Commonwealth: Youth Allowance Consolidation Act 2000 (Cth)

Youth Allowance Consolidation Act 2000 Act No. 106 of 2000 as amended This compilation was prepared on 14 May 2003 [This Act was amended by Act No. 30 of 2003] Amendments from Act No. 30 of 2003 [Schedule 3 (item 15) amended item 11 of Schedule 2 Schedule 3 (item 16) amended item 2 of Schedule 4 Schedule 3 (item 15) commenced on 1 July 1999 Schedule 3 (item 16) commenced on 6 July 2000] Prepared by the Office of Legislative Drafting, Attorney‑General's Department, Canberra Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Fares allowance Social Security Act 1991 Schedule 2—Student Financial Supplement Scheme Part 1—Amendments commencing on Royal Assent Social Security Act 1991 Part 2—Amendments commencing on 1 July 1999 Social Security Act 1991 Schedule 3—Family actual means test Social Security Act 1991 Schedule 4—Youth allowance and austudy payment Part 1—Amendments commencing on Royal Assent Social Security Act 1991 Part 2—Amendments commencing on 1 July 1998 Social Security Act 1991 Part 3—Amendment commencing on 20 September 1998 Social Security Act 1991 Part 4—Amendments commencing on 1 January 1999 Social Security Act 1991 Part 5—Amendment commencing on 1 July 1999 Social Security Act 1991 Part 6—Amendments commencing on 1 January 2000 Social Security Act 1991 Schedule 5—Youth allowance and the Student Financial Supplement Scheme Part 1—Amendments commencing on Royal Assent Data‑matching Program (Assistance and Tax) Act 1990 Income Tax Assessment Act 1936 Taxation (Interest on Overpayments and Early Payments) Act 1983 Part 2—Amendments commencing on 1 July 1998 Farm Household Support Act 1992 Taxation Administration Act 1953 Part 3—Amendment commencing on 1 July 1999 Taxation Administration Act 1953 An Act to amend various Acts in relation to youth allowance and austudy payment, and for related purposes [Assented to 6 July 2000] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Youth Allowance Consolidation Act 2000. 2 Commencement (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent. (2) Part 2 of Schedule 2 and Part 5 of Schedule 4 commence, or are taken to have commenced, on 1 July 1999. (2A) If this Act receives the Royal Assent before 1 July 2000, items 9A, 10A, 16A and 19A of Schedule 4 do not commence. (2B) If this Act receives the Royal Assent on or after 1 July 2000, items 9, 10, 16 and 19 of Schedule 4 do not commence. (3) Items 30 to 35, 45, 46, 47, 49, 50, 59 to 73 and 75 to 79 of Schedule 4 and Part 2 of Schedule 5 are taken to have commenced on 1 July 1998. (4) Item 36 of Schedule 4 is taken to have commenced on 1 July 1998, immediately after the commencement of section 540A of the Social Security Act 1991, which was inserted in that Act by item 6 of Schedule 1 to the Social Security Legislation Amendment (Youth Allowance) Act 1998. (5) Item 37 of Schedule 4 is taken to have commenced on 1 July 1998, immediately after the commencement of subsection 543A(2) of the Social Security Act 1991, which was inserted in that Act by item 6 of Schedule 1 to the Social Security Legislation Amendment (Youth Allowance) Act 1998. (6) Item 38 of Schedule 4 is taken to have commenced on 1 July 1998, immediately after the commencement of section 550A of the Social Security Act 1991, which was inserted in that Act by item 6 of Schedule 1 to the Social Security Legislation Amendment (Youth Allowance) Act 1998. (7) Items 39 and 40 of Schedule 4 are taken to have commenced on 1 July 1998, immediately after the commencement of section 552A of the Social Security Act 1991, which was inserted in that Act by item 6 of Schedule 1 to the Social Security Legislation Amendment (Youth Allowance) Act 1998. (8) Items 41 to 44 and 58 of Schedule 4 are taken to have commenced on 1 July 1998, immediately after the commencement of Schedule 1 to the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998. (9) Items 47 and 48 of Schedule 4 are taken to have commenced on 1 July 1998, immediately after the commencement of item 199 of Schedule 9 to the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998. (10) Items 51 to 57 of Schedule 4 are taken to have commenced on 1 July 1998, immediately after the commencement of Schedule 2 to the Social Security Legislation Amendment (Youth Allowance) Act 1998. (11) Item 74 of Schedule 4 is taken to have commenced on 1 July 1998, immediately after the commencement of Schedule 7 to the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998. (12) Item 80 of Schedule 4 is taken to have commenced on 1 July 1998, immediately after the commencement of Schedule 2 to the Social Security and Veterans' Affairs Legislation Amendment (Budget and Other Measures) Act 1998. (13) Item 81 of Schedule 4 is taken to have commenced on 1 July 1998, immediately after the commencement of item 2 of Schedule 10 to the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998. (14) Part 3 of Schedule 4 is taken to have commenced on 20 September 1998, immediately after the commencement of Schedule 3 to the Social Security and Veterans' Affairs Legislation Amendment (Budget and Other Measures) Act 1998. (15) Part 4 of Schedule 4 is taken to have commenced on 1 January 1999, immediately after the commencement of subsections 543A(2A) and (2B) of the Social Security Act 1991, which were inserted in that Act by item 6 of Schedule 1 to the Social Security Legislation Amendment (Youth Allowance) Act 1998. (16) Part 6 of Schedule 4 commences on 1 January 2000. (17) Part 3 of Schedule 5 commences, or is taken to have commenced, on 1 July 1999, immediately after the commencement of item 351 of Schedule 1 to the Taxation Laws Amendment Act (No. 3) 1999. 3 Schedule(s) Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. Schedule 1—Fares allowance Social Security Act 1991 1 Section 3 (index of definitions) Omit: independent 5(1), 1067A substitute: independent 5(1), 19AA(2), 1067A 2 Section 3 (index of definitions) Insert the following entries in their appropriate alphabetical positions, determined on a letter‑by‑letter basis: activity test 19AA(2) approved course 19AA(2) approved tertiary course 19AA(2) external student 19AA(2) permanent home 19AA(3) to (6) public transport 19AA(2) relevant educational institution 19AA(2) required to live away from his or her permanent home 19AA(7) Social Security (Fares Allowance) Rules 1998 23(1) study year 19AA(2) undertaking qualifying study 569A, 1061PB 3 Subsection 4(6A) (note) Before "Part 3.10", insert "Part 2.26 (Fares allowance),". 