular paid work is unsuitable for a person.

(1AD) To avoid doubt, a determination under subsection (1AC) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph (1)(i), particular paid work is unsuitable for a person.

When commuting is unreasonably difficult

(1A) 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 full‑time 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 (1)(g), (ga) or (ha) 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.

(1B) 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 (1A) to seek work outside the area at the time when the representation is made.

Remuneration for work

(4) A reference in subsection (1) 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).

Subdivision C—Exemptions from the activity test

542 Situations in which a person is not required to satisfy the activity test

For the purposes of this Part, a person is not required to satisfy the activity test in respect of a period if, throughout the period:

(a) the person has a temporary incapacity exemption under section 542A; or

(b) the person has a pre‑natal exemption or a post‑natal exemption under section 542D; or

(d) the person has a domestic violence or other special family circumstances exemption under section 542F; or

(da) the person has a disabled children or other family circumstances exemption under section 542FA; or

(db) the person has a new claimants exemption under section 542FB; or

(e) the person has a training camp exemption under section 542G; or

(f) the person has a special circumstances exemption under section 542H.

542A Temporary incapacity exemption

General

(1) Subject to subsection (2) of this section and sections 542B and 542C, a person has a temporary incapacity exemption if:

(a) throughout the period the person:

(i) if the person is undertaking full‑time study—does not have the capacity to undertake the course of education in respect of which he or she is undertaking full‑time study; or

(ia) if the person is an early school leaver and a Youth Allowance Employment Pathway Plan is in force in relation to the person—does not have the capacity to undertake the required activities; or

(ii) in any other case—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 study, the required activities or work (as the case requires); and

(iv) the period for which the person is incapacitated for study, the required activities or work (as the case requires); and

(e) the Secretary is satisfied that the incapacity has not been brought about with a view to obtaining an exemption from the activity test.

(1A) The Secretary must comply with the guidelines (if any) determined and in force under subsection (1B) in deciding the following:

(a) whether subparagraph (1)(a)(ii) or paragraph (1)(b) or (c) applies to a person in respect of a period;

(b) whether, for the purposes of paragraph (b) of the definition of work in subsection (3), work is of a kind that a person is reasonably capable of performing.

(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).

Claimants for disability support pension

(2) This section does not apply to a person who is qualified for a youth allowance under section 540A.

Definitions

(3) In this section:

required activities, in relation to an early school leaver in relation to whom a Youth Allowance Employment Plan is in force, means the activities required to be undertaken by the plan.

work, in relation to a person, means work (whether full‑time, part‑time, permanent or casual) that:

(a) if the person was employed at the time the sickness or accident in question occurred—the person has contracted to perform under a contract of employment that:

(i) the person had immediately before the person becomes incapacitated; and

(ii) continues after the person becomes incapacitated; and

(b) if the person was not employed at that time—the person is reasonably capable of performing;

being work that is for at least 8 hours per week on wages that are at or above the relevant minimum wage.

542B Failure to attend interview etc. may result in cessation of temporary incapacity exemption

General

(1) A person ceases to have a temporary incapacity exemption if:

(a) the Secretary is of the opinion that the person should:

(i) contact a particular officer of the Department; or

(ii) attend an interview at a particular place; or

(iii) complete a questionnaire; or

(iv) attend a medical, psychiatric or psychological examination; and

(b) the Secretary gives the person a written notice stating that the person is required, within a period stated in the notice, being a period of not less than 14 days, to:

(i) contact the officer; or

(ii) attend the interview; or

(iii) complete the questionnaire; or

(iv) attend the examination; or

(v) if the person has undergone an examination—give the Secretary a report on the examination in the approved form; and

(d) the person does not comply with the requirement.

Contents of notice

(2) A notice under paragraph (1)(b) must inform the person to whom it is given of the effect of failure by the person to comply with the requirement set out in the notice.

542BA Time limit for temporary incapacity exemptions—capacity to undertake activity

General

(1) A person ceases to have a temporary incapacity exemption if the Secretary is satisfied that, although the person meets the requirements of section 542A, the person should undertake one or more activities that the Secretary regards as suitable for the person.

When cessation occurs

(2) The cessation occurs:

(a) if the person has been required to enter into a Youth Allowance Employment Pathway Plan but has failed to enter that plan—when the person so failed; or

(b) in any other case—when the person has entered into such a plan.

Section 542C unaffected by this section

(3) This section does not prevent a person ceasing to have a temporary incapacity exemption under section 542C.

542C Time limit for temporary incapacity exemptions—maximum exemption period

General

(1) A person ceases to have a temporary incapacity exemption if the person’s maximum exemption period ends.

Maximum exemption period

(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 the person was required to satisfy the activity test—the lesser of the following periods:

(i) the period stated in the certificate as the period for which the person would be incapacitated for study, the required activities or work (as the case may be);

(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 study, the required activities or work (as the case may be) began.

Extension where paragraph 542A(1)(d) certificate given

(3) If:

(a) a person has a temporary incapacity exemption; 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 542A(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 study, the required activities or work (as the case may be) 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 study, the required activities or work (as the case may be);

(e) 13 weeks.

Extension where paragraph 542A(1)(d) certificate given after end of maximum exemption period

(4) If:

(a) a person had a temporary incapacity exemption; 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 542A(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 study, the required activities or work (as the case may be) 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 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 study, the required activities or work (as the case may be);

(e) 13 weeks.

Extension where other written evidence given

(5) If:

(a) a person has a temporary incapacity exemption; 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 study, the required activities or work (as the case may be) 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 study, the required activities or work (as the case may be) 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.

Extension where other written evidence given after end of maximum exemption period

(6) If:

(a) a person had a temporary incapacity exemption; 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 study, the required activities or work (as the case may be) 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 study, the required activities or work (as the case may be) 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.

Extension where paragraph 542A(1)(d) certificate not considered in a timely manner

(7) If:

(a) a person has a temporary incapacity exemption; 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 study, the required activities or work (as the case may be) 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.

Section 542BA unaffected by this section

(8) This section does not prevent a person ceasing to have a temporary incapacity exemption under section 542BA.

Definition

(9) In this section:

required activities has the meaning given by subsection 542A(3).

542D Pre‑natal and post‑natal exemptions

Pre‑natal exemption

(1) A pregnant woman has a pre‑natal exemption 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).

Post‑natal exemption

(2) If a woman gives birth to a child (whether or not the child is born alive), the woman has a post‑natal exemption for the period that starts on the day on which she gives birth to the child and ends 6 weeks after that day.

542E Remote area exemption

General

(1) Subject to subsection (2), a person has a remote area exemption in respect of a period if the Secretary considers that:

(a) it would be reasonable to assume that, at the end of a period, a person is present in an area where:

(i) there is no locally accessible labour market; and

(ii) there is no locally accessible vocational training course or labour market program; and

(iii) in a case where the person is an early school leaver—there is no locally accessible approved course of training or education within the meaning given by subsection 544DA(6) (including any such course available by distance education); and

(b) it would also be reasonable to assume that the person is throughout the period:

(i) unemployed; and

(ii) capable of undertaking paid work that in the Secretary’s opinion is suitable to be undertaken by the person; and

(iii) willing to undertake paid work that in the Secretary’s opinion is suitable to be undertaken by the person; and

(i) the location of offices of the Department; and

(ii) difficulties with transport and communication; and

(iii) the educational and cultural background of the person;

it would be unreasonable to expect the person to satisfy the activity test in order to be qualified for youth allowance for the period.

Note: The activity test is dealt with in Subdivision B.

Effect of subsection 541(2) notices

(2) This section does not apply if the person has been notified of a requirement under subsection 541(2) in relation to the period.

542F Domestic violence or other special family circumstances exemption

General

(1) A person has a domestic violence or other special family circumstances exemption in respect of a period that the Secretary determines under this section in relation to the person.

Circumstances in which a determination may be made

(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) is the principal carer of one or more children; and

(ii) was subjected to domestic violence in the 26 weeks before the making of the determination; or

(b) the person is the principal carer of one or more children, and there are special circumstances relating to the person’s family that make it appropriate to make the determination.

Note: For principal carer see subsections 5(15) to (24).

(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).

Duration of period

(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 relation to the person on or after 1 July 2010.

Revocation of determination

(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.

542FA Disabled children or other family circumstances exemption

General

(1) A person has a disabled children or other family circumstances exemption in respect of a period that the Secretary determines under this section in relation to the person.

Circumstances in which a determination may be made

(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 satisfy the activity test.

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:

(a) the person is the principal carer of a child; and

(b) the person is one or both of the following:

(i) the principal carer of one or more other children;

(ii) the main supporter of one or more secondary pupil children; and

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For main supporter see section 5G.

Note 3: For secondary pupil child see section 5F.

(3B) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that the person:

(a) is not the principal carer of one or more children; and

(b) is a registered and active foster carer; and

(c) is providing foster care to a child temporarily in an emergency or to give respite to another person from caring for the child.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For registered and active foster carer see section 5B.

(3C) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that the person:

(a) is the main supporter of one or more secondary pupil children; and

(b) is a home educator or distance educator of one or more of those children.

Note 1: For main supporter see section 5G.

Note 2: For secondary pupil child see section 5F.

Note 3: For home educator see section 5C.

Note 4: For distance educator see section 5D.

(3D) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that:

(a) the person is the principal carer of one or more children; and

(b) the person is a relative (other than a parent) of a child (the kin child); and

(i) provides for the kin child to live with the person for the care and wellbeing of the kin child; and

(ii) is prepared or accepted by an authority of a State or Territory that has responsibility for the wellbeing of children; and

(d) the person is acting in accordance with the document.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For relative (other than a parent) see section 5E.

(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 satisfy the activity test for the period.

(5) The Secretary may, by legislative instrument, specify classes of persons in respect of whom determinations under this section may be made.

Duration of period

(6) The period that the Secretary determines under this section, except subsection (3B), must be the lesser of:

(a) the period that the Secretary considers to be appropriate; or

(b) 12 months.

(6A) The period that the Secretary determines under subsection (3B) in relation to the person must be the lesser of:

(a) the period:

(i) starting when the person starts to provide foster care to the child; and

(ii) ending 12 weeks, or a shorter period determined by the Secretary, after the person ceases to provide foster care to the child; and

(b) 12 months.

(7) A period determined by the Secretary under this section in relation to the person may be followed by one or more other periods (not exceeding 12 months) determined under this section in relation to the person.

Revocation of determination

(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.

542FB New claimants exemption

General

(1) A person has a new claimants exemption in respect of the period to which subsection (4) applies if:

(a) during the period, the person undertakes:

(i) paid work that, in the Secretary’s opinion, is suitable for the person to undertake; or

(ii) any other activity; and

(b) the Secretary is of the opinion that, taking into account:

(i) the nature of the work or other activity; and

(ii) the duration of the work or other activity; and

(iii) any remuneration received for the work or other activity; and

(iv) any other matters relating to the work or other activity, or to the person’s circumstances, that the Secretary considers relevant;

it would be unreasonable to expect the person to satisfy the activity test for the period.

Work or other activities that are not to be taken into account

(2) However, the work or other activity must not be or include any work or other activity of a kind that the Secretary determines under subsection (3).

(3) The Secretary may determine, by legislative instrument, kinds of work or other activity that are not to be taken into account for the purposes of subsection (1).

Duration of period

(4) This subsection applies to the period:

(a) starting:

(i) when the person made a claim, or is taken to have made a claim, for youth allowance; or

(ii) when the person started to undertake the work or other activity;

whichever happens later; and

(b) ending:

(i) if the person has been required to enter into a Youth Allowance Employment Pathway Plan but has failed to enter that plan—when the person so failed; or

(ii) in any other case—when the person has entered into such a plan.

542G Training camp exemption

A person has a training camp exemption if the person is attending a training camp as a member of:

(a) the Naval Reserve; or

(b) the Army Reserve; or

542H Special circumstances exemption

General

(1) Subject to subsections (2) and (3), a person has a special circumstances exemption 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 satisfy the activity test for that period.

Meaning of special circumstances

(1A) In making a decision under subsection (1), the Secretary is to have regard to the guidelines.

(1B) The Minister, by legislative instrument:

(a) is to set guidelines for the exercise of the Secretary’s discretion under subsection (1A); and

(b) may revoke or vary those guidelines.

Duration of period

(2) The period referred to in subsection (1) is not to be more than 13 weeks.

Duration where a number of determinations made

(3) If:

(a) the Secretary makes more than one decision under subsection (1) or under subsection 731E(1); and

(b) the periods to which the decisions relate form a continuous period;

the continuous period is not to be more than 13 weeks, unless the Secretary decides otherwise, having regard to the continued existence, or likely continued existence, of the special circumstances on which the last preceding decision was based.

Subdivision D—Youth allowance age

543 Youth allowance age

For the purposes of this Part, a person is of youth allowance age if the person:

(a) has attained the minimum age for youth allowance (see section 543A); and

(b) has not yet attained the maximum age for youth allowance (see section 543B).

543A Minimum age for youth allowance

General

(1) Subject to this section, the person has attained the minimum age for youth allowance if the person:

(a) is at least 16 years old; or

(b) is 15 years old and is independent.

Note: For independent see section 1067A.

Persons not yet 18 years old

(2) Subject to subsections (2A) and (2B), a person who satisfies paragraph (1)(a) or (b) but is not yet 18 years old is not taken under subsection (1) to have attained the minimum age for youth allowance unless the person:

(a) has completed the final year of secondary school, or an equivalent level of education; or

(b) is undertaking full‑time study; or

(d) is a new apprentice.

(2A) Subject to subsection (2B), subsection (2) does not apply to the person if the Secretary considers that the person does not have the capacity to undertake full‑time study or training because he or she:

(a) is ill or has had an accident and the incapacity is, or is likely to be, of a temporary nature; or

(b) has a physical, psychiatric or intellectual disability, or a learning difficulty such as attention deficit disorder; or

(d) has given birth within the previous 6 weeks; or

(f) has been refused enrolment and no other education or training place is available within a reasonable distance; or

(g) is required to provide full‑time care for a family member who is incapacitated due to illness or accident and the incapacity is, or is likely to be, of a temporary nature; or

(h) has suffered a personal crisis such as the death of an immediate family member, a marriage breakup, family dislocation or physical, emotional or sexual abuse; or

(i) is homeless and unable to obtain stable accommodation; or

(j) has suffered a major disruption of their home such as fire damage, flooding, earthquake damage, vandalism or burglary; or

(k) suffers from alcohol or drug abuse sufficient to cause intermittent or temporary absences from full‑time study or training; or

(l) is engaged in part‑time work, education, training or a combination of these for not less than 25 hours per week; or

(m) is a refugee whose capacity to undertake full‑time education is reduced because:

(i) the person has suffered torture, imprisonment or other traumatic circumstances; or

(ii) lacks sufficient English skills; or

(iii) is recently arrived and lacks stable accommodation; or

(n) is the subject of a community service or juvenile justice order which reduces the person’s capacity to engage in full‑time education; or

(p) is receiving Commonwealth funded intensive assistance for jobseekers or State, Territory or community provided case management approved by the Secretary or, where no intensive assistance or case management place is available to the person, is suitable for and agrees to undertake intensive assistance or case management; or

(q) is in other circumstances which, in the opinion of the Secretary, make it unreasonable for the person to be in full‑time education or training.

(2B) If the following circumstances exist in relation to the person in respect of a period (the qualifying period):

(a) except for paragraph 540(b), the person would be qualified for a youth allowance in respect of the qualifying period;

(b) the person is taken to have attained the minimum age for youth allowance in respect of the qualifying period only because one or more of the grounds (the precluding grounds) referred to in subsection (2A) preclude subsection (2) from applying to the person;

the person is qualified for youth allowance under section 540 only in respect of so much of the qualifying period as does not exceed:

(d) if the only precluding ground is the ground referred to in paragraph (2A)(h) or (j)—2 weeks; or

(e) if the only precluding ground is the ground referred to in paragraph (2A)(l)—the period for which the work, education or training lasts; or

(f) if the only precluding grounds are 2 or more of the grounds referred to in paragraphs (2A)(c), (d), (h), (j) and (l)—the longer or longest period prescribed by paragraphs (c), (d) and (e) of this subsection in relation to those precluding grounds; or

(g) otherwise—13 weeks or such longer period as the Secretary approves.

Independent persons

(3) For the purposes of this section, the person cannot be taken to be independent unless the person:

(a) has reached the minimum school leaving age for the State or Territory in which the person is living; or

(b) is the subject of a formal exemption from attending school granted by the education authority of that State or Territory.

543B Maximum age for youth allowance

General

(1) Subject to subsection (2), the person has attained the maximum age for youth allowance if:

(a) the person is not undertaking full‑time study and is at least 21 years old; or

(b) the person:

(i) is undertaking full‑time study in respect of a course of education that is to last for less than 12 months; and

(ii) was, immediately before starting the course of education, receiving newstart allowance; and

(iii) is at least 21 years old; or

(d) the person is not a new apprentice and is at least 21 years old; or

(e) the person is a new apprentice and is at least 25 years old.

Continuance of full‑time study after turning 25

(2) If the person is at least 25 years old, the person is taken not to have attained the maximum age for youth allowance if the person:

(a) was receiving youth allowance immediately before turning 25; and

(b) is either:

(i) undertaking full‑time study in respect of a course of education that the person had commenced before turning 25; or

(ii) a new apprentice and became a new apprentice before turning 25.

