Commonwealth: Social Security Legislation Amendment Act (No. 1) 1995 (Cth)

Social Security Legislation Amendment Act (No. 1) 1995 No. 104 of 1995 TABLE OF PROVISIONS Section 1. Short title 2. Commencement 3. Operation of Schedule 3 of the Social Security Act 1991 4. Schedules SCHEDULE 1 AMENDMENT OF THE SOCIAL SECURITY ACT 1991 RELATING TO THE DEFINITION OF INCOME SCHEDULE 2 AMENDMENT OF THE SOCIAL SECURITY ACT 1991 RELATING TO THE DEFINITION OF SOCIAL SECURITY RECIPIENT STATUS SCHEDULE 3 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO RESIDENCE REQUIREMENTS FOR CERTAIN REFUGEES AND TEMPORARY ENTRANTS TABLE OF PROVISIONS—continued SCHEDULE 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO A PERSON'S QUALIFICATION FOR DISABILITY SUPPORT PENSION OR DISABILITY WAGE SUPPLEMENT SCHEDULE 5 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO WAITING PERIODS AND DEFERMENT PERIODS SCHEDULE 6 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO PAYMENT OF JOB SEARCH ALLOWANCE, NEWSTART ALLOWANCE AND SPECIAL BENEFIT TO PEOPLE UNDERTAKING FULL-TIME STUDY SCHEDULE 7 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO THE DATE OF EFFECT OF CERTAIN DETERMINATIONS AFFECTING JOB SEARCH ALLOWANCE, NEWSTART ALLOWANCE AND PARTNER ALLOWANCE SCHEDULE 8 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO DISABILITY WAGE SUPPLEMENT SCHEDULE 9 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO EDUCATION ENTRY PAYMENTS SCHEDULE 10 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO MOBILITY ALLOWANCE SCHEDULE 11 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO THE QUALIFYING AGE FOR SENIORS HEALTH CARD SCHEDULE 12 AMENDMENTS RELATING TO INCOME TESTS AND RELATED MATTERS PART 1—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 PART 2—AMENDMENTS OF THE STUDENT AND YOUTH ASSISTANCE ACT 1973 TABLE OF PROVISIONS—continued SCHEDULE 13 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO SUPERANNUATION PENSIONS SCHEDULE 14 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO NATIVE TITLE RIGHTS AND INTERESTS SCHEDULE 15 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO LOAN FRINGE BENEFITS SCHEDULE 16 AMENDMENTS RELATING TO COMPENSATION RECOVERY AND RELATED MATTERS PART 1—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 COMMENCING ON ROYAL ASSENT PART 2—AMENDMENTS OF THE SOCIAL SECURITY (PARENTING ALLOWANCE AND OTHER MEASURES) LEGISLATION AMENDMENT ACT 1994 PART 3—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 COMMENCING IMMEDIATELY AFTER THE COMMENCEMENT OF SCHEDULES 1 AND 2 TO THE SOCIAL SECURITY (PARENTING ALLOWANCE AND OTHER MEASURES) LEGISLATION AMENDMENT ACT 1994 PART 4—AMENDMENTS OF THE HEALTH INSURANCE ACT 1973 PART 5—AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 SCHEDULE 17 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO OVERPAYMENTS AND DEBT RECOVERY SCHEDULE 18 AMENDMENTS OFTHE DATA-MATCHING PROGRAM (ASSISTANCE AND TAX) ACT 1990 SCHEDULE 19 MINOR TECHNICAL AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 PART 1—AMENDMENTS TAKEN TO HAVE COMMENCED ON 2 NOVEMBER 1992, IMMEDIATELY AFTER THE COMMENCEMENT OF THE SOCIAL SECURITY AMENDMENT ACT 1992 PART 2—AMENDMENTS TAKEN TO HAVE COMMENCED ON 25 MARCH 1993, IMMEDIATELY AFTER THE COMMENCEMENT OF DIVISIONS 16 AND 17 OF PART 2 OF THE SOCIAL SECURITY LEGISLATION AMENDMENT ACT (NO. 3) 1992 PART 3—AMENDMENTS TAKEN TO HAVE COMMENCED ON 1 APRIL 1993 TABLE OF PROVISIONS—continued PART 4—AMENDMENTS TAKEN TO HAVE COMMENCED ON 19 SEPTEMBER 1993 PART 5—AMENDMENTS TAKEN TO HAVE COMMENCED ON 1 JANUARY 1994, IMMEDIATELY AFTER THE COMMENCEMENT OF SCHEDULE 6 TO THE SOCIAL SECURITY (BUDGET AND OTHER MEASURES) LEGISLATION AMENDMENT ACT 1993 PART 6—AMENDMENTS TAKEN TO HAVE COMMENCED ON 1 JANUARY 1995, IMMEDIATELY AFTER THE COMMENCEMENT OF THE STUDENT ASSISTANCE (YOUTH TRAINING ALLOWANCE—TRANSITIONAL PROVISIONS AND CONSEQUENTIAL AMENDMENTS) ACT 1994 PART 7—AMENDMENTS COMMENCING ON ROYAL ASSENT SCHEDULE 20 OTHER MINOR TECHNICAL AMENDMENTS PART 1—MINOR TECHNICAL AMENDMENT OF THE SOCIAL SECURITY (BUDGET AND OTHER MEASURES) LEGISLATION AMENDMENT ACT 1993 PART 2—MINOR TECHNICAL AMENDMENTS OF THE SOCIAL SECURITY (PARENTING ALLOWANCE AND OTHER MEASURES) LEGISLATION AMENDMENT ACT 1994 Social Security Legislation Amendment Act (No. 1) 1995 No. 104 of 1995 An Act to amend legislation relating to social security, and for related purposes [Assented to 29 September 1995] The Parliament of Australia enacts: Short title 1. This Act may be cited as the Social Security Legislation Amendment Act (No. 1) 1995. Commencement 2.(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent. (2) Items 1 to 4 and item 7 of Schedule 3 are taken to have commenced on 1 January 1995, immediately after the commencement of section 4 of, and Schedule 2 to, the Social Security (1994 Budget and White Paper) Amendment Act 1994. (3) Item 5 of Schedule 3 commences, or is taken to have commenced, on 1 July 1995. (4) Item 6 of Schedule 3 is taken to have commenced on 9 January 1995. (5) If this Act does not receive the Royal Assent before 1 July 1995, Parts 1, 2 and 5 of Schedule 16 are taken to have commenced immediately before 1 July 1995. (6) Part 3 of Schedule 16 commences on 1 July 1995, immediately after the commencement of Schedules 1 and 2 to the Social Security (Parenting Allowance and Other Measures) Legislation Amendment Act 1994, (7) Item 2 of Schedule 17 is taken to have commenced on 1 January 1995. (8) Part 1 of Schedule 19 is taken to have commenced on 2 November 1992 immediately after the commencement of the Social Security Amendment Act 1992. (9) Part 2 of Schedule 19 is taken to have commenced on 25 March 1993, immediately after the commencement of Divisions 16 and 17 of Part 2 of the Social Security Legislation Amendment Act (No.3) 1992, (10) Part 3 of Schedule 19 is taken to have commenced on 1 April 1993. (11) Part 4 of Schedule 19 is taken to have commenced on 19 September 1993. (12) Part 5 of Schedule 19 is taken to have commenced on 1 January 1994 immediately after the commencement of Schedule 6 to the Social Security (Budget and Other Measures) Legislation Amendment Act 1993. (13) Part 6 of Schedule 19 is taken to have commenced on 1 January 1995 immediately after the commencement of the Student Assistance (Youth Training Allowance—Transitional Provisions and Consequential Amendments) Act 1994. (14) Part 1 of Schedule 20 is taken to have commenced immediately before the commencement of Schedule 3 to the Social Security (Budget and Other Measures) Legislation Amendment Act 1993. (15) If this Act does not receive the Royal Assent before 1 July 1995, Part 2 of Schedule 20 is taken to have commenced immediately before 1 July 1995. Operation of Schedule 3 of the Social Security Act 1991 3.