4 Subsection 4(6A) (after item 11 in the table) Insert: 11A Part 2.26 Fares allowance 5 After section 19A Insert: 19AA Fares allowance definitions (1) This section has effect for the purposes of Part 2.26. (2) Unless the contrary intention appears: activity test means the test set out in section 541. approved course has the meaning given by subsection 1061ZAAA(1). approved tertiary course means a course of education or study that is determined, under section 5D of the Student Assistance Act 1973, to be a tertiary course for the purposes of that Act. external student, in relation to an approved course at a relevant educational institution, means a student enrolled for the course who is subject to a requirement, being a requirement that is a compulsory component of the course, to attend the institution for a period of time. independent has the same meaning as in Parts 2.11 and 3.5 (see section 1067A). permanent home has the meaning given by subsections (3) to (6). public transport does not include a taxi. relevant educational institution has the meaning given by subsection 1061ZAAA(1). required to live away from his or her permanent home has the meaning given by subsection (7). study year means the period in which one complete year of an approved tertiary course (as defined by this subsection) starts and finishes. (3) Subject to subsection (5), if a person is receiving youth allowance, and is not independent, the person's permanent home is the home of the parent whose income components are assessed under Submodule 4 of Module F of the Youth Allowance Rate Calculator in section 1067G. (4) Subject to subsection (5), if subsection 1061ZAAA(5) applies to a person, the person's permanent home is the home of the parent whose income components were assessed, immediately before the person became independent, under Submodule 4 of Module F of the Youth Allowance Rate Calculator in section 1067G. (5) If the parent uses more than one home, the person's permanent home is: (a) the home that the parent uses most frequently; or (b) if the parent uses more than one home for equal periods, the home that the person nominates. (6) The permanent home of a person to whom none of the preceding subsections apply is the person's usual place of residence. (7) A person is taken to be required to live away from his or her permanent home in order to undertake an approved tertiary course of education or study if: (a) the person is not independent; and (b) the person does not live at the person's permanent home; and (c) the Secretary determines that the person needs to live away from the person's permanent home in order to undertake the course. 6 Subsection 23(1) (definition of fares allowance) Repeal the definition, substitute: fares allowance means fares allowance under Part 2.26 or under the Social Security (Fares Allowance) Rules 1998, as the case may be. 7 Subsection 23(1) Insert: Social Security (Fares Allowance) Rules 1998, in relation to a time after the commencement of Schedule 1 to the Youth Allowance Consolidation Act 2000, means those Rules as they continue in force under clause 126 of Schedule 1A. 8 Part 2.26 Repeal the Part, substitute: Part 2.26—Fares allowance Division 1—Qualification for fares allowance 1061ZAAA Qualification for fares allowance (1) A person is qualified for fares allowance for a journey by the person if: (a) during a period (the relevant period) that is the whole or a part of a study year the person undertakes an approved tertiary course (the approved course) at an educational institution in Australia (the relevant educational institution); and (b) during the relevant period the person is receiving one or more of the following forms of financial assistance: (i) youth allowance because the person satisfies the activity test by undertaking full‑time study; (ii) youth allowance where the only term of the relevant Youth Allowance Activity Agreement is a term to the effect that the person has to undertake an approved course of education or study under subsection 541B(5); (iii) austudy payment; (iv) pensioner education supplement; and (c) during the relevant period the person's permanent home is in Australia; and (d) either: (i) subsection (2) or (3) applies in respect of the person for the study year; or (ii) subsection (4) or (5) applies in respect of the person in relation to the journey; and (e) either section 1061ZAAB or 1061ZAAC applies in respect of the journey; and (f) the journey has been made or, if it has not been made, the Secretary is satisfied that: (i) the person intends to make the journey; and (ii) the person's means of travel for the journey will be provided by a commercial operator. Note: A person is taken to be receiving a form of financial assistance referred to in paragraph (b) even though the person has traded in, or traded back, the assistance to obtain a financial supplement. (2) This subsection applies in respect of the person for the study year if, during the relevant period, the person: (a) has a partner, or a dependent child, living at the person's permanent home; and (b) is required to live away from his or her permanent home in order to undertake the approved course. (3) This subsection applies in respect of the person for the study year if, during the relevant period, the person is enrolled as an external student for the approved course. (4) This subsection applies in respect of the person in relation to the journey if: (a) during the relevant period, the person: (i) is receiving youth allowance as referred to in subparagraph (1)(b)(i) or (ii); and (ii) is required to live away from home within the meaning of Part 3.5 (see section 1067D); and (b) the person is not independent when the journey is made. (5) This subsection applies in respect of the person in relation to the journey if: (a) during the relevant period, the person: (i) is receiving youth allowance as referred to in subparagraph (1)(b)(i) or (ii); and (ii) is required to live away from home within the meaning of Part 3.5 (see section 1067D); and (b) during the study year and before the journey was made the person became independent because of subsection 1067A(4) or (10); and (c) if the journey had been made in the study year before the person became independent, subsection (4) would have applied in respect of the person in relation to the journey. Note: A person is not qualified for a fares allowance in respect of a journey made before the commencement of this section (see clause 126 of Schedule 1A). 1061ZAAB Journey by person who is not an external student If the person is enrolled for the approved course as a student other than an external student, this section applies in respect of a journey only if the journey is one of the following: (a) a journey from the person's permanent home to the relevant educational institution to start the course; (b) a journey made, in the study year or before 1 April in the next year, from the relevant educational institution to the person's permanent home after the person has finished or discontinued the course; (c) a return journey during the study year between the relevant educational institution and the person's permanent home where the person: (i) has, during the study year and before the making of the journey, received one or more of the forms of financial assistance referred to in paragraph 1061ZAAA(1)(b) for a total period of 6 months (whether continuous or not); and (ii) is receiving one of those forms of financial assistance when the journey is made. 1061ZAAC Journey by person who is an external student If the person is enrolled for the approved course as an external student, this section applies only in respect of one return journey by the person during the study year between the person's permanent home and the relevant educational institution in order to attend the institution for a period under a requirement that is a compulsory component of the course. Division 2—Making and determination of claim for fares allowance 1061ZAAD Need for a claim A person who wants fares allowance for a journey must make a proper claim for the allowance. 1061ZAAE Form of claim To be a proper claim, a claim must be made in writing and must be in accordance with a form approved by the Secretary. 