Subdivision E—Youth Allowance Employment Pathway Plans

544 Requirements relating to Youth Allowance Employment Pathway Plans

(1) The requirements that apply to a person relating to Youth Allowance Employment Pathway Plans in respect of a period are as follows:

(a) the person must enter into a Youth Allowance Employment Pathway Plan in relation to the period when the person is required by the Secretary under section 544A to do so; and

(b) while the plan is in force, the person must comply with the requirements in the plan; and

(c) at all times when the plan is in force, the person must be prepared to enter into another such plan instead of the existing plan, if required to do so by the Secretary.

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

(a) a person starts to receive youth allowance on a particular day; and

(b) immediately before that day a Special Benefit Employment Pathway Plan was in force in relation to the person; and

the plan has effect on or after that day as if it were a Youth Allowance Employment Pathway Plan.

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

(a) a person starts to receive youth allowance on a particular day; and

(b) immediately before that day, a Parenting Payment Employment Pathway Plan was in force in relation to the person; and

the plan has effect on and after that day as if it were a Youth Allowance Employment Pathway Plan.

544A Youth Allowance Employment Pathway Plans—requirement

Requirement to enter into plan

(1) If a Youth Allowance Employment Pathway Plan is not in force in relation to a person, the Secretary may require the person to enter into such a plan if:

(a) the person is receiving, or has made a claim for, a youth allowance; or

(b) the Department is contacted by or on behalf of the person in relation to a claim for a youth allowance.

Persons who have certain exemptions etc. are not to be required to enter plans

(2) A person who:

(b) has a pre‑natal exemption or a post‑natal exemption under section 542D; or

(ba) has a domestic violence or other special family circumstances exemption under section 542F; or

(bb) has a disabled children or other family circumstances exemption under section 542FA; or

is not to be required to enter into a Youth Allowance Employment Pathway Plan.

Persons who have a temporary incapacity exemption

(2A) A person who has a temporary incapacity exemption under section 542A is not to be required to enter into a Youth Allowance Employment Pathway Plan unless subsection 542BA(1) applies to the person.

Requirement to enter another plan

(3) If a Youth Allowance Employment Pathway Plan is in force in relation to a person, the Secretary may require the person to enter into another plan instead of the existing one.

Notice of requirement

(4) The Secretary is to give a person who is required to enter into a Youth Allowance Employment Pathway Plan notice of:

(a) the requirement; and

(b) the places and times, being places and times which are reasonable in all the circumstances, at which the plan is to be negotiated; and

Form of plan

(5) A Youth Allowance Employment Pathway Plan must be in a form approved by the Secretary.

544B Youth Allowance Employment Pathway Plans—terms

Suitable requirements

(1) Subject to sections 544C, 544D and 544DA, a Youth Allowance Employment Pathway Plan that is in force in relation to a person is to contain one or more terms (the requirements) that:

(a) the person is required to comply with; and

(b) the Secretary regards as suitable for the person.

(1A) A plan must not contain a requirement of a kind that the Secretary determines under subsection (1B).

(1B) The Secretary must determine, by legislative instrument, kinds of requirements that plans must not contain.

(1C) To avoid doubt, a determination under subsection (1B) does not limit the Secretary’s discretion to exclude other kinds of requirements from a particular plan under subsection (1).

Optional terms

(1D) A plan may also contain one or more terms that the person may, but is not required to, comply with.

Approval of requirements

(2) The requirements in a plan are to be approved by the Secretary.

(3) In considering whether to approve the requirements in a plan that will be in force in relation to a person, the Secretary is to have regard to:

(a) the person’s capacity to comply with the requirements; and

(b) the person’s needs.

(4) In having regard to a person’s capacity to comply with the requirements in a plan, the Secretary is to take into account, but is not limited to the following matters:

(a) the person’s education, experience, skills and age;

(aa) 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;

(b) the state of the local labour market and the transport options available to the person in accessing that market; and

(d) the family and caring responsibilities of the person; and

(e) the length of travel time required to comply with the requirements; and

(f) the financial costs (such as travel costs) of complying with the requirements, and the person’s capacity to pay for such costs; and

(g) any other matters that the Secretary or the person considers relevant in the circumstances.

Variation, suspension, cancellation and review

(5) A plan that is in force in relation to a person:

(a) may be varied (in negotiation with the person) or suspended by the Secretary; and

(b) must be cancelled by the Secretary if the person enters into another Youth Allowance Employment Pathway Plan; and

(d) may be cancelled by the Secretary after a review under paragraph (c).

Circumstances preventing or affecting compliance

(6) If a plan is in force in relation to a person, the person must notify the Secretary of any circumstances preventing or affecting the person’s capacity to comply with the requirements in the plan.

Situations in which participation in an approved program of work for income support payment cannot be required

(7) A Youth Allowance Employment Pathway Plan that is in force in relation to a person must not require the person to participate in an approved program of work for income support payment if:

(a) the person is under 18 years of age; or

(b) the person is undertaking full‑time study; or

(c) because of the application of one or more Modules of the Youth Allowance Rate Calculator in section 1067G, the person would receive or is receiving a youth allowance at a rate that has been reduced; or

(d) 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

(e) the program of work requires the person to move from a home in one place to a home in another place.

Revocation of requirement to participate in an approved program of work

(7A) If a Youth Allowance Employment Pathway Plan that is in force in relation to a person requires the person to participate in an approved program of work for income support payment, the Secretary may, by notice given to the person, revoke the requirement to participate in the program if the Secretary:

(a) is satisfied that the person is undertaking full‑time study; or

(b) is satisfied that the person is a person to whom paragraph (7)(c) applies; or

(c) forms the opinion that subparagraph (7)(d)(i) or (ii) applies in relation to the performance of that work by the person.

Activities that do not give rise to employment under certain industrial relations legislation

(8) A person is not to be taken to be one of the following merely because the person participates in an approved program of work for income support payment, or undertakes an activity (other than suitable paid work), in accordance with a term (including an optional term) of a Youth Allowance Employment Pathway Plan under this section:

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

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

(d) an employee for the purposes of the Fair Work Act 2009.

544C Youth Allowance Employment Pathway Plans—principal carers

(1) A Youth Allowance Employment Pathway Plan that:

(a) is in force in relation to a person who is the principal carer of at least one child; and

Note: For principal carer see subsections 5(15) to (24).

(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 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.

544D Youth Allowance Employment Pathway Plans—people with partial capacity to work

(1) A Youth Allowance Employment Pathway Plan that:

(a) is in force in relation to a person who has a partial capacity to work; and

Note: For partial capacity to work see section 16B.

(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 part‑time 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.

544DA Youth Allowance Employment Pathway Plans—early school leavers

(1) This section applies in relation to a Youth Allowance Employment Pathway Plan that is in force in relation to a person who is an early school leaver.

(2) Unless subsection (5) applies in relation to the person, the plan must require the person to undertake for at least the appropriate number of hours per week:

(a) one or more approved courses of training or education; or

(b) a combination of:

(i) one or more approved courses of training or education; and

(ii) one or more other activities that the Secretary considers suitable for the person.

(3) If subsection (5) applies in relation to the person, the plan must require the person to undertake, for at least the appropriate number of hours per week, one or more activities (other than an approved course of training or education) that the Secretary considers suitable for the person.

(4) The appropriate number of hours per week is:

(a) 25; or

(b) such other number as the Secretary determines to be appropriate having regard to the person’s circumstances.

(5) This subsection applies in relation to a person if:

(a) there is no locally accessible approved course of training or education (including any such course available by distance education); or

(b) where there is such a course:

(i) there is no place available on the course for the person; or

(ii) the person is not qualified to undertake the course; or

(iii) the person lacks capacity to undertake the course because he or she has a physical, psychiatric or intellectual disability or a learning disability such as attention deficit disorder; or

(c) in the Secretary’s opinion, special circumstances exist that make it unreasonable to require the person to undertake an approved course of training or education.

(6) For the purposes of this section, a course is an approved course of training or education for a person if it:

(a) is a course of study or instruction determined under section 5D of the Student Assistance Act 1973 as a secondary course or a tertiary course for the purposes of that Act; and

(b) would, in the Secretary’s opinion, assist or allow the person to complete the final year of secondary school or an equivalent level of education.

(7) The Secretary may, by legislative instrument, set guidelines for the exercise of the Secretary’s discretion under (either or both):

(a) paragraph (5)(c); and

(b) paragraph (6)(b).

(8) In forming an opinion for the purposes of paragraph (5)(c) or (6)(b), the Secretary must have regard to the guidelines.

544E Youth Allowance Employment Pathway Plans—suspension of plans for people with certain exemptions

A Youth Allowance Employment Pathway Plan that is in force in relation to a person is taken to be suspended during any period in respect of which the person:

(a) has a domestic violence or other special family circumstances exemption under section 542F; or

(b) has a disabled children or other family circumstances exemption under section 542FA.

Subdivision G—Miscellaneous

546 Prospective determinations for some allowance recipients

Recipients may qualify in advance in some cases

(1) A person is qualified for youth allowance for a period determined by the Secretary if:

(a) the person is receiving youth allowance; 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 youth allowance (see Subdivision A) during the period; and

(ii) it is reasonable to expect that youth allowance will be payable to the person for the period; and

(iii) the person will comply with this 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:

(i) this Act; or

(ii) the Student Assistance Act 1973 as in force immediately before the commencement of this section; and

(d) the Secretary is satisfied that the person should be qualified under this section for youth allowance for the period.

Guidelines for the purposes of paragraph (1)(b)

(2) The Minister, by legislative instrument:

(a) must determine 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 guidelines that take effect immediately after the revocation.

Division 2—Situations in which youth allowance is not payable

Subdivision A—Situations in which allowance not payable (general)

547 Youth allowance not payable if allowance rate nil

(1) Subject to subsection (2), a youth allowance is not payable to a person if the person’s youth 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 the social security law.

547AA Youth allowance not payable if person fails to attend interview etc. in certain circumstances

General

(1) A youth allowance is not payable to a person if:

(a) before or after the person made a claim for a youth allowance, the Department is contacted by or on behalf of the person in relation to a claim for a youth allowance; and

(b) as a result of the contact, the Department required the person to do one or both of the following:

(i) attend an interview with a specified person or organisation at a time and place specified in the requirement;

(ii) enter into a Youth Allowance Employment Pathway Plan; and

(d) the person is not undertaking full‑time study and is not a new apprentice.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

Secretary may decide that this section does not apply

(2) This section does not apply to a person if the Secretary is satisfied, in accordance with any guidelines under subsection (3), that it should not apply to the person.

(3) The Secretary may, by legislative instrument, make guidelines to be complied with in deciding under subsection (2) whether this section applies to a person.

When this section ceases to apply

(4) This section ceases to apply:

(a) when the person complies with:

(i) that requirement, or those requirements; or

(ii) any requirements that the Secretary has required the person to undertake in place of that requirement, or those requirements; or

(b) at such earlier time as the Secretary determines, in accordance with any guidelines under subsection (5).

(5) The Secretary may, by legislative instrument, make guidelines to be complied with in making determinations under paragraph (4)(b).

This section is unaffected by date of claim

(6) To avoid doubt, the fact that a person is taken, because of section 13 of the Administration Act, to have made a claim for a youth allowance on the day on which the Department was contacted by or on behalf of the person in relation to the claim does not affect the operation of this section.

547AB Situations where allowance not payable for failure to comply with certain requirements

A youth allowance 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.

Subdivision AB—Assets test

547A Allowance not payable if assets value limit exceeded

A youth allowance is not payable to a person if:

(a) the person is not excluded from the application of the youth allowance assets test; and

(b) the value of the person’s assets is more than the person’s assets value limit.

Note 1: For persons excluded from application of test see section 547B.

Note 2: For assets value limit see section 547C.

547B Who is excluded from application of assets test?

(1) A person is excluded from the application of the youth allowance assets test if the person is independent but the person’s partner is receiving:

(a) a payment of pension, benefit or allowance referred to in Module L; or

(b) a payment under Part 5 or 6 of the Farm Household Support Act 1992.

(2) A person is excluded from the application of the youth allowance assets test if:

(a) the person is not independent; but

(b) in working out the rate of youth allowance payable to the person, the parental income test is not applied because of point 1067G‑F3 (other than paragraph (d)).

547C Assets value limit [see Appendix for CPI adjusted figures]

A person’s assets value limit is:

(a) $407,250 if the person is not independent (see section 1067A); or

(b) $125,750 if the person:

(i) is independent; and

(ii) is not a member of a couple (see section 4); and

(iii) is a homeowner; or

(i) is independent; and

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

(iii) is not a homeowner; or

(d) $178,500 if the person:

(i) is independent; and

(ii) is a member of a couple; and

(iii) is a homeowner; or

(e) $268,500 if the person:

(i) is independent; and

(ii) is a member of a couple; and

(iii) is not a homeowner.

Note 1: For homeowner see subsection 11(4).

Note 2: The amount in paragraph (a) is indexed annually on 1 January and the amounts in paragraphs (b), (c), (d) and (e) are indexed annually on 1 July (see sections 1191 to 1194).

547D Value of person’s assets to include value of assets of partner or family members in certain circumstances

The value of a person’s assets is the sum of the following values:

(a) the value of the person’s assets (disregarding paragraphs (b) and (c) and Part 3.18);

(b) if the person is independent (see section 1067A) and is a member of a couple (see section 4)—the value of the assets of the person’s partner (disregarding Part 3.18);

(c) if the person is not independent—the value of the assets of each person who is a family member of the person (disregarding Part 3.18).

Sections 547E to 547G apply for the purpose of working out the value of the assets of the person and of any other person who is the partner, or a family member, of the person.

547E Assets of trust in which person benefits

A person’s assets include:

(a) any benefit to which the person is entitled directly or indirectly out of the assets of a trust; and

(b) any asset of a trust that the person can deal with directly or indirectly to his or her advantage; and

(c) any interest in the assets of a trust which has been assigned to someone else but which the person can directly or indirectly control.

547F Exclusion of certain assets that are exempt under the Farm Household Support Act 1992

(1) If:

(a) an exceptional circumstances certificate referred to in section 8A of the Farm Household Support Act 1992 was issued in respect of a person; and

(b) the certificate has effect;

the person’s assets do not include any asset that is an exempt asset in respect of the person for the purposes of that Act because the person is a farmer.

(2) The person’s assets do not include any asset that is an exempt asset in respect of the person for the purposes of the Farm Household Support Act 1992:

(a) in a case where:

(i) the person is receiving exceptional circumstances relief payment because the person qualifies for the payment only under subsection 8A(5) or (7) of that Act; and

(ii) paragraph (b) does not apply;

because the person carries on a small business; and

(b) in a case where the person:

(i) is receiving exceptional circumstances relief payment because the person qualifies for the payment under subsection 8A(5) or (7) of that Act; and

(ii) but for subsubparagraph 8A(1)(b)(i)(C) of that Act, would also qualify under subsection 8A(1) of that Act for the payment;

because the person carries on a small business and the person is a farmer.

547G How business assets are treated

(1) If (and only if) paragraph 547D(c) applies in working out the value of the assets of a person, assets of a business are treated in accordance with subsections (2) and (3). For this purpose, a business includes:

(a) the carrying on of primary production; and

(b) the provision of professional services.

(2) Subject to subsection (3), 75% of the value of a person’s interest in the assets of a business is disregarded if the person, or his or her partner, is wholly or mainly engaged in the business and the business:

(a) is owned by the person; or

(b) is carried on by a partnership of which the person is a member; or

(d) is carried on by the trustee of a trust in which the person is a beneficiary.

(3) Subsection (2) does not apply to assets of a business that are of any of the following kinds:

(a) cash on hand, bank deposits, bank bonds, or similar readily realisable assets;

(b) shares in companies, or rights in relation to shares;

(d) assets leased out by the business, unless leasing is a major activity of the business;

(e) assets used for private or domestic purposes by the owners of the business.

Subdivision C—Waiting periods

549 Waiting periods

(1) A youth allowance is not payable to a person who is qualified for youth allowance while the person is subject to a waiting period.

(2) For the purposes of this Part, a person may be subject to the following waiting periods:

(a) a liquid assets test waiting period (see sections 549A, 549B and 549C);

(b) a newly‑arrived resident’s waiting period (see sections 549D and 549E).

549A Liquid assets test waiting period

When person subject to liquid assets test waiting period—general

(1) Subject to this section, if:

(a) the value of a person’s liquid assets is more than the person’s maximum reserve on:

(i) the day on which the person becomes qualified for youth allowance; or

(ii) the day on which the person claims a youth allowance; and

(b) the person is not a transferee to a youth allowance;

the person is subject to a liquid assets test waiting period.

Note 1: For liquid assets and maximum reserve see section 14A.

Note 2: For transferee to a youth allowance see subsections 23(6) and (7).

Exception—person already subject to liquid assets test waiting period in previous 12 months

(2) Subsection (1) does not apply to a person if, at any time during the 12 months before:

(a) the day on which the person becomes qualified for youth allowance; or

(b) the day on which the person claims youth allowance;

the person:

(d) has served a liquid assets test waiting period under another Part of this Act;

that started during that 12 months.

Exception—waiver for hardship

(3) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

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

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

Exception—certain transferees to youth allowance

(4) Subsection (1) does not apply to a person if:

(a) the person is a transferee to a youth allowance; and

(b) the person claims the youth allowance within 14 days of the transfer day.

Exemption—person undertaking specified activity

(5) Subsection (1) does not apply to a person who:

(a) is undertaking an activity specified in an instrument made under subsection (6); and

(b) has been exempted from the application of subsection (1) by the Secretary.

(6) The Secretary may, by legislative instrument, specify activities for the purpose of paragraph (5)(a).

