Commonwealth: Employment and Workplace Relations Legislation Amendment (Welfare to Work and Other Measures) Act 2005 (Cth)

Employment and Workplace Relations Legislation Amendment (Welfare to Work and Other Measures) Act 2005 Act No. 154 of 2005 as amended This compilation was prepared on 26 March 2007 [This Act was amended by SLI 2006 No. 50; Act No. 64 of 2006; No. 8 of 2007] Amendments from SLI 2006 No. 50 [Schedule 13 (item 1) amended Schedule 1 (item 6) Schedule 13 (item 2) amended Schedule 2 (item 10) Schedule 13 (items 3–5) amended Schedule 4 (item 7) Schedule 13 (items 6 and 7) amended Schedule 5 (item 15) Schedule 13 (items 8 and 9) amended Schedule 7 (item 28) Schedule 13 (items 10 and 11) amended Schedule 8 (item 2) Schedule 13 (item 12) amended Schedule 8 (item 3) Schedule 13 (items 13 and 14) amended Schedule 10 (item 11) Schedule 13 (items 15–22) amended Schedule 11 (item 2) Schedule 13 (item 23) amended Schedule 11 (item 8) Schedule 13 (items 1 to 23) commenced on 27 March 2006] Amendments from Act No. 64 of 2006 [Schedule 14 (item 4) amended Schedule 7 (item 74) Schedule 14 (item 5) amended Schedule 7 (item 77) Schedule 14 (item 6) amended Schedule 16 (item 8) Schedule 14 (item 7) amended Schedule 17 (item 33) Schedule 14 (item 8) amended Schedule 18 (item 21) Schedule 14 (item 9) amended Schedule 19 (item 27) Schedule 14 (item 10) amended Schedule 20 (item 35) Schedule 14 (item 11) amended Schedule 22 (item 31) Schedule 14 (item 12) repealed and substituted Schedule 22 (item 36) Schedule 14 (items 4 and 5) commenced immediately after 1 July 2006 Schedule 14 (items 6–10) commenced immediately after 20 September 2006 Schedule 14 (items 11 and 12) commenced immediately before 1 July 2006] Amendment from Act No. 8 of 2007 [Schedule 2 (item 7) amended item 7 of Schedule 19 Schedule 2 (item 7) commenced immediately after 1 July 2006] Prepared by the Office of Legislative Drafting and Publishing, Attorney‑General's Department, Canberra Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Definitions and other interpretative provisions Part 1—Amendments commencing on 1 July 2006 Social Security Act 1991 Part 2—Amendments commencing on 20 September 2006 Social Security Act 1991 Part 3—Miscellaneous Schedule 2—Disability support pension Part 1—Participation Social Security Act 1991 Part 2—Seasonal work preclusion period Social Security Act 1991 Part 3—Approved program of work supplement Social Security Act 1991 Schedule 3—Carer payment Social Security Act 1991 Schedule 4—Parenting payment Part 1—Participation Social Security Act 1991 Part 2—Compliance Social Security Act 1991 Part 3—Seasonal work preclusion period Social Security Act 1991 Schedule 5—Youth allowance Part 1—RapidConnect Social Security Act 1991 Part 2—Participation Social Security Act 1991 Part 3—Compliance Social Security Act 1991 Schedule 6—Austudy payment Part 1—Compliance Social Security Act 1991 Part 2—Seasonal work preclusion period Social Security Act 1991 Schedule 7—Newstart allowance Part 1—RapidConnect Social Security Act 1991 Part 2—Participation Social Security Act 1991 Part 3—Compliance Social Security Act 1991 Part 4—Consequential amendment Social Security Act 1991 Schedule 8—Employment entry payment Social Security Act 1991 Schedule 9—Sickness allowance Social Security Act 1991 Schedule 10—Special benefit Part 1—Participation Social Security Act 1991 Part 2—Compliance Social Security Act 1991 Part 3—Rate of special benefit Social Security Act 1991 Schedule 11—Mobility allowance Social Security Act 1991 Schedule 12—Advance payments of benefit PP (partnered) Social Security Act 1991 Schedule 13—Pensioner education supplement Social Security Act 1991 Schedule 14—Telephone allowance Part 1—Amendments commencing on Royal Assent Social Security Act 1991 Part 2—Amendments commencing on 1 July 2006 Social Security Act 1991 Schedule 15—Concession cards Social Security Act 1991 Schedule 16—Pension Rate Calculators Part 1—Amendment of Pension Rate Calculator A Social Security Act 1991 Part 2—Amendment of Pension Rate Calculator D Social Security Act 1991 Schedule 17—Youth Allowance Rate Calculator Part 1—Income test Social Security Act 1991 Part 2—Maximum basic rate Social Security Act 1991 Part 3—Pharmaceutical allowance Social Security Act 1991 Part 4—Youth disability supplement Social Security Act 1991 Part 5—Exemption from parental means test Social Security Act 1991 Part 6—Income maintenance periods Social Security Act 1991 Schedule 18—Austudy Payment Rate Calculator Part 1—Income test Social Security Act 1991 Part 2—Income maintenance periods Social Security Act 1991 Schedule 19—Benefit Rate Calculator B Part 1—Income test Social Security Act 1991 Part 2—Maximum basic rate for certain newstart allowance recipients Social Security Act 1991 Part 3—Pharmaceutical allowance Social Security Act 1991 Part 4—Income maintenance periods Social Security Act 1991 Schedule 20—Parenting Payment Rate Calculators Part 1—Income test Social