1061ZAAF Lodgment of claim (1) To be a proper claim, a claim must be lodged: (a) at an office of the Department; or (b) at a place in Australia approved for the purpose by the Secretary; or (c) with a person in Australia approved for the purpose by the Secretary. (2) If: (a) a person contacts the Department in relation to his or her claiming fares allowance; and (b) the person is, on the day on which he or she contacts the Department, qualified for fares allowance; and (c) the person lodges a claim for fares allowance within 14 days after the day on which he or she contacts the Department; and (d) the Department has a record of the person contacting the Department; the person is taken to have lodged a claim for fares allowance on the day on which the person contacted the Department. (3) In this section: contacts the Department includes contacts the Department by post or telephone or by the transmission of a message by the use of facsimile, computer equipment or any other electronic means. 1061ZAAG Time limit for claim (1) Subject to this section, to be a proper claim, the claim must be lodged in the study year concerned or before 1 April next following the end of that year (the final date). (2) A claim lodged on or after the final date is a proper claim if the Secretary is satisfied that the claimant took reasonable steps to ensure that it would be lodged before the final date. (3) Also, a claim lodged on or after the final date is a proper claim if the Secretary is satisfied that: (a) circumstances beyond the claimant's control prevented the claimant from taking reasonable steps to lodge the claim before the final date; and (b) the claimant lodged the claim as soon as practicable after the circumstances stopped. 1061ZAAH Claim may be withdrawn (1) A claimant for fares allowance, or a person on behalf of a claimant, may withdraw a claim that has not been determined. (2) A claim that is withdrawn is taken not to have been made. (3) A withdrawal may be made orally or in writing. 1061ZAAI Determination of claim (1) The Secretary is to determine a person's claim for fares allowance. (2) The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that the person is qualified for the fares allowance to which the claim relates. Division 3—Amount of fares allowance 1061ZAAJ Fares allowance for public transport (1) If the Secretary is satisfied that it is practicable for the person to make the entire journey by public transport, the amount of fares allowance for the entire journey is worked out using this section. (2) If the Secretary is satisfied that it is practicable for the person to make part of the journey by public transport, the amount of fares allowance for that part of the journey is worked out using this section. (3) The amount of fares allowance is the cost of making the journey, or the part of the journey, using a reasonable route and the least expensive form of public transport that is reasonable. (4) The cost is to be based on the cost of any concessional fare available to the person. (5) The cost of a sleeping berth is to be included only if it is reasonable for the person to travel by rail and for the person to have the berth. (6) In deciding what is practicable or reasonable for the purposes of this section, the period of time needed for the entire journey, and any illness or incapacity of the person, must be taken into account. (7) The amount of fares allowance to be paid is to be worked out using this section whether or not the person chooses to make the journey, or the part of the journey, in the way described in this section. 1061ZAAK Fares allowance for private transport (1) If the Secretary is satisfied that it is not practicable for the person to make any part of the journey by public transport, the amount of fares allowance for the entire journey is worked out using this section. (2) If the Secretary is satisfied that it is not practicable for the person to make a part of the journey by public transport, the amount of fares allowance for that part of the journey is worked out using this section. (3) If the person makes the journey, or the part of the journey, by taxi, the fares allowance is 63 cents per kilometre travelled by taxi. (4) If the person makes the journey, or the part of the journey, by another vehicle, the fares allowance is worked out in accordance with the following table: Table of rates of allowance Item Kind of engine in the vehicle the person uses Capacity of the vehicle's engine Allowance per kilometre (cubic centimetres) (cents) 1 Rotary not more than 800 45.7 2 Rotary more than 800 but not more than 1,300 51.9 3 Rotary more than 1,300 53.8 4 Not rotary not more than 1,600 45.7 5 Not rotary more than 1,600 but not more than 2,600 51.9 6 Not rotary more than 2,600 53.8 (5) If the Secretary is satisfied that: (a) it is unreasonable for the person to make the journey or the part of the journey by taxi or another vehicle because of abnormal travel hazards (for example, bushfire or flood); and (b) the person makes the journey or the part of the journey by another form of transport that is reasonable because of the distance travelled and the cost of the transport; the amount of fares allowance for the journey or that part of the journey is the actual cost to the person of making the journey or that part of the journey. (6) In deciding what is practicable or reasonable for the purposes of this section, the period of time needed for the entire journey, and any illness or incapacity of the person, must be taken into account. (7) For the purposes of this section, a vehicle that is registered as a taxi in a State or Territory is to be taken to be a taxi only while it is used in the State or Territory. (8) The Minister may make written determinations: (a) varying the amount referred to in subsection (3); or (b) amending the table in subsection (4) or omitting that table and substituting another table. (9) A determination under subsection (8) is a disallowable instrument. Division 4—Payment of fares allowance 1061ZAAL Timing of payment (1) Subject to subsection (2), fares allowance for a journey by a person is to be paid as a reimbursement after the journey is made. (2) If the journey has not been made, the fares allowance for the journey is to be paid before the journey is made. 1061ZAAM To whom fares allowance is to be paid (1) Subject to subsection (4), if the person is or was receiving youth allowance at the time of the making of the journey, fares allowance is to be paid to the person to whom instalments of the youth allowance are or were being paid under section 559D or 559E. (2) Subject to subsection (4), if the person is or was receiving austudy payment at the time of the making of the journey, fares allowance is to be paid to the person to whom instalments of the austudy payment are or were being paid under section 584D. (3) Subject to subsection (4), if the person is or was receiving pensioner education supplement at the time of the making of the journey, fares allowance is to be paid to the person to whom instalments of the pensioner education supplement are or were being paid under section 1061PZK. (4) If the fares allowance is to be paid as referred to in subsection 1061ZAAL(2), it is to be paid, on behalf of the person, to the commercial operator who provides the person's means of travel. (5) This section has effect subject to section 1061ZAAO. 1061ZAAN Payment into bank account (1) If an amount of fares allowance is to be paid to a person, it is to be paid in the way described by this section. (2) Subject to this section, fares allowance is to be paid to the credit of the bank account into which payments of youth allowance, austudy payment or pensioner education supplement are or were made. (3) If a payment referred to in subsection (2) is not paid into an account referred to in that section, because of a direction given under subsection 559F(4), 584E(4) or 1061PZL(4), then, subject to subsection (5), fares allowance is to be paid to the credit of a bank account nominated and maintained by the person. (4) The person's account may be maintained by the person alone or jointly or in common with someone else. (5) The Secretary may direct that all or part of the amount is to be paid in a different way than to the credit of the bank account and, if the Secretary does so, the amount is to be paid in accordance with the direction. 