549B Start of liquid assets test waiting period

General

(1) The liquid assets test waiting period of a person who does not have a temporary incapacity exemption starts on the day on which the person became qualified for youth allowance.

Person has temporary incapacity exemption

(2) If a person has a temporary incapacity exemption, the person’s liquid assets test waiting period starts on the day on which the person became incapacitated.

549C Length of liquid assets test waiting period

Number of weeks

(1) A person’s liquid assets test waiting period is:

(a) if the result obtained under subsection (2) is 13 or more whole weeks—13 weeks; or

(b) if the result obtained under subsection (2) is fewer than 13 whole weeks—the number of whole weeks obtained under that subsection.

Working out number of weeks

(2) Subject to subsection (3), the number of weeks is worked out by using the following formula:

where:

divisor, in relation to the person, means:

(a) if the person is not a member of a couple and does not have a dependent child—$500; or

(b) otherwise—$1,000.

liquid assets means the person’s liquid assets on the day referred to in subparagraph 549A(1)(a)(i) or (ii) (as the case requires).

maximum reserve amount means the maximum reserve in relation to the person under subsection 14A(1).

Weeks etc. to be disregarded

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

(a) any weeks after the person claimed youth allowance during which the person was not qualified for youth allowance; and

(b) any fractions of a week.

549D Newly arrived resident’s waiting period

Basic rule

(1) Subject to this section, a person is subject to a newly arrived resident’s waiting period if the person:

(a) has entered Australia on or after 4 March 1997; and

(b) has not been an Australian resident in Australia for a period of, or periods totalling, 104 weeks.

Note: For Australian resident see subsection 7(2).

Exception—qualifying residence exemption

(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a youth allowance.

Note: For qualifying residence exemption see subsection 7(6).

Exception—person already subject to waiting period etc.

(3) Subsection (1) does not apply to a person if:

(a) the person has been subject to a newly arrived resident’s waiting period; and

(b) that period has ended.

(4) Subsection (1) does not apply to a person if:

(a) the person would, if the person had made a claim under this Act for a social security payment other than youth allowance, have been subject to a newly arrived resident’s waiting period, and that period would have ended; or

(b) the person has had a qualifying residence exemption for a newstart allowance or a sickness allowance under this Act; or

(5) Subsection (1) does not apply to a person if:

(a) the person is a New Zealand citizen; and

(b) the person became, or first became, an Australian resident before 1 July 1998; and

(i) when the person made the claim for youth allowance, the person had been an Australian resident for the immediately preceding 12 months or had been continuously present in Australia for the immediately preceding 6 months; or

(ii) the person was immediately before 1 July 1998 qualified for sickness allowance or youth training allowance; or

(iii) the person has previously received sickness allowance or youth training allowance.

Exception—lone parent

(6) Subsection (1) does not apply to a person if the person:

(a) is the principal carer of one or more children; and

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

(d) is not a new apprentice; and

(e) was not a lone parent at the start of the person’s current period as an Australian resident.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For undertaking full‑time study see section 541B.

Note 3: For new apprentice see subsection 23(1).

Note 4: For lone parent and current period as an Australian resident see subsection 23(1).

549E Length of newly arrived resident’s waiting period [see Note 2]

If a person is subject to a newly arrived resident’s waiting period, the period:

(a) starts on the day on which the person first entered Australia on or after 4 March 1997; and

(b) ends when the person has been an Australian resident in Australia for a period of, or periods totalling, 104 weeks after that day.

Note: For Australian resident see subsection 7(2).

549F Effect of being subject to 2 waiting periods

For the avoidance of doubt, if a person is subject to 2 waiting periods under this Subdivision, a youth allowance is not payable to the person until both of those waiting periods have ended.

Subdivision D—Situations where allowance not payable because of youth allowance participation failure

549G Application of Subdivision

This Subdivision applies to a person only if the person is undertaking full‑time study (see section 541B).

Note: If the person is not undertaking full‑time study, Division 3A of Part 3 of the Administration Act might apply.

550 Youth allowance participation failures

Meaning of youth participation failure

(1) A person commits a youth allowance participation failure if the person:

(a) fails to comply with a requirement:

(i) that was notified to the person under subsection 63(2) or (4) 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 youth allowance participation failure; or

(b) fails to satisfy the activity test; or

(k) fails to comply with a requirement to undertake another activity referred to in paragraph 550B(1)(b).

Reasonable excuse

(2) Despite subsection (1), a failure of a kind referred to in that subsection is not a youth allowance 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 youth allowance 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 youth allowance participation failure referred to in subsection (1).

Subsequent failures in the same instalment period

(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 youth allowance participation failure, the failure is not a youth allowance participation failure if:

(a) the instalment period is the person’s first instalment period for youth allowance; or

(b) the instalment period is not the person’s first instalment period for youth allowance, and:

(i) the person did not commit a youth allowance participation failure in the immediately preceding instalment period of the person; or

(ii) in respect of each youth allowance 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 notified in respect of that failure.

Failures covered by section 547AA

(4) Despite subsection (1), a failure of a kind referred to in that subsection is not a youth allowance participation failure if it results in youth allowance not being payable to the person under section 547AA.

New apprentices

(6) Subsection (1) does not apply to a failure if the person is a new apprentice.

Note: For new apprentice see subsection 23(1).

550B Allowance not payable because of youth allowance participation failure

General

(1) A youth allowance is not payable to a person, for the period starting in accordance with section 550C and ending in accordance with section 550D, if:

(a) the person commits a youth allowance participation failure; and

(b) the Secretary requires the person:

(i) to comply with the requirement, or undertake the activity, to which the youth allowance 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

Reasonable excuse etc.

(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).

Meaning of participation failure instalment period

(3) The participation failure instalment period for the youth allowance 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.

Failures covered by section 551

(4) This section does not apply to a youth allowance participation failure if section 551 applies to the failure.

550C When the period of non‑payment starts

The period for which youth allowance is not payable to the person because of section 550B is taken to have started at the start of the participation failure instalment period for the youth allowance participation failure.

550D When the period of non‑payment ends

The period for which youth allowance is not payable to the person because of section 550B 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 youth allowance 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 youth allowance 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 youth allowance participation failure related, the person has complied with the other requirement.

Subdivision E—Situations where allowance not payable because of repeated failure

550E Application of Subdivision

This Subdivision applies to a person only if the person is undertaking full‑time study (see section 541B).

Note: If the person is not undertaking full‑time study, Division 3A of Part 3 of the Administration Act might apply.

551 Allowance not payable because of repeated failure

General

(1) A youth allowance is not payable to a person, for the period of 8 weeks starting in accordance with section 551A, if the person commits a youth allowance participation failure (the repeated failure), having committed youth allowance participation failures (the earlier failures) on 2 or more other occasions during the period of 12 months preceding that failure.

Reasonable excuse etc.

(2) Disregard any earlier failure that is a failure to which subsection 550B(1) does not apply because of subsection 550B(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.

551A When the period of non‑payment starts

The period for which youth allowance is not payable to the person because of subsection 551(1) 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 550B(3).

Subdivision F—Multiple entitlement exclusions

552 Multiple entitlement exclusions

(1) Youth allowance is not payable to a person who is qualified for youth allowance while the person is subject to a multiple entitlement exclusion.

(2) For the purposes of this Division, a person is subject to a multiple entitlement exclusion if:

(a) the person is receiving a youth allowance and another social security benefit, a social security pension, a service pension or income support supplement becomes payable to the person; or

(b) a payment under a scheme referred to in section 552A has been or may be made to the person or to someone else in respect of the person; or

(3) Youth allowance 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).

552A Person receiving payment under certain schemes

General

(1) Subject to subsection (2), the schemes for the purposes of paragraph 552(b) are:

(a) a prescribed educational scheme other than the ABSTUDY Scheme to the extent that it applies to part‑time students; and

(aa) the Assistance for Isolated Children Scheme; and

(b) the scheme to provide an allowance known as the Maintenance Allowance for Refugees; and

(d) the scheme to provide an allowance known as the English as a Second Language Allowance to the extent that the scheme applies to full‑time students; and

(e) the scheme known as the Ready Reserve Education Assistance Scheme; and

(f) the scheme to provide an allowance known as the Living Away from Home Allowance.

Note 1: For prescribed educational scheme see section 5.

Application made under ABSTUDY Scheme

(2) If:

(a) a person is undertaking full‑time study in respect of a course of education that is to last for 6 months or more; and

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

the Secretary may decide that the person is not subject to a multiple entitlement exclusion, because of subsection (1), before:

(d) the application is determined; or

(e) the end of the period of 3 weeks beginning on the day on which the course starts;

whichever happens first.

552B Assurance of support

An assurance of support applies to a person if:

(a) an assurance of support is in force in respect of the person (assuree); and

(b) the person who gave the assurance was willing and able to provide an adequate level of support to the assuree; and

Note: For assurance of support see subsection 23(1).

552C Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

The maximum basic rate, and the remote area allowance, of youth allowance for a period are not payable to a person 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 K of the Youth Allowance Rate Calculator.

Note 2: For CDEP Scheme participant see subsection 23(1).

Subdivision G—Employment‑related exclusions

553 Employment‑related exclusions

(1) Youth allowance is not payable to a person who is qualified for youth allowance while the person is subject to an employment‑related exclusion.

(2) For the purposes of this Division, a person is subject to an employment‑related exclusion:

(a) if the person is not undertaking full‑time study and is not a new apprentice—while one or more of sections 553A to 553C apply to the person; or

(b) if the person is undertaking full‑time study or is a new apprentice—while section 553C applies to the person.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

553A Unemployment due to industrial action

Engaged in industrial action

(1) Subject to subsection (2), a person who is unemployed is subject to an employment‑related exclusion unless the person satisfies the Secretary that the person’s unemployment was not due to the person being, or having been, engaged in industrial action or in a series of industrial actions.

Other people engaged in industrial action

(2) If:

(a) a person’s unemployment was due to other people being, or having been, engaged in industrial action or in a series of industrial actions; and

(b) the people, or some of the people, were members of a trade union that was involved in the industrial action;

the person is subject to an employment‑related exclusion unless the person satisfies the Secretary that the person was not a member of the trade union during the person’s period of unemployment.

Length of employment‑related exclusion

(3) Subject to subsection (4), the employment‑related exclusion to which a person is subject under subsection (1) or (2) ends when the industrial action or series of industrial actions stop.

Industrial action etc. in breach of order, direction or injunction

(4) Where the industrial action or series of industrial actions concerned is in breach of an order, direction or injunction issued by:

(a) a prescribed State industrial authority within the meaning of the Fair Work Act 2009; or

(b) Fair Work Australia or the Australian Industrial Relations Commission; or

(d) the Federal Magistrates Court;

the person’s employment‑related exclusion under subsection (1) or (2) of this section ends 6 weeks after the day on which the industrial action or series of industrial actions stop.

Note: For industrial action, trade union and unemployment see section 16.

553B Move to area of lower employment prospects

26 week exclusion period

(1) Subject to subsection (1B), if the Secretary considers that a person has reduced his or her employment prospects by moving to a new place of residence without sufficient reason, the person is subject to an employment‑related exclusion for a period of 26 weeks.

(1A) Subsection (1) extends to a person who makes a claim for youth allowance on or after the day on which the person moved to the new place of residence and before the end of the period referred to in that subsection.

(1B) If a person who is subject to an employment‑related exclusion under subsection (1) (including that subsection as it applies by subsection (1A)) does either of the following during the period of the exclusion:

(a) moves back to the place of residence (the original place of residence) the movement from which made him or her subject to the exclusion;

(b) moves to another place of residence a movement to which from the original place of residence would not have made him or her subject to the exclusion;

the period of the exclusion ends at the time of the movement back to the original place of residence or the movement to the other place of residence, as the case may be.

Exemption for person undertaking specified activity

(2) Subsection (1) does not apply to a person who:

(a) is undertaking an activity specified in an instrument made under subsection (2A); and

(b) has been exempted from the application of subsection (1) by the Secretary.

(2A) The Secretary may, by legislative instrument, specify activities for the purpose of paragraph (2)(a).

Sufficient reason for moving

(3) For the purposes of subsection (1), a person has a sufficient reason for moving to a new place of residence if, and only if, the person:

(a) moves to live with a family member who has already established his or her residence in that place of residence; or

(b) moves to live near a family member who has already established residence in the same area; or

(i) is not independent; and

(ii) lives at home;

and moves to accompany his or her parents who wish to establish, or have established, a place of residence; or

(d) satisfies the Secretary that the move is necessary for the purposes of treating or alleviating a disease or illness suffered by the person or by a family member; or

(e) satisfies the Secretary that the person has moved from his or her original place of residence because of an extreme circumstance which made it reasonable for the person to move to the new place of residence (for example, the person had been subjected to domestic or family violence in the original place of residence).

Note 1: For independent see section 1067A.

Note 2: For parent see subsection 5(1), paragraph (b) of the definition of parent.

Note 3: For family member see subsection 23(1).

Secretary may determine when period begins

(4) The Secretary may determine in writing the day on which the period referred to in subsection (1) begins. The day may be before the day of the determination.

Living away from home

(5) A person lives away from home for the purposes of this section if he or she lives away from home for the purposes of Part 3.5.

553C Seasonal workers

Application

(1) This section applies if, at any time during the 6 months immediately before the day on which a person lodges a claim for youth allowance, the person, or, if the person is a member of a couple, the person or the person’s partner, has been engaged in seasonal work.

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

Exclusion during seasonal work preclusion period

(2) The person is subject to an employment‑related exclusion:

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

Exemption in cases of severe financial hardship

(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) and subsection 19C(3) (person who is a member of a couple).

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

Exemption for person undertaking specified activity

(4) Subsection (2) does not apply to a person who:

(a) is undertaking an activity specified in an instrument made under subsection (5); and

(b) has been exempted from the application of subsection (2) by the Secretary.

(5) The Secretary may, by legislative instrument, specify activities for the purpose of paragraph (4)(a).

Division 5—Rate of youth allowance

556 How to work out a person’s youth allowance rate

Subject to this section, the rate of a person’s youth allowance is to be worked out in accordance with the Youth Allowance Rate Calculator in section 1067G.

556A Approved program of work supplement

If a person:

(a) is receiving youth allowance; and

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

the rate of the person’s youth allowance 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 unless, during that fortnight, the person ceases to participate in the program in circumstances that constitute:

(d) a failure to comply with a requirement in a Youth Allowance Employment Pathway Plan that is in force in relation to the person.

556B National Green Jobs Corps supplement

(1) This section applies if a person:

(a) is receiving youth allowance; and

(b) is only qualified for youth allowance under section 540; and

(d) has reached 17 years of age; and

(e) is participating in the National Green Jobs Corps program; and

(f) started participating in that program before 2012.

(2) The rate of the person’s youth allowance is increased by an amount of $41.60 (to be known as a National Green Jobs Corps supplement) for each fortnight during which the person participates in the National Green Jobs Corps program.

(3) However, a National Green Jobs Corps supplement is not payable for a fortnight during which the person participates in the National Green Jobs Corps program if:

(a) a Youth Allowance Employment Pathway Plan is in force in relation to the person; and

(b) during the fortnight, the person ceases to participate in that program in circumstances that constitute a failure to comply with the plan.

559J CDEP Scheme participant may accumulate youth 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 youth 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.

(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).

Subdivision EA–sections 565F, 565G [see Note 5]

Division 10—Bereavement payments

Subdivision A—Bereavement payments on death of partner

567 Qualification for payments under this Division

Qualification for payment

(1) If:

(a) a person is receiving youth allowance; and

(b) the person is a long‑term social security recipient; and

(d) the person’s partner dies; and

(e) 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

(f) 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 Division is less than the sum of:

(i) the amount that would otherwise be payable to the person under section 567C (person’s continued rate) on that payday; and

(ii) the amount (if any) that would otherwise be payable to the person under section 567A (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 Division to cover the bereavement period.

Note 1: Section 567A 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 567B 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: For first available bereavement adjustment payday and bereavement period see section 21.

Choice not to receive payments

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

Form of choice

(3) A choice 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 Division; and

Rate during bereavement period

(4) If a person is qualified for payments under this Division in relation to the partner’s death, the rate at which youth allowance is payable to the person during the bereavement period is, unless the person has made a choice under subsection (2), governed by section 567C.

567A Continued payment of partner’s pension or benefit

If a person is qualified for payments under this Division 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, an amount equal to the amount that would have been payable to the partner on that payday if the partner had not died.

Note: For bereavement rate continuation period see section 21.

567B Lump sum payable in some circumstances

If:

(a) a person is qualified for payments under this Division 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

Method statement

Step 1. Add up:

(a) the amount that, if the person’s partner had not died, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday; and

(b) the amount (if any) that, if the partner had not died, would have been payable to the partner on the partner’s payday immediately before the first available bereavement adjustment payday;

the result is the combined rate.

Step 2. Work out the amount that, apart from section 567C, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday: the result is the person’s individual rate.

Step 3. Take the person’s individual rate away from the combined rate: the result is the partner’s instalment component.

Step 4. Work out the number of the partner’s paydays in the bereavement lump sum period.

Step 5. Multiply the partner’s instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable to the person under this section.

567C Adjustment of person’s youth allowance rate

If:

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

(b) the person does not elect under subsection 567(2) not to receive payments under this Division;

the rate of the person’s youth allowance during the bereavement period is worked out as follows:

(c) during the bereavement rate continuation period, the rate of youth allowance payable to the person is the rate at which the allowance would have been payable to the person if the person’s partner had not died;

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

567D Effect of death of person entitled to payments under this Division

If:

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

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

there is payable, to any person that 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

Method statement

Step 1. Add up:

(a) the amount that, if neither the person nor the person’s partner had died, would have been payable to the person on the person’s payday immediately after the day on which the person dies; and

(b) the amount (if any) that, if neither the person nor the person’s partner had died, would have been payable to the person’s partner on the partner’s payday immediately after the day on which the person died;

the result is the combined rate.