Security Act 1991 Part 2—Income maintenance periods Social Security Act 1991 Schedule 21—Overpayments and debt recovery Social Security Act 1991 Schedule 22—Administration Part 1—RapidConnect Social Security (Administration) Act 1999 Part 2—Disability support pension Social Security (Administration) Act 1999 Part 3—Participation Social Security (Administration) Act 1999 Part 4—Compliance Social Security (Administration) Act 1999 Part 5—Information exchange Social Security (Administration) Act 1999 Part 6—Seasonal work preclusion period Social Security (Administration) Act 1999 Schedule 23—Other amendments Disability Services Act 1986 Family and Community Services Legislation Amendment (Australians Working Together and other 2001 Budget Measures) Act 2003 Social Security Act 1991 An Act to amend the social security law, and for other purposes [Assented to 14 December 2005] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Employment and Workplace Relations Legislation Amendment (Welfare to Work and Other Measures) Act 2005. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information 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 on which this Act receives the Royal Assent. 14 December 2005 2. Schedule 1, Part 1 1 July 2006. 1 July 2006 3. Schedule 1, Part 2 20 September 2006. 20 September 2006 4. Schedule 1, Part 3 Immediately after the commencement of Schedule 1 to the Workplace Relations Amendment (Work Choices) Act 2005. 27 March 2006 5. Schedule 2, Part 1 1 July 2006. 1 July 2006 6. Schedule 2, Part 2 20 September 2006. 20 September 2006 7. Schedule 2, Part 3 1 July 2006. 1 July 2006 8. Schedule 3 20 September 2006. 20 September 2006 9. Schedule 4, Parts 1 and 2 1 July 2006. 1 July 2006 10. Schedule 4, Part 3 20 September 2006. 20 September 2006 11. Schedule 5, Part 1 The day on which this Act receives the Royal Assent. 14 December 2005 12. Schedule 5, items 3 to 14 1 July 2006. 1 July 2006 13. Schedule 5, item 15 Immediately after the commencement of Schedule 1 to the Workplace Relations Amendment (Work Choices) Act 2005. 27 March 2006 14. Schedule 5, items 16 to 44 1 July 2006. 1 July 2006 15. Schedule 5, Part 3 1 July 2006. 1 July 2006 16. Schedule 6 Part 1 1 July 2006. 1 July 2006 17. Schedule 6 Part 2 20 September 2006. 20 September 2006 18. Schedule 7, Part 1 The day on which this Act receives the Royal Assent. 14 December 2005 19. Schedule 7, items 3 to 27 1 July 2006. 1 July 2006 20. Schedule 7, item 28 Immediately after the commencement of Schedule 1 to the Workplace Relations Amendment (Work Choices) Act 2005. 27 March 2006 21. Schedule 7, items 29 to 72 1 July 2006. 1 July 2006 22. Schedule 7, Parts 3 and 4 1 July 2006. 1 July 2006 23. Schedule 8 1 July 2006. 1 July 2006 24. Schedule 9 20 September 2006. 20 September 2006 25. Schedule 10, items 1 to 10 1 July 2006. 1 July 2006 26. Schedule 10, item 11 Immediately after the commencement of Schedule 1 to the Workplace Relations Amendment (Work Choices) Act 2005. 27 March 2006 27. Schedule 10, items 12 to 42 1 July 2006. 1 July 2006 28. Schedule 10, Parts 2 and 3 1 July 2006. 1 July 2006 29. Schedule 11 1 July 2006. 1 July 2006 30. Schedule 12 20 September 2006. 20 September 2006 31. Schedule 13 1 July 2006. 1 July 2006 32. Schedule 14, Part 1 The day on which this Act receives the Royal Assent. 14 December 2005 33. Schedule 14, Part 2 1 July 2006. 1 July 2006 34. Schedule 15 1 July 2006. 1 July 2006 35. Schedule 16 20 September 2006. 20 September 2006 36. Schedule 17, Parts 1 to 5 1 July 2006. 1 July 2006 37. Schedule 17, Part 6 20 September 2006. 20 September 2006 38. Schedule 18, Part 1 1 July 2006. 1 July 2006 39. Schedule 18, Part 2 20 September 2006. 20 September 2006 40. Schedule 19, Parts 1 to 3 1 July 2006. 1 July 2006 41. Schedule 19, Part 4 20 September 2006. 20 September 2006 42. Schedule 20, Part 1 1 July 2006. 1 July 2006 43. Schedule 20, Part 2 20 September 2006. 20 September 2006 44. Schedule 21 1 July 2006. 1 July 2006 45. Schedule 22, Part 1 The day on which this Act receives the Royal Assent. 14 December 2005 46. Schedule 22, Parts 2 to 4 1 July 2006. 1 July 2006 47. Schedule 22, Part 5 The day on which this Act receives the Royal Assent. 14 December 2005 48. Schedule 22, Part 6 20 September 2006. 20 September 2006 49. Schedule 23, items 1 to 5 1 July 2006. 1 July 2006 50. Schedule 23, items 6 and 7 The day on which this Act receives the Royal Assent. 14 December 2005 Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or 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—Definitions and other interpretative provisions Part 1—Amendments commencing on 1 July 2006 Social Security Act 1991 1 Subsection 5(1) Insert: principal carer, of a child, has the meaning given by subsections (15) to (24). 2 At the end of subsection 5(2) Add: Note: For paragraph (a), see also subsection (16). 