1061ZAAO Payment of allowance after death (1) If: (a) a person (the student) has died; and (b) fares allowance was payable to the student at the time of his or her death; and (c) the allowance was not paid before that time; a person may apply to receive the allowance. (2) Without limiting the effect that paragraph (1)(b) has apart from this subsection, fares allowance is taken for the purposes of that paragraph to have been payable to the student at the time of his or her death if: (a) at that time the student was qualified for the fares allowance but had not made a proper claim for the allowance; and (b) a person has applied at a later time to receive the allowance; and (c) if the student had not died and had made a claim for the allowance at the later time, the claim would have been a proper claim. (3) If one or more people apply to receive the allowance, the Secretary may pay the allowance to the applicant who, in the Secretary's opinion, is best entitled to it. (4) However, an application to receive the allowance is to be made: (a) within 6 months after the student died; or (b) within a longer period allowed by the Secretary in special circumstances. (5) If the Secretary pays an amount of fares allowance under subsection (3), the Commonwealth has no liability to anyone else for the amount. Division 5—Protection of fares allowance 1061ZAAP Fares allowance absolutely inalienable A payment of fares allowance is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise. 1061ZAAQ Effect of garnishee or attachment order (1) This section applies if: (a) a person has an account with a financial institution (whether the account is maintained by the person alone, or jointly or in common with someone else); and (b) a court order in the nature of a garnishee order comes into force for the account; and (c) an amount of fares allowance has been paid to the credit of the account in the 4 weeks immediately before the court order came into force. (2) The court order does not apply to the saved amount (if any) in the account. (3) The saved amount is the amount worked out using the following Method statement. Method statement Step 1. Work out the amount of fares allowance paid to the credit of the account in the 4 weeks. Step 2. Subtract the total amount withdrawn from the account in the 4 weeks. The saved amount is the amount left. 9 Section 1222A After "1947 Act,", insert "or by way of fares allowance under the Social Security (Fares Allowance) Rules 1998,". 10 Paragraph 1222A(a) After "1947 Act", insert ", the Social Security (Fares Allowance) Rules 1998". 11 Subsection 1223(1) After "social security payment" (wherever occurring), insert "or fares allowance". 12 Paragraph 1223(2A)(a) After "payment", insert "or by way of fares allowance for a journey". 13 Paragraph 1223(2A)(b) After "instalment", insert "or journey". 14 Paragraph 1223(5)(a) After "1997", insert "or by way of fares allowance". 15 Paragraph 1223(5)(b) After "calculator", insert "or other provision for calculating the amount". 16 Paragraph 1223(5)(b) After "payment", insert "or fares allowance". 17 Paragraph 1224(1)(a) After "payment", insert "or fares allowance". 18 Subparagraph 1224(1)(b)(ii) Omit "or the 1947 Act", substitute ", the 1947 Act or the Social Security (Fares Allowance) Rules 1998". 19 Paragraph 1224AA(1)(a) After "payment", insert "or an amount of fares allowance". 20 Paragraph 1224AB(1)(a) After "this Act", insert "or the Social Security (Fares Allowance) Rules 1998". 21 After subparagraph 1229(1)(b)(i) Insert: (ia) owes a debt to the Commonwealth under the Social Security (Fares Allowance) Rules 1998; or 22 After subparagraph 1229A(1)(b)(i) Insert: (ia) a debt to the Commonwealth under the Social Security (Fares Allowance) Rules 1998; or 23 After paragraph 1231(1)(d) Insert: (e) a debt under the Social Security (Fares Allowance) Rules 1998; 24 After paragraph 1232(1)(b) Insert: or (c) the Social Security (Fares Allowance) Rules 1998; 25 Subsection 1233(1) Omit "or under the 1947 Act", substitute ", under the 1947 Act or under the Social Security (Fares Allowance) Rules 1998". 26 At the end of subsection 1234(3) Add: ; or (c) a debt under the Social Security (Fares Allowance) Rules 1998. 27 Paragraph 1234A(1)(a) Omit "or the Farm Household Support Act 1992", substitute ", the Farm Household Support Act 1992 or the Social Security (Fares Allowance) Rules 1998". 28 At the end of section 1235 Add: ; or (d) a debt under the Social Security (Fares Allowance) Rules 1998. 29 Paragraph 1304(1)(ca) Repeal the paragraph, substitute: (ca) whether a person who has made a claim under the Social Security (Fares Allowance) Rules 1998 was eligible for fares allowance; or 30 Paragraph 1307(1)(b) Repeal the paragraph, substitute: (b) verifying the qualification of persons who have made claims for social security payments under this Act, or the eligibility of persons who have made claims for fares allowance under the Social Security (Fares Allowance) Rules 1998, for the payments or allowance. 31 Section 1347 After "eligible", insert "or qualified, as the case may be". 32 Schedule 1A Insert in its appropriate position (determined on a numerical order basis): 126 Application and transitional provisions relating to fares allowance (1) Part 2.26 applies only in respect of claims for fares allowance made after the commencement of that Part for journeys made after that commencement. (2) The Social Security (Fares Allowance) Rules 1998 made under section 1061ZAAA as in force immediately before the commencement of Part 2.26 continue in force as if that section were still in force but apply only in respect of claims made, whether before or after that commencement, for journeys made before that commencement. (3) If: (a) a person has, before the commencement of Part 2.26, made a journey in a study year; and (b) the person is eligible, under the Rules referred to in subclause (2), as they continue in force under that subclause (the continuing Rules) for fares allowance in respect of the journey; and (c) the person makes a claim under Part 2.26 for fares allowance in respect of a journey made, or to be made, after the commencement of that Part in the same study year; the claim is not to be determined until the person has made a claim under the continuing Rules in respect of the journey referred to in paragraph (a) and the claim has been finally dealt with in accordance with those Rules. Schedule 2—Student Financial Supplement Scheme Part 1—Amendments commencing on Royal Assent Social Security Act 1991 1 Section 3 (index of definitions) Insert the following entries in their appropriate alphabetical positions, determined on a letter‑by‑letter