Social Security Amendment (Further Simplification) Act 2004 (Cth)

Social Security Amendment (Further Simplification) Act 2004 No. 23, 2004 An Act to amend the Social Security Act 1991, and for related purposes Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Rent assistance Social Security Act 1991 Schedule 2—Miscellaneous Social Security Act 1991 Social Security Amendment (Further Simplification) Act 2004 No. 23, 2004 An Act to amend the Social Security Act 1991, and for related purposes [Assented to 25 March 2004] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Social Security Amendment (Further Simplification) Act 2004. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day on which this Act receives the Royal Assent. 25 March 2004 2. Schedule 1 1 July 2004. 1 July 2004 3. Schedule 2, items 1 to 17 1 July 2004. 1 July 2004 4. Schedule 2, items 18 to 34 The day on which this Act receives the Royal Assent. 25 March 2004 5. Schedule 2, items 35 and 36 1 July 2004. 1 July 2004 6. Schedule 2, item 37 The day on which this Act receives the Royal Assent. 25 March 2004 Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table is for additional information that is not part of this Act. This information may be included in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. Schedule 1—Rent assistance Social Security Act 1991 1 Paragraphs 23(4AA)(f) and (g) Repeal the paragraphs, substitute: (f) 1070W; (g) 1070X; 2 Paragraph 1061P(1)(c) Repeal the paragraph, substitute: (c) the applicable rate for item 2 of the table in section 1070L (rent assistance). 3 Paragraph 1061P(2)(c) Repeal the paragraph, substitute: (c) the applicable rate for item 1 of the table in section 1070L (rent assistance). 4 Point 1064‑A1 (method statement, step 3) Omit "(using MODULE D)", substitute "in accordance with paragraph 1070A(b)". 5 Point 1064‑A2 Omit "(see points 1064‑D7 and 1064‑D8 below)", substitute "(see section 1070V)". 6 Section 1064 (Module D) Repeal the Module. 7 Point 1066‑A1 (method statement, step 3) Omit "(using MODULE D)", substitute "in accordance with paragraph 1070A(b)". 8 Point 1066A‑A2 Omit "(see points 1066A‑EA14, 1066A‑EA15, 1066A‑EB15 and 1066A‑EB16 below)", substitute "(see section 1070V)". 9 Section 1066 (Module D) Repeal the Module. 10 Point 1066A‑A1 (method statement, step 4) Omit "(using MODULE EA if the person is under 18, or MODULE EB if the person is at least 18)", substitute "in accordance with paragraph 1070A(b)". 11 Section 1066A (Modules EA and EB) Repeal the Modules. 12 Point 1067G‑A1 (method statement, step 3) Omit "(if any) for rent assistance using Module D below", substitute "per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a)". 13 Section 1067G (Module D) Repeal the Module. 14 Point 1068‑A1 (method statement, step 3) Omit "(if any) for rent assistance (using MODULE F)", substitute "per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a)". 15 Section 1068 (Module F) Repeal the Module. 16 Paragraphs 1068A(5)(c) and (d) Repeal the paragraphs. 17 Point 1068A‑A1 (method statement, step 3) Omit "using Module D below", substitute "in accordance with paragraph 1070A(b)". 18 Section 1068A (Module D) Repeal the Module. 19 Point 1068B‑A2 (method statement, step 2) Omit "using Module F below", substitute "in accordance with paragraph 1070A(a)". 20 Point 1068B‑A3 (method statement, step 2) Omit "using Module F below", substitute "in accordance with paragraph 1070A(a)". 21 Section 1068B (Module F) Repeal the Module. 22 After Part 3.6A Insert: Part 3.7—Rent assistance Division 1—Operation of this Part 1070 When this Part applies This Part applies if the rate of a person's social security payment is to be calculated in accordance with any of the following Rate Calculators: (a) Pension Rate Calculator A (carer payments and certain age, disability support and wife pensions); (b) Pension Rate Calculator C (bereavement allowance and widow B pension); (c) Pension Rate Calculator D (certain disability support pensions); (d) Youth Allowance Rate Calculator; (e) Benefit Rate Calculator B (mature age allowance under Part 2.12B and newstart, partner, sickness and widow allowance); (f) Pension PP (Single) Rate Calculator or Benefit PP (Partnered) Rate Calculator (parenting payments). 1070A Effect of this Part If a person to whom this Part applies qualifies for rent assistance in accordance with Division 2, to help cover the cost of rent: (a) if paragraph (b) does not apply—the amount per fortnight worked out in accordance with Division 3 is added to the person's maximum basic rate for the social security payment; or (b) if the rate of the person's social security payment is to be calculated in accordance with Pension Rate Calculator A, C or D, or the Pension PP (Single) Rate Calculator—the amount per fortnight worked out in accordance with Division 3 is multiplied by 26 to calculate an amount per year and the amount per year is added to the person's maximum basic rate for the social security payment. Division 2—Qualification for rent assistance 1070B Qualification—general rule A person qualifies for rent assistance if the person satisfies: (a) the common requirements set out in section 1070C; and (b) any specific requirement, set out in a later section of this Division, applicable to the person's social security payment. 