Step 2. Work out the amount that, apart from section 567C, 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 the person’s individual rate.

Step 3. Take the person’s individual rate away from the combined rate: the result is the partner’s instalment component.

Step 4. Work out the number of paydays of the partner in the period that begins on the day on which the person dies and ends on the day on which the bereavement period ends.

Step 5. 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.

567E Matters affecting payments under this Division

Recovery/reduction of amount payable

(1) If:

(a) a person is qualified for payments under this Division in relation to the death of the person’s partner; 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 is more than the amount payable to the person under this Division;

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

Bank not liable

(2) If:

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

(b) the 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 more than the total of the amounts paid as mentioned in paragraph (b);

the bank is, despite 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.

567F Calculation of bereavement payment in respect of former CDEP Scheme participant

Note: For CDEP Scheme participant see section 1188B.

Subdivision B—Continuation of youth allowance rate after death of child

567G Death of child—continuation of youth allowance rate for 14 weeks

If:

(a) a person is receiving youth allowance; and

(b) the person is the principal carer of a child who dies; and

(d) apart from this section, the person’s rate of youth allowance would be reduced because the person is no longer the child’s principal carer;

the person’s rate of youth allowance, during the period of 14 weeks that starts on the day of the child’s death, is to be worked out as if the child had not died.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For undertaking full‑time study see section 541B.

Note 3: For new apprentice see subsection 23(1).

Part 2.11A—Austudy payment

Division 1—Qualification for austudy payment

Subdivision A—Basic qualifications

568 Qualification for austudy payment—general rule

Subject to this Subdivision, a person is qualified for an austudy payment in respect of a period if, throughout the period:

(a) the person satisfies the activity test (see Subdivision B); and

(b) the person is of austudy age (see Subdivision C); and

Note: Division 2 sets out situations in which an austudy payment is not payable even if the person qualifies for it.

568AA Qualification for austudy payment—new apprentices

Subject to this Subdivision, a person is qualified for an austudy payment in respect of a period if, throughout the period:

(a) the person is a new apprentice; and

(b) the person is of austudy age (see Subdivision C); and

Note: Division 2 sets out situations in which an austudy payment is not payable even if the person qualifies for it.

568A Qualification for austudy payment—transferee from social security pension

If:

(a) a person was receiving a social security pension; and

(b) the person claims an austudy payment within 14 days after the day on which the last instalment of the person’s pension was paid; and

(c) the person becomes qualified for an austudy payment at some time during the 14 day period but after the first day of that period;

the person is taken to be qualified for an austudy payment for the whole of the 14 day period.

Subdivision B—Activity test

569 Activity test

General

(1) Subject to subsection (2), a person satisfies the activity test in respect of a period if the person satisfies the Secretary that, throughout the period, the person is undertaking qualifying study (see section 569A).

Persons who do not satisfy the activity test

(2) A person cannot be taken to satisfy the activity test if the person:

(a) is a new apprentice; or

(b) has completed a course for:

(i) a degree of Doctor at an educational institution; or

(ii) a qualification at a foreign institution that is, in the Secretary’s opinion, of the same standing as a degree of Doctor at an educational institution.

Note: For educational institution see subsection 23(1).

569A Undertaking qualifying study

For the purposes of this Part, a person is undertaking qualifying study if:

(a) the person:

(i) is enrolled in a course of education at an educational institution; or

(b) the course in which the person is enrolled, or intends to enrol, is an approved course of education or study (see section 569B); and

(c) the person is a full‑time student or a concessional study‑load student in respect of that course (see sections 569C and 569D); and

(d) the person satisfies the progress rules (see sections 569G and 569H).

569B Approved course of education or study

For the purposes of paragraph 569A(b), a course is an approved course of education or study if it is a course determined, under section 5D of the Student Assistance Act 1973, to be a secondary course or a tertiary course for the purposes of that Act.

569C Full‑time students

For the purposes of this Subdivision, a person is a full‑time student in respect of a course if:

(a) in the case of a person who is enrolled in the course for a particular study period (such as, for example, a semester)—the person is undertaking at least three quarters of the normal amount of full‑time study in respect of the course for that period; or

(b) in the case of a person who intends to enrol in the course for a particular study period—the person intends to undertake at least three quarters of the normal amount of full‑time study in respect of the course for that period.

Note: For normal amount of full‑time study see section 569E.

569D Concessional study‑load students

(1) For the purposes of this Subdivision, there are 2 classes of concessional study‑load students, namely:

(a) 25% concessional study‑load students; and

(b) 66% concessional study‑load students.

(2) For the purposes of this Subdivision, a person is a 25% concessional study‑load student in respect of a course if this subsection applies to the person and:

(a) in the case of a person who is enrolled in the course for a particular study period (such as, for example, a semester)—the person is undertaking at least one quarter, but less than three quarters, of the normal amount of full‑time study in respect of the course for that period; or

(b) in the case of a person who intends to enrol in the course for a particular study period—the person intends to undertake at least one quarter, but less than three quarters, of the normal amount of full‑time study in respect of the course for that period.

(3) For the purposes of this Subdivision, a person is a 66% concessional study‑load student in respect of a course if this subsection applies to the person and:

(a) in the case of a person who is enrolled in the course for a particular study period (such as, for example, a semester)—the person is undertaking at least two thirds, but less than three quarters, of the normal amount of full‑time study in respect of the course for that period; or

(b) in the case of a person who intends to enrol in the course for a particular study period—the person intends to undertake at least two thirds, but less than three quarters, of the normal amount of full‑time study in respect of the course for that period.

Note: For normal amount of full‑time study see section 569E.

(4) Subsection (2) applies to a person if:

(a) an officer in the Commonwealth Rehabilitation Service or an appropriate medical practitioner who has a detailed knowledge of the person’s physical condition has stated in writing that:

(i) the person has a substantial physical disability; and

(ii) the person cannot successfully undertake the normal amount of full‑time study in respect of the course because of the disability; or

(b) a medical practitioner specialising in psychiatry has stated in writing that:

(i) the person has a substantial psychiatric disability; and

(ii) the person cannot successfully undertake the normal amount of full‑time study in respect of the course because of the disability; or

(c) a psychologist who is registered with the Board established under the law of a State or Territory that registers psychologists has stated in writing that the person:

(i) is intellectually disabled; and

(ii) cannot successfully undertake the normal amount of full‑time study in respect of the course because of the disability.

(5) Subsection (3) applies to a person if:

(a) the person cannot undertake the course as a full‑time student because of:

(i) the relevant educational institution’s usual requirements for the course; or

(ii) a specific direction in writing to the person from the academic registrar or an equivalent officer; or

(b) the academic registrar (or an equivalent officer) of the relevant educational institution recommends in writing that the person undertake less than the normal amount of full‑time study in respect of the course for specified academic or vocational reasons for a period not exceeding half an academic year.

569E Normal amount of full‑time study

(1) For the purposes of this Subdivision, the normal amount of full‑time study in respect of a course is:

(a) if:

(i) the course is a course of study within the meaning of the Higher Education Support Act 2003; and

(ii) there are Commonwealth supported students (within the meaning of that Act) enrolled in the course;

the full‑time student load for the course; or

(2) Without limiting subsection (1), the normal amount of full‑time study in respect of a course is an average, taken over the duration of the period for which the person in question is enrolled in the course, of 20 contact hours per week.

569F First fortnight of classes

A person is taken to be undertaking full‑time study or a concessional study‑load (as the case may be) in respect of a course during the period (the relevant period):

(a) starting on the first day of classes in a study period; and

(b) ending on the Friday of the second week of classes in the study period;

if the person is enrolled in the course and undertakes study in respect of the course on at least one day in the relevant period.

569G Progress rules—secondary students

General rule

(1) Subject to subsection (2), a person enrolled in, or intending to enrol in, a secondary course satisfies the progress rules for the purposes of paragraph 569A(d) if, in the Secretary’s opinion, the person is making satisfactory progress towards completing the course.

Students repeating year 12

(2) A person does not satisfy the progress rules if:

(a) the person is enrolled in a secondary course that is at year 12 level, or the overall level of which is at year 12 level (see subsections (3) and (4)); and

(b) the person has been a full‑time student in respect of a course at that level (a previous course) in each of 2 previous years; and

(i) the person failed a previous course because of an illness that had not been diagnosed when the person began that course;

(ii) the person failed a previous course because of other circumstances beyond the person’s control that were not apparent when the person began that course;

(iii) the person failed a previous course because English is not the person’s native language;

(iv) the person completed or discontinued a previous course within 6 months after the relevant academic year started;

(v) each of the previous courses was undertaken more than 10 years before the present study.

Course at year 12 level

(3) A secondary course is at year 12 level if the institution in which the course is undertaken regards it as being at year 12 level.

Overall level of course at year 12 level

(4) The overall level of a secondary course is at year 12 level if the institution in which the course is undertaken regards at least 50% of the course as being at year 12 level.

Meaning of secondary course

(5) For the purposes of this section, a course is a secondary course if it is a course determined, under section 5D of the Student Assistance Act 1973, to be a secondary course for the purposes of that Act.

569H Progress rules—tertiary students

Full‑time students

(1) A person who is a full‑time student in respect of a tertiary course satisfies the progress rules if:

(a) in the case of a person who is enrolled in the course—on the day on which the person enrolled in the course; or

(b) in the case of a person who is not yet enrolled in the course but intends to enrol in the course—on the day on which enrolments in the course are next accepted;

the time already spent by the student on the course, or on one or more other tertiary courses at the same level as that course, does not exceed the allowable study time for that course.

Note: For allowable study time for a course see subsection (3).

Concessional study‑load students

(2) A person who is a concessional study‑load student in respect of a tertiary course satisfies the progress rules if:

(a) in the case of a person who is enrolled in the course—on the day on which the person enrolled in the course; or

(b) in the case of a person who is not yet enrolled in the course but intends to enrol in the course—on the day on which enrolments in the course are next accepted;

the time already spent by the person on the course, or on one or more other tertiary courses at the same level as that course, does not exceed the allowable study time for the course.

Note: For allowable study time for a course see subsections (3) and (4).

Allowable study time—full‑time students and 66% concessional study‑load students

(3) The allowable study time for a course undertaken by a full‑time student or a 66% concessional study‑load student is:

(a) if the minimum amount of time needed to complete the course as a full‑time student is one year or less—that minimum amount of time; or

(b) if the minimum amount of time needed to complete the course as a full‑time student is more than 1 year and:

(i) the student is enrolled, or intends to enrol, in a year‑long subject; or

(ii) the student’s further progress in the course depends on passing a whole year’s work in the course;

the minimum amount of time plus 1 year; or

(c) in any other case—the minimum amount of time needed to complete the course as a full‑time student plus half an academic year.

Allowable study time—25% concessional study‑load students

(4) The allowable study time for a course undertaken by a 25% concessional study‑load student is twice the minimum period in which it is possible to complete the course as a full‑time student but the Secretary may approve, in particular cases, an allowable study time of up to four times the minimum period in which it is possible to complete the course as a full‑time student.

Time spent by person studying part‑time

(5) If a student has studied part‑time for a course over a certain period, the time spent by the student on that course is taken to be the proportion of that period calculated by using the formula:

where:

normal full‑time study means the normal amount of full‑time study for the course.

study undertaken means the amount of study undertaken part‑time by the student for the course.

Current full‑time students who have previously undertaken courses as concessional study‑load students

(6) If:

(a) a person is undertaking a course as a full‑time student; and

(b) the person has previously undertaken:

(i) part of the course; or

(ii) one or more than one other course at the same level as that course;

as a concessional study‑load student; and

(c) the time spent by the person undertaking the part of the course referred to in subparagraph (b)(i), or the course or courses referred to in subparagraph (b)(ii), (the previous study) is not to be disregarded under subsection (7);

the time spent by the person undertaking the previous study is taken to be equal to the minimum amount of time that a full‑time student would have taken to complete the previous study.

Current 25% concessional study‑load students who have previously undertaken courses on a different basis

(6A) If:

(a) a person is undertaking a course as a 25% concessional study‑load student; and

(b) the person has previously undertaken:

(i) part of that course; or

(ii) one or more than one other course at the same level as that course;

in any of the following ways:

(iii) as a full‑time student;

(iv) as a 66% concessional study‑load student;

(v) on a part‑time basis; and

the time spent by the person undertaking the previous study is taken to be:

(d) twice the time that the person took to complete the previous study; or

(e) if the Secretary has approved, under subsection (4), a longer allowable study time in relation to the person for the course—the time taken by the person to complete the previous study multiplied by the factor used by the Secretary for the purposes of the approval under that subsection.

Matters to be disregarded in determining whether someone has exceeded the allowable study time

(7) In determining whether a person has exceeded the allowable study time (for a full‑time student or a concessional study‑load student), disregard the following:

(a) if the person has completed a course (a pre‑requisite course) the completion of which is the normal requirement for admission to the course in which the person is enrolled or intends to enrol—time spent undertaking the pre‑requisite course;

(b) a failed year of study, or a failed part of a year of study, if the failure is because of:

(i) the person’s illness; or

(ii) other circumstances beyond the person’s control;

(i) the person’s illness; or

(ii) other circumstances beyond the person’s control;

(d) time spent undertaking a course that has been completed but which, because of the person’s illness, the person cannot use in any of the trades or profession to which the course is appropriate;

(e) time spent undertaking a TAFE course or a course provided by a VET provider if the normal length of the course for a full‑time student is one year or less;

(f) time spent undertaking a course more than 10 years ago, unless the course has since been completed;

(g) time spent undertaking a course after 1973 if the course was not:

(i) approved for the Tertiary Education Assistance Scheme; or

(ii) approved for the AUSTUDY scheme; or

(iii) an approved course for the purposes of paragraph 541B(1)(c), 569A(b) or 1061PB(1)(b) of this Act;

(h) time spent undertaking a course at a foreign institution;

(i) time spent undertaking a subject from which the student withdrew, if the educational institution in which the subject was undertaken did not record the withdrawal from the subject as a failure;

(j) any time spent undertaking a course during which the person was ineligible to receive:

(i) AUSTUDY; or

(ii) a benefit under the Tertiary Education Assistance Scheme; or

(iii) youth allowance; or

(iv) austudy payment;

because of the application of rules in respect of academic progress.

Levels of tertiary courses

(8) There are 5 levels of tertiary courses: levels M, A, B, C and D.

Level M courses

(8A) A course for a degree of Master (or equivalent) is a Level M course.

Level A courses

(9) The following are Level A courses:

(a) a postgraduate bachelor degree course, with or without honours;

(b) a graduate or postgraduate diploma course;

(d) a course of advanced education regarded by an accrediting authority as being at PG1 level;

(e) a graduate certificate course.

Level B courses

(10) The following are Level B courses:

(a) a bachelor degree course (other than a postgraduate course), with or without honours;

(b) the bachelor level component of a masters degree course with concurrent bachelor and masters level study;

(i) a graduate or postgraduate diploma course; or

(ii) a course for which an entry requirement is successful completion of year 10 of secondary studies; or

(iii) a TAFE course or a course provided by a VET provider;

(d) a Master’s qualifying course;

(e) the Barristers or Solicitors Admission Board’s course;

(f) a course of advanced education regarded by an accrediting authority as being at UG1 or UG2 level.

Level C courses

(11) The following are Level C courses:

(a) an associate degree course;

(b) an associate diploma course;

(c) a diploma course at a TAFE institution or provided by a VET provider for which an entry requirement is successful completion of year 12 of secondary studies;

(d) a 2‑year undergraduate diploma course.

Level D courses

(12) The following are Level D courses:

(a) a TAFE course at a higher education institution;

(b) a TAFE course or a course provided by a VET provider, unless the course is in Level M, A, B or C.

Meaning of tertiary course

(13) For the purposes of this section, a course is a tertiary course if it is a course determined, under section 5D of the Student Assistance Act 1973, to be a tertiary course for the purposes of that Act.

Subdivision C—Austudy age

570 Austudy age

General

(1) Subject to subsection (2), a person is of austudy age for the purposes of this Part if the person is at least 25 years old.

Study begun before turning 25

(2) Even if the person is at least 25 years old, the person is taken not to be of austudy age if the person:

(a) was receiving youth allowance immediately before turning 25; and

(b) has not yet attained the maximum age for youth allowance (see subsection 543B(2)).

Division 2—Situations in which austudy payment is not payable

Subdivision A—Situation in which austudy payment not payable (general)

572 Austudy payment not payable if payment rate nil

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

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in force; or

(b) the person has been paid an advance pharmaceutical allowance under the social security law.

572A Situations where austudy payment not payable for failure to comply with certain requirements

Austudy 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.

Subdivision B—Assets test

573 Austudy payment not payable if assets value limit exceeded

An austudy payment is not payable to a person if:

(a) the person is not excluded from the application of the austudy payment assets test; and

(b) the value of the person’s assets is more than the person’s assets value limit.

Note 1: For persons excluded from application of test see section 573A.

Note 2: For assets value limit see section 573B.

573A Who is excluded from application of assets test

A person is excluded from the application of the austudy payment assets test if the person’s partner is receiving or has received:

(a) a payment of pension, benefit, allowance or compensation referred to in the table at the end of this section; or

(b) a payment under Part 5 or 6 of the Farm Household Support Act 1992.