(1) Despite subsection 2(1) of, Part 10 of and Schedule 3 to the Social Security Legislation Amendment Act 1994 (the 1994 Act): (a) Schedule 3 of the Social Security Act 1991, as in force immediately before the commencement of Part 10 of the 1994 Act, continues in force; and (b) Schedule 3 of the Social Security Act 1991, as substituted by the 1994 Act, does not come into force; until the Agreement on Social Security between Australia and the Republic of Italy, set out in Schedule 3 to the 1994 Act, enters into force in accordance with Article 23 of that Agreement. (2) If: (a) before the commencement of this section, a person received from the Commonwealth a payment that purported to be made under the Social Security Act 1991; and (b) the payment was not a valid payment; and (c) had subsection (1) been in force when the payment was made, it would have been a valid payment under the Social Security Act 1991; any right of the Commonwealth to recover the payment is, by force of this subsection, extinguished. Schedules 4. The Acts specified in the Schedules to this Act are amended in accordance with the applicable items in the Schedules, and the other items in the Schedules have effect according to their terms ____________ SCHEDULE 1 Section 4 AMENDMENT OF THE SOCIAL SECURITY ACT 1991 RELATING TO THE DEFINITION OF INCOME 1. After Paragraph 8(8)(zf): Insert: "(zfa) a payment of financial supplement made to the person under the Student Financial Supplement Scheme;". 2. Application In relation to a period-based payment, the amendment made by this Schedule applies to income in respect of a fortnight that commences after the commencement of this Schedule. ` SCHEDULE 2 Section 4 AMENDMENT OF THE SOCIAL SECURITY ACT 1991 RELATING TO THE DEFINITION OF SOCIAL SECURITY RECIPIENT STATUS 1. Subsection 23(1) (definition of "social security recipient status"): Omit the definition, substitute: " 'social security recipient status', for the purposes of the definition of 'long-term social security recipient', means: (a) in the case of a person who is receiving a job search allowance or new start allowance—status as a recipient of a social security pension, a social security benefit, a youth training allowance, an ABSTUDY allowance, an AUSTUDY allowance or a service pension; or (b) in any other case—status as a recipient of a social security pension, a social security benefit, a youth training allowance or a service pension;". 2. Application The amendment made by this Schedule does not apply to a recipient of a job search allowance or a newstart allowance who notifies the Department of the death of his or her partner before the day on which this Schedule commences. __________ SCHEDULE 3 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO RESIDENCE REQUIREMENTS FOR CERTAIN REFUGEES AND TEMPORARY ENTRANTS 1. Section 3 (Index): Insert in their appropriate alphabetical positions (determined on a letter-by-letter basis): "exempt resident 7(6C) former refugee 7(1) former exempt resident 7(1) refugee 7(6B)". 2. Subsection 7(1): Insert: " 'exempt resident' has the meaning given by subsection (6C); 'former exempt resident' means a person who was an exempt resident but does not include a person who ceased to be an exempt resident because his or her visa or entry permit (as the case may be) was cancelled; 'former refugee' means a person who was a refugee but does not include a person who ceased to be a refugee because his or her visa or entry permit (as the case may be) was cancelled;". 3. Subsection 7(1) (definition of "qualifying residence exemption"): Omit "subsection (6)", substitute "subsections (6) and (6A)". 4. Subsection 7(6): Omit the subsection, substitute: "(6) A person has a qualifying residence exemption for a social security pension, a social security benefit (other than a special benefit) or a youth training allowance if, and only if, the person: (a) resides in Australia; and (b) is either: (i) a refugee; or (ii) a former refugee. "(6A) A person has a qualifying residence exemption for a special benefit if, and only if, the person: (a) resides in Australia; and (b) is either: (i) an exempt resident; or (ii) a former exempt resident. SCHEDULE 3—continued "(6B) A person is a refugee for the purposes of this section if the person: (a) is taken, under the Migration Reform (Transitional Provisions) Regulations, to be the holder of a transitional (permanent) visa because the person was, immediately before 1 September 1994, the holder of: (i) a visa or entry permit that fell within Division 1.3—Group 1.3 (Permanent resident (refugee and humanitarian) (offshore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or (ii) a visa or entry permit that fell within Division 1.5—Group 1.5 (Permanent resident (refugee and humanitarian) (on-shore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or (b) was, immediately before 1 February 1993, the holder of a visa or entry permit of a class prescribed under the Migration Regulations as then in force that corresponds to a visa or entry permit referred to in subparagraph (a)(i) or (ii); or (c) is the holder of: (i) a permanent protection visa; or (ii) a permanent visa of a class referred to in the Table at the end of this subsection; or (iii) a permanent visa of a class referred to in a declaration of the Minister under subsection 25(1) that is in force SCHEDULE 3—continued TABLE CLASSES OF PERMANENT VISAS GIVING REFUGEE STATUS AND QUALIFYING RESIDENCE EXEMPTION FOR SOCIAL SECURITY PENSIONS AND SOCIAL SECURITY BENEFITS OTHER THAN SPECIAL BENEFIT Item No. Class description Relevant item in Schedule 1 to Migration Regulations 1. Burmese in Burma (Special Assistance) (Class AB) 1102 2. Burmese in Thailand (Special Assistance) (Class AC) 1103 3. Cambodian (Special Assistance) (Class AE) 1105 4. Camp Clearance (Migrant) (Class AF) 1106 5. Citizens of the Former Yugoslavia (Special Assistance) (Class AI) 1109 6. East Timorese in Portugal, Macau and Mozambique (Special Assistance) (Class AM) 1113 7. Minorities of Former USSR (Special Assistance) (Class AV) 1122 8. Refugee and Humanitarian (Migrant) (Class BA) 1127 9. Sudanese (Special Assistance) (Class BD) 1130 10. Territorial Asylum (Residence) (Class BE) 1131 "(6C) A person is an exempt resident if the person: (a) is taken, under the Migration Reform (Transitional Provisions) Regulations, to be the holder of a transitional (temporary) visa because the person was, immediately before 1 September 1994, the holder of: (i) a class 437 visa or entry permit—PRC (temporary); or (ii) a class 784 visa or entry permit—Domestic protection (temporary); or (iii) a class 820 visa or entry permit—Extended eligibility (spouse); under the Migration (1993) Regulations as then in force; or (b) was, immediately before 1 February 1993, the holder of: (i) a class 781 visa or entry permit—Refugee (restricted); or SCHEDULE 3—continued (ii) a class 783 visa or entry permit—PRC (temporary); under the Migration (1989) Regulations as then in force; or (c) is the holder of: (i) a subclass 820 visa—Extended eligibility (spouse); or (ii) a temporary visa of a class referred to in a declaration of the Minister under subsection 25A(1) that is in force.". 5. Subsection 7(6): After "(other than a special benefit)" insert ", a non-benefit parenting allowance". 6. Subsection 7(6B): Insert after item 8 in the Table: "8A Sri Lankan (Special Assistance) (Class BF) 1129A" 7. Section 25: Repeal the section, substitute: Refugee visas "25.(1) If: (a) after the commencement of this section, a class of permanent visas (other than a class referred to in the Table in subsection 7(6B)) is prescribed by regulations made for the purposes of section 31 of the Migration Act 1958; and (b) the Minister is of the view that a person holding a visa of that class should be regarded as a refugee for the purposes of section 7; the Minister may declare in writing that class of visas to be a class of visas for the purposes of subparagraph 7(6B)(c)(iii). "(2) The declaration is a disallowable instrument. Exempt resident visas "25A.