1070C Common requirements (about aged care residence, home ownership and rent) The common requirements are that: (a) the person is not an aged care resident, and is not taken to be an aged care resident for the purposes of the Rate Calculator concerned; and (b) the person is not an ineligible homeowner; and (c) the person pays, or is liable to pay, rent, other than Government rent, in respect of a period in respect of premises in Australia; and (d) the person's fortnightly rent is more than the rent threshold amount (see section 1070T). 1070D Specific requirement (carer payments and certain age, disability support and wife pensions) (1) If the rate of the person's social security payment is to be calculated in accordance with Pension Rate Calculator A and subsection (2) applies, the specific requirement applicable to the person's social security payment is that set out in subsection (3). (2) This subsection applies if: (a) the following conditions are satisfied: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; (ii) the person is entitled to be paid family tax benefit; or (b) the following conditions are satisfied: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; (ii) the person, or the person's partner, is entitled to be paid family tax benefit. (3) The specific requirement is that: (a) in a paragraph (2)(a) case—the person's maximum Part A rate of family tax benefit does not include rent assistance; and (b) in a paragraph (2)(b) case—the maximum Part A rate of family tax benefit of the person, or the person's partner, does not include rent assistance. 1070E Specific requirement (bereavement allowance, widow B pension and certain parenting payments) If: (a) the rate of the person's social security payment is to be calculated in accordance with Pension Rate Calculator C or the Pension PP (Single) Rate Calculator; and (b) the person is entitled to be paid family tax benefit; the specific requirement applicable to the social security payment is that the person's maximum Part A rate of family tax benefit does not include rent assistance. 1070F Specific requirement (certain disability support pensions) (1) If the rate of the person's social security payment is to be calculated in accordance with Pension Rate Calculator D, the specific requirement applicable to the social security payment is that the person complies with subsection (2) or (3). Person who has not turned 18 (2) The person complies with this subsection if: (a) the person has not turned 18; and (b) one of the following applies: (i) the person is a member of a couple and, if the person's partner is living with the person in their home, the person's partner is not receiving incentive allowance; (ii) the person is in disability accommodation; (iii) the person is independent; (iv) the person is living away from the person's parental home because of a medical condition of the person; and (c) if: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; the person's maximum Part A rate of family tax benefit does not include rent assistance; and (d) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person's partner, is entitled to be paid family tax benefit; the maximum Part A rate of family tax benefit of the person, or the person's partner, does not include rent assistance. Person who has turned 18 (3) The person complies with this subsection if: (a) the person has turned 18; and (b) one of the following applies: (i) the person is a member of a couple and, if the person's partner is living with the person in their home, the person's partner is not receiving incentive allowance; (ii) the person is in disability accommodation; (iii) the person is living away from the person's parental home permanently or indefinitely; and (c) if: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; the person's maximum Part A rate of family tax benefit does not include rent assistance; and (d) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person's partner, is entitled to be paid family tax benefit; the maximum Part A rate of family tax benefit of the person, or the person's partner, does not include rent assistance. (4) For the purposes of applying the definition of living away from the person's parental home in subsection (3), a step‑parent or guardian is taken to be a parent. 