Table of pensions, benefits, allowances and compensation
Item	Type of pension, benefit, allowance and compensation
1	Age pension	(Part 2.2)
2	Service pension (age)	(Section 36 of the Veterans’ Entitlements Act)
2A	Income support supplement	(Section 45A of the Veterans’ Entitlements Act)
3	Defence widow’s pension—if the widow has no dependent children	(Section 70 of the Veterans’ Entitlements Act)
4	War widow’s pension—if the widow has no dependent children	(Section 13 of the Veterans’ Entitlements Act)
4A	Compensation for an armed services widow or an armed services widower	(Paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act)
5	Mature age allowance	(Part 2.12A or 2.12B)
7	Commonwealth allowance	(New Enterprise Incentive Scheme (NEIS))
8	Carer payment	(Part 2.5)
9	Service pension (carer)	(Section 39 of the Veterans’ Entitlements Act)
10	Defence widow’s pension—if the widow has a dependent child	(Section 70 of the Veterans’ Entitlements Act)
11	Disability support pension	(Part 2.3)
12	Service pension (invalidity)	(Section 37 of the Veterans’ Entitlements Act)
13	War widow’s pension—if the widow has a dependent child	(Section 13 of the Veterans’ Entitlements Act)
14	Newstart allowance	(Part 2.12)
15	Sickness allowance	(Part 2.14)
16	Special benefit	(Part 2.15)
17	Benefit PP (partnered)	(Part 2.10)

573B Assets value limit [see Appendix for CPI adjusted figures]

A person’s assets value limit is:

(a) $125,750 if the person:

(i) is not a member of a couple (see section 4); and

(ii) is a homeowner; or

(b) $215,750 if the person:

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

(ii) is not a homeowner; or

(i) is a member of a couple; and

(ii) is a homeowner; or

(d) $268,500 if the person:

(i) is a member of a couple; and

(ii) is not a homeowner.

Note 1: For homeowner see subsection 11(4).

Note 2: The amounts in this section are indexed annually on 1 July (see sections 1191 to 1194).

573C Value of person’s assets to include value of assets of partner

The value of a person’s assets is the sum of the following values:

(a) the value of the person’s assets (disregarding paragraph (b));

(b) if the person is a member of a couple (see section 4)—the value of the assets of the person’s partner.

Sections 573D and 573E apply for the purpose of working out the value of the person’s assets and of his or her partner (if any).

573D Assets of trust in which person benefits

A person’s assets include:

(a) any benefit to which the person is entitled directly or indirectly out of the assets of a trust; and

(b) any asset of a trust that the person can deal with directly or indirectly to his or her advantage; and

(c) any interest in the assets of a trust which has been assigned to someone else but which the person can directly or indirectly control.

573E Exclusion of certain assets that are exempt under the Farm Household Support Act 1992

(1) If:

(a) an exceptional circumstances certificate referred to in section 8A of the Farm Household Support Act 1992 was issued in respect of a person; and

(b) the certificate has effect;

the person’s assets do not include any asset that is an exempt asset in respect of the person for the purposes of that Act because the person is a farmer.

(2) The person’s assets do not include any asset that is an exempt asset in respect of the person for the purposes of the Farm Household Support Act 1992:

(a) in a case where:

(i) the person is receiving exceptional circumstances relief payment because the person qualifies for the payment only under subsection 8A(5) or (7) of that Act; and

(ii) paragraph (b) does not apply;

because the person carries on a small business; and

(b) in a case where the person:

(i) is receiving exceptional circumstances relief payment because the person qualifies for the payment under subsection 8A(5) or (7) of that Act; and

(ii) but for subsubparagraph 8A(1)(b)(i)(C) of that Act, would also qualify under subsection 8A(1) of that Act for the payment;

because the person carries on a small business and the person is a farmer.

Subdivision D—Waiting periods

575 Waiting periods

(1) An austudy payment is not payable to a person who is qualified for an austudy payment while the person is subject to a waiting period.

(2) For the purposes of this Part, a person may be subject to the following waiting periods:

(a) a liquid assets test waiting period (see sections 575A, 575B and 575C);

(b) a newly arrived resident’s waiting period (see sections 575D and 575E).

575A Liquid assets test waiting period

When person subject to liquid assets test waiting period—general

(1) Subject to this section, if:

(a) the value of a person’s liquid assets is more than the person’s maximum reserve on:

(i) the day on which the person becomes qualified for austudy payment; or

(ii) the day on which the person claims austudy payment; and

(b) the person is not a transferee to austudy payment;

the person is subject to a liquid assets test waiting period.

Note 1: For liquid assets and maximum reserve see section 14A.

Exception—person already subject to liquid assets test waiting period in previous 12 months

(2) Subsection (1) does not apply to a person if, at any time during the 12 months before:

(a) the day on which the person becomes qualified for austudy payment; or

(b) the day on which the person claims austudy payment;

the person:

(d) has served a liquid assets test waiting period under another Part of this Act; or

(e) has served a liquid assets test waiting period under the Student Assistance Act 1973 as previously in force.

Exception—waiver for hardship

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

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

Exception—certain transferees to austudy payment

(4) Subsection (1) does not apply to a person if:

(a) the person is a transferee to austudy payment; and

(b) the person claims austudy payment within 14 days of the transfer day.

575B Start of liquid assets test waiting period

The liquid assets test waiting period of a person starts on the day on which the person became qualified for austudy payment.

575C Length of liquid assets test waiting period

Number of weeks

(1) A person’s liquid assets test waiting period is:

(a) if the result obtained under subsection (2) is 13 or more whole weeks—13 weeks; or

(b) if the result obtained under subsection (2) is fewer than 13 whole weeks—the number of whole weeks obtained under that subsection.

Working out number of weeks

(2) Subject to subsection (3), the number of weeks is worked out by using the following formula:

where:

divisor, in relation to the person, means:

(a) if the person is not a member of a couple and does not have a dependent child—$500; or

(b) otherwise—$1,000.

liquid assets means the person’s liquid assets on the day referred to in subparagraph 575A(1)(a)(i) or (ii) (as the case requires).

maximum reserve amount means the maximum reserve in relation to the person under subsection 14A(1).

Weeks etc. to be disregarded

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

(a) any weeks after the person claimed austudy payment during which the person was not qualified for austudy payment; and

(b) any fractions of a week.

575D Newly arrived resident’s waiting period

Basic rule

(1) Subject to this section, a person is subject to a newly arrived resident’s waiting period if the person:

(a) has entered Australia on or after 4 March 1997; and

(b) has not been an Australian resident in Australia for a period of, or periods totalling, 104 weeks.

Note: For Australian resident see subsection 7(2).

Exception—qualifying residence exemption

(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for an austudy payment.

Note: For qualifying residence exemption see subsection 7(6).

Exception—person already subject to waiting period etc.

(3) Subsection (1) does not apply to a person if:

(a) the person has been subject to:

(i) a newly arrived resident’s waiting period under this Act; or

(ii) a waiting period under Part 2 of the Student Assistance Act 1973 as in force immediately before 1 July 1998; or

(iii) a newly arrived resident’s waiting period under Part 8 of the Student Assistance Act 1973 as in force immediately before 1 July 1998; and

(b) that period has ended.

(4) Subsection (1) does not apply to a person if:

(a) the person would:

(i) if the person had made a claim under this Act for a social security payment other than youth allowance—have been subject to a newly arrived resident’s waiting period under this Act; or

(ii) if the person had, before 1 July 1998, made a claim under the Student Assistance Act 1973—have been subject to a waiting period under Part 2 of that Act or a newly arrived resident’s waiting period under Part 8 of that Act;

and that period would have ended; or

(b) the person has had:

(i) a qualifying residence exemption for a newstart allowance or a sickness allowance under this Act; or

(ii) a qualifying residence exemption for a youth training allowance under the Student Assistance Act 1973; or

575E Length 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 on which the person first entered Australia; and

(b) ends when the person has been an Australian resident in Australia for a period of, or periods totalling, 104 weeks after that day.

Note: For Australian resident see subsection 7(2).

575EA Seasonal workers—preclusion period

Application

(1) This section applies if:

(a) a person has lodged a claim for austudy 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).

Exclusion during seasonal work preclusion period

(2) Austudy payment is not payable to the person:

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

Exemption in cases of severe financial hardship

(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).

575F Effect of being subject to 2 waiting periods

For the avoidance of doubt, if a person is subject to 2 waiting periods under this Subdivision, an austudy payment is not payable to the person until both of those waiting periods have ended.

Subdivision E—Situations where austudy payment not payable because of austudy participation failure

576 Austudy participation failures

Meaning of austudy participation failure

(1) A person commits an austudy participation failure if the person:

(a) fails to comply with a requirement:

(i) that was notified to the person under subsection 63(2) or (4) 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 an austudy participation failure; or

(b) fails to satisfy the activity test; or

Reasonable excuse

(2) Despite subsection (1), a failure of a kind referred to in that subsection is not an austudy participation failure if the person satisfies the Secretary that the person had a reasonable excuse for the 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 austudy participation failure referred to in subsection (1).

Subsequent failures in the same instalment period

(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 an austudy participation failure, the failure is not an austudy participation failure if:

(a) the instalment period is the person’s first instalment period for austudy payment; or

(b) the instalment period is not the person’s first instalment period for austudy payment, and:

(i) the person did not commit an austudy participation failure in the immediately preceding instalment period of the person; or

(ii) in respect of each austudy 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.

576A Allowance not payable because of austudy participation failure

General

(1) Austudy payment is not payable to a person, for the period starting in accordance with section 576B and ending in accordance with section 576C, if:

(a) the person commits an austudy participation failure; and

(b) the Secretary requires the person:

(i) to comply with the requirement, or undertake the activity, to which the austudy 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

Reasonable excuse etc.

(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.

Meaning of participation failure instalment period

(3) The participation failure instalment period for the austudy 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.

Failures covered by section 577

(4) This section does not apply to an austudy participation failure if section 577 applies to the failure.

576B When the period of non‑payment starts

The period for which austudy payment is not payable to the person because of section 576A is taken to have started at the start of the participation failure instalment period for the austudy participation failure.

576C When the period of non‑payment ends

The period for which austudy payment is not payable to the person because of section 576A 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 austudy 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 austudy 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 austudy participation failure related, the person has complied with the other requirement.

Subdivision F—Situations where payment not payable because of repeated failure

577 Payment not payable because of repeated failure

General

(1) Austudy payment is not payable to a person, for the period of 8 weeks starting in accordance with section 577A, if the person commits an austudy participation failure (the repeated failure), having committed austudy participation failures (the earlier failures) on 2 or more other occasions during the period of 12 months preceding that failure.

Reasonable excuse etc.

(2) Disregard any earlier failure that is a failure to which subsection 576A(1) does not apply because of subsection 576A(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.

577A When the period of non‑payment starts

The period for which austudy payment is not payable to the person 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 576A(3).

Subdivision G—Multiple entitlement exclusions

578 Multiple entitlement exclusions

(1) An austudy payment is not payable to a person who is qualified for an austudy payment while the person is subject to a multiple entitlement exclusion.

(2) For the purposes of this Division, a person is subject to a multiple entitlement exclusion if:

(a) the person is receiving an austudy payment and another social security benefit, a social security pension, a service pension or income support supplement becomes payable to the person; or

(b) a payment under a scheme referred to in section 578A has been, or may be, made to the person; or

(3) An austudy payment is not payable to a person in respect of a period if the person is a CDEP Scheme participant in respect of the whole or any part of the period.

(4) An austudy 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).

578A Person receiving payment under certain schemes

General

(1) Subject to subsection (2), the schemes for the purposes of paragraph 578(2)(b) are:

(a) a prescribed educational scheme other than the ABSTUDY Scheme to the extent that it applies to part‑time students; and

(b) the scheme to provide an allowance known as the Maintenance Allowance for Refugees; and

(d) the scheme to provide an allowance known as the English as a Second Language Allowance to the extent that the scheme applies to full‑time students; and

(e) the scheme known as the Ready Reserve Education Assistance Scheme; and

(f) the scheme to provide an allowance known as the Living Away from Home Allowance.

Note 1: For prescribed educational scheme see section 5.

Application made under ABSTUDY Scheme

(2) If:

(a) a person is undertaking qualifying study in respect of a course of education that is to last for 6 months or more; and

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

the Secretary may decide that the person is not subject to a multiple entitlement exclusion, because of subsection (1), before:

(d) the application is determined; or

(e) the end of the period of 3 weeks beginning on the day on which the course starts;

whichever happens first.

578B Assurance of support

An assurance of support applies to a person if:

(a) an assurance of support is in force in respect of the person (assuree); and

(b) the person who gave the assurance was willing and able to provide an adequate level of support to the assuree; and

Note: For assurance of support see subsection 23(1).

Division 5—Rate of austudy payment

581 How to work out a person’s austudy payment rate

Subject to this section, the rate of a person’s austudy payment is to be worked out in accordance with the Austudy Payment Rate Calculator in section 1067L.

Division 10—Bereavement payments on death of partner

592 Qualification for payments under this Division

Qualification for payment

(1) If:

(a) a person is receiving an austudy payment; and

(b) the person is a long‑term social security recipient; and

(d) the person’s partner dies; and

(e) 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 592C (person’s continued rate) on that payday; and

(ii) the amount (if any) that would otherwise be payable to the person under section 592A (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 Division to cover the bereavement period.

Note 1: Section 592A 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 592B 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: For first available bereavement adjustment payday and bereavement period see section 21.

Choice not to receive payments

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

Form of choice

(3) A choice 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 Division; and

Rate during bereavement period

(4) If a person is qualified for payments under this Division in relation to the partner’s death, the rate at which austudy payment is payable to the person during the bereavement period is, unless the person has made a choice under subsection (2), governed by section 592C.

592A Continued payment of partner’s pension or benefit

Note: For bereavement rate continuation period see section 21.

592B Lump sum payable in some circumstances

If:

(a) a person is qualified for payments under this Division 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

Method statement

Step 1. Add up:

(a) the amount that, if the person’s partner had not died, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday; and

(b) the amount (if any) that, if the partner had not died, would have been payable to the partner on the partner’s payday immediately before the first available bereavement adjustment payday;

the result is the combined rate.

Step 2. Work out the amount that, apart from section 592C, would have been payable to the person on the person’s payday immediately before the first available bereavement adjustment payday: the result is the person’s individual rate.

Step 3. Take the person’s individual rate away from the combined rate: the result is the partner’s instalment component.

Step 4. Work out the number of the partner’s paydays in the bereavement lump sum period.

Step 5. Multiply the partner’s instalment component by the number obtained in Step 4: the result is the amount of the lump sum payable to the person under this section.

592C Adjustment of person’s austudy payment rate

If:

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

(b) the person does not elect under subsection 592(2) not to receive payments under this Division;

the rate of the person’s austudy payment during the bereavement period is worked out as follows:

(c) during the bereavement rate continuation period, the rate of austudy payment payable to the person is the rate at which the austudy payment would have been payable to the person if the person’s partner had not died;

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

592D Effect of death of person entitled to payments under this Division

If:

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

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

there is payable, to any person that 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

Method statement

Step 1. Add up:

(a) the amount that, if neither the person nor the person’s partner had died, would have been payable to the person on the person’s payday immediately after the day on which the person dies; and

the result is the combined rate.

Step 2. Work out the amount that, apart from section 592C, 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 the person’s individual rate.

Step 3. Take the person’s individual rate away from the combined rate: the result is the partner’s instalment component.

Step 4. Work out the number of paydays of the partner in the period that begins on the day on which the person dies and ends on the day on which the bereavement period ends.

Step 5. 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.

592E Matters affecting payments under this Division

Recovery/reduction of amount payable

(1) If:

(a) a person is qualified for payments under this Division in relation to the death of the person’s partner; 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 is more than the amount payable to the person under this Division;

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

Bank not liable

(2) If:

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

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

Part 2.11B—Scholarship payments for students

Division 1—Student start‑up scholarship payment

592F Qualification for student start‑up scholarship payment

Receiving youth allowance

(1) A person is qualified for a student start‑up scholarship payment at a time (the qualification time) if:

(a) at the qualification time, the person is qualified for youth allowance and youth allowance is payable to the person; and

(b) at the qualification time, the person is receiving youth allowance and would be receiving youth allowance if steps 2 and 3 of the method statement in point 1067G‑A1 of the Youth Allowance Rate Calculator were disregarded for the purposes of working out the person’s rate of that allowance; and

(c) the person is receiving youth allowance because the person is undertaking full‑time study in an approved scholarship course; and

(d) the Secretary is satisfied that in the period of 35 days starting immediately after the qualification time, the person proposes to start to undertake the course or to continue to undertake the course; and

(e) the Secretary is satisfied that the person is not likely to receive the amount or value of a Commonwealth Education Costs Scholarship in the period of 6 months starting immediately after the qualification time.

Note: For approved scholarship course, see section 592M.

Receiving austudy payment

(2) A person is qualified for a student start‑up scholarship payment at a time (the qualification time) if:

(a) at the qualification time, the person is qualified for austudy payment and austudy payment is payable to the person; and

(b) at the qualification time, the person is receiving austudy payment and would be receiving austudy payment if steps 2 and 2A of the method statement in point 1067L‑A1 of the Austudy Payment Rate Calculator were disregarded for the purposes of working out the person’s rate of that payment; and

Note: For approved scholarship course, see section 592M.