(1) If: (a) after the commencement of this section, a class of temporary visas is prescribed by regulations made for the purposes of section 31 of the Migration Act 1958; and (b) the Minister is of the view that a person holding a visa of that class should be regarded as an exempt resident; the Minister may declare in writing that class of visas to be a class of visas for the purposes of subparagraph 7(6C)(c)(ii). "(2) The declaration is a disallowable instrument.". SCHEDULE 4 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO A PERSON'S QUALIFICATION FOR DISABILITY SUPPORT PENSION OR DISABILITY WAGE SUPPLEMENT 1. Paragraph 94(1) (c): Before "the person" insert "because of the impairment". 2. Paragraph 94(1B)(e): Before "the person" insert "because of the impairment". 3. Subsections 94(2) and (3): Omit the subsections, 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 within the next 2 years; and (b) either: (i) the impairment is of itself sufficient to prevent the person from undertaking educational or vocational training or on-the-job training during the next 2 years; or (ii) if the impairment does not prevent the person from undertaking educational or vocational training or on-the-job training—such training is unlikely (because of the impairment) to enable the person to do any work within the next 2 years. Note: For 'work' see subsection (5). "(3) In deciding whether or not a person has a continuing inability to work because of an impairment, the Secretary is not to have regard to: (a) the availability to the person of educational or vocational training or on-the-job training; or (b) if subsection (4) does not apply to the person—the availability to the person of work in the person's locally accessible labour market.". 4. Subsection 94(4): Omit "equip", substitute "enable". 5. Subsection 94(5): Insert: " 'on-the-job training' does not include a program designed specifically for people with physical, intellectual or psychiatric impairments;". SCHEDULE 4—continued 6. Paragraph 409(1) (c): Before "the person" insert "because of the impairment". 7. Subsections 409(3) and (4): Omit the subsections, substitute: "(3) 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 within the next 2 years; and (b) either: (i) the impairment is of itself sufficient to prevent the person from undertaking educational or vocational training or on-the-job training during the next 2 years; or (ii) if the impairment does not prevent the person from undertaking educational or vocational training or on-the-job training—such training is unlikely (because of the impairment) to enable the person to do any work within the next 2 years. Note: For 'work' see subsection (6). "(4) In deciding whether or not a person has a continuing inability to work because of an impairment, the Secretary is not to have regard to: on-the-job training; or (a) the availability to the person of educational or vocational training or (b) if subsection (5) does not apply to the person-the availability to the person of work in the person's locally accessible labour market 8. Subsection 409(5): Omit "equip", substitute "enable" Subsection 9. Subsection 409(6): Insert: " 'on-the-job training' does not include a program designed specifically for people with physical, intellectual or psychiatric impairments;". SCHEDULE 5 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO WAITING PERIODS AND DEFERMENT PERIODS 1. Subsection 518(2): After "person" insert "at any time during which the person". 2. Paragraph 518(2)(a): Omit "who has started", substitute "is undertaking". 3. Paragraph 518(2)(b): Omit "who". 4. Subsection 518(2) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". 5. Subsection 519(8): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to a liquid assets test waiting period under subsection (1) at any time during which the person". 6. Paragraph 519(8)(a): Omit "who has started", substitute "is undertaking". 7. Paragraph 519(8)(b): Omit "who". 8. Subsection 535(4): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to an unused annual leave waiting period under subsection (1) at any time during which the person". 9. Paragraph 535(4)(a): Omit "who has started", substitute "is undertaking". 10. Paragraph 535(4) (b): Omit "who". 11. Section 538: Omit "A person", substitute "Subject to subsection (2), a person". 12. Paragraph 538(e): Omit the paragraph. SCHEDULE 5—continued 13. Section 538: Add at the end (before the Notes): "(2) A person is not subject to an ordinary waiting period under subsection (1) at any time during which the person: (a) is undertaking: (i) formal vocational training in a labour market program approved by the Employment Secretary; or (ii) a rehabilitation program approved by the Employment Secretary; and (b) has been exempted from the application of that subsection by the Employment Secretary.". 14. Subsection 540(1): Add at the end: "Note: For 'provisional commencement day' see section 533.". 15. Subsection 540(3): Add at the end: "Note: 'CES' means the Commonwealth Employment Service (see section 23).". 16. Subsection 540(4): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to an education leavers waiting period under subsection (1) at any time during which the person". 17. Paragraph 540(4)(a): Omit "who has started", substitute "is undertaking". 18. Paragraph 540(4)(b): Omit "who". 19. Subsection 540(4) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". 20. Paragraph 541(6)(c): Omit "4 weeks", substitute "12 months". 21. Paragraph 541A(11)(c): Omit "4 weeks", substitute "12 months". SCHEDULE 5—continued 22. Subsection 542(2): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to the activity test deferment period under subsection (1) at any time during which the person". 23. Paragraph 542(2)(a): Omit "who has started", substitute "is undertaking". 24. Paragraph 542(2) (b): Omit "who". 25. Subsection 542(2) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 546A for the length of activity test deferment periods and section 546B for the commencement of activity test deferment periods.". 26. Subsection 542A(1): Omit "A", substitute "Subject to subsection (2), a". 27. Subsection 542A(2): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to the activity test deferment period under subsection (1) at any time during which the person". 28. Paragraph 542A(2)(a): Omit "who has started", substitute "is undertaking". 29. Paragraph 542A(2)(b): Omit "who". 30. Subsection 542A(2) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 546A for the length of activity test deferment periods and section 546B for the commencement of activity test deferment periods. Note 3: The operation of this section is modified for participants in the case management system by section 45 of the Employment Services Act 1994." 31. Subsection 542B(1): Omit "A", substitute "Subject to subsection (2), a". 32. Subsection 542B(2): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to the activity test deferment period under subsection (1) at any time during which the person". SCHEDULE 5—continued 33. Paragraph 542B(2)(a): Omit "who has started", substitute "is undertaking". 34. Paragraph 542B(2)(b): Omit "who". 