3 At the end of section 5 Add: Principal carer (15) A person is the principal carer of a child if: (a) the child is a dependent child of the person; and (b) the child has not turned 16. Note: The definition of dependent child in subsection (2) requires: (a) the adult to be legally responsible (whether alone or jointly with another person) for the day‑to‑day care, welfare and development of the child: subsection (16) deals with the circumstances in which a step‑parent is taken to have such legal responsibility; and (b) a child to be in an adult's care: subsection (17) deals with the circumstances in which a child is taken to remain in an adult's care. (16) For the purpose of determining whether a person is the principal carer of a child, the person is taken to be legally responsible (whether alone or jointly with another person) for the day‑to‑day care, welfare and development of the child if: (a) the person is the step‑parent of the child; and (b) the person is living with the child and a parent of the child; and (c) the person and the parent are members of the same couple. This subsection does not, by implication, affect the determination of whether a person is taken to be legally responsible (whether alone or jointly with another person) for the day‑to‑day care, welfare and development of a child in cases to which this subsection does not apply. (17) For the purpose of determining whether a person is the principal carer of a child, the child is taken to remain in the person's care if: (a) at the start of a period not exceeding 8 weeks, the child leaves the person's care; and (b) throughout the period, the child is the dependent child of another person; and (c) the child returns, or the Secretary is satisfied that the child will return, to the first person's care at the end of the period. This subsection does not, by implication, affect the determination of whether a child is in the care of a person in cases to which this subsection does not apply (for example, if the period exceeds 8 weeks). (18) Only one person at a time can be the principal carer of a particular child. (19) If the Secretary is satisfied that, but for subsection (18), 2 or more persons (adults) would be principal carers of the same child, the Secretary must: (a) make a written determination specifying one of the adults as the principal carer of the child; and (b) give a copy of the determination to each adult. (20) The Secretary may make the determination even if all the adults have not claimed a social security payment that is based on, or would be affected by, the adult being the principal carer of the child. (21) If a child: (a) leaves Australia temporarily; and (b) continues to be absent from Australia for more than 13 weeks; a person cannot be the principal carer of the child at any time after the 13 weeks while the child remains absent from Australia unless, at that time: (c) the child is in the company of a person to whom Division 2 of Part 4.2 applies; and (d) but for this subsection, the person would be the principal carer of the child; and (e) the person's portability period (within the meaning of that Division) for a social security payment: (i) that the person was receiving immediately before the person's absence from Australia; or (ii) the person's claim for which was granted during the absence; has not ended. (22) For the purposes of subsection (21), in determining if an absence is temporary, regard must be had to the following factors: (a) the purpose of the absence; (b) the intended duration of the absence; (c) the frequency of such absences. (23) If a child: (a) is born outside Australia; and (b) continues to be absent from Australia for a period of more than 13 weeks immediately following the child's birth; a person cannot be the principal carer of the child at any time after the 13 weeks while the child remains absent from Australia unless, at that time: (c) the child is in the company of a person to whom Division 2 of Part 4.2 applies; and (d) but for this subsection, the person would be the principal carer of the child; and (e) the person's portability period (within the meaning of that Division) for a social security payment: (i) that the person was receiving immediately before the person's absence from Australia; or (ii) the person's claim for which was granted during the absence; has not ended. (24) If: (a) a person is not the principal carer of a child because of subsection (21) (absence from Australia) or (23) (birth outside Australia), or because of a previous application of this subsection; and (b) the child comes to Australia; and (c) the child leaves Australia less than 13 weeks later; a person cannot be the principal carer of the child when the child leaves Australia as mentioned in paragraph (c). 