basis: accumulated FS debt 19AB(2) adjusted accumulated FS debt 19AB(2) amount notionally repaid 19AB(2) amount outstanding 19AB(2) amount repaid 19AB(2) approved course of education or study 19AB(2), 541B(1) austudy payment general rate 19AB(3) AWE 19AB(2) category 1 student 19AB(2) category 2 student 19AB(2) Commissioner 19AB(2) Commissioner of Taxation 19AB(2) contract period 19AB(2) cooling off period 19AB(2) discount 19AB(2) earlier date 19AB(2) eligibility period 19AB(2) financial corporation 19AB(2) financial supplement contract 19AB(2) FS assessment debt 19AB(2) FS debt 19AB(2) index number 19AB(2) intending to undertake a course 19AB(5) interest subsidy 19AB(2) intermediate prescribed amount 19AB(2) later date 19AB(2) maximum amount of financial supplement 19AB(2) maximum prescribed amount 19AB(2) minimum amount of financial supplement 19AB(2) minimum prescribed amount 19AB(2) office 19AB(2) original amount 19AB(2) overpayment 19AB(2) participating corporation 19AB(2) principal sum 19AB(2) relevant debt 19AB(2) revised amount 19AB(2) saved amount 19AB(2) short course 19AB(2) Social Security Student Financial Supplement Scheme 1998 19AB(2) supplement entitlement notice 19AB(2) termination date 19AB(2) termination notice 19AB(2) tertiary course 19AB(2) trade back 19AB(2) trade in 19AB(2) undertaking a course 19AB(5) weekday 19AB(2) wrongly paid supplement 19AB(2) year 19AB(2) year of income 19AB(2) youth allowance general rate 19AB(4) 2 Before section 19B Insert: 19AB Student Financial Supplement Scheme definitions (1) This section has effect for the purposes of Chapter 2B. (2) Unless the contrary intention appears: accumulated FS debt has the meaning given by section 1061ZZEQ. adjusted accumulated FS debt has the meaning given by section 1061ZZES. amount notionally repaid has the meaning given by subsection 1061ZZCN(5) or (7), as applicable. amount outstanding has the meaning given by section 1061ZZCG or 1061ZZCH, as applicable. amount repaid has the meaning given by subsection 1061ZZCJ(3), as affected by section 1061ZZCL. approved course of education or study has the same meaning as in subsection 541B(5). Note: This expression is used, with the same meaning, in sections 569B and 1061PC. austudy payment general rate has the meaning given by subsection (3). AWE has the meaning given by section 1061ZZFF. category 1 student has the meaning given by section 1061ZZ. category 2 student has the meaning given by section 1061ZZA. Commissioner means Commissioner of Taxation. Commissioner of Taxation includes a Second Commissioner of Taxation and a Deputy Commissioner of Taxation. contract period of a financial supplement contract has the meaning given by subsection 1061ZZAX(7) or 1061ZZAY(3). cooling off period means a period referred to in section 1061ZZBD. discount has the meaning given by section 1061ZZCM. earlier date has the meaning given by paragraph 1061ZZEQ(2)(b). eligibility period for a person means an eligibility period under section 1061ZY and includes an eligibility period for the purposes of the Social Security Student Financial Supplement Scheme 1998. financial corporation means: (a) a foreign corporation within the meaning of paragraph 51(xx) of the Constitution whose sole or principal business activities in Australia are the borrowing of money and the provision of finance; or (b) a financial corporation within the meaning of that paragraph; and includes a bank. financial supplement contract means a contract referred to in subsection 1061ZZAX(2) or 1061ZZAY(1). FS assessment debt means an amount that is required to be paid in respect of an accumulated FS debt under section 1061ZZEZ and is included in an assessment made under Division 7 of Part 2B.3 or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998. FS debt has the meaning given by section 1061ZZEO. index number for a quarter means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician for the quarter. intending to undertake a course: see subsection (5). interest subsidy, in relation to financial supplement paid to a person by a participating corporation under a financial supplement contract, means the part of any subsidy paid by the Commonwealth to the corporation, without cost to the person, in respect of the supplement under the agreement entered into with the corporation under section 1061ZZAG, that is in lieu of interest. intermediate prescribed amount has the meaning given by section 1061ZZFD. later date has the meaning given by paragraph 1061ZZEQ(1)(a) or (2)(a), as the case requires. maximum amount of financial supplement has the meaning given by section 1061ZZAK or 1061ZZAO, as the case requires, as affected by section 1061ZZAQ. maximum prescribed amount has the meaning given by section 1061ZZFE. minimum amount of financial supplement has the meaning given by section 1061ZZAP. minimum prescribed amount has the meaning given by section 1061ZZFC. office means a branch office but does not include an agency or administrative office. original amount has the meaning given by subsection 1061ZZCW(1). overpayment, for a person in relation to an eligibility period, means either of the following: (a) a debt or overpayment that is to be recovered under Chapter 5 from the person during the eligibility period; (b) an amount the person is liable to pay to the Commonwealth under section 1061ZZDE, 1061ZZDL, 1061ZZDV or 1061ZZEE that the Secretary has decided is to be recovered during the eligibility period. participating corporation has the meaning given by subsection 1061ZZAG(3). principal sum, at a time during the contract period of a financial supplement contract, means the total of the amounts of financial supplement paid under the contract before that time by the participating corporation to the other party to the contract. relevant debt has the meaning given by section 1061ZZFB. revised amount has the meaning given by subsection 1061ZZCW(1). saved amount means an amount referred to in subsection 1061ZZBO(3). short course means a tertiary course that is designed to be completed in, at most, 30 weeks (including vacations). Social Security Student Financial Supplement Scheme 1998 means the scheme of that name established by the Minister under Chapter 2B of this Act as in force before the commencement of this section. supplement entitlement notice given to a person means a notice given to the person under subsection 1061ZZAC(3) or 1061ZZAD(4), or a notice referred to in subsection 1061ZZAE(3). termination date of a financial supplement contract means the date set out in the contract under subsection 1061ZZAX(6) or as mentioned in subsection 1061ZZAY(2). termination notice means a notice given under section 1061ZZCQ or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998. tertiary course means a tertiary course that is an approved course of education or study. trade back has the meaning given by section 1061ZZAT. trade in has the meaning given by section 1061ZZAR. undertaking a course: see subsection (5). weekday means a day from Monday to Friday (inclusive), whether or not the day is a public holiday. wrongly paid supplement has the meaning given by subsections 1061ZZDB(4), 1061ZZDI(4), 1061ZZDS(4) and 1061ZZEC(4). year means a calendar year. year of income has the same meaning as in the Income Tax Assessment Act 1936. youth allowance general rate has the meaning given by subsection (4). (3) A person's austudy payment general rate is the rate of austudy payment that