35. Subsection 542B(2) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 546A for the length of activity test deferment periods and section 546B for the commencement of activity test deferment periods. Note 3: The operation of this section is modified for participants in the case management system by section 45 of the Employment Services Act 1994.". 36. Subsection 546C(4): Omit "If', substitute "Subject to subsection (4A), if". 37. Subsection 546C(4A): Omit "Subsection (4) does not apply to a person", substitute "A person is not subject to the administrative breach deferment period under subsection (4) at any time during which the person". 38. Paragraph 546C(4A)(a): Omit "who has started", substitute "is undertaking". 39. Paragraph 546C(4A)(b): Omit "who". 40. Subsection 546C(4A) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 547A for the length of administrative breach deferment periods and section 547B for the commencement of administrative breach deferment periods. Note 3: The operation of this section is modified for participants in the case management system by sections 28, 31 and 46 of the Employment Services Act 1994.". 41. Subsection 547(1): Omit "If', substitute "Subject to subsection (2), if'. 42. Subsection 547(2): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to the administrative breach deferment period under subsection (1) at any time during which the person" SCHEDULE 5—continued 43. Paragraph 547(2)(a): Omit "who has started", substitute "is undertaking". 44. Paragraph 547(2)(b): Omit "who". 45. Subsection 547(2) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 547A for the length of administrative breach deferment periods and section 547B for the commencement of administrative breach deferment periods.". 46. Subsection 548(1): Omit "If', substitute "Subject to subsection (2), if". 47. Subsection 548(2): After "person" insert "at any time during which the person". 48. Paragraph 548(2)(a): Omit "who has started", substitute "is undertaking". 49. Paragraph 548(2) (b): Omit "who". 50. Subsection 548(2) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". 51. Subsection 549(2) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". 52. Subsection 550(1): Omit "Where", substitute "Subject to subsection (2), if". 53. Subsection 550(2): After "person" insert "at any time during which the person". 54. Paragraph 550(2)(a): Omit "who has started", substitute "is undertaking". 55. Paragraph 550(2)(b): Omit "who" SCHEDULE 5—continued 56. Subsection 550(2) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". 57. Subsection 597(1): Omit "A person", substitute "Subject to subsection (2), a person". 58. Subsection 597(2): After "person" insert "at any time during which the person". 59. Paragraph 597(2)(a): Omit "who has started", substitute "is undertaking". 60. Paragraph 597(2) (b): Omit "who". 61. Subsection 597(2) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". 62. Subsection 598(8): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to a liquid assets test waiting period under subsection (1) at any time during which the person". 63. Paragraph 598(8)(a): Omit "who has started", substitute "is undertaking". 64. Paragraph 598(8) (b): Omit "who". 65. Subsection 617(4): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to an unused annual leave waiting period under subsection (1) at any time during which the person". 66. Paragraph 617(4)(a): Omit "who has started", substitute "is undertaking". 67. Paragraph 617(4)(b): Omit "who". SCHEDULE 5—continued 68. Section 620: Omit "A person", substitute "Subject to subsection (2), a person". 69. Paragraph 620(f): Omit the paragraph. 70. Section 620: Add at the end (before the Notes): "(2) A person is not subject to an ordinary waiting period under subsection (1) at any time during which the person: (a) is undertaking: (i) formal vocational training in a labour market program approved by the Employment Secretary; or (ii) a rehabilitation program approved by the Employment Secretary; and (b) has been exempted from the application of that subsection by the Employment Secretary.". 71. Subsection 622(4): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to an education leavers waiting period under subsection (1) at any time during which the person". 72. Paragraph 622(4)(a): Omit "who has started", substitute "is undertaking". 73. Paragraph 622(4) (b): Omit "who". 74. Paragraph 623(6) (c): Omit "4 weeks", substitute "12 months". 75. Subsection 624(1): Omit "A", substitute "Subject to subsection (2), a". 76. Subsection 624(2): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to the activity test deferment period under subsection (1) at any time during which the person". 77. Paragraph 624(2)(a): Omit "who has started", substitute "is undertaking". SCHEDULE 5—continued 78. Paragraph 624(2) (b): Omit "who". 79. Subsection 624(2) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 630A for the length of activity test deferment periods and section 630B for the commencement of activity test deferment periods.". 80. Subsection 625(1): Omit "A", substitute "Subject to subsection (2), a". 81. Subsection 625(2): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to the activity test deferment period under subsection (1) at any time during which the person". 82. Paragraph 625(2)(a): Omit "who has started", substitute "is undertaking". 83. Paragraph 625(2)(b): Omit "who". 84. Subsection 625(2) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 630A for the length of activity test deferment periods and section 630D for the commencement of activity test deferment periods. Note 3: The operation of this section is modified for participants in the case management system by section 45 of the Employment Services Act 1994.". 85. Subsection 626(1): Omit "A", substitute "Subject to subsection (2), a". 86. Subsection 626(2): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to the activity test deferment period under subsection (1) at any time during which the person". 87. Paragraph 626(2)(a): Omit "who has started", substitute "is undertaking". 88. Paragraph 626(2)(b) Omit "who". SCHEDULE 5—continued 89. Subsection 626(2) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 630A for the length of activity test deferment periods and section 630B for the commencement of activity test deferment periods, Note 3: The operation of this section is modified for participants in the case management system by section 45 of the Employment Services Act 1994.". 90. Subsection 630C(1): Add at the end: "Note: 'CES' means the Commonwealth Employment Service (see section 23).". 91. Subsection 630C(4): Omit "If", substitute "Subject to subsection (4A), if". 92. Subsection 630C(4A): Omit "Subsection (4) does not apply to a person", substitute "A person is not subject to the administrative breach deferment period under subsection (4) at any time during which the person". 93. Paragraph 630C(4A)(a): Omit "who has started", substitute "is undertaking". 94. Paragraph 630C(4A)(b): Omit "who". 95. Subsection 630C(4A) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 631A for the length of administrative breach deferment periods and section 631B for the commencement of administrative breach deferment periods. Note 3: The operation of this section is modified for participants in the case management system by sections 28, 31 and 46 of the Employment Services Act 1994.". 