4 After section 5A Insert: 5B Registered and active foster carers (1) A person is a registered and active foster carer if the Secretary is satisfied that: (a) the person meets the requirements (if any) of the law of the State or Territory in which the person resides that the person must meet in order to be permitted, under the law of that State or Territory, to provide foster care in that State or Territory; and (b) the person is taken, in accordance with guidelines made under subsection (2), to be actively involved in providing foster care in that State or Territory. (2) The Secretary may, by legislative instrument, make guidelines setting out the circumstances in which persons are taken, for the purposes of the social security law, to be actively involved in providing foster care in that State or Territory. 5C Home educators A person is a home educator of a child if the Secretary is satisfied that: (a) the child is receiving, in the person's home, education that wholly or substantially replaces the education that the child would otherwise receive by attending a school; and (b) the person meets the requirements (if any) of the law of the State or Territory in which the person resides that the person must meet in order to be permitted, under the law of that State or Territory, to provide that education to the child; and (c) the person is suitably involved in providing and supervising that education. 5D Distance educators A person is a distance educator of a child if the Secretary is satisfied that: (a) the child is enrolled to receive education by undertaking a distance education curriculum; and (b) the child is undertaking that curriculum; and (c) the person is suitably involved in assisting and supervising the child in relation to that curriculum. 5 Subsection 7(7) Omit "subparagraph 593(1)(g)(ii)", substitute "subparagraphs 593(1)(g)(ii) and 593(1D)(b)(ii)". 6 After section 16A Insert: 16B Partial capacity to work (1) A person has a partial capacity to work if: (a) the person has a physical, intellectual or psychiatric impairment; and (b) the Secretary is satisfied that: (i) the impairment of itself prevents the person from doing 30 hours per week of work independently of a program of support within the next 2 years; and (ii) no training activity is likely (because of the impairment) to enable the person to do 30 hours per week of work independently of a program of support within the next 2 years. (2) 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 (c) is likely to need such a program of support that is not ongoing. (3) In deciding whether he or she is satisfied as mentioned in paragraph (1)(b), the Secretary is to have regard to the guidelines (if any) determined and in force under subsection (4). (4) The Secretary may, by legislative instrument, determine guidelines to be complied with in deciding whether he or she is satisfied as mentioned in paragraph (1)(b). (5) In this section: 30 hours per week of work means work: (a) that is for at least 30 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. 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; (c) vocational training; (d) vocational rehabilitation; (e) work‑related training (including on‑the‑job training). 7 Subsection 23(1) (before paragraph (a) of the definition of approved program of work supplement) Insert: (aa) an amount under section 118 to a person receiving disability support pension; or 8 Subsection 23(1) Insert: austudy participation failure has the meaning given by section 576. 9 Subsection 23(1) (definition of CSP) Repeal the definition. 10 Subsection 23(1) Insert: distance educator has the meaning given by section 5D. 11 Subsection 23(1) Insert: home educator has the meaning given by section 5C. 12 Subsection 23(1) Insert: newstart participation failure has the meaning given by section 624. 13 Subsection 23(1) Insert: Parenting Payment Activity Agreement has the meaning given by subsection 501(6). 14 Subsection 23(1) Insert: parenting payment participation failure has the meaning given by section 500ZA. 15 Subsection 23(1) Insert: partial capacity to work has the meaning given by section 16B. 16 Subsection 23(1) Insert: participation failure instalment period: (a) in relation to the payability of parenting payment—has the meaning given by subsection 500ZB(3); and (b) in relation to the payability of youth allowance—has the meaning given by subsection 550B(3); and (c) in relation to the payability of austudy payment—has the meaning given by subsection 576A(3); and (d) in relation to the payability of newstart allowance—has the meaning given by subsection 626(3); and (e) in relation to the payability of special benefit—has the meaning given by subsection 742(3). 17 Subsection 23(1) Insert: registered and active foster carer has the meaning given by section 5B. 18 Subsection 23(1) Insert: Reserves means: (a) the Naval Reserve; or (b) the Army Reserve; or (c) the Air Force Reserve. 19 Subsection 23(1) (paragraph (e) of the definition of social security entitlement) Repeal the paragraph, substitute: (e) a parenting payment; or 20 Subsection 23(1) Insert: special benefit participation failure has the meaning given by section 740. 