592G Circumstances in which person is not qualified for student start‑up scholarship payment

Previous qualification for, or receipt of, same or similar payment

(1) Despite section 592F, a person is not qualified for a student start‑up scholarship payment if 1 or more of the circumstances listed in subsection (2) apply to the person in the period of 6 months (or shorter period determined under subsection (3)) ending immediately before the person’s qualification time.

(2) The circumstances are:

(a) the person has qualified for a student start‑up scholarship payment; or

(b) the person has qualified for a payment under the ABSTUDY Scheme known as an ABSTUDY student start‑up scholarship payment; or

(c) the person has qualified for a payment known as a student start‑up scholarship payment under the scheme referred to in section 117 of the Veterans’ Entitlements Act; or

(d) the person has qualified for a payment known as a student start‑up scholarship payment under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act; or

(e) the person has received the amount or value of a Commonwealth Education Costs Scholarship; or

(f) the person was entitled to the amount or value of a Commonwealth Education Costs Scholarship but has not received the full entitlement only because the scholarship was suspended.

Secretary may determine period of less than 6 months

(3) For the purposes of subsection (1), the Secretary may determine a period in relation to a person that is at least 2 months but less than 6 months if the Secretary considers that the determination would enable the person to qualify for a student start‑up scholarship payment on or near the day on which the approved scholarship course concerned started or starts.

(4) However, the Secretary must not make a determination under subsection (3) if the effect of the determination would be to enable the person to receive more than 2 student start‑up scholarship payments in a calendar year.

592H Amount of student start‑up scholarship payment

Payment for which person is qualified in 2010

(1) The amount of a student start‑up scholarship payment for which a person is qualified in 2010 is $650.

Payment for which person is qualified in 2011 or later

(2) The amount of a student start‑up scholarship payment for which a person is qualified on or after 1 January 2011 is $1,064.

Note: The amount of a student start‑up scholarship payment for which a person is qualified on or after 1 January 2011 is indexed annually in line with CPI increases (see sections 1190 to 1194).

Division 2—Relocation scholarship payment

592J Qualification for relocation scholarship payment

A person is qualified for a relocation scholarship payment at a time (the qualification time) if:

(a) at the qualification time, the person is qualified for youth allowance and youth allowance is payable to the person; and

(i) is independent because of subsection 1067A(3), (5), (6), (7), (8), (9) or (11); or

(ii) is not independent (see section 1067A) but is required to live away from home (see section 1067D); and

(d) the person is receiving youth allowance because the person is undertaking full‑time study in an approved scholarship course; and

(e) the Secretary is satisfied that in the period of 35 days starting immediately after the qualification time, the person proposes to start to undertake the course or to continue to undertake the course; and

(f) the Secretary is satisfied that the person is not likely to receive the amount or value of a Commonwealth Accommodation Scholarship in the period of 12 months starting immediately after the qualification time.

Note: For approved scholarship course, see section 592M.

592K Circumstances in which person is not qualified for relocation scholarship payment

Previous qualification for, or receipt of, same or similar payment

(1) Despite section 592J, a person is not qualified for a relocation scholarship payment if 1 or more of the circumstances listed in subsection (2) apply to the person in the period of 12 months (or shorter period determined under subsection (3)) ending immediately before the person’s qualification time.

(2) The circumstances are:

(a) the person has qualified for a relocation scholarship payment; or

(b) the person has qualified for a payment under the ABSTUDY Scheme known as an ABSTUDY relocation scholarship payment; or

(c) the person has qualified for a payment known as a relocation scholarship payment under the scheme referred to in section 117 of the Veterans’ Entitlements Act; or

(d) the person has qualified for a payment known as a relocation scholarship payment under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act; or

(e) the person has received the amount or value of a Commonwealth Accommodation Scholarship; or

(f) the person was entitled to the amount or value of a Commonwealth Accommodation Scholarship but has not received the full entitlement only because the scholarship was suspended.

(3) For the purposes of subsection (1), the Secretary may determine a period in relation to a person that is at least 3 months but less than 12 months if the Secretary considers that the determination would enable the person to qualify for a relocation scholarship payment on or near 1 January in a year.

(4) However, the Secretary must not make a determination under subsection (3) if the effect of the determination would be to enable the person to receive more than 2 relocation scholarship payments in a period of 2 successive calendar years.

Independent but did not receive same or similar payment

(5) Despite section 592J, a person is not qualified for a relocation scholarship payment if:

(a) at the person’s qualification time, the person has attained the age at which the person is independent (see subsection 1067A(4)); and

(b) before the qualification time, the person has not received any of the following:

(i) a relocation scholarship payment;

(ii) a payment under the ABSTUDY Scheme known as an ABSTUDY relocation scholarship;

(iii) a payment known as a relocation scholarship payment under the scheme referred to in section 117 of the Veterans’ Entitlements Act;

(iv) a payment known as a relocation scholarship payment under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act;

(v) the amount or value of a Commonwealth Accommodation Scholarship.

592L Amount of relocation scholarship payment

Initial payment

(1) The amount of a relocation scholarship payment to a person is $4,000, unless subsection (2) or (3) applies to the person.

Note: The amount of a relocation scholarship payment is indexed annually in line with CPI increases (see sections 1190 to 1194).

Previously undertaken approved scholarship course and independent or required to live away from home

(2) The amount of a relocation scholarship payment to a person is $1,000 if:

(a) in the calendar year before the calendar year in which the person’s qualification time falls, the person undertook a course that, had the person undertaken it at the qualification time, would have been an approved scholarship course at that time; and

(b) either of the following applied to the person at a time that was more than 6 months before the person’s qualification time:

(i) the person was independent because of subsection 1067A(3), (5), (6), (7), (8), (9) or (11);

(ii) the person was not independent (see section 1067A) but was required to live away from home (see section 1067D).

Note: The amount of a relocation scholarship payment is indexed annually in line with CPI increases (see sections 1190 to 1194).

Subsequent payment

(3) The amount of a relocation scholarship payment to a person is $1,000 if the person has received any of the following before the period described in subsection 592K(1):

(a) a relocation scholarship payment;

(b) a payment under the ABSTUDY Scheme known as an ABSTUDY relocation scholarship payment;

(c) a payment known as a relocation scholarship payment under the scheme referred to in section 117 of the Veterans’ Entitlements Act;

(d) a payment known as a relocation scholarship payment under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act;

(e) the amount or value of a Commonwealth Accommodation Scholarship.

Note: The amount of a relocation scholarship payment is indexed annually in line with CPI increases (see sections 1190 to 1194).

Division 3—Approved scholarship course

592M Definition

In this Part:

approved scholarship course means:

(a) a course of study or instruction approved by the Minister under a determination made for the purposes of section 592N; or

(b) if no determination is in force—a course determined to be a tertiary course under section 5D of the Student Assistance Act 1973 for the purposes of that Act.

592N Approved scholarship course

(1) The Minister may, by legislative instrument, determine that a course of study or instruction is an approved scholarship course for the purposes of this Part.

(2) Despite subsection 14(2) of the Legislative Instruments Act 2003, a determination made for the purposes of subsection (1) may make provision for, or in relation to, a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing:

(a) as in force or existing at a particular time; or

(b) as in force or existing from time to time.

Part 2.12—Newstart allowance

Division 1—Qualification for and payability of newstart allowance

Subdivision A—Basic qualifications

593 Qualification for newstart allowance

(1) Subject to sections 596, 596A, 597 and 598, a person is qualified for a newstart allowance in respect of a period if:

(a) the person satisfies the Secretary that:

(i) throughout the period the person is unemployed; or

(ii) the person is a CDEP Scheme participant in respect of the period; and

Note: For CDEP Scheme participant see section 1188B.

(b) in the case of a person to whom subparagraph (a)(i) applies—throughout the period, or for each period within the period, the person:

(i) satisfies the activity test; or

(ii) is not required to satisfy the activity test; and

(c) if subsection 605(1) applies to the person, at all times (if any) during the period when a Newstart Employment Pathway Plan is not in force in relation to the person, the person is prepared to enter into such a plan; and

(d) if subsection 605(1) or (2) applies to the person, at all times during the period when a Newstart Employment Pathway Plan is in force in relation to the person, the person is prepared to enter into another such plan instead of the existing plan; and

(e) if the person is required by the Secretary to enter into a Newstart Employment Pathway Plan in relation to the period, the person enters into that plan; and

(f) while the plan is in force, the person satisfies the Secretary that the person is complying with the requirements in the plan; and

(g) throughout the period the person:

(i) subject to subsection (2B), is at least 21 years of age and has not reached the pension age; and

(ii) is an Australian resident or is exempt from the residence requirement within the meaning of subsection 7(7); and

(i) the person was not in receipt of a youth allowance during the period.

Note 1: a person may be treated as unemployed (see section 595).

Note 2: the activity test is set out in section 601.

Note 3: for Newstart Employment Pathway Plan see sections 605 and 606.

Note 5: for pension age see section 23.

Note 6: for Australian resident see section 7.

Note 8: a person may not be qualified if the person’s unemployment is due to industrial action (see section 596).

Note 9: a person may not be qualified if the person has reduced the person’s employment prospects by moving to an area of lower employment prospects (see section 597).

Note 12: A person could be in receipt of a youth allowance during a period for which the person would qualify for a newstart allowance, if paragraph (i) was disregarded, because of section 540C (extension of youth allowance to end of payment period).

Note 13: a newstart allowance is not payable in certain situations even if the person is qualified (see Subdivisions C, D, E and F and Part 4.2).

(1B) Subject to sections 596, 596A, 597 and 598, a person is qualified for a newstart allowance in respect of a period if:

(a) the person satisfies the Secretary that throughout the period the person is unemployed; and

(b) throughout the period the person:

(i) has reached the age of 21 years and has not reached the pension age; and

(ii) is an Australian resident; and

(d) the person made a claim for disability support pension at or before the start of the period and the claim was not determined before the end of the period; and

(e) the Secretary is satisfied that throughout the period the person suffered from a medical condition that had a significant adverse effect on the person’s ability to work; and

(f) the person satisfies any one of the conditions in subsection (1C).

(1C) The conditions referred to in paragraph (1B)(f) are:

(a) a condition that the person was an Australian resident when the significant adverse effect of the medical condition on the person’s ability to work first occurred; and

(b) a condition that at the start of the period the person had 10 years qualifying Australian residence or had a qualifying residence exemption for newstart allowance; and

(i) the person was born outside Australia; and

(ii) when the significant adverse effect of the medical condition first occurred the person was not an Australian resident but was a dependent child of an Australian resident; and

(iii) the person became an Australian resident while a dependent child of an Australian resident.

(1D) Subject to sections 596, 596A and 598, a person is qualified for a newstart allowance, in respect of the period starting in accordance with subsection (1E) and ending in accordance with subsection (1F), if:

(a) the person satisfies the Secretary that throughout the period the person is unemployed; and

(b) throughout the period the person:

(i) has reached the age of 21 years and has not reached the pension age; and

(ii) is an Australian resident or is exempt from the residence requirement within the meaning of subsection 7(7); and

(d) the person has made, or is taken to have made, a claim for newstart allowance; and

(e) the person satisfies the Secretary that it is likely that the person has a permanent medical condition that would prevent the person from undertaking full‑time work; and

(f) the person satisfies the Secretary that it would be unreasonable to expect the person to satisfy the activity test until an assessment of the person’s capacity to work has been undertaken.

(1E) The period for which the person is qualified for a newstart allowance under subsection (1D) starts:

(a) if the person is already receiving newstart allowance when the Secretary becomes aware of the medical condition referred to in paragraph (1D)(e)—when the Secretary becomes aware of the medical condition; or

(b) otherwise—when the person made, or is taken to have made, the claim for newstart allowance.

(1F) The period for which the person is qualified for a newstart allowance under subsection (1D) ends:

(a) if the person has failed to comply with a requirement to enter into a Newstart Employment Pathway Plan—on the day on which the person so failed; or

(b) in any other case—when the person enters into a Newstart Employment Pathway Plan.

(4) If:

(a) a person was receiving a social security pension, a service pension or income support supplement; and

(b) the person claims a newstart allowance within 14 days of the day on which the last instalment of the person’s pension was paid; and

(c) the person becomes qualified for a newstart allowance at some time during the 14 day period but after the first day of that period;

the person is taken to be qualified for a newstart allowance for the whole of the 14 day period.

Note: subsection (4) operates when a person transfers from a pension to a newstart allowance and the person is not qualified for a newstart allowance immediately after the day on which the person’s last instalment of pension is paid. The subsection deems the person to be so qualified. As a result, the person may be paid a newstart allowance for the period beginning on the day after the day on which the person’s last instalment of pension was paid. The subsection aims to ensure that there is minimal disruption to a person’s payments when a person transfers from a pension to a newstart allowance.

595 Persons may be treated as unemployed

(1) The Secretary may treat a person as being unemployed throughout a period if:

(a) during the period, the person undertakes:

(i) paid work that, in the Secretary’s opinion, is suitable for the person to undertake; or

(ii) any other activity;

as a result of which he or she would, but for this subsection, not be taken to be unemployed; and

(b) the Secretary is of the opinion that, taking into account:

(i) the nature of the work or other activity; and

(ii) the duration of the work or other activity; and

(iii) any remuneration received for the work or other activity; and

(iv) any other matters relating to the work or other activity, or to the person’s circumstances, that the Secretary considers relevant;

the activity should be disregarded.

Note: The person may, under subsection 603(3), also be treated as satisfying the activity test.

(1A) However, the work or other activity must not be or include any work or other activity of a kind that the Secretary determines under subsection (1B).

(1B) The Secretary may determine, by legislative instrument, kinds of work or other activity that are not to be taken into account for the purposes of subsection (1).

(2) A person complying with a Newstart Employment Pathway Plan, or with a requirement under subsection 601(1A), may be treated by the Secretary as being unemployed.

(3) In deciding whether to treat a person as being unemployed, the Secretary is to take into account:

(a) the nature of the activity undertaken by the person so as to comply with a requirement under subsection 601(1A) (activity test) or a requirement in a Newstart Employment Pathway Plan; and

(b) the duration of the activity; and

596 Unemployment due to industrial action

(1) A person is not qualified for a newstart allowance in respect of a period unless the person satisfies the Secretary that the person’s unemployment during the period was not due to the person being, or having been, engaged in industrial action or in a series of industrial actions.

(2) A person is not qualified for a newstart allowance in respect of a period unless the Secretary is satisfied:

(a) that the person’s unemployment during the period was due to other people being, or having been, engaged in industrial action or in a series of industrial actions; and

(b) the people, or some of the people, were members of a trade union which was involved in the industrial action; and

(3) Subject to subsection (4), subsections (1) and (2) do not prevent a person from being qualified for a newstart allowance in respect of a period that occurs after the relevant industrial action or series of industrial actions has stopped.

Note: for industrial action, trade union and unemployment see section 16.

(4) Where the relevant industrial action or series of industrial actions is in breach of an order, direction or injunction issued by:

(a) a prescribed State industrial authority within the meaning of the Fair Work Act 2009; or

(b) Fair Work Australia or the Australian Industrial Relations Commission; or

(d) the Federal Magistrates Court;

a person is not qualified for a newstart allowance in respect of a period unless that period occurs 6 weeks or more after the relevant industrial action or series of industrial actions has stopped.

596A Assurance of support

A person is not qualified for newstart allowance in respect of a period if the Secretary is satisfied that throughout the period:

(a) an assurance of support was in force in respect of the person (in this section called the assuree); and

(b) the person who gave the assurance of support was willing and able to provide an adequate level of support to the assuree; and

Note: for assurance of support see subsection 23(1).

598 Liquid assets test waiting period

(1) Subject to subsections (4A), (5), (6), (7) and (8), if:

(a) the value of a person’s liquid assets exceeds the person’s maximum reserve on:

(i) the day following the day on which the person ceased work or ceased to be enrolled in a full time course of education or of vocational training; or

(ii) the day on which the person claims a newstart allowance; and

(b) the person is not a transferee to a newstart allowance;

the person is not qualified for a newstart allowance for a period unless the person has served the liquid assets test waiting period in relation to the claim before the beginning of that period.

Note 1: for liquid assets see section 14A.

Note 2: for maximum reserve see section 14A.

Note 3: for transferee to a newstart allowance see subsections 23(6) and (7).

Note 4: for serving the liquid assets test waiting period see subsection 23(10).

(2) The liquid assets test waiting period in relation to the claim is to be worked out under subsections (2A), (2B) and (2C).

(2A) Work out the number of formula weeks (disregarding any fractions of a week) in relation to the claim using the formula:

where:

liquid assets means the person’s liquid assets.

maximum reserve amount means the maximum reserve in relation to the person under subsection 14A(1).

divisor means, in relation to a person:

(a) if the person is not a member of a couple and does not have a dependent child—$500; or

(b) otherwise—$1,000.

(2B) If the number of formula weeks is equal to or greater than 13 weeks, the liquid assets test waiting period in relation to the claim is 13 weeks.

(2C) If subsection (2B) does not apply, the liquid assets test waiting period in relation to the claim is the number of weeks equal to the number of formula weeks.

(3) Subject to subsections (3AA) and (4), if the person is not a member of a couple, the liquid assets test waiting period in relation to the claim starts on the day following the day on which the person ceased work or ceased to be enrolled in a full time course of education or of vocational training.

(3AA) Subject to subsection (4), if the person:

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

(b) is, under Subdivision BA, not required to satisfy the activity test;

the liquid assets test waiting period in relation to the claim starts on the day on which the person became incapacitated.