96. Subsection 631(1): Omit "If", substitute "Subject to subsection (2), if". 97. Subsection 631(2): Omit "Subsection (1) does not apply to a person", substitute "A person is not subject to the administrative breach deferment period under subsection (1) at any time during which the person". 98. Paragraph 631(2)(a): Omit "who has started", substitute "is undertaking". SCHEDULE 5—continued 99. Paragraph 631(2)(b): Omit "who". 100. Subsection 631(2) (Notes): Omit the Notes, substitute: "Note 1: For 'Employment Secretary' see section 23. Note 2: See section 631A for the length of administrative breach deferment periods and section 631B for the commencement of administrative breach deferment periods.". 101. Subsection 632(1): Omit "If', substitute "Subject to subsection (2), if". 102. Subsection 632(2): After "person" insert "at any time during which the person". 103. Paragraph 632(2)(a): Omit "who has started", substitute "is undertaking". 104. Paragraph 632(2)(b): Omit "who". 105. Subsection 632(2) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". 106. Subsection 633(2) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". 107. Subsection 634(1): Omit "Where", substitute "Subject to subsection (2), if'. 108. Subsection 634(2): After "person" insert "at any time during which the person". 109. Paragraph 634(2)(a): Omit "who has started", substitute "is undertaking". 110. Paragraph 634(2)(b): Omit "who". 111. Subsection 634(2) (Notes): Omit the Notes, substitute: "Note: For 'Employment Secretary' see section 23.". SCHEDULE 5—continued 112. Paragraph 696(6)(c): Omit "4 weeks", substitute "12 months". 113. Paragraph 696A(11)(c): Omit "4 weeks", substitute "12 months" __________ SCHEDULE 6 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO PAYMENT OF JOB SEARCH ALLOWANCE, NEWSTART ALLOWANCE AND SPECIAL BENEFIT TO PEOPLE UNDERTAKING FULL-TIME STUDY 1. After section 522: Insert: Relief from activity test—persons to whom subsection 532(6) applies "522A. If: (a) job search allowance is payable to a person because of subsection 532(6); and (b) the person has commenced the full-time course of education referred to in paragraph 532(6)(a); the person is taken to satisfy the activity test in respect of the period during which the allowance is payable to the person because of that subsection.". 2. Paragraph 532(6)(b): Omit the paragraph. 3. Subsection 532(6): Omit all the words from and including "until", substitute "for the period of 3 weeks commencing on the day on which the course starts.". 4. After section 602: Insert: Relief from activity test—persons to whom subsection 614(6) applies "602A. If: (a) newstart allowance is payable to a person because of subsection 614(6); and (b) the person has commenced the full-time course of education referred to in paragraph 614(6)(a); the person is taken to satisfy the activity test in respect of the period during which the allowance is payable to the person because of that subsection.". 5. Paragraph 614(6)(b): Omit the paragraph. 6. Subsection 614(6): Omit all the words from and including "until", substitute "for the period of 3 weeks commencing on the day on which the course starts.". SCHEDULE 6—continued 7. Subsection 738(1): Omit "subsection (2)", substitute "subsections (2) and (3)". 8. Subsection 738(2): Omit "notwithstanding", substitute ", in spite of'. 9. Section 738: Add at the end: "(3) If: (a) a person enrols in a full-time course of education; and (b) an application is made for a payment in respect of the person under: (i) the AUSTUDY scheme; or (ii) the ABSTUDY Schooling scheme; or (iii) the ABSTUDY Tertiary scheme; and (c) the person was receiving special benefit immediately before the start of the course; the Secretary may decide that, in spite of subsection (1), special benefit is payable to the person for the period of 3 weeks commencing on the day on which the course starts.". ___________ SCHEDULE 7 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO THE DATE OF EFFECT OF CERTAIN DETERMINATIONS AFFECTING JOB SEARCH ALLOWANCE, NEWSTART ALLOWANCE AND PARTNER ALLOWANCE 1. Subsection 588(5): Omit "If', substitute "Subject to subsection (6), if". 2. After subsection 588(5): Insert: Section 575 statements "(6) If the favourable determination is made following a person having given the Department a statement about a matter in accordance with section 575, the determination takes effect on the day on which the matter arose.". 3. Subsection 589(2): Omit "The", substitute "Subject to subsection (9), the". 4. Section 589: Add at the end: Section 575 statements "(9) If the adverse determination is made following a person having given the Department a statement about a matter in accordance with section 575, the determination takes effect on the day on which the matter arose.". 5. Subsection 660K(5): Omit "If', substitute "Subject to subsection (6), if". 6. After subsection 660K(5): Insert: Section 658 statements "(6) If the favourable determination is made following a person having given the Department a statement about a matter in accordance with section 658, the determination takes effect on the day on which the matter arose.". 7. Subsection 660L(2): Omit "The", substitute "Subject to subsection (9), the". SCHEDULE 7—continued 8. Section 660L: Add at the end: Section 658 statements "(9) If the adverse determination is made following a person having given the Department a statement about a matter in accordance with section 658, the determination takes effect on the day on which the matter arose.". 9. Subsection 771NR(5): Omit "If*, substitute "Subject to subsection (5A), if". 10. After subsection 771NR(5): Insert: Section 771MD statements "(5A) If the favourable determination is made following a person having given the Department a statement about a matter in accordance with section 771MD, the determination takes effect on the day on which the matter arose.". 11. Subsection 771NS(2): Omit "The", substitute "Subject to subsection (9), the". 12. Section 771NS: Add at the end: Section 771MD statements "(9) If the adverse determination is made following a person having given the Department a statement about a matter in accordance with section 771MD, the determination takes effect on the day on which the matter arose.". __________ SCHEDULE 8 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO DISABILITY WAGE SUPPLEMENT 1. After subsection 665(2): Insert: "(2A) A person is not qualified for an employment entry payment under section 664FA if the claim for payment is made more than 2S days after the start of the employment in the supported wage system in respect of which the claim is made.". 2. Subparagraph 1061Q(4)(a)(iii): Omit "and". 