Commonwealth: Social Security and Veterans' Entitlements Amendment Act (No. 2) 1987 (Cth)

Social Security and Veterans' Entitlements Amendment Act (No. 2) 1987 No. 130 of 1987 TABLE OF PROVISIONS PART I—PRELIMINARY Section 1. Short title 2. Commencement 3. Application provisions 4. Transitional and savings provisions 5. Repeals PART II—AMENDMENTS OF THE SOCIAL SECURITY ACT 1947 6. Principal Act 7. Interpretation 8. Insertion of new section: 3a. Treatment of certain income 9. Pension loans scheme 10. Disposal of income or property 11. Financial hardship 12. Pension reduction amounts 13. Certain persons to be disregarded for certain purposes 14. Certain persons deemed to continue to receive full time education 15. Insertion of new section in Part I: 12a. Earnings credit 16. Rate of remote area allowance 17. Conditions of grant of invalid pension 18. Rate of pension 19. Rent assistance 20. Repeal of section 38 21. Carer's pension 22. Repeal of section 40 TABLE OF PROVISIONS—continued Section 23. Interpretation 24. Repeal of section 57 25. Right to be paid pension outside Australia 26. Pension payable under Reciprocal Agreement 27. Prescribed persons 28. Repeal of Part IX and substitution of new Part: PART IX—FAMILY ALLOWANCE SUPPLEMENT 72. Interpretation 73. Qualification to receive allowance 74. Rate of allowance 75. Claim for allowance 76. Payment of allowance 77. Cessation of allowance 78. Sharing of allowance between 2 persons 29. Qualification for family allowance 30. Family allowance not payable in respect of certain student children 31. Income test for family allowances 32. Date from which family allowance payable 33. Family allowances to cease in certain circumstances 34. Interpretation 35. Qualification for double orphan's pension 36. Repeal of Part XII and substitution of new Part: PART XII—CHILD DISABILITY ALLOWANCE 101. Interpretation 102. Qualification for allowance 103. Temporary absences from home 104. Rate of allowance 105. Day from which allowance payable 106. Reduction for periods in institution 107. Cessation of allowances 108. Allowance periods 109. Notification 37. Insertion of new section in Division 2 of Part XIII: 117a. Job search allowance 38. Rate of unemployment or sickness benefit 39. Indexation of unemployment and sickness benefits 40. Repeal of section 120 and substitution of new section: 120. Rent assistance 41. Insertion of new section: 121a. Parental income test 42. Income and assets test 43. Unemployment benefit not payable in certain cases 44. Repeal of section 127 and substitution of new section: 127. Education leavers 45. Benefit not payable to full time students 46. Reduction in rate of pension 47. Notice to insurers 48. Claims 49. Payment and calculation of instalments of certain pensions 50. Insertion of new section: 160a. Minimum payment 51. Manner of payment etc. 52. Payment of pension etc. during imprisonment etc. 53. Cancellation, suspension or variation of pension etc. 54. Pension etc. to cease to be payable in certain cases 55. Secretary may impose certain requirements 56. Special temporary allowance TABLE OF PROVISIONS—continued Section 57. Rates of certain pensions affected where certain education payments made 58. Recovery of overpayments 59. Extra-territorial operation of certain provisions PART III—AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 60. Principal Act 61. Interpretation 62. Dependants 63. Repeal of section 12 and substitution of new section: 12. Interpretation 64. Determination of claims and applications 65. Insertion of new section: 24a. Continuation of rates of certain pensions 66. Increased rates of pension in certain cases 67. Capacity to undertake remunerative work 68. Review by Commission 69. Commission may take evidence 70. Reasons for decisions to be given 71. Interpretation 72. Insertion of new section: 35a. Treatment of certain income 73. Rate of veteran's service pension 74. Insertion of new section: 49b. Earnings credit 75. Disposal of property or income 76. Financial hardship 77. Remote area allowance 78. Review of decision etc. 79. Special temporary allowance 80. Prescribed persons 81. Prescribed rate of income and property value 82. Veterans eligible to be provided with treatment 83. Treatment at hospitals and other institutions 84. Clothing allowance 85. Attendant allowance 86. Decoration allowance 87. Recreation transport allowance 88. Commission not bound by technicalities 89. Payments of pensions 90. Repeal of section 123 and substitution of new sections: 123. Interpretation 123a. Payment of pension etc. on death of person 123b. Distribution where deceased leaves valid will 123c. Intestacy 123d. Statutory order of distribution 123e. Non-distributable amounts 91. Review of decisions in respect of pensions and attendant allowances 92. Board not bound by technicalities etc. 93. Applications for review 94. Application of Administrative Appeals Tribunal Act 95. Powers of Commission 96. Trustees for pensioners 97. Recovery of overpayments 98. References to provisions of the Social Security Act as re-numbered and re-lettered PART IV—AMENDMENTS OF THE SEAMEN'S WAR PENSIONS AND ALLOWANCES ACT 1940 99. Principal Act 100. Interpretation TABLE OF PROVISIONS—continued Section 101. Duties of Pensions Committees 102. Determinations and assessments by Commission 103. Insertion of new section: 24a. Continuation of rates of certain pensions 104. Allowance for attendant 105. Power to obtain information 106. Application for review 107. Application of Administrative Appeals Tribunal Act 108. Payment of pensions 109. Review by Commission 110. Recovery of overpayments 111. Insertion of new section: 57b. Delegation by Secretary 112. Regulations 113. Schedule 2 114. Amendments relating to Social Security Act as re-numbered and re-lettered PART IV—AMENDMENTS OF THE VETERANS' ENTITLEMENTS (TRANSITIONAL PROVISIONS AND CONSEQUENTIAL AMENDMENTS) ACT 1986 115. Principal Act 116. Assessment of rate of pension 117. Payment of pension etc. on death of person 118. Insertion of new section in Part IV: 58a. Appropriation 119. References to provisions of the Social Security Act as re-numbered and re-lettered PART V—AMENDMENTS OF THE DEFENCE (RE-ESTABLISHMENT) ACT 1965 120. Principal Act 121. Amendments relating to Social Security Act as re-numbered and re-lettered PART VI—AMENDMENTS OF THE STUDENT ASSISTANCE ACT 1973 122. Principal Act 123. Adjustment of benefit SCHEDULE 1 AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 TO SUBSTITUTE REFERENCES TO PROVISIONS OF THE SOCIAL SECURITY ACT 1947 AS RE-NUMBERED AND RE-LETTERED SCHEDULE 2 AMENDMENT OF THE SEAMEN'S WAR PENSIONS AND ALLOWANCES ACT 1940 TO SUBSTITUTE REFERENCES TO PROVISIONS OF THE SOCIAL SECURITY ACT 1947 AS RE-NUMBERED AND RE-LETTERED SCHEDULE 3 AMENDMENTS OF THE VETERANS' ENTITLEMENTS (TRANSITIONAL PROVISIONS AND CONSEQUENTIAL AMENDMENTS) ACT 1986 TO SUBSTITUTE REFERENCES TO PROVISIONS OF THE SOCIAL SECURITY ACT 1947 AS RE-NUMBERED ANDRE LETTERED SCHEDULE 4 AMENDMENTS OF THE DEFENCE (RE-ESTABLISHMENT) ACT 1965 TO SUBSTITUTE PROVISIONS OF THE SOCIAL SECURITY ACT 1947 AS RE-NUMBERED AND RE-LETTERED Social Security and Veterans' Entitlements Amendment Act (No. 2) 1987 No. 130 of 1987 An Act relating to social security and veterans' entitlements and other related matters [Assented to 16 December 1987] BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows: PART I—PRELIMINARY Short title 1. This Act may be cited as the Social Security and Veterans' Entitlements Amendment Act (No. 2) 1987. Commencement 2. Each provision of this Act comes into operation, or is deemed to have come into operation, as the case requires, on the day, or at the time, shown by the note in italics at the foot of that provision. Commencement: Day of Royal Assent Application provisions 