1070G Specific requirement (youth allowance) (1) If the rate of the person's social security payment is to be calculated in accordance with the Youth Allowance Rate Calculator, the specific requirement applicable to the social security payment is that: (a) the person: (i) is independent but is not an accommodated independent person; or (ii) is not independent and is required to live away from home; and (b) the person does not have a partner with a rent increased pension; and (c) if: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; the person's maximum Part A rate of family tax benefit does not include rent assistance; and (d) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person's partner, is entitled to be paid family tax benefit; the maximum Part A rate of family tax benefit of the person, or the person's partner, does not include rent assistance. (2) In this section, accommodated independent person and required to live away from home have the same meanings as in Part 3.5. 1070H Specific requirement (mature age allowance under Part 2.12B, newstart allowance, partner allowance, sickness allowance or widow allowance) (1) If the rate of the person's social security payment is to be calculated in accordance with Benefit Rate Calculator B, the specific requirement applicable to the social security payment is that set out in subsection (2). (2) The specific requirement is that: (a) if the person: (i) is not a member of a couple; and (ii) is not living away from the principal home of a parent permanently or indefinitely; the person has turned 25; and (b) the person does not have a partner with a rent increased pension; and (c) if: (i) the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; the person's maximum Part A rate of family tax benefit does not include rent assistance; and (d) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person's partner, is entitled to be paid family tax benefit; the maximum Part A rate of family tax benefit of the person, or the person's partner, does not include rent assistance. (3) For the purposes of subparagraph (2)(a)(ii), a step‑parent or guardian is taken to be a parent. 1070J Specific requirement (certain parenting payments) If the rate of the person's social security payment is to be calculated in accordance with the Benefit PP (Partnered) Rate Calculator, the specific requirement applicable to the social security payment is that: (a) the person's partner is not receiving a rent increased pension; and (b) if: (i) the person is a member of an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person is entitled to be paid family tax benefit; the person's maximum Part A rate of family tax benefit does not include rent assistance; and (c) if: (i) the person is a member of a couple, other than an illness separated couple, a respite care couple or a temporarily separated couple; and (ii) the person, or the person's partner, is entitled to be paid family tax benefit; the maximum Part A rate of family tax benefit of the person, or the person's partner, does not include rent assistance. Division 3—Rate of rent assistance 1070K Rate depends on social security payment and family situation A person's rate of rent assistance depends on the person's social security payment and the person's family situation. 1070L Rate for carer payments and certain age, disability support and wife pensions (1) The person's rate of rent assistance is worked out under this section if the rate of the person's social security payment is to be calculated in accordance with Pension Rate Calculator A. (2) Using the following table, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3. This is the person's rate of rent assistance per fortnight but only up to the person's maximum rent assistance rate. If the person is not a single person sharing accommodation, the person's maximum rent assistance rate is rate B worked out using column 4 of the table. If the person is a single person sharing accommodation, the person's maximum rent assistance rate is two‑thirds of rate B. Rate of rent assistance Column 1 Column 2 Column 3 Column 4 Item Person's family situation Rate A Rate B 1 Not a member of a couple $93.20 2 Partnered and partner does not have rent increased pension $88.00 3 Partnered and partner: $44.00 (a) is receiving a social security pension; and (b) has rent increased pension 4 Partnered and partner: $44.00 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) does not have a dependent child or dependent children 5 Partnered and partner: $54.80 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) has 1 or 2 dependent children 6 Partnered and partner: $62.00 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) has 3 or more dependent children 7 Partnered—member of an illness separated couple $93.20 8 Partnered—member of a respite care couple $93.20 9 Partnered—member of a temporarily separated couple $88.00 10 Partnered (partner in gaol) $93.20 1070M Rate for bereavement allowance, widow B pension and certain parenting