3. After subparagraph 1061Q(4)(a)(iii): Insert: "(iv) subsection 477(2) of this Act: and". __________ SCHEDULE 9 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO EDUCATION ENTRY PAYMENTS 1. Paragraph 665Q(d): Omit the paragraph, substitute: "(d) the person: (i) ceases to be qualified for job search allowance or youth training allowance because the person commences the course of education; or (ii) is not qualified for payments under the AUSTUDY or ABSTUDY scheme because the person takes part in the course to satisfy the activity test under section 522 or to comply with a Job Search Activity Agreement; or (iii) is not qualified for payments under the AUSTUDY or ABSTUDY scheme because the person takes part in the course to comply with a Case Management Activity Agreement under the Employment Services Act 1994; or (iv) is not qualified for payments under the AUSTUDY or ABSTUDY scheme because the person takes part in the course to satisfy the activity test under section 75 of the Student and Youth Assistance Act 1973 or to comply with a Youth Training Activity Agreement under that Act; and". 2. Paragraph 665U(c): Omit the paragraph, substitute: "(c) the person: (i) ceases to be qualified for newstart allowance because the person commences the course of education; or (ii) is not qualified for payments under the AUSTUDY or ABSTUDY scheme because the person takes part in the course to satisfy the activity test under section 601 or to comply with a requirement under a Newstart Activity Agreement; or (iii) is not qualified for payments under the AUSTUDY or ABSTUDY scheme because the person takes part in the course to comply with a Case Management Activity Agreement under the Employment Services Act 1994; and". SCHEDULE 10 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO MOBILITY ALLOWANCE 1. Sub-subparagraph 1035(ca)(ii)(C): Omit "Health, Housing, Local Government and Community Services", substitute "Human Services and Health". 2. Subsection 1058(1): Omit, substitute: "(1) If a mobility allowance is payable to a person and the person ceases to be qualified for the allowance because: (a) he or she ceases, in the Secretary's opinion: (i) to be engaged in gainful employment: or (ii) to undertake vocational training or a combination of vocational training and gainful employment: or (iii) to engage in voluntary work approved by the Secretary for charitable, welfare or community organisations: for at least 8 hours a week on a continuing basis: or (b) he or she ceases, in the Secretary's opinion: (i) to receive job search allowance or newstart allowance for a reason other than the application of section 518. 522. 525A. 586A, 597. 601, 605 or 660IA: or (ii) to receive youth training allowance for a reason other than the application of section 71, 75, 79 or 163 of the Student and Youth Assistance Act 1973: or (iii) to undertake job search activities as part of an activity plan developed by a Disability Panel established by the Secretary: or (iv) to undertake job search activities under the Competitive Employment Placement and Training Program administered by the Department of Human Services and Health: the mobility allowance: (c) continues to be payable to the person on each of the first allowance paydays after the day on which the person ceases to be qualified for the mobility allowance: and (d) then ceases to be payable.". 3. Paragraph 1058(2)(b): Omit "paragraph (1)(b)". substitute "paragraphs (1)(a) and (b)" SCHEDULE 11 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO THE QUALIFYING AGE FOR SENIORS HEALTH CARD 1. Paragraph 1061ZA(a): Omit the paragraph, substitute: "(a) has reached pension age; and". Note: The subheading to section 1061ZA, "Women who have reached 60 and men who have reached 65", is omitted. 2. Section 1061ZA: Add at the end: ''Note 3: For 'pension age' see subsections 23(5A), (5B), (5C) and (5D).".". SCHEDULE 12 Section 4 AMENDMENTS RELATING TO INCOME TESTS AND RELATED MATTERS PART 1—AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 1. Subsection 1067E(2) (Note): Omit "ordinary income test", substitute "income test". 2. Point 1067E-A1 (Step 9): Omit "ordinary" (wherever occurring). 3. Paragraph 1067E-D5(b): Omit the paragraph, substitute: "(b) either: (i) is receiving a job search allowance, youth training allowance, newstart allowance or sickness allowance the rate of which is increased to take account of rent; or (ii) would be receiving such an allowance but for the amount of the person's ordinary income reduction under point 1067E-G17.". 4. Heading to Module G of the Sickness Allowance Rate Calculator: Omit "ORDINARY". 5. Point 1067E-G1: (a) After "person's ordinary income" (first occurring) insert ", and the ordinary income of a partner of the person,". (b) Omit from Note 1 at the end of Step 1 ", 1067E-G3". (c) Omit Steps 2, 3,4,5 and 6, substitute: "Step 2. If the person is a member of a couple, work out the partner income free area using point 1067E-G12. Note: The partner income free area is the maximum amount of ordinary income the person's partner can have without affecting the person's benefit. Step 3. Use paragraphs 1067E-G13(a), (b) and (c) to work out whether the person has a partner income excess. Step 4. If the requirements of paragraphs 1067 E-G13(a), (b) and (c) are not satisfied, the person's partner income excess is nil. SCHEDULE 12—continued Step 5. If the requirements of paragraphs 1067E-G13(a), (b) and (c) are satisfied, the person's partner income excess is the partner's ordinary income less the partner income free area. Step 6. Use the person's partner income excess to work out the person's partner income reduction using point 1067E-G14. Step 7. Work out whether the person's ordinary income free area exceeds the person's ordinary income free area under point 1067E-G15. Note: A person's ordinary income free area is the maximum amount of ordinary income the person can have without affecting the person's benefit rate. Step 8. If the person's ordinary income does not exceed the person's ordinary income free area, the person's ordinary income excess is nil. Step 9. If the person's ordinary income exceeds the person's ordinary income free area, the person's ordinary income excess is the person's ordinary income less the person's ordinary income free area. Step 10. Use the person's ordinary income excess to work out the person's ordinary income reduction using points 1067E-G17,1067E-G18 and 1067E-G19. Step 11. Add the person's partner income reduction and ordinary income reduction: the result is the person's income reduction referred to in Step 9 of point 1067E-A1.". (d) Omit from Note 2 at the end of point 1067E-G1 "ordinary". 6. Points 1067E-G2 and 1067E-G3: Omit the points, substitute: Ordinary income of members of certain couples "1067E-G2. Subject to point 1067E-G4, if a person is a member of a couple and the person's partner is receiving a social security pension, a service pension or a rehabilitation allowance, the person's ordinary income is taken to be one half of the sum of: (a) the amount that would be the person's ordinary income if he or she were not a member of a couple; and (b) the amount that would be the ordinary income of the person's partner if the partner were not a member of a couple." SCHEDULE 12—continued 7. Points 1067E-G12,1067E-G13,1067E-G14,1067E-G15, 1067E-G16 and 1067E-G17: Omit the points, substitute: Partner income free area "1067E-G12. The partner income free area for a person is: (a) if the person is not receiving a social security benefit or a youth training allowance—the amount of income of the person (rounded up to the nearest dollar) beyond which job search allowance would not be payable to the person if the person were qualified for a job search allowance; or (b) if the person is receiving a social security benefit or a youth training allowance—the amount of income of the