21 Subsection 23(1) Insert: subject to participation requirements: a person is subject to participation requirements if, because of paragraph 500(1)(c) or 500F(1)(f) or (2)(f), the person cannot be qualified for parenting payment unless the person meets any participation requirements that apply to the person under section 500A. Note: Subsection 500F(4) limits the circumstances in which paragraph 500F(1)(f) or (2)(f) applies. 22 Subsection 23(1) Insert: transitional DSP applicant means a person: (a) who made a claim for a disability support pension on or after 11 May 2005 and before 1 July 2006; and (b) to whom, on or after 1 July 2006, a notice under subsection 63(2) or 64(2) of the Administration Act is given; and (c) who is required under the notice to undertake a specified activity for the purpose of reviewing his or her capacity to perform work. 23 Subsection 23(1) Insert: youth allowance participation failure has the meaning given by section 550. 24 Paragraphs 28(2)(a) and (b) After "under 21", insert "and subsection (4) does not apply to them". 25 At the end of subsection 28(2) Add: ; and (c) if subsection (4) applies to the persons—more than 50 hours for each fortnight of their respective participation in the program. 26 At the end of section 28 Add: (4) This subsection applies to a person if: (a) the person is under 60; and (b) the Secretary determines that the person is a person to whom this subsection applies. (5) The Secretary may determine either one or both of the following by legislative instrument: (a) matters that the Secretary is to take into account in making a determination under paragraph (4)(b); (b) matters that the Secretary is not to take into account in making a determination under paragraph (4)(b). (6) A determination under subsection (5) does not, to the extent that it is a determination under paragraph (5)(a), limit the matters that the Secretary may take into account in making a determination under paragraph (4)(b). Part 2—Amendments commencing on 20 September 2006 Social Security Act 1991 27 Subsection 16A(1) (after paragraph (a) of the definition of seasonal work) Insert: (aa) work: (i) that is intermittent; and (ii) that is to be performed for a period of less than 12 months; and (iii) that is to be performed for a specified period or a period that can reasonably be calculated by reference to the completion of a specified task; and (iv) for which the person performing the work does not accrue leave entitlements; or 28 After subsection 16A(1) Insert: (1A) Paragraph (aa) of the definition of seasonal work in subsection (1) does not apply to a person undertaking seasonal work if the person was receiving income support payments (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this section) in respect of a continuous period exceeding 12 months immediately before the person commenced the seasonal work. 29 Paragraph 16A(3)(b) Omit "or special benefit", substitute ", special benefit, parenting payment, disability support pension, sickness allowance, carer payment or austudy payment". 30 Paragraph 16A(4)(b) Omit "or special benefit", substitute ", special benefit, disability support pension, sickness allowance, carer payment or austudy payment". 31 Subsection 19C(2) After "special benefit", insert ", disability support pension, carer payment". 32 Subsection 19C(2) After "payment, benefit", insert ", pension". 33 Subsection 19C(3) After "special benefit", insert ", disability support pension, carer payment". 34 Subsection 19C(3) After "payment, benefit", insert ", pension". 35 Before paragraph 19C(8)(a) Insert: (aa) in relation to disability support pension—means the rate worked out at: (i) Step 4 of the Method statement in Module A of Pension Rate Calculator A; or (ii) Step 5 of the Method statement in Module A of Pension Rate Calculator D; or (ab) in relation to carer payment—means the rate worked out at Step 4 of the Method statement in Module A of Pension Rate Calculator A; or 36 Subsection 23(1) (definition of income maintenance period) After "has the meaning given in points", insert "1064‑F4 and 1064‑F5, 1066A‑G4 and 1066A‑G5,". Part 3—Miscellaneous 37 Subsection 23(1) Insert: Australian Fair Pay and Conditions Standard has the same meaning as it has in the Workplace Relations Act 1996. Schedule 2—Disability support pension Part 1—Participation Social Security Act 1991 1 At the end of subsection 94(1) Add: ; and (f) the person is not qualified for disability support pension under section 94A. 2 Subsection 94(2) Repeal the subsection, substitute: (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 Paragraph 94(3)(a) Omit "educational or vocational training or on‑the‑job training", substitute "a training activity". 4 Paragraph 94(3)(b) Omit "if subsection (4) does not apply to the person—". 5 Subsection 94(4) Repeal the subsection, substitute: (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 (c) is likely to need such a program of support that is not ongoing. 6 Subsection 94(5) (definition of educational or vocational training) Repeal the definition. 7 Subsection 94(5) (definition of on‑the‑job training) Repeal the definition. 