payments (1) The person's rate of rent assistance is worked out under this section if the rate of the person's social security payment is to be calculated in accordance with Pension Rate Calculator C or the Pension PP (Single) Rate Calculator. (2) Using the following table, calculate rate A for the person using the formula in column 2. This will be the person's rate of rent assistance per fortnight but only up to the person's maximum rent assistance rate. If the person is not a single person sharing accommodation, the person's maximum rent assistance rate is rate B worked out using column 3 of the table. If the person is a single person sharing accommodation, the person's maximum rent assistance rate is two‑thirds of rate B. Rate of rent assistance Column 1 Column 2 Column 3 Item Rate A Rate B 1 $93.20 1070N Rate for disability support pension (person aged under 18) (1) The person's rate of rent assistance is worked out under this section if the rate of the person's social security payment is to be calculated in accordance with Pension Rate Calculator D and the person has not turned 18. (2) Using the table below, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3. This is the person's rate of rent assistance per fortnight but only up to the person's maximum rent assistance rate. The person's maximum rent assistance rate is rate B worked out using column 4 of the table. Rate of rent assistance Column 1 Column 2 Column 3 Column 4 Item Person's family situation Rate A Rate B 1 Not a member of a couple and: $93.20 (a) in disability accommodation; or (b) independent 2 Partnered and partner does not have rent increased pension $88.00 3 Partnered and partner: $44.00 (a) is receiving a social security pension; and (b) has rent increased pension 4 Partnered and partner: $44.00 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) does not have a dependent child or dependent children 5 Partnered and partner: $54.80 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) has 1 or 2 dependent children 6 Partnered and partner: $62.00 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) has 3 or more dependent children 7 Partnered—member of an illness separated couple $93.20 8 Partnered—member of a respite care couple $93.20 9 Partnered—member of a temporarily separated couple $88.00 10 Partnered (partner in gaol) $93.20 1070P Rate for disability support pension (person aged between 18 and 21) (1) The person's rate of rent assistance is worked out under this section if the rate of the person's social security payment is to be calculated in accordance with Pension Rate Calculator D and the person has turned 18. (2) Using the table below, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3. This is the person's rate of rent assistance per fortnight but only up to the person's maximum rent assistance rate. The person's maximum rent assistance rate is rate B worked out using column 4 of the table. Rate of rent assistance Column 1 Column 2 Column 3 Column 4 Item Person's family situation Rate A Rate B 1 Not a member of a couple and: $93.20 (a) in disability accommodation; or (b) living away from the person's parental home permanently or indefinitely 2 Partnered and partner does not have rent increased pension $88.00 3 Partnered and partner: $44.00 (a) is receiving a social security pension; and (b) has rent increased pension 4 Partnered and partner: $44.00 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) does not have a dependent child or dependent children 5 Partnered and partner: $54.80 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) has 1 or 2 dependent children 6 Partnered and partner: $62.00 (a) is receiving a service pension or income support supplement; and (b) has rent increased pension; and (c) has 3 or more dependent children 7 Partnered—member of an illness separated couple $93.20 8 Partnered—member of a respite care couple $93.20 9 Partnered—member of a temporarily separated couple $88.00 10 Partnered (partner in gaol) $93.20 1070Q Rate for youth allowance, mature age allowance under Part 2.12B, newstart allowance, partner allowance, sickness allowance and widow allowance (1) The person's rate of rent assistance is worked out under this section if the rate of the person's social security payment is to be calculated in accordance with the Youth Allowance Rate Calculator or Benefit Rate Calculator B. (2) Using the table below, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3. This is the person's rate of rent assistance per fortnight but only up to the person's maximum rent assistance rate. If the person is not a single person sharing accommodation, the person's maximum rent assistance rate is rate B worked out using column 4 of the table. If the person is a single person sharing accommodation, the person's maximum rent assistance rate is two‑thirds of rate B. Rate of rent assistance Column 