3. (1) The amendment made by subsection 10 (2) applies to payments under the Social Security Act 1947 that fall due after 13 November 1987, being payments that are affected by a disposition of property or income within the meaning of section 6 of that Act that took place before or after that day. Commencement: Day of Royal Assent (2) The amendments made by subsections 7 (3), 10 (1), 11 (3), 18 (1) and 38 (3) and sections 12 and 42 apply to payments under the Social Security Act 1947 that fall due on or after 13 December 1987. Commencement: Day of Royal Assent (3) The amendments made by subsection 18 (2) apply to payments under the Social Security Act 1947 that fall due on or after 24 December 1987. Commencement: Day of Royal Assent (4) The amendments made by subsections 18 (3) and 38 (5) and section 41 apply to payments under the Social Security Act 1947 that fall due on or after 1 January 1988. Commencement: Day of Royal Assent (5) The amendments made by subsection 38 (2) and section 40 apply to benefit under Part XIII of the Social Security Act 1947 granted on or after 13 December 1987. Commencement: Day of Royal Assent (6) The amendment made by section 44 applies to payments under the Social Security Act 1947 that fall due after the commencement of section 21 of the Social Security and Veterans' Entitlements Amendment Act 1987. Commencement: Day of Royal Assent (7) The amendments made by subsection 73 (1) and sections 66, 84, 85 and 87 apply to payments under the Veterans' Entitlements Act 1986 that fall due on or after 17 December 1987. Commencement: Day of Royal Assent (8) The amendments made by subsection 73 (2) apply to payments under the Veterans' Entitlements Act 1986 that fall due on or after 1 January 1988. Commencement: Day of Royal Assent (9) The amendment made by section 75 applies to payments under the Veterans' Entitlements Act 1986 that fall due after 13 November 1987, being payments that are affected by a disposition of property or income within the meaning of section 52 of that Act that took place before or after that day. Commencement: Day of Royal Assent (10) The amendment made by subsection 76 (2) applies to payments under the Veterans' Entitlements Act 1986 that fall due on or after 13 November 1987. Commencement: Day of Royal Assent (11) The amendment made by section 79 applies to payments of special temporary allowance under section 65 of the Veterans' Entitlements Act 1986 in respect of deaths occurring on or after the day on which this Act receives the Royal Assent. Commencement: Day of Royal Assent (12) The amendment made by section 90 applies to amounts of pension, allowance or other pecuniary benefit under the Veterans' Entitlements Act 1986 that have accrued at the day on which this Act receives the Royal Assent or that accrue after that day. Commencement: Day of Royal Assent (13) The amendments made by sections 104 and 113 apply to payments under the Seamen's War Pensions and Allowances Act 1940 that fall due on or after 17 December 1987. Commencement: Day of Royal Assent Transitional and savings provisions 4. (1) Where, on 13 December 1987, a person who is in receipt of an unemployment benefit or a sickness benefit is absent from the principal home of the person, subsection 4 (8) of the Social Security Act 1947 applies to the person as if that period of absence had commenced on that day. Commencement: Day of Royal Assent (2) Section 11 of the Social Security Act 1947 continues to apply to a person who ceases to receive full time education at a school, college or university after 1 September 1987 and before 1 January 1988 for a period of 6 weeks after the person so ceases. Commencement: Day of Royal Assent (3) A person who was, immediately before 17 December 1987, receiving payments under Part IX of the Social Security Act 1947 in respect of a child shall, subject to Part IX of that Act as amended by this Act, continue to be entitled to receive payments under the last-mentioned Part in respect of that child for the period during which the person was entitled to receive payments in respect of that child under the first-mentioned Part. Commencement: Day of Royal Assent (4) A person who is or becomes entitled to receive a handicapped child's allowance in respect of a child in respect of the period ending on 14 November 1987 is, subject to Part XII of the Social Security Act 1947, entitled to receive a child disability allowance in respect of that child. Commencement: Day of Royal Assent (5) A reference in a law of the Commonwealth or of a Territory, or in an instrument or document, to a handicapped child's allowance shall, in relation to things done on and after 15 November 1987, be read as a reference to a child disability allowance. Commencement: Day of Royal Assent (6) Where: (a) a person was receiving a sickness benefit immediately before 13 December 1987; and (b) the rate of benefit applicable to the person at that time was the rate referred to in paragraph 118 (1) (e) of the Social Security Act 1947 as in force at that time; that paragraph continues, while the person continues to be qualified to receive a sickness benefit, to apply to the person until: (c) the person ceases to be a person referred to in that paragraph; or (d) paragraph 118 (1) (c) of that Act becomes applicable to the person. Commencement: Day of Royal Assent (7) Section 119 of the Social Security Act 1947 shall, notwithstanding the amendments made by subsection 37 (2) of the Social Security and Veterans' Affairs (Miscellaneous Amendments) Act 1986, be deemed not to affect the rate of benefit referred to in paragraph 118 (1) (a) or (b) in relation to the year commencing on 1 January 1988. Commencement: Day of Royal Assent (8) Where: (a) a person was receiving a sickness benefit immediately before 13 December 1987; and (b) the rate of that benefit was increased under section 120 of the Principal Act; the rate of that increase shall, until a higher rate of increase becomes applicable to the person under section 120 of the Social Security Act 1947 as amended by this Act, continue to be calculated under section 120 of that Act before it was so amended. Commencement: Day of Royal Assent (9) Notwithstanding the amendment made by section 44, section 127 of the Social Security Act 1947, as in force before 1 September 1987 continues to apply to a person who ceased to undertake a course of education on a full time basis before 1 September 1987. Commencement: Day of Royal Assent (10) The agreement between the Government of Australia and the Government of New Zealand providing for reciprocity in matters relating to social security that was signed at Sydney on 15 April 1949 shall, during the period commencing on 1 July 1987 and ending on the day before the day on which the agreement set out in Schedule 3 to the Social Security Act 1947 comes into force, be deemed to have had the same effect in relation to that Act as it had immediately before the commencement of that period. Commencement: Day of Royal Assent (11) Subsection 19 (2a) of the Veterans' Entitlements Act 1986 does not operate to prevent a pension being payable, or to reduce the rate of a pension that is payable, to a veteran who was receiving a pension on the day on which this Act received the Royal Assent. Commencement: Day of Royal Assent (12) Notwithstanding the amendment made by section 96, an instrument in force under subsection 202 (1) of the Veterans' Entitlements Act 1986 immediately before the commencement of this subsection continues in force, subject to subsection 202 (4) of that Act, on and after that commencement. Commencement: Day of Royal Assent (13) Subsection 6 (2) of the Seamen's War Pensions and Allowances Act 1940 does not operate to prevent a pension being payable, or to reduce the rate of a pension that is payable, to an Australian mariner who was receiving a pension on the day on which this Act received the Royal Assent. Commencement: Day of Royal Assent (14) Subsection 129 (3) of the Social Security Act 1947 does not apply to a person who was receiving a special benefit immediately before 1 October 1987. Commencement: 1 October 1987 (15) Section 109 of the Social Security Act 1947 is repealed on a day to be fixed by Proclamation. Commencement: Day of Royal Assent (16) The sections inserted in the Social Security Act 1947 by section 15 of the Social Security and Veterans' Entitlements Amendment Act 1987 shall be deemed to be sections 85 and 85a. Commencement: 1 October 1987 Repeals 5.