would be payable to the person if the rate were worked out: (a) using the Austudy Payment Rate Calculator; and (b) not including any amount as pharmaceutical allowance or remote area allowance. (4) A person's youth allowance general rate is the rate of youth allowance that would be payable to the person if the rate were worked out: (a) using the Youth Allowance Rate Calculator; and (b) not including any amount as pharmaceutical allowance, rent assistance or remote area allowance. (5) The question whether a person is intending to undertake a course or is undertaking a course is to be determined, so far as practicable and with any necessary changes, in the same way as the question whether a person is intending to undertake study or is undertaking study, as the case may be, is determined under section 541B. 3 Subsection 23(1) (definition of financial supplement) Repeal the definition, substitute: financial supplement means a loan that has been or may be made under a financial supplement contract as defined by section 19AB. 4 Subsection 23(1) (at the end of the definition of recipient notification notice) Add: ; or (s) section 1061ZZBR. 5 Subsection 23(1) (at the end of the definition of recipient statement notice) Add: ; or (s) section 1061ZZBY. 6 Chapter 2B Repeal the Chapter, substitute: Chapter 2B—Student Financial Supplement Scheme Part 2B.1—Establishment of scheme Division 1—Preliminary 1061ZW Object of this Chapter The object of this Chapter is to establish a Student Financial Supplement Scheme enabling certain tertiary students to obtain a repayable financial supplement by entering into a contract for that purpose with a financial corporation that participates in the scheme. 1061ZX Outline of the scheme (1) The scheme provides for the reduction of the rate of youth allowance, austudy payment or pensioner education supplement payable to a person who obtains financial supplement. (2) The scheme contains provisions under which the amount of supplement that the person is eligible to obtain depends on the total rate of youth allowance, austudy payment or pensioner education supplement that the person chooses to receive. Those provisions allow the person to choose to repay some or all of the youth allowance, austudy payment or pensioner education supplement, or to receive a lower rate of payment of such an allowance, payment or supplement, in order to receive a higher amount of financial supplement. (3) The scheme provides that the person is not liable to pay interest to the financial corporation in respect of financial supplement received by the person, but provides for payment by the Commonwealth, without cost to the person, to the financial corporation of a subsidy that includes an amount in lieu of interest. (4) The scheme provides for the amount of the financial supplement that has to be repaid under a contract to be indexed on 1 June in the year next following the year in which the contract is entered into, and on 1 June in each later year. The amount by which the supplement is increased by indexation is owed by the person to the Commonwealth and not to the financial corporation. (5) Under the scheme, the person is entitled, but not required, to make early repayments in respect of the supplement during the period of the contract. The scheme provides for a discount for any repayments made before the end of that period. (6) The scheme provides that, if financial supplement paid to a person is not repaid in full before the end of the period of the contract, the obligation to repay the outstanding amount of the supplement is transferred to the Commonwealth, and the indexed amount is repayable by the person to the Commonwealth through the taxation system when the person's income reaches a specified level. Division 2—Eligibility to obtain financial supplement 1061ZY Eligibility to obtain financial supplement A person is eligible to obtain financial supplement for a period (an eligibility period) that is a year or a part of a year if: (a) the person is undertaking, or intending to undertake, a tertiary course at an educational institution throughout the period; and (b) the person does not undertake a course of primary or secondary education at any time during the period; and (c) the person is a category 1 student or a category 2 student in respect of the period; and (d) the amount of financial supplement that the person is eligible to obtain under Division 6 for the year is not less than the minimum amount of financial supplement. 1061ZZ Category 1 student (1) A person is a category 1 student in respect of a period if, throughout the period, one or more of the payments referred to in this section are payable to the person. (2) The payment may be youth allowance if: (a) the person's youth allowance general rate is more than zero; and (b) the youth allowance is payable because the person is undertaking full‑time study. (3) The payment may be austudy payment if the person's austudy payment general rate is more than zero. (4) The payment may be pensioner education supplement. 1061ZZA Category 2 student (1) A person is a category 2 student in respect of a period if: (a) the person is not a category 1 student in respect of the period; and (b) throughout the period the person is undertaking full‑time study; and (c) throughout the period youth allowance at the youth allowance general rate is not payable to the person, and is not so payable only because of the operation of: (i) Module F (the parental income test) of the Youth Allowance Rate Calculator in section 1067G; or (ii) Module G (the family actual means test) of that Calculator; and (d) where throughout the period youth allowance at the youth allowance general rate is not payable to the person only because of the operation of Module F of that Calculator—the person's combined parental income for the appropriate tax year under Submodule 4 of that Module is throughout the period less than the person's modified parental income free area; and (e) where throughout the period youth allowance at the youth allowance general rate is not payable to the person only because of the operation of Module G of that Calculator—the actual means of the person's family under that Module is throughout the period less than the person's modified parental income free area; and (f) neither section 1061ZZAA nor 1061ZZAB applies to the person. (2) For the purposes of paragraphs (1)(d) and (e), the person's modified parental income free area is the indexed amount that would be the person's parental income free area under point 1067G‑F22 if the amount of $23,400 that was specified in paragraph 1067G‑F22(a) when that paragraph was enacted had been $54,949. 