Social Security Legislation Amendment (Fair Incentives to Work) Act 2012

No. 144, 2012

An Act to amend the Social Security Act 1991, and for related purposes

[Assented to 24 October 2012]

The Parliament of Australia enacts:

This Act may be cited as the Social Security Legislation Amendment (Fair Incentives to Work) Act 2012.

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

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.	24 October 2012
2. Schedule 1	1 January 2013.	1 January 2013
3. Schedule 2	1 July 2013.	1 July 2013
4. Schedule 3	The day after this Act receives the Royal Assent.	25 October 2012

Note: This table relates only to the provisions of this Act as originally enacted.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

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

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Parenting payment transitional arrangements

Social Security Act 1991

1 Subsection 23(1) (definition of subject to participation requirements)

Omit “or 500F(1)(f) or (2)(f)”.

2 Subsection 23(1) (note at the end of the definition of subject to participation requirements)

Repeal the note.

3 Paragraph 500(1)(a)

Omit “sections 500D and 500F to 500H”, substitute “section 500D”.

4 Subsection 500D(3) (not including the note)

Repeal the subsection.

5 Subdivision AA of Division 1 of Part 2.10

Repeal the Subdivision.

6 Paragraph 729(2)(bc)

Omit “or 500F(1)(f) or (2)(f)”.

7 Application provision

The amendments made by items 3, 4 and 5 apply for the purposes of working out whether a person is qualified for parenting payment for a day that is on or after 1 January 2013.

Schedule 2—Liquid assets waiting period

Social Security Act 1991

1 Subsection 14A(1) (paragraph (a) of the definition of maximum reserve)

Omit “$2,500”, substitute “$5,000”.

2 Subsection 14A(1) (paragraph (b) of the definition of maximum reserve)

Omit “$5,000”, substitute “$10,000”.

3 Subsection 14A(1) (note at the end of the definition of maximum reserve)

Repeal the note.

4 Subsections 14A(6A) and (6B)

Repeal the subsections.

5 Subsection 14A(7)

Repeal the subsection, substitute:

(7) For the purposes of Division 3A of Part 3 of the Administration Act, a person is in severe financial hardship if the value of the person’s liquid assets does not exceed:

(a) if the person is not a member of a couple and does not have a dependent child—$2,500; or

(b) in any other case—$5,000.

6 Application provision

The amendments made by this Schedule (other than item 5) apply in relation to a person who makes a claim for a social security payment on or after 1 July 2013.

7 Transitional provision

(1) This item applies to a person if:

(a) the person is subject to a liquid assets test waiting period (the original waiting period) on 1 July 2013 in relation to a claim; and

(b) the original waiting period started on a day (the start day) before 1 July 2013.

Original waiting period ends on 30 June 2013

(2) If, assuming the amendments made by this Schedule had been in force on the start day:

(a) the person would not have been subject to a liquid assets test waiting period in relation to the claim; or

(b) the original waiting period would have ended before 1 July 2013;

then the original waiting period is taken to end on 30 June 2013.

Original waiting period ends on or after 1 July 2013

(3) If, assuming the amendments made by this Schedule had been in force on the start day, the original waiting period would not have ended before 1 July 2013, then the original waiting period ends on the day worked out under the Social Security Act 1991 (as amended by this Schedule).

Definition

(4) In this item:

liquid assets test waiting period means a liquid assets test waiting period under Part 2.11, 2.11A, 2.12 or 2.14 of the Social Security Act 1991.

Schedule 3—Termination payments

Social Security Act 1991

1 Point 1064‑F14 (definition of period to which the payment relates)

Omit “redundancy” (wherever occurring), substitute “termination”.

2 Point 1064‑F14 (definition of termination payment)

Repeal the definition, substitute:

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

3 Point 1066A‑G14 (definition of period to which the payment relates)

Omit “redundancy” (wherever occurring), substitute “termination”.

4 Point 1066A‑G14 (definition of termination payment)

Repeal the definition, substitute:

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

5 Point 1067G‑H19 (definition of period to which the payment relates)

Omit “redundancy” (wherever occurring), substitute “termination”.

6 Point 1067G‑H19 (definition of termination payment)

Repeal the definition, substitute:

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

7 Point 1067L‑D15 (definition of period to which the payment relates)

Omit “redundancy” (wherever occurring), substitute “termination”.

8 Point 1067L‑D15 (definition of termination payment)

Repeal the definition, substitute:

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

9 Point 1068‑G7AQ (definition of period to which the payment relates)

Omit “redundancy” (wherever occurring), substitute “termination”.

10 Point 1068‑G7AQ (definition of termination payment)

Repeal the definition, substitute:

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

11 Point 1068A‑E12 (definition of period to which the payment relates)

Omit “redundancy” (wherever occurring), substitute “termination”.

12 Point 1068A‑E12 (definition of termination payment)

Repeal the definition, substitute:

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

13 Point 1068B‑D18 (definition of period to which the payment relates)

Omit “redundancy” (wherever occurring), substitute “termination”.

14 Point 1068B‑D18 (definition of termination payment)

Repeal the definition, substitute:

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

15 Application

The amendments made by this Schedule apply in relation to payments made on or after the commencement of this Schedule.