(1) The following provisions of the Social Security and Veterans' Affairs (Miscellaneous Amendments) Act 1986 are repealed: Subsection 12 (3) Paragraphs 36 (5) (b) and (c) Section 56 Subsection 72 (3). Commencement: Royal Assent (2) Subsection 3 (3) of the Social Security Amendment Act 1987 is repealed. Commencement: 5 June 1987 PART II—AMENDMENTS OF THE SOCIAL SECURITY ACT 1947 Principal Act 6. In this Part, "Principal Act" means the Social Security Act 19471. Commencement: Day of Royal Assent Interpretation 7. (1) Section 3 of the Principal Act is amended: (a) by omitting from subsection (8) "Where" and substituting "Subject to subsection (8a), where"; (b) by inserting after subsection (8) the following subsection: "(8a) Subsection (8) does not apply to a person if the person and the person's former spouse are each receiving: (a) an age pension, an invalid pension, a carer's pension or a sheltered employment allowance; (b) a rehabilitation allowance in place of such a pension or allowance; or (c) a service pension under the Veterans' Entitlements Act 1986.". Commencement: 1 July 1987 (2) Section 3 of the Principal Act is amended: (a) by omitting subparagraph (b) (ii) of the definition of "Australian resident" in subsection (1) and substituting the following subparagraph: "(ii) a return endorsement, or a resident return visa, in force under the Migration Act 1958; or"; and (b) by omitting paragraph (10) (b) and substituting the following paragraph: "(b) the child is living with the person while the person is an Australian resident.". Commencement: Immediately after the commencement of section 29 of the Social Security and Veterans' Entitlements Amendment Act 1987 (3) Section 3 of the Principal Act is amended by inserting after subsection (5) the following subsection: "(5a) For the purposes of this Act, where a person who is qualified to receive an unemployment benefit or a sickness benefit is a married person whose spouse is not in receipt of a prescribed pension, the value of the property of, or of the property of a particular kind of, the person includes the value of the property of, or of the property of that kind of, the person's spouse.". Commencement: Day of Royal Assent (4) Section 3 of the Principal Act is amended by inserting in subsection (1) the following definitions in their respective alphabetical positions (determined on a letter-by-letter basis): " 'job search allowance' means a benefit under section 117a; 'sickness benefit' means a benefit under section 117; 'special benefit' means a benefit under Division 6 of Part XIII; 'unemployment benefit' means a benefit under section 116;". Commencement: 1 January 1988 8. After section 3 of the Principal Act the following section is inserted: Treatment of certain income "3a. (1) In this section: 'accruing return investment' means an arrangement made by a person that consists of or includes an investment of money, being an investment: (a) that produces: (i) a fixed rate or quantifiable rate of return, whether or not that rate varies from time to time; or (ii) a rate of return that may be reasonably approximated; and (b) the value of which from time to time is unlikely to decrease as a result of market changes; 'friendly society' means: (a) a society registered as a friendly society under a law in force in a State or Territory; or (b) a society that had, before 13 December 1987, been approved for the purposes of the definition of 'friendly society' in subsection 115 (1); 'return', in relation to an investment, means any increase, whether of a capital or income nature, in the amount of the investment and, in the case of an investment of the kind referred to in subparagraph (a) (ii) of the definition of 'accruing return investment', means a reasonable approximation of such an increase. "(2) Where a person makes, whether before or after the commencement of this subsection, an accruing return investment, being an investment to which subsections (3) and (5) do not apply, the person shall, for the purposes of this Act, be taken to receive the rate of return on that investment as income of the person from the day on which that investment was made. "(3) Where a person makes, on or after 1 January 1988, an accruing return investment: (a) with a friendly society; or (b) of a kind where a return is not available until the end of a period of at least 12 months after that investment was made or until realisation of that investment; the person shall, for the purposes of this Act, be taken to receive the rate of return on that investment as income of the person from the day on which that investment was made. "(4) Where a person becomes entitled, whether before or after the commencement of this subsection, to receive an amount of income, being an amount of a capital nature but not being: (a) income from remunerative work undertaken by the person; or (b) a return from an accruing return investment; the person shall, for the purposes of this Act, be taken to receive one fifty-second of that amount as income of the person during each week in the period of 12 months commencing on the day on which the person becomes entitled to receive that amount. "(5) Where a person makes, at any time before 1 January 1988, an accruing return investment: (a) with a friendly society; or (b) of a kind where a return is not available until the end of a period of at least 12 months after that investment was made or until realisation of that investment; and the person becomes entitled to receive an amount by way of a return on that investment, the person shall, for the purposes of this Act, be taken to receive one fifty-second of that amount as income of the person during each week in the period of 12 months commencing on the day on which the person becomes entitled to receive that amount. "(6) A reference in subsection (4) or (5) to a person becoming entitled to receive an amount includes a reference to the person becoming entitled to receive an amount under an arrangement of the kind referred to in the definition of 'accruing return investment' in subsection (1) to the extent that subsection (2) or (3) does not apply to that entitlement.". Commencement: 13 December 1987 Pension loans scheme 9. Section 5 of the Principal Act is amended by omitting from paragraph (2) (b) ", 38 (4) (b)". Commencement: 24 December 1987 Disposal of income or property 10. (1) Section 6 of the Principal Act is amended: (a) by omitting from subsections (4) and (5) "or XIII"; (b) by substituting for subparagraphs (10) (b) (i) and (11) (b) (i) the following: "(i) to obtain or enable the person's spouse to obtain a prescribed pension;"; (c) by omitting from subparagraphs (10) (b) (ii) and (11) (b) (ii) "such a pension, benefit or allowance" and substituting "a prescribed pension"; (d) by omitting from subsection (13) all the material before paragraph (a) and substituting: "(13) A reference in this section to a pension year, in relation to a person who is receiving a prescribed pension, is a reference to:"; (e) by omitting from paragraphs (13) (b) and (c) "pension pay-day" and substituting "day"; and (f) by adding at the end the following subsection: "(15) For the purposes of the application of this section to Part XIII, references in this section to 1 June 1984 shall be read as references to 14 May 1987.". Commencement: Day of Royal Assent (2) Section 6 of the Principal Act is amended by omitting from subsections (10) and (11) "(not being a course of conduct under which the person ceases employment or ceases to engage in a business or profession or reduces the extent to which the person is employed or the extent to which the person engages in a business or profession)". Commencement: 13 November 1987 Financial hardship 11. (1) Section 7 of the Principal Act is amended: (a) by omitting from subsection (2) "determination" and substituting "decision"; and (b) by omitting from paragraph (2) (b) "determines" and substituting "decides". Commencement: Day of Royal Assent (2) Section 7 of the Principal Act is amended by omitting subsection (4) and substituting the following subsection: "(4) Where: (a) the amount per annum of the reduction under subsection (3) in the maximum annual rate of pension, benefit (other than a benefit under Part XIII) or allowance applicable to a person in respect of property of the person or the person's spouse that is property referred to in paragraph (1) (c) is less than the lesser of the following amounts per annum: (i) the amount per annum equal to 2.5% of the value of that property; (ii) the amount per annum that could reasonably be expected to be obtained from a purely commercial application of that property; or (b) there is no reduction under subsection (3) in respect of that property; the maximum annual rate of pension, benefit or allowance applicable to the person shall: (c) in a case to which paragraph (a) applies—be further reduced by the difference between that first-mentioned reduction and that lesser amount per annum; or (d) in a case to which paragraph (b) applies—be reduced by that lesser amount per annum.". Commencement: 13 November 1987 (3) Section 7 of the Principal Act is amended: (a) by adding at the end of paragraph (1) (a) ", or a benefit under Part XIII is not payable to a person because of the application of subsection 122 (10), being a person who is not receiving and is not eligible to apply for and whose spouse is not receiving and is not eligible to apply for payments made available by the Commonwealth by way of income support where the payments are made or calculated at a rate not less than the rate of unemployment benefit that would be applicable to the person if the person were eligible to receive such a benefit"; (b) by inserting in paragraph (1) (c) "in the case of a person who is not qualified to receive an unemployment benefit or a sickness benefit—" before "any of the property"; (c) by inserting after paragraph (1) (c) the following paragraph: "(ca) in the case of a person who is qualified to receive an unemployment benefit or a sickness benefit—any of the property of the person or, if the person is a married person, of the person and the person's spouse, is property that the person or the spouse cannot sell or realise and cannot use as security for borrowing;"; (d) by omitting from paragraph (1) (d) "that" (last occurring) and substituting "this"; (e) by inserting in subsection (3) "(other than a person who is qualified to receive a benefit under Part XIII)" after "person" (first occurring); (f) by inserting after subsection (3) the following subsection: "(3a) Subject to subsections (4a) and (5), where this section applies to a person who is qualified to receive a benefit under Part XIII, the weekly rate of the benefit shall, notwithstanding section 122, be determined in the following manner: (a) the value of the property of the person that is property referred to in paragraph (1) (c) shall be disregarded; (b) there shall be deducted from the weekly rate of the benefit that would be payable to the person apart from the operation of section 122 an amount per week equal to the sum of: (i) the weekly rate of income of the person (other than income from property of the person that is not property referred to in paragraph (1) (c) or property to which paragraph 4 (1) (a) applies); and (ii) an amount per week equal to 50 cents for each $250 of the value of the property of the person (other than property referred to in paragraph (1) (c) or property to which paragraph 4 (1) (a) applies)."; (g) by inserting after subsection (4) the following subsection: "(4a) Where: (a) the amount per week of the reduction under subsection (3a) in the maximum weekly rate of a benefit under Part XIII applicable to a person in respect of property of the person or the person's spouse that is property referred to in paragraph (1) (c) is less than the lesser of the following amounts per week: (i) the amount per week equal to one fifty-second of 2.5% of the value of that property; (ii) one fifty-second of the amount per annum that could reasonably be expected to be obtained from a purely commercial application of that property; or (b) there is no reduction under subsection (3a) in respect of that property; the maximum weekly rate of benefit applicable to the person shall: (c) in a case to which paragraph (a) applies—be further reduced by the difference between that first-mentioned reduction and that lesser amount per week; or (d) in a case to which paragraph (b) applies—be reduced by that lesser amount per week."; (h) by inserting in subsection (5) ", (3a)" after "subsections (3)"; and (j) by omitting subsection (6) and substituting the following subsection: "(6) Where: (a) the sum of the annual rate of pension, benefit or allowance that would, apart from this subsection, be payable to a person (other than a person who is in receipt of an unemployment benefit or a sickness benefit) and the annual rate of income of the person exceeds the maximum rate; or (b) the sum of the weekly rate of benefit that would, apart from this subsection, be payable to a person who is in receipt of an unemployment benefit or a sickness benefit and the weekly rate of income of the person exceeds the applicable rate; the rate so payable shall be reduced by the amount per annum of the excess.". Commencement: Day of Royal Assent (4) Section 7 of the Principal Act is amended: (a) by omitting from paragraph (1) (a) ", 38 (4) (b)"; (b) by omitting from subsection (3) ", 38"; and (c) by omitting from paragraph (3) (b) ", 38 (4)". Commencement: 24 December 1987 Pension reduction amounts 12. Section 8 of the Principal Act is amended by inserting "or Part XIII" after "Part VI". Commencement: Day of Royal Assent Certain persons to be disregarded for certain purposes 13. Section 10 of the Principal Act is amended by inserting in paragraph (3) (a) "(or child disability allowance)" after "handicapped child's allowance" (last occurring). Commencement: 15 November 1987 Certain persons deemed to continue to receive full time education 14. Section 11 of the Principal Act is amended: (a) by omitting paragraph (b) and substituting the following paragraph: "(b) an unemployment benefit is not payable to the person during a period because of the operation of section 127 or 136;"; and (b) by inserting "116, 117," after "other than sections". Commencement: 1 September 1987 15. (1) After section 12 of the Principal Act the following section is inserted in Part I: Earnings credit "12a. (1) In this section: 'annual permissible income', in relation to a person, means: (a) the annual rate specified in paragraph 33 (12) (a), 38 (4) (a) or 48 (3) (a) that is applicable to the person; or (b) if the person has a dependent child or children—the rate referred to in paragraph (a) increased by the annual rate applicable to the person under subsection 35 (1) or 49 (1); 'annual rate of income', in