(3A) Subject to subsections (3B) and (4), if the person is a member of a couple, the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:

(a) the day following the day on which the person ceased work or ceased to be enrolled in a full time course of education or of vocational training;

(b) if, when the claim is made, the person’s partner has ceased work—the day following the day on which the person’s partner ceased work;

(ba) if, when the claim is made, the person’s partner has ceased to be enrolled in a full time course of education or of vocational training—the day following the day on which the person’s partner so ceased;

(c) if, when the claim is made, the person’s partner is incapacitated for work—the day on which the person’s partner became incapacitated for work.

(3B) Subject to subsection (4), if the person:

(a) is a member of a couple; and

(b) is, under Subdivision BA, not required to satisfy the activity test;

the liquid assets test waiting period in relation to the claim starts on the last occurring of the following days:

(d) if, when the claim is made, the person’s partner has ceased work—the day following the day on which the person’s partner ceased work;

(da) if, when the claim is made, the person’s partner has ceased to be enrolled in a full time course of education or of vocational training—the day following the day on which the person’s partner so ceased;

(e) if, when the claim is made, the person’s partner is incapacitated for work—the day on which the person’s partner became incapacitated for work.

(4) If:

(a) a person becomes incapacitated for work; and

(b) because of section 674 (sickness allowance liquid assets test waiting period), the person is not qualified for sickness allowance during the liquid assets test waiting period that starts on the day on which the person becomes incapacitated for work; and

(i) the person ceases to be incapacitated for work; and

(ii) the person claims a newstart allowance;

the liquid assets test waiting period starts on the day on which the person becomes incapacitated for work.

(4A) Subsection (1) does not apply to a person if, at any time during the 12 months preceding:

(a) the day following the day on which the person ceased work or ceased to be enrolled in a full time course of education or of vocational training; or

(b) the day on which the person claims a newstart allowance;

the person or their partner was serving a liquid assets test waiting period that started during that 12 months.

(5) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

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

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

(6) Subsection (1) does not apply to a person who becomes qualified for newstart allowance at the end of a continuous period in respect of which the person received income support payments (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this subsection).

Note 1: For income support payment see subsection 23(1).

Note 2: For the determination of the continuous period in respect of which a person received income support payments see section 38B.

(8) Subsection (1) does not apply to a person who:

(a) is undertaking an activity specified in an instrument made under subsection (8A); and

(b) has been exempted from the application of subsection (1) by the Secretary.

(8A) The Secretary may, by legislative instrument, specify activities for the purpose of paragraph (8)(a).

(9) A reference in this section to the day on which a person ceased work (whether the person ceases work permanently, temporarily or by reason of being on unpaid leave) is a reference:

(a) except where the person is on paid leave immediately after last performing work—to the day on which the person last performed work before so ceasing; and

(b) if the person is on paid leave—to the last day on which the person is on that paid leave.

600 Prospective determinations for some allowance recipients

(1) A person is qualified for newstart allowance for a period determined by the Secretary if:

(a) the person is receiving newstart allowance; 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 newstart allowance (sections 593 to 598) during the period; and

(ii) it is reasonable to expect that newstart allowance 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 newstart allowance for the period.

(2) The Minister, by legislative instrument:

(a) must determine 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 guidelines that take effect immediately after the revocation.

Subdivision B—Activity test

601 Activity test

(1) Subject to subsections (1A) and (5), a person satisfies the activity test in respect of a period if the person satisfies the Secretary that, throughout the period, the person is:

(a) actively seeking; and

(b) willing to undertake;

paid work in Australia, other than paid work that is unsuitable to be undertaken by the person.

Note 1: For situations in which a person is taken to satisfy, or is not required to satisfy, the activity test see:

(a) section 603 (persons attending training camps or in remote areas);

(b) section 603A (special circumstances);

(d) section 603AB (certain principal carers and people with partial capacity to work).

Note 2: See subsections (2A) and (2B) on what paid work is unsuitable.

(1A) A person also satisfies the activity test in respect of a period if:

(a) the Secretary is of the opinion that, throughout the period, the person should undertake particular paid work, other than paid work that is unsuitable to be done by the person; and

Note: See subsection (2A) on what paid work is unsuitable.

(b) the Secretary notifies the person that the person is required to act in accordance with that opinion; and

(1B) To avoid doubt, the work that the person is required to undertake under subsection (1A) 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 Newstart Employment Pathway Plan that is in force in relation to the person.

(2) A person cannot be taken to satisfy the activity test throughout a period if the person fails to comply with a requirement under subsection (1A):

(a) whether or not the person complies with subsection (1) or (4); and

(b) whether or not another provision of this Act under which the activity test is satisfied, or taken to be satisfied, applies (or would apart from this section apply) to the person.

(2A) Subject to subsections (2AA) and (2AB), for the purposes of subsection (1) and paragraph (1A)(a), 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

Note: For principal carer see subsections 5(15) to (24).

(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 a place to a home in another place; or

(j) for any other reason, the work is unsuitable for the person.

(2AAA) A person has, for the purposes of paragraph (2A)(ba), access to appropriate care and supervision for a child at a particular time if, at that time:

(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.

(2AAB) For the purposes of paragraph (2A)(ba), 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.

(2AA) 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 full‑time 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 (2A)(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.

(2AB) 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 (2AA) to seek work outside the area at the time when the representation is made.

(2AC) The Secretary must, by legislative instrument, determine matters that the Secretary must take into account in deciding whether, for the purposes of paragraph (2A)(j), particular paid work is unsuitable for a person.

(2AD) To avoid doubt, a determination under subsection (2AC) does not limit the matters that the Secretary may take into account in deciding whether, for the purposes of paragraph (2A)(j), particular paid work is unsuitable for a person.

(2D) A reference in subsection (2A) 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).

(4) A person also satisfies the activity test in respect of a period if:

(a) throughout the period, the person complies with the terms of a Newstart Employment Pathway Plan that is in force in relation to the person; and

(b) either:

(i) the person is included in a class of persons specified in an instrument made under subsection (4A); or

(ii) the Secretary determines that the person should be taken to satisfy the activity test in respect of that period.

(4A) The Secretary may, by legislative instrument, specify classes of persons for the purposes of subparagraph (4)(b)(i).

(4B) A person also satisfies the activity test in respect of a period if, throughout the period, the person:

(a) is participating in an approved training course for training supplement; and

(b) is, in the Secretary’s opinion, making satisfactory progress towards completing the course.

(4C) In forming an opinion about whether a person is making satisfactory progress for the purpose of paragraph (4B)(b), the Secretary must have regard to guidelines set under subsection 541B(3B).

(4D) A person also satisfies the activity test in respect of a period if, throughout the period, the person is participating in the National Green Jobs Corps program.

(5) If a person fails to comply, throughout a period, with a requirement in a Newstart Employment Pathway Plan that is in force in relation to the person, the person cannot be taken to satisfy the activity test in respect of the period in spite of any compliance of the person with subsection (1), (4B) or (4D).

Note: For situations in which a person is not required to satisfy the activity test see section 603 (persons attending training camps or in remote areas).

602A Relief from activity test—persons to whom subsection 614(6) applies

If:

(a) newstart allowance is payable to a person because of subsection 614(6); and

(b) the person has commenced the full‑time course of education referred to in paragraph 614(6)(a);

the person is taken to satisfy the activity test in respect of the period during which the allowance is payable to the person because of that subsection.

602B Relief from activity test—domestic violence etc.

(1) A person is not required to satisfy the activity test 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) is the principal carer of one or more children; and

(ii) was subjected to domestic violence in the 26 weeks before the making of the determination; or

(b) the person is the principal carer of one or more children, and there are special circumstances relating to the person’s family that make it appropriate to make the determination.

Note: For principal carer see subsections 5(15) to (24).

(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 relation to the person on or after 1 July 2010.

(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.

602C Relief from activity test—people with disabled children and other circumstances

(1) A person is not required to satisfy the activity test 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 satisfy the activity test.

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:

(a) the person is the principal carer of a child; and

(b) the person is one or both of the following:

(i) the principal carer of one or more other children;

(ii) the main supporter of one or more secondary pupil children; and

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For main supporter see section 5G.

Note 3: For secondary pupil child see section 5F.

(3B) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that the person:

(a) is not the principal carer of one or more children; and

(b) is a registered and active foster carer; and

(c) is providing foster care to a child temporarily in an emergency or to give respite to another person from caring for the child.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For registered and active foster carer see section 5B.

(3C) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that the person:

(a) is the main supporter of one or more secondary pupil children; and

(b) is a home educator or distance educator of one or more of those children.

Note 1: For main supporter see section 5G.

Note 2: For secondary pupil child see section 5F.

Note 3: For home educator see section 5C.

Note 4: For distance educator see section 5D.

(3D) The Secretary must make a determination under this section in relation to the person if the Secretary is satisfied that:

(a) the person is the principal carer of one or more children; and

(b) the person is a relative (other than a parent) of a child (the kin child); and

(i) provides for the kin child to live with the person for the care and wellbeing of the kin child; and

(ii) is prepared or accepted by an authority of a State or Territory that has responsibility for the wellbeing of children; and

(d) the person is acting in accordance with the document.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For relative (other than a parent) see section 5E.

(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 satisfy the activity test for the period.

(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, except subsection (3B), must be the lesser of:

(a) the period that the Secretary considers to be appropriate; or

(b) 12 months.

(6A) The period that the Secretary determines under subsection (3B) in relation to the person must be the lesser of:

(a) the period:

(i) starting when the person starts to provide foster care to the child; and

(ii) ending 12 weeks, or a shorter period determined by the Secretary, after the person ceases to provide foster care to the child; and

(b) 12 months.

(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.

603 Relief from activity test—general

(1) A person is taken to satisfy the activity test 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

(2) Where the Secretary considers that:

(a) it would be reasonable to assume that, at the end of a period, a person is present in an area where:

(i) there is no locally accessible labour market; and

(ii) there is no locally accessible vocational training course or labour market program; and

(aa) it would be reasonable to assume that, throughout the period, the person is unemployed and is capable of undertaking, and is willing to undertake, paid work that, in the Secretary’s opinion, is suitable for the person to undertake; and

(b) having regard to all the relevant factors, including:

(i) the location of offices of the Department; and

(ii) difficulties with transport and communication; and

(iii) the educational and cultural background of the person;

it would be unreasonable to expect the person to comply with the activity test in order to be qualified for newstart allowance for that period;

then, unless the person has been notified of a requirement under subsection 601(1A) in relation to the period, the person is taken to satisfy the activity test during that period.

Note 1: for activity test see section 601.

Note 2: for remote area see section 14.

(3) If:

(a) a person is treated as being unemployed because of subsection 595(1); and

(b) the Secretary is satisfied that it is appropriate for this subsection to apply;

the person is taken to satisfy the activity test during the period starting when the person made a claim, or is to be taken to have made a claim, for newstart allowance and ending:

(c) if the person has been required to enter into a Newstart Employment Pathway Plan but has failed to enter that plan—when the person so failed; or

(d) in any other case—when the person has entered into such a plan.

(4) Subsection (3) does not apply if, at the time of becoming a person who is treated as being unemployed because of subsection 595(1), the person had already been required to enter into a Newstart Employment Pathway Plan.

603A Relief from activity test—special circumstances

(1) Subject to subsections (2) and (3), a person is not required to satisfy the activity test for 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 comply with the activity test 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;

(iia) subsection 731E(1) of this Act;

(iii) subsection (1) of this section; and

(b) the periods to which the determinations relate form a continuous period;

603AAA Pre‑natal and post‑natal relief from activity test

(1) A pregnant woman is not required to satisfy the activity test 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 not required to satisfy the activity test for the period that starts on the day on which she gives birth to the child and ends 6 weeks after that day.

603AA Relief from activity test—people 55 and over who are engaged in work

(1) Subject to subsection (3), a person who has reached 55 years is taken to satisfy the activity test in respect of a period (the relevant period) if the person:

(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

(3) 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.

(4) For the purposes of this section:

(a) approved voluntary unpaid work, either full‑time or otherwise, 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.

603AB Relief from activity test—certain principal carers and people with partial capacity to work

A person who:

(a) is the principal carer of at least one child; or

(b) has a partial capacity to work;

is taken to satisfy the activity test in respect of a period if, during the period, the person is engaged for at least 30 hours per fortnight in paid work that the Secretary regards as suitable.

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For partial capacity to work see section 16B.

Subdivision BA—Exemption from activity test—people temporarily incapacitated for work

603BA Subdivision not to apply to a person with a pending claim for disability support pension

This Subdivision does not apply to a person who is qualified for newstart allowance under subsection 593(1B).

603B Interpretation

A reference in this Subdivision to a person being exempt from the activity test, or ceasing to be exempt from the activity test, under, or under a provision of, this Subdivision is a reference to a person not being required to satisfy the activity test, or becoming required to satisfy the activity test, as the case may be, because of the operation of, or the operation of that provision of, this Subdivision.

603C Incapacitated person not required to satisfy activity test

(1) Subject to this Subdivision, a person is not required to satisfy the activity test 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) if this Subdivision had not been enacted and paragraphs 593(1)(b), (c), (d) and (e) were disregarded, the person would qualify for newstart allowance; and

(e) 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

(f) the Secretary is satisfied that the incapacity has not been brought about with a view to obtaining an exemption from the activity test.

(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.

603D Time limit for exemption—Secretary satisfied person can undertake activity

(1) A person ceases to be exempt, under this Subdivision, from the activity test if the Secretary is satisfied that, although the person meets the requirements of section 603C, 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 Newstart Employment Pathway Plan—when the person so failed; or

(b) in any other case—when the person has entered into such a plan.

(3) This section does not prevent a person ceasing to be exempt under section 603F.

603F Time limit for exemption—end of person’s maximum exemption period

(1) A person ceases to be exempt, under this Subdivision, from the activity test 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 the person was required to satisfy the activity test—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.

(4) If:

(a) a person is exempt, under this Subdivision, from the activity test; 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 603C(1)(e) 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.

(4A) If:

(a) a person was exempt, under this Subdivision, from the activity test; 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 603C(1)(e) 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) a person is exempt, under this Subdivision, from the activity test; and

(b) 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) 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.

(5A) If:

(a) a person was exempt, under this Subdivision, from the activity test; 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 (4A)(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 (4A)(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.

(6) If:

(a) a person is exempt, under this Subdivision, from the activity test; and

(b) the person has, whether before or after the commencement of this section, given the Secretary a certificate referred to in paragraph (4)(b) before the end of the person’s maximum exemption 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.

(7) This section does not prevent a person ceasing to be exempt under section 603D.

Subdivision C—Newstart Employment Pathway Plans

605 Newstart Employment Pathway Plans—requirement

(1) If a Newstart Employment Pathway Plan is not in force in relation to a person, the Secretary may require the person to enter into such a plan if:

(a) the person is receiving, or has made a claim for, a newstart allowance; or

(b) the Department is contacted by or on behalf of the person in relation to a claim for a newstart allowance.

(2) If a Newstart Employment Pathway Plan is in force in relation to a person, the Secretary may require the person to enter into another plan instead of the existing one.

(2A) If, under Subdivision BA, a person is not required to satisfy the activity test, subsections (1) and (2) apply to the person only if subsection 603D(1) applies to the person.

(2B) Subsections (1) and (2) do not apply to a person who is qualified for a newstart allowance only under subsection 593(1B).

(2C) Subsections (1) and (2) do not apply to a person at a time during which, under section 602B or 602C, the person is not required to satisfy the activity test.

(3) The Secretary is to give a person who is required to enter into a Newstart Employment Pathway Plan notice of:

(a) the requirement; and

(b) the places and times at which the plan is to be negotiated.

(4) A Newstart Employment Pathway Plan must be in a form approved by the Secretary.

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

(a) a person starts to receive newstart allowance on a particular day; and

(b) immediately before that day, a Parenting Payment Employment Pathway Plan was in force in relation to the person; and

the plan has effect on and after that day as if it were a Newstart Employment Pathway Plan.

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

(a) a person starts to receive newstart allowance on a particular day; and

(b) immediately before that day, a Youth Allowance Employment Pathway Plan was in force in relation to the person; and

the plan has effect on and after that day as if it were a Newstart Employment Pathway Plan.

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

(a) a person starts to receive newstart allowance on a particular day; and

(b) immediately before that day a Special Benefit Employment Pathway Plan was in force in relation to the person; and

the plan has effect on and after that day as if it were a Newstart Employment Pathway Plan.

606 Newstart Employment Pathway Plans—terms

Suitable requirements

(1) Subject to sections 607 to 607B, a Newstart Employment Pathway Plan that is in force in relation to a person is to contain one or more terms (the requirements) that:

(a) the person is required to comply with; and

(b) the Secretary regards as suitable for the person.

(1A) However, a plan must not contain a requirement of a kind that the Secretary determines under subsection (1B).

(1B) The Secretary must determine, by legislative instrument, the kinds of requirements that plans must not contain.

(1C) To avoid doubt, a determination under subsection (1B) does not limit the Secretary’s discretion to exclude other kinds of requirements from a particular plan under subsection (1).

Optional terms

(1D) A plan may also contain one or more terms that the person may, but is not required to, comply with.

Approval of requirements

(2) The requirements in a plan are to be approved by the Secretary.

(3) In considering whether to approve the requirements in a plan that will be in force in relation to a person, the Secretary is to have regard to:

(a) the person’s capacity to comply with the requirements; and

(b) the person’s needs.

(4) In having regard to a person’s capacity to comply with the requirements in a plan, the Secretary is to take into account, but is not limited to the following matters:

(a) the person’s education, experience, skills and age; and

(aa) 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; and

(b) the state of the local labour market and the transport options available to the person in accessing that market; and

(d) the family and caring responsibilities of the person; and

(e) the length of travel time required to comply with the requirements; and

(f) the financial costs (such as travel costs) of complying with the requirements, and the person’s capacity to pay for such costs; and

(g) any other matters that the Secretary or the person considers relevant in the circumstances.