person (rounded up to the nearest dollar) beyond which that benefit or allowance would not be payable to the person. Partner income excess "1067E-G13. If: (a) a person is a member of a couple; and (b) the person's partner is not receiving a social security pension, service pension or a rehabilitation allowance; and (c) the partner's ordinary income exceeds the partner income free area for the partner; then: (d) the person has a partner income excess; and (e) the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area. Partner income reduction "1067E-G14. If a person has a partner income excess, the person's partner income reduction is an amount equal to 70% of the part of the partner's ordinary income that exceeds the partner income free area. Example: Facts: Alice's partner Martin has an ordinary income of $612. Assume that the partner income free area under point 1067E-G12 is $462. Application: Martin's ordinary income exceeds the partner income free area. He therefore has a partner income excess under point 1067E-G13 of $612-$462 = $150. Alice's partner income reduction under point 1067E-G14 is therefore 70% of $150 = $105. Ordinary income free area "1067E-G15. A person's ordinary income free area is $60. SCHEDULE 12—continued Ordinary income excess "1067E-G16. If a person's ordinary income exceeds the person's ordinary income free area: (a) the person has an ordinary income excess; and (b) the person's ordinary income excess is the amount by which the person's ordinary income exceeds the person's ordinary income free area. Ordinary income reduction "1067E-G17. If a person has an ordinary income excess, the person's ordinary income reduction is the sum of: (a) the person's lower range reduction (see point 1067E-G18); and (b) the person's upper range reduction (if any) (see point 1067E-G19). Lower range reduction "1067E-G18. The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed $80. Upper range reduction "1067E-G19. The person's upper range reduction is an amount equal to 70% of the part (if any) of the person's ordinary income excess that exceeds $80. Example: Facts: Further to the example at the end of point 1067E-G14, Alice is receiving sickness allowance. Her ordinary income is $95. Application: Alice's ordinary income free area under point 1067E-G15 is $60. Her ordinary income exceeds her ordinary income free area. She therefore has an ordinary income excess under point 1067E-G16 of $95 - $60 = $35. Because her ordinary income excess does not exceed $80: • her lower range reduction under point 1067E-G18 is 50% of $35 = $17.50; and • there is no upper range reduction under point 1067E-G19. Her ordinary income reduction under point 1067E-G17 is therefore $17.50. Alice's income reduction referred to in Step 9 of point 1067E-A1 is $105 + $17.50 = $122.50.". PART 2—AMENDMENTS OF THE STUDENT AND YOUTH ASSISTANCE ACT 1973 8. Subsection 135(2) (Note): Omit "ordinary income test", substitute "income test" SCHEDULE 12—continued 9. Subsection 218(1): After "subsections" insert "(1A), (1B),". 10. After subsection 218(1): Insert: "(1A) Subject to subsection (3), for the purposes of the application of this Act in relation to a person's rate of youth training allowance, if: (a) a person who is a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person; and (b) the amount of the disposition is not greater than the least amount that, if added to the person's ordinary income (disregarding this section), would cause the person's rate of youth training allowance to be reduced to nil; the amount of the disposition is to be included in the person's ordinary income. "(1B) Subject to subsection (3), for the purposes of the application of this Act in relation to a person's rate of youth training allowance, if: (a) a person who is a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person; and (b) the amount of the disposition is greater than the least amount that, if added to the person's ordinary income (disregarding this section), would cause the person's rate of youth training allowance to be reduced to nil; then: (c) the second of the amounts referred to in paragraph (b) is to be included in the person's ordinary income; and (d) the difference between the 2 amounts referred to in paragraph (b) is to be included in the person's partner's ordinary income.". 11. Subsection 221(1): Omit "If', substitute "Subject to subsection (2), if'. 12. Subsection 221(2): Omit the subsection, substitute: "(2) Subsection (1) does not apply in relation to the application of an ordinary income test to a person if the fortnightly rate of ordinary income of the person's partner is such that the rate of youth training allowance payable to the person for the accounting period would be nil even if the person's fortnightly rate of ordinary income were not taken into account in working out the rate of the allowance. SCHEDULE 12—continued "(3) The reference in subsection (1) to the fortnightly rate of ordinary income of the person's partner is a reference to that rate after taking into account any application of subsection (1) in relation to amounts of money the partner has earned for remunerative work.". 13. Subsections 222(2) and (3): Omit the subsections. 14. Point A1 (Step 9) in Module A in Schedule 1: Omit "ordinary" (wherever occurring). 15. Subparagraph D5(b)(ii) in Module D in Schedule 1: Omit "point G15", substitute "point G17". 16. Heading to Module G in Schedule 1: Omit "ORDINARY". 17. Point G1 in Module G in Schedule 1: (a) After "person's ordinary income" (first occurring) insert ", and the ordinary income of a partner of the person,". (b) Omit from Note 1 at the end of Step 1 ", G3". (c) Omit Steps 2, 3, 4, 5 and 6, substitute: "Step 2. If the person is a member of a couple, work out the partner income free area using point G12. Note: The partner income free area is the maximum amount of ordinary income the person's partner can have without affecting the person's benefit. Step 3. Use paragraphs G13(a), (b) and (c) to work out whether the person has a partner income excess. Step 4, If the requirements of paragraphs G13(a), (b) and (c) are not satisfied, the person's partner income excess is nil. Step 5. If the requirements of paragraphs G13(a), (b) and (c) are satisfied, the person's partner income excess is the partner's ordinary income less the partner income free area. Step 6. Use the person's partner income excess to work out the person's partner income reduction using point G14. Step 7. Work out whether the person's ordinary income exceeds the person's ordinary income free area under point G15. Note: A person's ordinary income free area is the maximum amount of ordinary income the person can have without affecting the person's benefit rate. SCHEDULE 12—continued Step 8. If the person's ordinary income does not exceed the person's ordinary income free area, the person's ordinary income excess is nil. Step.9. If the person's ordinary income exceeds the person's ordinary income free area, the person's ordinary income excess is the person's ordinary income less the person's ordinary income free area. Step 10.Use the person's ordinary income excess to work out the person's ordinary income reduction using points G17, G18 and G19. Step 11. Add the person's partner income reduction and ordinary income reduction: the result is the person's income reduction referred to in Step 9 of point A1 in MODULE A.". (d) Omit from Note 2 at the end of the point "ordinary". 