relation to a person who is receiving a pension the rate of which is calculated under or by reference to Part IV or V, means the annual rate of income of the person for the purposes of those Parts calculated without regard to subsection 35 (1) and paragraph 49 (1) (a); 'credit amount', in relation to a person whose annual permissible income in a particular week ending on a Wednesday exceeds the person's annual rate of income in that week, means one fifty-second of an amount equal to that excess; 'earnings credit', in relation to a person who is receiving a pension, in relation to the week commencing on 5 November 1987 and in relation to each succeeding week, means: (a) in the case of a person who is receiving a pension on 4 November 1987: (i) in relation to the week commencing on 5 November 1987—the sum of the credit amounts (if any) in relation to the person calculated from 1 January 1987 or from the day on which the person commenced to receive the pension, whichever is the later, or (ii) in relation to each later week—the amount of the earnings credit (if any) of the person for the preceding week increased, if there is a credit amount in relation to the person for that later week, by that credit amount or decreased, if subsection (3) applied to the person in that later week, by the amount by which the person's earnings credit was reduced under that subsection in that later week; or $1,000, whichever is the lesser amount; or (b) in the case of a person who commences to receive a pension after 4 November 1987: (i) in relation to the week in which the person commences to receive the pension—the credit amount (if any) of the person for that week; or (ii) in relation to each later week—the amount of the earnings credit (if any) of the person for the preceding week increased, if there is a credit amount in relation to the person for that later week, by that credit amount or decreased, if subsection (3) applied to the person in that later week, by the amount by which the person's earnings credit was reduced under that subsection in that later week; or $1,000, whichever is the lesser amount; 'pension' means a prescribed pension under this Act, other than a carer's pension or a benefit under Part XIII. "(2) For the purposes of the definition of 'earnings credit' in subsection (1): (a) where: (i) a person was, immediately before becoming entitled to receive a pension, receiving a payment under Part III of the Veterans' Entitlements Act 1986; and (ii) the person had an earnings credit under section 49b of that Act at that time; the earnings credit shall be treated as if it were an earnings credit under this section; and (b) where a person who has ceased to be qualified to receive a pension again becomes entitled to receive a pension, no account shall be taken of any earnings credit of the person before the person again became so entitled. "(3) Where: (a) there is an earnings credit in relation to a person (not being a person to whom subsection 33 (15) or (16) applies); (b) the person becomes entitled to a payment for remunerative work undertaken by the person during a particular week; and (c) in that week, the annual rate of income of the person exceeds the annual permissible income of the person; the person shall be taken, for the purposes of sections 33, 38 and 48 and Part VIII, not to have received so much of the payment referred to in paragraph (b) as does not exceed the person's earnings credit and the earnings credit shall be reduced accordingly.". Commencement: 1 November 1987 (2) Section 12a of the Principal Act is amended: (a) by omitting ", 38 (4) (a)" from paragraph (a) of the definition of "annual permissible income" in subsection (1); and (b) by omitting from subsection (3) ", 38". Commencement: 24 December 1987 Rate of remote area allowance 16. (1) Section 22 of the Principal Act is amended by omitting from paragraph (2) (a) "or 38 (2)". Commencement: 24 December 1987 (2) Section 22 of the Principal Act is amended by inserting in paragraph (2) (a) "or to whom subsection 118 (1a) applies" after "in force". Commencement: 1 February 1988 Conditions of grant of invalid pension 17. Section 30 of the Principal Act is amended by omitting paragraph (4) (b) and substituting the following paragraph: "(b) at that time, the person was a dependent child of an Australian resident and the person becomes an Australian resident while the person is a dependent child of an Australian resident;". Commencement: 1 October 1987 Rate of pension 18. (1) Section 33 of the Principal Act is amended: (a) by omitting paragraph (4) (a) and substituting the following paragraphs: "(a) $1,144 per annum in respect of each dependent child who has not attained the age of 13 years; (aa) $1,456 per annum in respect of each dependent child who has attained the age of 13 years but has not attained the age of 16 years; (ab) $884 per annum in respect of each dependent child who is not a prescribed student child of the person and who has attained the age of 16 years; and"; (b) by omitting from paragraph (10) (a) "$884 per annum" and substituting "the greater or greatest amount per annum that could be applicable to the person under a paragraph of subsection (4) if subsection (6) did not apply to the person"; (c) by omitting from paragraph (10) (b) all the material after "is less than" and substituting "the greater or greatest amount per annum that could be applicable to the person under a paragraph of subsection (4) if subsection (6) did not apply to the person—the rate of pension applicable to the person shall be increased by the amount per annum by which that increase in the maximum rate is less than that greater or greatest amount per annum."; and (d) by omitting from subsection (11) "$884 were references to $728" and substituting "the greater or greatest amount per annum that could be applicable to the person under a paragraph of subsection (4) if subsection (6) did not apply to the person were references to $728". Commencement: 13 December 1987 (2) Section 33 of the Principal Act is amended: (a) by omitting from subsections (1) and (2) "age pension or invalid pension" and substituting "pension under this Part"; (b) by omitting from subsections (7), (8) and (9) "age or invalid pension" (wherever occurring) and substituting "pension under this Part"; (c) by omitting from paragraphs (8) (a) and (9) (a) "of this section and subsection 38 (4)"; (d) by omitting from paragraph (8) (b) "of this section or paragraph 38 (4) (b)"; (e) by omitting from paragraph (9) (b) "of this section or paragraph 38 (4) (a)"; (f) by omitting from subsections (12) and (13) "an age or invalid pension" and substituting "a pension under this Part"; (g) by inserting in subsection (12) "and who is qualified to receive an age or invalid pension" after "blind"; and (h) by omitting subsections (19), (20) and (21) and substituting the following subsections: "(19) Subject to subsection (21), a dependent child of a husband shall, for the purposes of this section, be taken to be a dependent child of the husband's spouse and not of the husband. "(20) Where a wife is not receiving a pension under this Part, a supporting parent's benefit or an allowance under Part XIV or XVI, then, for the purposes of the application of this section to the wife's spouse: (a) subsection (19) does not apply; and (b) a dependent child of the wife shall be taken to be a dependent child of the wife's spouse and not of the wife. "(21) For the purposes of the application of this section to a person in relation to whom a direction under subsection (2) is in force and to the spouse of that person, where each of those persons is receiving a prescribed pension and the direction was given because of the illness or infirmity of the wife, a dependent child of the wife shall