Variation, suspension, cancellation and review

(5) A plan that is in force in relation to a person:

(a) may be varied (in negotiation with the person) or suspended by the Secretary; and

(b) must be cancelled by the Secretary if the person enters into another Newstart Employment Pathway Plan; and

(d) may be cancelled by the Secretary after a review under paragraph (c).

Circumstances preventing or affecting compliance

607 Newstart Employment Pathway Plans—principal carers

(1) A Newstart Employment Pathway Plan that:

(a) is in force in relation to a person who is the principal carer of at least one child; 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 principal carer see subsections 5(15) to (24).

(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.

607A Newstart Employment Pathway Plans—people with partial capacity to work

(1) A Newstart Employment Pathway Plan that:

(a) is in force in relation to 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.

607B Newstart Employment Pathway Plans—requirement to participate in an approved program of work

(1) A Newstart Employment Pathway Plan that is in force in relation to a person must not require the person to participate in an approved program of work for income support payment if:

(a) because of the application of Module G of Payment Rate Calculator B in section 1068, the person is receiving a newstart allowance 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

(2) If a Newstart Employment Pathway Plan that is in force in relation to a person requires the person to participate in an approved program of work for income support payment, the Secretary may, by notice given to the person, revoke the requirement to participate in the program if the Secretary:

(a) is satisfied that, because of the application of Module G of Payment Rate Calculator B in section 1068, the person is receiving a newstart allowance at a rate that has been reduced; or

(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.

607C Newstart Employment Pathway Plans—suspension of plans in cases of domestic violence etc.

A Newstart Employment Pathway Plan that is in force in relation to a person is taken to be suspended during any period during which the person is not required to satisfy the activity test because of section 602B or 602C.

Subdivision D—Situations where allowance not payable (general)

608 Newstart allowance not payable if allowance rate nil

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

(2) Subsection (1) does not apply to a person if the person’s rate would be nil merely because:

(a) an election by the person under subsection 1061VA(1) is in force; or

(b) the person has been paid an advance pharmaceutical allowance under the social security law.

611 Assets test—allowance not payable if assets value limit exceeded [see Appendix for CPI adjusted figures]

(1) A newstart allowance is not payable to a person if the value of the person’s assets is more than the person’s assets value limit.

(2) A person’s assets value limit is worked out using the following table: work out which family situation applies to the person; the assets value limit is the corresponding amount in the assets value limit column.

Assets value limit table
Column 1	Column 2	Column 3 Assets value limit
Item	Person’s family situation	Column 3A Either person or partner homeowner	Column 3B Neither person nor partner homeowner
1.	Not member of a couple	$110,750	$190,250
2.	Partnered (partner getting neither pension nor allowance)	$157,500	$237,000
3.	Partnered (partner getting pension or allowance)	$78,750	$118,500

Note 1: for member of a couple, partnered (partner getting neither pension nor allowance) and partnered (partner getting pension or allowance) see section 4.

Note 2: for homeowner see section 11.

Note 3: if item 2 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 612(1))—this is why the assets value limit is so high. If, on the other hand, item 3 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 612(2)).

Note 4: if a newstart allowance 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 items 1 and 3 in column 3A and item 3 in column 3B are indexed annually in line with CPI increases (see sections 1191 to 1194).

Note 6: the assets value limit of item 1 in column 3B is adjusted annually (see subsection 1204(1)).

Note 7: the item 2 assets value limits are adjusted annually so that they are twice the corresponding item 3 limits (see subsections 1204(2) and (3)).

612 Value of assets of members of couples

(1) If:

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

(b) the person’s partner:

(i) is not in receipt of a social security or service pension or income support supplement; and

(ii) is not in receipt of a social security benefit;

the value of the person’s assets, or of assets of a particular kind of the person, includes the value of the partner’s assets or of assets of that kind of the partner.

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

(2) If:

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

(b) the person’s partner is in receipt of:

(i) a social security or service pension or income support supplement; or

(ii) a social security benefit;

the value of:

(c) 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

(d) 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.

613 Full‑time students

(1) Subject to subsection (2), a newstart allowance is not payable to a person who is enrolled in a full‑time course of education or of vocational training for the period that:

(a) starts when the person starts the course; and

(b) finishes when the person:

(i) completes the course; or

(ii) abandons the course; or

(iii) gives notice to the provider of the course that the person:

(A) wishes to withdraw from the course; or

(B) wishes to withdraw from such number of subjects that the person’s course will no longer be a full‑time course; and

(2) Subsection (1) does not prevent a newstart allowance from being payable for any period during which:

(b) the person is engaged in a course undertaken under a Newstart Employment Pathway Plan; or

Note: For Newstart Employment Pathway Plan see sections 605 and 606.

614 Multiple entitlement exclusion

(1) A newstart allowance is not payable to a person if the person is already receiving a service pension or income support supplement.

(2) If:

(a) a person is receiving a newstart allowance; and

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

a newstart 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).

Note 3: for the day on which the newstart allowance ceases to be payable see section 660.

(3) A newstart 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;

unless:

(d) before 1 November 1986 the woman was also receiving a social security benefit.

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

Note 2: 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).

(3A) A newstart 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).

(3B) A newstart allowance is not payable to a person if:

(a) the person is an armed services widow or 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).

(4) Subject to subsections (5) and (6), a newstart allowance is not payable to a person for a period if a payment has been or may be made in respect of the person 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; or

(ba) the scheme to provide an allowance known as the Adult Migrant Education Program Living Allowance; or

(bb) the scheme to provide an allowance known as the English as a Second Language Allowance to the extent that the scheme applies to full‑time students.

Note 1: for prescribed educational scheme see section 5.

(5) If:

(a) a person may enrol 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 the person;

the Secretary may decide that, in spite of subsection (4), newstart allowance is payable to the person for a period before the person starts the course.

(6) If:

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

(d) the person was receiving newstart allowance immediately before the start of the course;

the Secretary may decide that, in spite of subsection (4), newstart allowance is payable to the person for the period of 3 weeks commencing on the day on which the course starts.

614A Maximum basic rate and remote area allowance not payable to CDEP Scheme participant

The maximum basic rate, and the remote area allowance, of newstart allowance for a period are not payable to a person 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).

615 Newstart allowance not payable if person fails to attend interview etc. in certain circumstances

(1) A newstart allowance is not payable to a person if:

(a) before or after the person made a claim for a newstart allowance, the Department is contacted by or on behalf of the person in relation to a claim for a newstart allowance; and

(b) as a result of the contact, the Department required the person to do one or both of the following:

(i) attend an interview with a specified person or organisation at a time and place specified in the requirement;

(ii) enter into a Newstart Employment Pathway Plan; and

(2) This section does not apply to a person if the Secretary is satisfied, in accordance with any guidelines under subsection (3), that it should not apply to the person.

(3) The Secretary may, by legislative instrument, make guidelines to be complied with in deciding under subsection (2) whether this section applies to a person.

(4) This section ceases to apply:

(a) when the person complies with:

(i) that requirement, or those requirements; or

(ii) any requirements that the Secretary has required the person to undertake in place of that requirement, or those requirements; or

(b) at such earlier time as the Secretary determines, in accordance with any guidelines under subsection (5).

(5) The Secretary may, by legislative instrument, make guidelines to be complied with in making determinations under paragraph (4)(b).

(6) To avoid doubt, the fact that a person is taken, because of section 13 of the Administration Act, to have made a claim for a newstart allowance on the day on which the Department was contacted by or on behalf of the person in relation to the claim does not affect the operation of this section.

Subdivision E—Situations where allowance not payable (waiting periods)

620 Ordinary waiting period

(1) Subject to subsection (2), a person is subject to an ordinary waiting period unless:

(a) at some time in the 13 weeks immediately before the person’s start day, the person received an income support payment; or

Note: For income support payment see subsection 23(1).

(fa) the following conditions apply:

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

(ii) the person’s partner dies;

(iii) immediately before the partner’s death, the person was receiving a partner allowance;

(iv) within the period of 4 weeks that starts on the day after the day on which the partner dies, the person claims a newstart allowance; or

(g) the Secretary is satisfied that the person is in severe financial hardship.

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

(2) Subsection (1) does not apply to a person who:

(a) is undertaking an activity specified in an instrument made under subsection (3); and

(b) has been exempted from the application of subsection (1) by the Secretary.

(3) The Secretary may, by legislative instrument, specify activities for the purpose of paragraph (2)(a).

621 Duration of ordinary waiting period

No unused annual leave waiting period

(1) If a person:

(a) is subject to an ordinary waiting period; and

the ordinary waiting period is the period of 7 days that starts on the person’s start day.

Note 2: If the person is subject to an education leavers waiting period, the education leavers waiting period runs concurrently with the ordinary waiting period.

Note 3: If the person is subject to a newly arrived resident’s waiting period, the newly arrived resident’s waiting period runs concurrently with the ordinary waiting period.

(3) If a person:

(a) is subject to an ordinary waiting period; and

the ordinary waiting period is the period of 7 days that starts on the day after the end of the liquid assets test waiting period referred to in subsection 598(2).

(7) If:

(a) after the commencement of this subsection, a person becomes temporarily incapacitated for work or study and claims sickness allowance; and

(b) because of sections 693 and 694 (ordinary waiting period), sickness allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

(i) if the person is not disqualified for sickness allowance under section 676 (liquid assets text)—the person’s sickness allowance start day; or

(ii) if the person is disqualified for sickness allowance under section 676 (liquid assets test)—the day after the day on which the person’s sickness allowance liquid assets waiting period ends; and

then, despite subsections (1), (2) and (3), the person’s ordinary waiting period is a period of 7 days starting on the applicable day.

623A Newly arrived resident’s waiting period

(1) Subject to this section, a person who:

(a) has entered Australia on or after 1 January 1993; and

(b) has not been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks;

is subject to a newly arrived resident’s waiting period.

(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a newstart allowance.

Note: For qualifying residence exemption see subsection 7(6).

(3) Subsection (1) does not apply to a person:

(a) if, immediately before this section commenced, the person had held a valid designated temporary entry permit for a continuous period of at least 26 weeks; or

(b) if:

(i) immediately before this section commenced, the person had held a valid designated temporary entry permit for a continuous period (permit period) of less than 26 weeks; and

(ii) that permit was continued in force as a temporary visa by regulations made under the Migration Reform Act 1992; and

(iii) the period during which that permit continued to be in force as a temporary visa together with the permit period is at least 26 weeks.

Note: For designated temporary entry permit see subsection 7(1).

(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

(i) has previously entered Australia before 1 January 1993; and

(ii) held a permanent entry permit granted under the Migration Act 1958 as then in force, or a permanent visa, before the person’s last departure from Australia.

(6) Subsection (1) does not apply to a person if:

(a) the person is a New Zealand citizen; and

(b) the person was an Australian resident on 1 February 2000; and

(i) an Australian resident for the 12 months immediately preceding the claim; or

(ii) continuously present in Australia for the 6 months immediately preceding the claim.

(7) Subsection (1) does not apply to a person if the person:

(a) is the principal carer of one or more children; and

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

Note 1: For principal carer see subsections 5(15) to (24).

Note 2: For lone parent and current period as an Australian resident see subsection 23(1).

623B Duration of newly arrived resident’s waiting period

(1) If a person is subject to a newly arrived resident’s waiting period, the period starts on the day the person first became an Australian resident.

(2) If:

(a) immediately before this section commenced, the person held a valid designated temporary entry permit; and

(b) that permit was continued in force as a temporary visa by regulations made under the Migration Reform Act 1992; and

the newly arrived resident’s waiting period ends 26 weeks after the day on which the designated temporary entry permit was granted to the person.

Note: For designated temporary entry permit see subsection 7(1).

(3) If subsection (2) does not apply, the newly arrived resident’s waiting period ends when the person has been an Australian resident and in Australia for a period of, or periods totalling, 104 weeks.

Note: This rule does not apply to people who were already subject to, or had already served, a newly arrived resident’s waiting period before the commencement of this rule. Clause 121 of Schedule 1A to this Act continues the application of the previous rules to those people.

Subdivision G—Situations where allowance not payable (administrative breaches)

631 Situations where allowance not payable for failure to comply with certain requirements

A newstart allowance 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.

Subdivision GA—Activities that do not give rise to employment under certain industrial relations legislation

631C Activities that do not give rise to employment under certain industrial relations legislation

A person is not to be taken to be one of the following merely because the person participates in an approved program of work for income support payment, or undertakes an activity (other than suitable paid work), in accordance with a term (including an optional term) of a Newstart Employment Pathway Plan under section 606:

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

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

(d) an employee for the purposes of the Fair Work Act 2009.

Subdivision H—Other situations where allowance not payable

633 Seasonal workers

(1) This section applies if, at any time during the 6 months immediately before the day on which a person lodges a claim for newstart allowance, the person, or, if the person is a member of a couple, the person or the person’s partner, has been engaged in seasonal work.

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

(2) Newstart allowance 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) and subsection 19C(3) (person who is a member of a couple).

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

(4) Subsection (2) does not apply to a person who:

(a) is undertaking an activity specified in an instrument made under subsection (5); and

(b) has been exempted from the application of subsection (2) by the Secretary.

(5) The Secretary may, by legislative instrument, specify activities for the purpose of paragraph (4)(a).

634 Move to area of lower employment prospects

(1) Subject to subsections (1B) and (2), if, in the opinion of the Secretary, a person has reduced his or her employment prospects by moving to a new place of residence without sufficient reason, a newstart allowance is not payable to the person for 26 weeks.

(1A) Subsection (1) extends to a person who makes a claim for newstart allowance on or after the day on which the person moved to the new place of residence and before the end of the period referred to in that subsection.

(1B) If a person to whom a newstart allowance is not payable under subsection (1) for a period of 26 weeks (including that subsection as it applies by subsection (1A)) does either of the following during that period:

(a) moves back to the place of residence (the original place of residence) the movement from which resulted in newstart allowance not being payable to him or her;

(b) moves to another place of residence a movement to which from the original place of residence would not have resulted in newstart allowance not being payable to him or her;

the period of 26 weeks ends at the time of the movement back to the original place of residence or the movement to the other place of residence, as the case may be.

(2) Subsection (1) does not apply to a person who:

(a) is undertaking an activity specified in an instrument made under subsection (2A); and

(b) has been exempted from the application of subsection (1) by the Secretary.

(2A) The Secretary may, by legislative instrument, specify activities for the purpose of paragraph (2)(a).

(3) For the purposes of subsection (1), a person has a sufficient reason for moving to a new place of residence if and only if the person:

(a) moves to live with a family member who has already established his or her residence in that place of residence; or

(b) moves to live near a family member who has already established residence in the same area; or

(c) satisfies the Secretary that the move is necessary for the purposes of treating or alleviating a physical disease or illness suffered by the person or by a family member; or

(d) satisfies the Secretary that the person has moved from his or her original place of residence because of an extreme circumstance which made it reasonable for the person to move to the new place of residence (for example, the person had been subjected to domestic or family violence in the original place of residence).

Note: For family member see subsection 23(1).

(4) The Secretary may determine in writing the day on which the period of non‑payment imposed by subsection (1) commences and that day may be before the day of the determination.

Division 4—Rate of newstart allowance

643 How to work out a person’s newstart allowance rate

A person’s newstart allowance rate is to be worked out using Benefit Rate Calculator B at the end of section 1068.

644AAA Approved program of work supplement

If a person:

(a) is receiving newstart allowance; and

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

the rate of the person’s newstart allowance 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 unless, during that fortnight, the person subsequently ceases to participate in the program in circumstances that constitute:

(d) a failure to comply with a requirement in a Newstart Employment Pathway Plan that is in force in relation to the person.

644AAB Approved program of work supplement not payable in certain circumstances

An approved program of work supplement under section 644AAA is not payable to a person in respect of a fortnight if a training supplement is payable to the person in respect of the fortnight.

644AAC Training supplement

(1) This section applies if a person:

(a) is receiving newstart allowance; and

(b) is participating in an approved training course for training supplement for the person; and

(c) started participating in the course during the period beginning on the day on which this section commenced and ending on 30 June 2011.

(2) The rate of the person’s newstart allowance is increased by an amount of $41.60 (to be known as a training supplement) for each fortnight during which the person participates in the course.

(3) However, a training supplement is not payable for a fortnight during which the person participates in the course if, during the fortnight, the person ceases to participate in the course in circumstances that constitute:

(a) a failure of the activity test to which the person is subject; or

(b) if a Newstart Employment Pathway Plan is in force in relation to the person—a failure to comply with a requirement in the plan.

645 National Green Jobs Corps supplement

(1) This section applies if a person:

(a) is receiving newstart allowance; and

(b) is under 25 years of age; and

(d) started participating in that program before 2012.

(2) The rate of the person’s newstart allowance is increased by an amount of $41.60 (to be known as a National Green Jobs Corps supplement) for each fortnight during which the person participates in the National Green Jobs Corps program.

(3) However, a National Green Jobs Corps supplement is not payable for a fortnight during which the person participates in the National Green Jobs Corps program if:

(a) both:

(i) a Newstart Employment Pathway Plan is in force in relation to the person; and

(ii) during the fortnight, the person ceases to participate in that program in circumstances that constitute a failure to comply with the plan; or

(b) the rate of the person’s newstart allowance is increased by training supplement for the fortnight.

653A CDEP Scheme participant may accumulate newstart 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 newstart 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.

(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).