18. Points G2 and G3 in Module G in Schedule 1: Omit the points, substitute: Ordinary income of members of certain couples "G2. Subject to point G4, if a person is a member of a couple and the person's partner is receiving a social security pension, a service pension or a rehabilitation allowance, the person's ordinary income is taken to be one half of the sum of: (a) the amount that would be the person's ordinary income if he or she were not a member of a couple; and (b) the amount that would be the ordinary income of the person's partner if the partner were not a member of a couple.". 19. Points G12 to G17 (inclusive) in Module G in Schedule 1: Omit the points, substitute: Partner income free area "G12. The partner income free area for a person is: (a) if the person is not receiving a social security benefit or a youth training allowance—the amount of income of the person (rounded up to the nearest dollar) beyond which job search allowance would not be payable to the person if the person were qualified for a job search allowance; or SCHEDULE 12—continued (b) if the person is receiving a social security benefit or a youth training allowance—the amount of income of the person (rounded up to the nearest dollar) beyond which that benefit or allowance would not be payable to the person. Partner income excess "G13. If: (a) a person is a member of a couple; and (b) the person's partner is not receiving a social security pension, service pension or a rehabilitation allowance; and (c) the partner's ordinary income exceeds the partner income free area for the partner; then: (d) the person has a partner income excess; and (e) the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area. Partner income reduction "G14. If a person has a partner income excess, the person's partner income reduction is an amount equal to 70% of the part of the partner's ordinary income that exceeds the partner income free area. Ordinary income free area "G15. A person's ordinary income free area is $60. Ordinary income excess "G16. If a person's ordinary income exceeds the person's ordinary income free area: (a) the person has an ordinary income excess; and (b) the person's ordinary income excess is the amount by which the person's ordinary income exceeds the person's ordinary income free area. Ordinary income reduction "G17. If a person has an ordinary income excess, the person's ordinary income reduction is the sum of: (a) the person's lower range reduction (see point G18); and (b) the person's upper range reduction (if any) (see point G19). Lower range reduction "G18. The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed $80. SCHEDULE 12—continued Upper range reduction "G19. The person's upper range reduction is an amount equal to 70% of the part (if any) of the person's ordinary income excess that exceeds $80.". 20. Point A5 in Module A in Schedule 4: Omit the point. 21. Point C1 in Module C (Note 1) in Schedule 4: Omit "points A4 and A5", substitute "point A4". 22. Points C2 and C3 in Module C in Schedule 4: Omit the points, substitute: Amount of earnings credit "C2. The amount of an earnings credit for an earnings credit accounting period is $60. Note: This is the amount of the ordinary income free area. See Point G15 of Part 2 of Schedule 1.". 23. Point D1 in Module D in Schedule 4: Omit "subsection 222(1)", substitute "section 222". 24. Point D2 in Module D in Schedule 4: Omit the point. _____________ SCHEDULE 13 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO SUPERANNUATION PENSIONS 1. Subsection 9(1) (definition of "superannuation fund"): Omit the definition, substitute: " 'superannuation fund' means: (a) a fund or scheme included in the definition of 'superannuation fund' in subsection 27A(1) of the Income Tax Assessment Act, other than a fund covered by subparagraph (a) (ia) of that definition; or (b) an eligible resident non-complying superannuation fund within the meaning of the Income Tax Assessment Act;". 2. Section 1099: (a) After "superannuation pension" (first occurring) insert "payable from a superannuation fund". (b) Add at the end: "Note: Superannuation funds, as defined in subsection 9(1), do not include non-resident superannuation funds. Consequently, income from a pension payable from a non-resident superannuation fund is not reduced by the deductible amount.". 3. Application In relation to a period-based payment, the amendments made by this Schedule apply to income in respect of a fortnight that commences after the commencement of this Schedule. _____________ SCHEDULE 14 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO NATIVE TITLE RIGHTS AND INTERESTS 1. After paragraph J118(l)(s): Insert: " ; (t) the value of any native title rights and interests of the person, or of a community or group of which the person is a member.". 2. After subsection 1118(1): Insert: "(1A) In this section: 'native title rights and interests' means: (a) native title rights and interests within the meaning of section 223 of the Native Title Act 1993; (b) any rights and interests of a similar nature under any law of a State, a Territory or a foreign country (whether or not the rights and interests relate to land or waters outside Australia); but, to avoid any doubt, does not include any right or interest in a lease or licence, or in a freehold estate.". _____________ SCHEDULE 15 Section 4 AMENDMENTS OF THE SOCIAL SECURITY ACT 1991 RELATING TO LOAN FRINGE BENEFITS 1. Subpoint 1067E-K16(2): Omit the subpoint, substitute: "(2) The notional rate of interest for the fringe benefits year ending on 31 March 1996 is: (a) 6.95% for a housing loan; and (b) 11.75% for any other loan. "(2A) The notional rate of interest for any subsequent fringe benefits year is the market rate of interest for 1 April in that year. "(2B) For the purposes of subpoint (2A): 'market rate of interest', for a particular day, means: (a) for a housing loan—the lowest variable rate of interest for a housing loan; or (b) for any other loan—the lowest variable rate of interest for any other loan; that is available on that day from a bank which is one of 4 banks specified by the Minister by determination under subsection 1157Q(4A).". 2. Subsection 1157Q(1) (Method statement—Step 1): Add at the end: "Note: For 'housing loan' see subsection 10A(9).". 3. Subsection 1157Q(1) (Method statement—Step 2): Omit "subsection (2) or (3)", substitute "subsection (2), (3) or (4)". 4. Subsection 1157Q(3): Omit "tax year ending 30 June 1994", substitute "tax years ending 30 June 1994 and 30 June 1995". 5. Subsection 1157Q(4): Omit the subsection, substitute: "(4) The notional rate of interest for any subsequent tax year is the market rate of interest for 1 April in the preceding tax year. "(4A) For the purposes of subsection (4): 'market rate of interest', for a particular day, means: (a) for a housing loan—the lowest variable rate of interest for a housing loan; or SCHEDULE 15—continued (b) for any other loan—the lowest variable rate of interest for any other loan; that is available on that day from a bank which is one of 4 banks specified in a written determination made by the Minister. "(4B) A determination under subsection (4A) is a disallowable inst