be taken to be a dependent child of the husband and not of the wife.". Commencement: 24 December 1987 (3) Section 33 of the Principal Act is amended: (a) by omitting paragraph (4) (b) and substituting the following paragraph: "(b) $260 per annum in respect of each dependent child: (i) who is a prescribed student child of the person; (ii) who was, immediately before 1 January 1988, a student child to whom or in respect of whom a payment of a kind referred to in paragraph 3 (13) (a), (b) or (c) was being made; and (iii) who was, immediately before that day, a person in respect of whom an increase in the maximum rate of a prescribed pension was applicable."; and (b) by omitting subsection (11) and substituting the following subsection: "(11) Subsection (10) applies to a person who: (a) has at least one dependent child: (i) who is a prescribed student child of the person; (ii) who was, immediately before 1 January 1988, a student child to whom or in respect of whom a payment of a kind referred to in paragraph 3 (13) (a), (b) or (c) was being made; and (iii) who was, immediately before that day, a person in respect of whom an increase in the maximum rate of a prescribed pension was applicable; and (b) does not have a dependent child who is not a child to whom paragraph (a) applies; as if references in that subsection to the greater or greatest amount per annum that could be applicable to the person under a paragraph of subsection (4) if subsection (6) did not apply to the person were references to $260.". Commencement: 1 January 1988 Rent assistance 19. Section 36 of the Principal Act is amended by omitting from paragraph (2) (b) "or subsection 38 (2)". Commencement: 24 December 1987 Repeal of section 38 20. Section 38 of the Principal Act is repealed. Commencement: 24 December 1987 Carer's pension 21. Section 39 of the Principal Act is amended: (a) by omitting from paragraph (1) (a) "a relative of the person" and substituting "another person"; (b) by omitting from subsection (1) "the relative" (wherever occurring) and substituting "the other person"; (c) by omitting from subsection (2) "a relative" and substituting "another person"; (d) by omitting from subsection (3) the definition of "relative"; and (c) by omitting paragraphs (a), (b) and (c) of the definition of "severely handicapped person" in subsection (3) and substituting the following paragraphs: "(a) has a physical, intellectual or psychiatric disability; and (b) because of that disability, requires: (i) frequent attention in connection with the person's bodily functions; or (ii) constant supervision to prevent injury to the person or to another person; permanently or for an extended period.". Commencement: 1 February 1988 Repeal of section 40 22. Section 40 of the Principal Act is repealed. Commencement: 24 December 1987 Interpretation 23. Section 53 of the Principal Act is amended by omitting subsection (4) and substituting the following subsection: "(4) Division 4 of Part V applies to a beneficiary as if the beneficiary were a pensioner for the purposes of that Part.". Commencement: Day of Royal Assent Repeal of section 57 24. Section 57 of the Principal Act is repealed. Commencement: Day of Royal Assent Right to be paid pension outside Australia 25. Section 60 of the Principal Act is amended: (a) by omitting from subsection (2) "A carer's pension" and substituting "Subject to subsection (3), a carer's pension"; and (b) by adding at the end the following subsection: "(3) Subsection (2) applies to a person who was receiving a carer's pension on 13 May 1987 and was outside Australia on that day as if the reference in that subsection to 1 October 1987 were a reference to 13 May 1988.". Commencement: 1 October 1987 Pension payable under Reciprocal Agreement 26. (1) Section 63 of the Principal Act is amended by adding at the end the following subsections: "(2) Where: (a) a person is receiving an invalid pension by reason only of the agreements set out in Schedule 1; (b) immediately before 1 July 1987, the person was receiving such a pension and an allowance by way of rent assistance under section 30a of the Social Security Act 1947 as in force at that time; and (c) if that section were still in operation, the person would be receiving such an allowance; the person is, subject to subsection (3), entitled to an allowance under this section at the rate (not exceeding the rate of rent assistance payable to the person immediately before 1 July 1987) equal to the difference between: (d) the rate of pension payable to the person from time to time or, if that rate is less than the rate of pension that was payable to the person immediately before 1 July 1987, the rate that was so payable; and (e) the sum of: (i) the rate of pension that was payable to the person immediately before 1 July 1987; and (ii) the rate of the allowance by way of rent assistance that was payable to the person at that time or, if the rate of the allowance by way of rent assistance that would be payable to the person if that section were still in operation is lower, that lower rate. "(3) An allowance under subsection (2) ceases to be payable to a person when the rate referred to in paragraph (2) (d) becomes equal to, or exceeds, the sum of the rates referred to in paragraph (2) (e).". Commencement: 1 July 1987 (2) Section 63 of the Principal Act is amended by adding at the end the following subsection: "(4) This Act applies to a person to whom an agreement set out in a Schedule on 1 October 1987 applies as if the amendments made by section 29 of the Social Security and Veterans' Entitlements Amendment Act 1987 had not been made.". Commencement: 1 October 1987 Prescribed persons 27. (1) Section 69 of the Principal Act is amended by omitting from paragraph (1) (b) ", 38 (4) (b)". Commencement: 24 December 1987 (2) Section 69 of the Principal. Act is amended by inserting after subsection (3) the following subsections: "(3a) Notwithstanding subsections (2) and (3), where: (a) on or after 1 January 1988, the annual rate of income of a person increases so that it exceeds the prescribed rate of income applicable to the person; (b) immediately before that increase, the annual rate of the person's income did not exceed that prescribed rate of income; and (c) the amount of that excess is not more than 25% of that prescribed rate of income; the person is not, while the amount of that excess continues to be not more than 25% of that prescribed rate of income, a prescribed person for the purposes of section 66 or 67 at any time during the period of 13 weeks commencing on the first pension pay day after that increase occurred. "(3b) Where: (a) subsection (3a) applies to a person; and (b) the annual rate of income of the person increases so that it exceeds by more than 25% the prescribed rate of income applicable to the person; the person becomes a prescribed person for the purposes of sections 66 and 67 and subsection (3a) does not apply to the person on a further occasion unless the annual rate of income of the person falls below that prescribed rate of income.". Commencement: 1 January 1988 28. Part IX of the Principal Act is repealed and the following Part is substituted: "PART IX—FAMILY ALLOWANCE SUPPLEMENT Interpretation "72. (1) In this Part, unless the contrary intention appears: 'allowable income', in relation to a person who is receiving a family allowance in respect of a child in relation to a period of 4 weeks, means $1,200 increased by $48 for each additional dependent child of the person; 'allowance' means family allowance supplement under this Part; 'allowance pay day' means Thursday, 17 December 1987 and each succeeding alternate Thursday; 'allowance period' means a period during which an allowance is payable in accordance with subsection 76 (1); 