8 Subsection 94(5) Insert: 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; (c) vocational training; (d) vocational rehabilitation; (e) work‑related training (including on‑the‑job training). 9 Subsection 94(5) (paragraph (a) of the definition of work) Omit "30", substitute "15". 10 After section 94 Insert: 94A Qualification for disability support pension—person transferring to that pension Qualification (1) Subject to subsections (6) and (7), a person is qualified for a disability support pension if: (a) either: (i) on or after 1 July 2006, the Secretary considered or reviewed the person's capacity to work in connection with a social security benefit or social security entitlement; or (ii) if the person has previously qualified for disability support pension under this section—the Secretary last considered or reviewed the person's capacity to work in connection with a social security benefit or social security entitlement; and (b) as at the date of that consideration or review, the Secretary was satisfied that the person had a current inability to work because of a physical, intellectual or psychiatric impairment; and (c) immediately before qualifying for disability support pension under this section, the person was receiving a social security benefit or a social security entitlement (other than a disability support pension); and (d) the person has a physical, intellectual or psychiatric impairment that is 20 points or more under the Impairment Tables; and Note: For Impairment Tables see subsection 23(1) and Schedule 1B. (e) after the end of a period of at least 2 years (the 2 year period) since the date of the consideration or review, the Secretary reviews the person's capacity to work (the 2 year review) in connection with the benefit or entitlement referred to in paragraph (c); and (f) the 2 year review is the first review, after the end of the 2 year period, of the person's capacity to work in connection with that benefit or entitlement; and (g) the Secretary is satisfied that the person has a current inability to work because of the impairment mentioned in paragraph (d); and (h) the person has been receiving a social security benefit or a social security entitlement in respect of a continuous period between the date of the consideration or review and the date of the 2 year review (whether or not the kind of payment received has changed over the period); and Note: For the determination of whether a person received income support payments in respect of a continuous period of at least 12 months see section 38B. (i) either: (i) the person undertook such training activities during the 2 year period as were required under an agreement with the Secretary; or (ii) if the person was not required (whether under an agreement with the Secretary or not) to undertake training activities during the 2 year period—the person undertook during that period the type and number of training activities that the Secretary considers were appropriate for the person; and (j) the person meets the residency test in subsection (5); and (k) the person has turned 16. (2) A person has a current inability to work because of an impairment if the Secretary is satisfied that the impairment is of itself sufficient to prevent the person from doing any work independently of a program of support. Note: For work see subsection (8). (3) A person is treated as doing work independently of a program of support if the Secretary is satisfied that to do the work the person: (a) is unlikely to need a program of support that: (i) is designed to assist the person to prepare for, find or maintain work; and (ii) is funded (wholly or partly) by the Commonwealth or is of a type that the Secretary considers is similar to a program of support that is funded (wholly or partly) by the Commonwealth; or (b) is likely to need such a program of support provided occasionally; or (c) is likely to need such a program of support that is not ongoing. (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. (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 (c) is born outside Australia and, at the time when the person first satisfies paragraph (1)(b), the person: (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). Note: A person who is receiving a disability support pension may be automatically transferred to the age pension if the person becomes qualified for the age pension (see section 12 of the Administration Act). 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; (c) 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. 11 Paragraph 729(2A)(a) After "94", insert ", 94A". 12 Paragraph 1061ZD(2)(b) Omit "30", substitute "15". 