1 Column 2 Column 3 Column 4 Item Person's family situation Rate A Rate B 1 Not a member of a couple $93.20 2 Partnered—partner does not have rent increased benefit $88.00 3 Partnered—partner has rent increased benefit $44.00 4 Partnered—member of an illness separated couple $93.20 5 Partnered—member of a respite care couple $93.20 6 Partnered—member of a temporarily separated couple $88.00 7 Partnered (partner in gaol) $93.20 1070R Rate for certain parenting payments (1) The person's rate of rent assistance is worked out under this section if the rate of the person's social security payment is to be calculated in accordance with Benefit PP (Partnered) Rate Calculator. (2) Using the table below, work out which family situation applies to the person and calculate rate A for the person using the formula in column 3. This is the person's rate of rent assistance per fortnight but only up to the person's maximum rent assistance rate. The person's maximum rent assistance rate is rate B worked out using column 4 of the table. Rate of rent assistance Column 1 Column 2 Column 3 Column 4 Item Person's family situation Rate of rent assistance Maximum rate 1 Partnered—partner does not have rent increased benefit $88.00 2 Partnered—partner has rent increased benefit $44.00 3 Partnered—member of an illness separated couple $93.20 4 Partnered—member of a respite care couple $93.20 5 Partnered—member of a temporarily separated couple $88.00 6 Partnered (partner in gaol) $93.20 Division 4—Certain concepts used in this Part 1070S Division has effect for purposes of Part This Division has effect for the purposes of this Part. 1070T Rent threshold amount (1) If the rate of a person's social security payment is to be calculated in accordance with Pension Rate Calculator C or the Pension PP (Single) Rate Calculator, the person's rent threshold amount is $82.80. (2) In any other case, a person's rent threshold amount is worked out in accordance with subsection (3). (3) First, identify which of sections 1070L, 1070N, 1070P, 1070Q and 1070R applies to work out the rate of rent assistance for the person's social security payment. Next, identify which family situation in the table in that section applies to the person. The person's rent threshold amount is the amount in the formula in column 3 of the table, in relation to the family situation, that is deducted from fortnightly rent. Example: If a person who is not a member of a couple receives an age pension, the person's rent threshold amount is worked out as follows. First, identify section 1070L as the section applicable to an age pension. Then identify the family situation in item 1 of the table in that section as applicable to the person. Finally, the person's rent threshold amount is $82.80, being the amount that, in the formula in column 3 of that table, is deducted from the person's fortnightly rent. Indexation of the $82.80 has been ignored for the purposes of this example. 1070U Fortnightly rent Fortnightly rent is the fortnightly rent paid or payable by the person whose rate of social security payment is being calculated. 1070V Rent paid by a member of certain couples Rent paid by a member of a couple where person's partner is living with the person in their home (1) If a person is a member of a couple and the person's partner is living with the person in their home, any rent that the person's partner pays or is liable to pay in respect of the home is to be treated as paid or payable by the person. Rent paid by a member of an illness separated, respite care couple or temporarily separated couple (2) If a person is a member of an illness separated couple, respite care couple or temporarily separated couple, any rent that the person's partner pays or is liable to pay in respect of the premises or lodgings occupied by the person is to be treated as paid or payable by the person. 1070W Partner with a rent increased pension A person has a partner with a rent increased pension if: (a) the partner is living with the person in their home; and (b) the partner receives a social security pension, service pension or income support supplement; and (c) the rate of the pension or supplement is increased to take account of rent paid or payable by the person. 1070X Partner with a rent increased benefit Youth Allowance Rate Calculator (1) If the rate of a person's social security payment is to be calculated in accordance with the Youth Allowance Rate Calculator, the person's partner has a rent increased benefit if the partner: (a) is living with the person in their home; and (b) either: (i) is receiving a social security benefit the rate of which is increased to take account of rent; or (ii) would be receiving such a benefit but for the amount of the person's ordinary income reduction under point 1067G‑H31. Benefit Rate Calculator B (2) If the rate of a person's social security pa