'compensation payment' means a payment under section 45, 46 or 50 of the Compensation (Commonwealth Government Employees) Act 1971 or section 5 of the Seamen's Compensation Act 1911; 'income' means income within the meaning of this Act, but including: (a) a payment under Part IV, V, VI, XIII, XIV or XVI or under section 172; (b) a payment under Part III of the Veterans' Entitlements Act 1986; (c) a payment of an allowance under Part III of the Disability Services Act 1986; and (d) a payment of the kind referred to in paragraph (n) or (o) of the definition of 'income' in subsection 3 (1). "(2) For the purposes of this Part, the income of a married person shall include the income of the person's spouse. Qualification to receive allowance "73. Subject to this Part, a person who: (a) is not receiving, and whose spouse is not receiving: (i) a payment under Part IV, V, VI, XIII, XIV or XVI; (ii) any other periodic payment under a law of the Commonwealth, other than a compensation payment, or under a scheme administered by the Commonwealth that provides for increases in rate in respect of a child of a person; or (iii) a payment under the law of a foreign country that is similar in character to a payment referred to in subparagraph (i) or (ii); and (b) is receiving a family allowance in respect of a child or whose spouse is outside Australia and is receiving a family allowance in respect of a child; is, if the person and the child are in Australia, qualified to receive an allowance, to be known as family allowance supplement, in respect of the child. Rate of allowance "74. (1) Subject to this section, the rate of an allowance payable to a person who is qualified to receive an allowance in respect of a child is: (a) if the child is under 13 years—$22 per week; (b) if the child has attained the age of 13 years but is under the age of 16 years—$28 per week; (c) if the child is a student child but is not a prescribed student child— $17 per week; (d) if the child is a prescribed student child and the allowance is payable before 1 January 1988—$14 per week; or (e) if: (i) the child is a prescribed student child to whom or in respect of whom an allowance is payable under the Aboriginal Secondary Assistance Scheme, the Assistance for Isolated Children Scheme or the Veterans' Children Education Scheme; (ii) immediately before 1 January 1988, the child was a student child to whom or in respect of whom such an allowance was payable; (iii) an amount of a family income supplement was being paid in respect of the child immediately before 17 December 1987; and (iv) the allowance is payable on or after 1 January 1988; $5 per week. "(2) Subject to this section, where: (a) an allowance is payable to a person; (b) the person has a dependent child who is under the age of 16 years; and (c) the person pays or is liable to pay rent at a rate exceeding $15 per week; the total amount of allowances payable to that person shall be increased by $15 per week or 50% of the amount by which the weekly rent paid or payable by the person exceeds $15, whichever is the lesser amount. "(3) Where: (a) a person who has lodged a claim for an allowance is qualified to receive an allowance; and (b) the income of the person during: (i) if the person was not receiving an allowance immediately before the day on which the claim was lodged—the period of 4 weeks ending on that day; or (ii) in any other case—the period of 4 weeks commencing 8 weeks before that day; exceeds the amount of the allowable income of the person in relation to that period of 4 weeks; the rate per week of the allowance that is payable to the person during the allowance period is the maximum rate per week that could be payable to the person reduced by an amount per week equal to one-eighth of the amount of that excess. "(4) Where: (a) a person is receiving an allowance; and (b) at any time during the allowance period, the income of the person during a period of 4 weeks that ends on a day within the allowance period, being a period of 4 weeks that ended within one month of that time, exceeded 125% of each of: (i) the amount of the income of the person that was last taken into account for the purposes of determining the total rate per week of allowance payable to the person during that allowance period; and (ii) the amount of the allowable income of the person in that period of 4 weeks; the rate per week of the allowance payable to the person during the remainder of the allowance period is the maximum rate per week that could be payable to the person reduced by an amount per week equal to one-eighth of the amount by which the income of the person during that period of 4 weeks exceeds the allowable income of the person in that period of 4 weeks. "(5) The rate of an allowance payable to a person shall not be reduced during an allowance period because of the income of the person otherwise than under subsection (4). "(6) Where the amount of an allowance payable to a person in respect of a fortnight would include 0.5 cent, that amount shall be increased by 0.5 cent. "(7) For the purposes of the application of subsection (2) to a married person who is living with his or her spouse in their home, any rent paid or payable by the spouse shall be taken to be paid or payable by the person. Claim for allowance "75. (1) Where: (a) an allowance is payable to a person; and (b) the person lodges another claim for an allowance during the allowance period; that other claim shall be taken to be lodged on the day after the last day of the allowance period. "(2) Where: (a) a person has been paid ah allowance during the whole or a part of an allowance period; and (b) the person lodges another claim for an allowance within the period of 4 weeks after the end of that allowance period; the other claim shall be taken to have been lodged on the day after the last day of that allowance period. Payment of allowance "76. (1) Subject to this Part, where a claim by a person for an allowance is granted, the allowance shall be paid: (a) if the person was entitled to receive an allowance immediately before the claim was lodged—during the period of 6 months commencing on the day on which the claim was lodged; or (b) in any other case—during the period of 6 months commencing on the day on which the claim was lodged or during such shorter period commencing on that day as the Secretary decides; and shall commence to be paid from the first allowance pay day after the day before the day on which the claim was lodged. "(2) Where: (a) a person or the person's spouse ceases, on or after 17 December 1987, to receive periodic payments under a law of the Commonwealth other than compensation payments or under a scheme administered by the Commonwealth that provides for an increase in rate in respect of a child of the person; (b) the person lodges a claim for an allowance in respect of that child before the end of 6 weeks after ceasing to receive those payments; and (c) the person was qualified to receive an allowance in respect of that child on the day on which those payments ceased; the claim shall be taken to have been lodged on the day after the day on which those payments ceased. Cessation of allowance "77. (1) If a person to whom an allowance is payable in respect of a child ceases to be qualified to receive an allowance in respect of the child, the allowance ceases to be payable to the person in respect of the child in respect of any period after the allowance pay day before the day on which the person so ceased. "(2) If the total amount of allowances payable to a person is increased under subsection 74 (2) and the person ceases to be a person to whom that subsection applies, the increase ceases to be payable to the person in respect of any period after the allowance pay day before the day on which