13 Application and transitional provisions (1) The amendments of the Social Security Act 1991 made by this Part apply in relation to any claim, and any payment of pension as a result of such a claim, by a person for a disability support pension made on or after 1 July 2006. (2) Subject to subitem (3), the Social Security Act 1991 applies to any claim by a person for a disability support pension made before 1 July 2006, and any payment of pension as a result of such a claim, as if the amendments referred to in subitem (1) had not been made. (3) If: (a) on or after 1 July 2006, a notice under subsection 63(2) or 64(2) of the Administration Act is given to a person who made a claim for a disability support pension on or after 11 May 2005 and before 1 July 2006; and (b) under the notice, the person is required to undertake a specified activity for the purpose of reviewing his or her capacity to perform work; then the amendments of the Social Security Act 1991 referred to in subitem (1) apply to the person from the date of the notice. Part 2—Seasonal work preclusion period Social Security Act 1991 14 At the end of Subdivision B of Division 1 of Part 2.3 of Chapter 2 Add: 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). 15 Application provision The amendment made by this Part applies in relation to claims for disability support pension made on or after 20 September 2006. Part 3—Approved program of work supplement Social Security Act 1991 16 At the end of Division 5 of Part 2.3 of Chapter 2 Add: 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 (Commonwealth Employment) Act 1991; or (b) an employee within the meaning of section 5 of the Safety, Rehabilitation and Compensation Act 1988; or (c) an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992; or (d) an employee for the purposes of the Workplace Relations Act 1996; merely by participating in an approved program of work for income support payment in accordance with the terms of an agreement with the Secretary for the purposes of this Part. 17 Subparagraph 1223(7)(b)(iv) Before "parenting payment" (wherever occurring), insert "disability support pension,". Schedule 3—Carer payment Social Security Act 1991 1 At the end of Subdivision B of Division 1 of Part 2.5 of Chapter 2 Add: 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: (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). 2 Application provision The amendment made by this Schedule applies in relation to claims for carer payment made on or after 20 September 2006. Schedule 4—Parenting payment Part 1—Participation Social Security Act 1991 1 Paragraph 500(1)(a) Omit "to 500H", substitute "and 500F to 500H". 2 Paragraph 500(1)(c) Repeal the paragraph, substitute: (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 3 Subsection 500(4) Repeal the subsection. 4 After section 500 Insert: 500A Participation requirements The participation requirements are as follows: (a) the person must enter into a Parenting Payment Activity Agreement when the person is required by the Secretary under section 501 to do so; (b) while the agreement is in force the person must comply with its terms; (c) at any time while the agreement is in force the person must be prepared to enter into another such agreement, instead of the existing agreement, if required to do so by the Secretary under section 501; (d) the person must comply with any requirements that the Secretary notifies to the person under subsection 502(1). 5 Sections 500D to 500H Repeal the sections, substitute: 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 (c) the child has not turned 6; 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 (c) the child has not turned 8; 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 (c) the person is the principal carer of the child; 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. 6 After Subdivision A of Division 1 of Part 2.10 of Chapter 2 Insert: 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. (c) the person is not a member of a couple; and (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. (c) the person is a member of a couple; and (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 (1) 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. 7 Division 2 of Part 2.10 of Chapter 2 Repeal the Division, substitute: Division 2—Parenting Payment Activity Agreements 501 Parenting Payment Activity Agreements (1) The Secretary may require a person who is subject to participation requirements to enter into a Parenting Payment Activity Agreement under this section. Note: For when a person is subject to participation requirements see subsection 23(1). (2) The Secretary may require a person who is a party to a Parenting Payment Activity Agreement under this section that is in force to enter into another such agreement instead of the existing one. (3) Subject to subsection (4), subsections (1 ) and (2) do not apply to a person at any time during which the person is covered by a participation exemption under Division 3A. (4) If a person is covered by a participation exemption under Division 3A only because of the application of section 502H, subsections (1) and (2) apply to the person only if subsection 502J(1) applies to the person. (5) The Secretary is to give a person who is required to enter into a Parenting Payment Activity Agreement notice of: (a) the requirement; and (b) the places and times at which the agreement is to be negotiated. (6) A Parenting Payment Activity Agreement is a written agreement in a form approved by the Secretary. The agreement is between the person and the Secretary. 