1061ZZAA Failure by person to comply with request to provide person's tax file number (1) This section applies to a person if: (a) the Secretary has requested the person under section 1061ZZBP to: (i) give the Secretary a written statement of the person's tax file number; or (ii) apply to the Commissioner of Taxation for a tax file number and give the Secretary a written statement of the person's tax file number after it has been issued; and (b) at the end of 28 days after the request is made, the person has neither: (i) given the Secretary a written statement of the person's tax file number; nor (ii) given the Secretary an employment declaration and satisfied either subsection (2) or (3). (2) The person satisfies this subsection if: (a) the employment declaration states that the person: (i) has a tax file number but does not know what it is; and (ii) has asked the Commissioner of Taxation to inform him or her of the number; and (b) the person has given the Secretary a document authorising the Commissioner to tell the Secretary: (i) whether the person has a tax file number; and (ii) if the person has a tax file number—the tax file number; and (c) the Commissioner has not told the Secretary that the person has no tax file number. (3) The person satisfies this subsection if: (a) the employment declaration states that the person has applied for a tax file number; and (b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary: (i) if a tax file number is issued to the person—the tax file number; or (ii) if the application is refused—that the application has been refused; or (iii) if the application is withdrawn—that the application has been withdrawn; and (c) the Commissioner has not told the Secretary that the person has not applied for a tax file number; and (d) the Commissioner has not told the Secretary that an application by the person for a tax file number has been refused; and (e) the application for a tax file number has not been withdrawn. 1061ZZAB Failure by person to comply with request to provide the tax file number of a parent of the person (1) Subject to subsection (4), this section applies to a person if: (a) the person is requested under section 1061ZZBQ to give the Secretary a written statement of the tax file number of a parent of the person; and (b) at the end of 28 days after the request is made the person has neither: (i) given the Secretary a written statement of the parent's tax file number; nor (ii) given the Secretary a declaration by the parent in a form approved by the Secretary and satisfied either subsection (2) or (3). (2) The person satisfies this subsection if: (a) the parent's declaration states that the parent: (i) has a tax file number but does not know what it is; and (ii) has asked the Commissioner of Taxation to inform him or her of his or her tax file number; and (b) the person has given the Secretary a document signed by the parent that authorises the Commissioner to tell the Secretary: (i) whether the parent has a tax file number; and (ii) if the parent has a tax file number—the tax file number; and (c) the Commissioner has not told the Secretary that the parent has no tax file number. (3) The person satisfies this subsection if: (a) the parent's declaration states that he or she has applied for a tax file number; and (b) the person has given the Secretary a document signed by the parent that authorises the Commissioner of Taxation to tell the Secretary: (i) if a tax file number is issued to the parent—the tax file number; or (ii) if the application is refused—that the application has been refused; or (iii) if the application is withdrawn—that the application has been withdrawn; and (c) the Commissioner has not told the Secretary that an application by the parent for a tax file number has been refused; and (d) the application for a tax file number has not been withdrawn. (4) The Secretary may waive the request for a statement of the parent's tax file number if the Secretary is satisfied that: (a) the person does not know the parent's tax file number; and (b) the person can obtain none of the following from the parent: (i) the parent's tax file number; (ii) a statement of the parent's tax file number; (iii) a declaration by the parent under subparagraph (1)(b)(ii). Division 3—Decision and notice about eligibility to obtain financial supplement 1061ZZAC Secretary's decision (1) If a person claims youth allowance, austudy payment or pensioner education supplement, the Secretary must decide whether the person is eligible to obtain financial supplement for a period that is the whole or a part of a year. (2) Also, if: (a) the Secretary has made a decision in a year that a person is eligible to obtain financial supplement for a period that is the whole or a part of that year; and (b) the person is likely to: (i) continue to undertake the person's tertiary course in the next year; or (ii) undertake a new tertiary course in the next year when enrolments in the course are next accepted; the Secretary must make a new decision, as early as practicable in the next year, about whether the person is eligible to obtain financial supplement for a period that is the whole or a part of that next year. (3) If the Secretary decides that the person is eligible to obtain financial supplement for a period, the Secretary must give the person a notice (a supplement entitlement notice): (a) stating that the person is eligible to obtain financial supplement for that period; and (b) specifying the minimum and maximum amounts of financial supplement that the person can obtain. 1061ZZAD Revocation or variation of decision after review (1) This section applies if: (a) the Secretary has made a decision under section 1061ZZAC in relation to a person; and (b) the Secretary has given the person a supplement entitlement notice under subsection 1061ZZAC(3) as a result of the decision; and (c) after the notice was given the decision is reviewed under Chapter 6; and (d) as a result of the review, the decision is revoked or varied. (2) The revocation or variation revokes the supplement entitlement notice and the notice ceases to be valid for the purpose of applying for financial supplement. (3) The Secretary must give the person a statement telling the person: (a) that the decision has been revoked, or has been varied in a manner set out in the statement, as the case may be; and (b) that the supplement entitlement notice has been revoked and ceases to be valid for the purpose of applying for financial supplement. (4) If the decision is varied and, after the variation, the person is or becomes eligible to obtain financial supplement for a period, the Secretary must give the person a notice (also a supplement entitlement notice): (a) stating that the person is eligible to obtain financial supplement for that period; and (b) specifying the minimum and maximum amounts of financial supplement that the person can obtain. 1061ZZAE Transitional (1) This section applies if, immediately before the commencement of this Chapter, a person held a notice given under Part 3 of the Social Security Student Financial Supplement Scheme 1998. (2) If the person had not used the notice before that commencement in an application for financial supplement under that Scheme, the person is eligible to obtain financial supplement under this Chapter for the period to which the notice related. (3) The notice is taken to be a supplement entitlement notice given under this Division. Division 4—Agreements between Commonwealth and financial corporations 1061ZZAF Applications for financial supplement A person may apply for financial supplement only to a participating corporation. 