the person so ceased. Sharing of allowance between 2 persons "78. (1) An allowance is not payable to more than one person in respect of the same child except in accordance with this section. "(2) If 2 persons are each qualified to receive, and have claimed, an allowance in respect of the same child, the Secretary shall: (a) decide that the allowance is payable to one of those persons; or (b) decide that the allowance is to be shared between those persons in a manner decided by the Secretary. "(3) Where the Secretary makes a decision under subsection (2), the Secretary shall inform the persons to whom the decision relates in writing of the details of the decision.". Commencement: 17 December 1987 Qualification for family allowance 29. Section 82 of the Principal Act is amended by omitting subsection (2) and substituting the following subsection: "(2) This section applies to a person if the person is: (a) an Australian resident; or (b) a dependent child of an Australian resident who is living with the Australian resident.". Commencement: Immediately after the commencement of section 29 of the Social Security and Veterans' Entitlements Amendment Act 1987 Family allowance not payable in respect of certain student children 30. (1) Section 84 of the Principal Act is amended by omitting from paragraph (2) (a) "handicapped child's allowance" and substituting "child disability allowance". Commencement: 15 November 1987 (2) Section 84 of the Principal Act is amended by omitting from subsection (2) "family income supplement" (wherever occurring) and substituting "family allowance supplement". Commencement: 17 December 1987 Income test for family allowances 31. Section 85 of the Principal Act is amended: (a) by omitting paragraph (b) of the definition of "income threshold" in subsection (1) and substituting the following paragraph: "(b) if a family allowance would, apart from this subsection, be payable to the person at that time in respect of more than one child—$2,500 multiplied by one less than the number of those children;"; (b) by omitting subsection (4) and substituting the following subsection: "(4) Where the amount calculated under subsection (3) is not a multiple of 5 cents, that amount shall be reduced to the nearest multiple of 5 cents."; (c) by omitting from subsection (5) "who is under the age of 16 years"; (d) by omitting from subsection (7) "the first family allowance period after" and substituting "the family allowance period in which"; (e) by omitting from subsection (8) "14 December 1989" and substituting "14 January 1989"; and (f) by omitting subsection (9) and substituting the following subsection: "(9) Where: (a) a family allowance is payable to an unmarried person in respect of a child; and (b) the person becomes a married person; subsection (2) does not apply to the person until the commencement of the calendar year following the day on which the person became a married person.". Commencement: 1 October 1987 Date from which family allowance payable 32. Section 88 of the Principal Act is amended by omitting subsection (3) and substituting the following subsection: "(3) A family allowance granted to an institution in respect of a child is payable: (a) from the day on which the claim for the family allowance was lodged; or (b) if the institution was qualified to receive a family allowance in respect of the child before that day—from the day on which the institution became qualified to receive the family allowance in respect of the child or, if the institution became so qualified more than 4 weeks before the claim was lodged, from the day occurring 4 weeks before the day on which the claim was lodged.". Commencement: Day of Royal Assent Family allowances to cease in certain circumstances 33. Section 89 of the Principal Act is amended by omitting from subsection (6) "Where" and substituting "Subject to subsection 85 (7), where". Commencement: Day of Royal Assent Interpretation 34. Section 94 of the Principal Act is amended: (a) by inserting after the definition of "double orphan" in subsection (1) the following definitions: " 'mental hospital' includes a nursing home; 'mental hospital patient' includes a nursing home patient;"; and (b) by omitting from subsection (4) ", whether in that hospital or in a similar hospital,". Commencement: 15 January 1988 Qualification for double orphan's pension 35. Section 95 of the Principal Act is amended by inserting in paragraph (1) (a) "or 85" after "section 81". Commencement: 1 October 1987 36. Part XII of the Principal Act is repealed and the following Part is substituted: "PART XII—CHILD DISABILITY ALLOWANCE Interpretation "101. In this Part, unless the contrary intention appears: 'allowance' means a child disability allowance under section 102; 'disabled child' means a child who: (a) has a physical, intellectual or psychiatric disability; (b) because of that disability, needs care and attention provided by another person on a daily basis that is substantially more than the care and attention needed by a child of the same age who does not have such a disability; and (c) is likely to need that care and attention permanently or for an extended period; 'family allowance period' has the same meaning as in section 87. Qualification for allowance "102. Where: (a) a family allowance under Part X is payable or would, apart from sections 81 and 85, subsection 82 (6) and paragraph 89 (1) (b), be payable to a person in respect of a child; (b) the child is a disabled child; and (c) the person provides, in a private home that is the residence of the person and the child, care and attention for the child on a daily basis; the person is qualified to receive an allowance, to be known as a child disability allowance, in respect of the child. Temporary absences from home "103. (1) A person does not cease to be qualified to receive an allowance in respect of a child only because the child is or has been absent from the child's home for a period not exceeding 28 days, or for periods which in the aggregate do not exceed 28 days, during any calendar year. "(2) Where: (a) a person is qualified to receive an allowance in respect of a child; (b) the child is or has been absent from the child's home for a period of more than 28 days, or for periods which in the aggregate exceed 28 days, during any calendar year; and (c) the absence is or was temporary; the Secretary may decide that the person does not cease to be qualified to receive that allowance, or does not cease to be so qualified during a period determined by the Secretary. "(3) Where: (a) a person is qualified to receive an allowance in respect of a child; and (b) the child is, or is likely to be, absent from the child's home during normal school days for the purpose of receiving education, training or treatment; the person does not cease to be qualified to receive that allowance but an allowance is not payable to the person in respect of those days. Rate of allowance "104. (1) The rate of an allowance is $112 per month. "(2) Where it is necessary to calculate the daily rate of an allowance, that daily rate shall be calculated by multiplying the rate specified in subsection (1) by 12 and dividing the product by 365. "(3) The daily rate of an allowance calculated under subsection (2) shall, if that rate includes a fraction of a cent, be increased or decreased to the nearest whole cent or, if that rate includes one half of one cent, be increased by one half of one cent. Day from which allowance payable "105. (1) Where an allowance is granted to a person, the allowance is payable: (a) if the person was qualified to receive an allowance on a day (including a day before the commencement of this subsection) before the first day of the family allowance period during which the claim was lodged—from