501A Parenting Payment Activity Agreement—terms (1) Subject to subsections (2) and (3) and sections 501B to 501E, a Parenting Payment Activity Agreement with a person is to require the person to undertake one or more activities that the Secretary regards as suitable for the person. (2) If a Parenting Payment Activity Agreement requires a person, during a period, to engage for at least 30 hours per fortnight in paid work that the Secretary regards as suitable, the agreement must not require the person to undertake any other activities. (3) An agreement must not contain a requirement of a kind that the Secretary determines under subsection (4). (4) The Secretary must determine, by legislative instrument, kinds of requirements that agreements must not contain. (4A) To avoid doubt, a determination under subsection (4) does not limit the Secretary's discretion to exclude other kinds of requirements from a particular agreement under subsection (1). (5) The terms of an agreement, which include the specification of the activities that the person is to be required to undertake, are to be approved by the Secretary. (6) In considering whether to approve the terms of an agreement with a person, the Secretary is to have regard to the person's capacity to comply with the proposed agreement and the person's needs. (7) In having regard to a person's capacity to comply with an agreement, the Secretary is to take into account, but is not limited to, the following matters: (a) the person's education, experience, skills and age; (b) the impact of any disability, illness, mental condition or physical condition of the person on the person's ability to work, to look for work or to participate in training activities; (c) the state of the local labour market and the transport options available to the person in accessing that market; (d) the participation opportunities available to the person; (e) the family and caring responsibilities of the person; (f) the length of travel time required for compliance with the agreement; (g) the financial costs of compliance with the agreement, such as travel costs, and the capacity to pay for such compliance; (h) any other matters that the Secretary or the person considers relevant in the circumstances. (8) An agreement with a person: (a) may be varied (in negotiation with the person) or suspended; and (b) if another Parenting Payment Activity Agreement is made with the person, may be cancelled; and (c) may be reviewed from time to time at the request of either party to the agreement; and (d) may be cancelled by the Secretary after a review under paragraph (c). (9) A recipient of parenting payment who is a party to an agreement is to notify the Secretary of any circumstances preventing or affecting the recipient's compliance with the agreement. 501B Parenting Payment Activity Agreements—requirement to look for work of appropriate number of hours per week (1) A Parenting Payment Activity Agreement that requires a person to undertake, as an activity, looking for part‑time paid work that the Secretary regards as suitable must require the person to undertake looking for such part‑time paid work of at least the appropriate number of hours per week. (2) The appropriate number of hours per week is: (a) 15; or (b) such other number as the Secretary determines to be appropriate having regard to the person's circumstances. 501C Parenting Payment Activity Agreements—people with partial capacity to work (1) A Parenting Payment Activity Agreement that: (a) is between the Secretary and a person who has a partial capacity to work; and (b) requires the person to undertake, as an activity, looking for part‑time paid work that the Secretary regards as suitable; must require the person to undertake looking for such part‑time paid work of at least the appropriate number of hours per week. Note: For partial capacity to work see section 16B. (2) The appropriate number of hours per week is: (a) 15; or (b) such other number as the Secretary determines to be appropriate having regard to the person's circumstances. 501D Parenting Payment Activity Agreements—requirement to participate in an approved program of work (1) A Parenting Payment Activity Agreement between the Secretary and a person must not require the person to participate in an approved program of work for income support payment if: (a) either: (i) if the person's rate of parenting payment is worked out under the Pension PP (Single) Rate Calculator in section 1068A—because of the application of Module E of that rate calculator, the person is receiving a parenting payment at a rate that has been reduced; or (ii) if the person's rate of parenting payment is worked out