1061ZZAG Agreements (1) The Minister may enter into an agreement, on behalf of the Commonwealth, with a financial corporation for the payment by the corporation after the commencement of this Chapter, in the year in which this Chapter commences or a later year, of financial supplement. (2) An agreement referred to in subsection (1) does not have any effect unless it: (a) is expressed to have effect subject to this Chapter; and (b) provides for the payment by the Commonwealth to the financial corporation, in respect of each amount of financial supplement paid by the corporation to a person that has not been repaid, or in respect of which the rights of the corporation have been transferred to the Commonwealth, of a subsidy of such amount or amounts, or at such rate or rates, and in respect of such period or periods, as are stated in the agreement. (3) If such an agreement is entered into, the corporation is a participating corporation for the purposes of this Chapter in respect of the year, or each year, concerned. (4) The parties to an agreement referred to in subsection (2) (including such an agreement as previously amended under this subsection) may enter into an agreement amending or terminating it. (5) The amendment or termination of an agreement does not affect any financial supplement contract that was in force immediately before the amendment or termination took effect. (6) If an agreement was in force, immediately before the commencement of this Chapter, between the Commonwealth and a financial corporation under section 1.7 of the Social Security Student Financial Supplement Scheme 1998, the amendment or termination of the agreement, and the commencement of an agreement under this section, do not affect any financial supplement contract made under that Scheme. (7) An agreement between the Commonwealth and a financial corporation is not subject to any stamp duty or other tax under a law of a State or Territory. (8) An officer may disclose to a participating corporation any information about a person that is relevant to the exercise or performance by the corporation of any of its rights or obligations in respect of the person under this Chapter. (9) A participating corporation may disclose to an officer any information about a person that is relevant to the exercise or performance of any rights, powers or obligations conferred or imposed on an officer or on the Commonwealth in respect of the person under this Chapter. Division 5—Application for financial supplement 1061ZZAH When to apply A person who is eligible to obtain financial supplement for an eligibility period may apply to a participating corporation, during that period, for financial supplement. 1061ZZAI How to apply A person may only apply for financial supplement by: (a) completing an application form approved by the Secretary; and (b) lodging it, with the person's supplement entitlement notice, at an office of a participating corporation. 1061ZZAJ Changing an application A person who has applied for financial supplement for the eligibility period may, at any time, lodge another application form approved by the Secretary at an office of the participating corporation, telling the corporation that the person requires for that period: (a) a specified lesser amount of financial supplement, which must be: (i) not less than the total amount of financial supplement already paid to the person for the period; and (ii) not less than the minimum amount of financial supplement in respect of the person for the year that constitutes, or includes, the eligibility period; or (b) a specified greater amount of financial supplement, which must be not more than the maximum amount of financial supplement in respect of the person for the period. Division 6—Amount of financial supplement Subdivision A—Category 1 students 1061ZZAK Maximum amount of financial supplement (1) If the relevant eligibility period of a person who is a category 1 student is a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of: (a) $7,000; and (b) the amount worked out using the following Method statement. Method statement Step 1. Work out the total amount of youth allowance general rate, austudy payment general rate or pensioner education supplement that would be payable to the person for the eligibility period if the person did not apply for financial supplement. Step 2. Work out the total amount of advance payment deductions (if any) to be made from the person's rate of youth allowance or austudy payment, under Part 3.16A, in the eligibility period. Subtract that total amount from the total amount worked out under Step 1. Step 3. Work out the total amount of overpayments (if any) for the eligibility period. Subtract that total amount from the total amount worked out under Step 2. Step 4. Work out the total amount of deductions (if any) that are to be paid to the Commissioner of Taxation, under section 1359, for the eligibility period. Note: Section 1359 provides for the deduction and payment to the Commissioner of Taxation of amounts of tax that a person is required to pay. Subtract that total amount from the total amount worked out under Step 3. Step 5. Work out the total amount (if any) of youth allowance general rate, austudy payment general rate or pensioner education supplement that has already been paid for the eligibility period. Ignore any amount that has already been dealt with under Step 2. Ignore any amount that is taken never to have been paid because of section 1061ZZAW. Subtract the total amount from the amount worked out under Step 4. Step 6. Multiply the amount left by 2. Step 7. If the result is not a number of whole dollars, round the result up to the next number of whole dollars. (2) If the relevant eligibility period of a person who is a category 1 student is less than a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of: (a) the amount worked out using the Method statement in subsection (1); and (b) the amount worked out using the following Method statement. Method statement Step 1. Multiply $7,000 by the number of weekdays in the eligibility period. Step 2. Divide the result by the number of weekdays in the year in which the eligibility period is included. If the result is not a number of whole dollars, round the result up to the next number of whole dollars. (3) This section has effect subject to Subdivision C. Subdivision B—Category 2 students 1061ZZAL Change in eligibility period (1) The maximum amount of financial supplement in respect of a person who is a category 2 student depends on the person's eligibility period. (2) If the person is undertaking, or intends to undertake, a short course, it is necessary to work out whether the person's eligibility period is to be changed under section 1061ZZAM. (3) If the person is neither undertaking, nor intending to undertake, a short course, it is necessary to work out whether the person's eligibility period is to be changed under section 1061ZZAN. 1061ZZAM Eligibility period (short course) (1) This section explains whether, and how, to change the eligibility period for a person who is undertaking, or intending to undertake, a short course. (2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable) must be changed if the person applied for financial supplement more than 4 weeks after being given a supplement entitlement notice. (3) The Secretary may decide that the eligibility period otherwise applicable is not to be changed if the Secretary is satisfied that: (a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and (b) circumstances beyond the person's control prevented the person from applying within the 4 weeks; and (c) the person applied as soon as practicable after the circumstances stopped. (4) If the eligibility period otherwise applicable is to be changed, the person's new eligibility period is the period: (a) starting on the later of: (i) the day when the person applied; and (ii) the start of the eligibility period otherwise applicable; and (b) ending when the eligibility period otherwise applicable w