Social Security (Administration) (Penalty Amount) (FaHCSIA) Determination 2009 (No. 1)
Social Security (Administration) Act 1999
I, JENNY MACKLIN, Minister for Families, Housing, Community Services and Indigenous Affairs, make this determination under subsection 42T(1) of the Social Security (Administration) Act 1999.
Dated               16 June                                    2009
 
J Macklin
Minister for Families, Housing, Community Services and Indigenous Affairs
1              Name of determination
                This determination is the Social Security (Administration) (Penalty Amount) (FaHCSIA) Determination 2009 (No. 1).
2              Commencement
                This determination commences on 1 July 2009.
3              Definitions
                In this determination:
Act means the Social Security (Administration) Act 1999.
business day means a day that is not a Saturday or Sunday.
maximum penalty amount, for a person, means:
                (a)    for a no show no pay penalty — the amount worked out in accordance with subsection 42T(2) of the Act in relation to the person; and
               (b)    for a reconnection failure — the amount worked out in accordance with subsection 42T(3) of the Act in relation to the person.
4              Reconnection penalty amount
         (1)   A person’s penalty amount for a reconnection failure is the lesser of:
                (a)    the sum of the person’s daily penalty amounts for the days in the relevant reconnection failure period; and
               (b)    the person’s maximum penalty amount.
         (2)   For paragraph (1)(a), a person’s daily penalty amount for a day is an amount equal to:
PPA­day – (PAday + PSday + RAday + RAAday + YDSday)
where:
PPAday is the amount of participation payment payable to the person for the day, and includes any supplement or allowance that is part of the rate of that payment for that day.
PAday is the amount of pharmaceutical allowance payable to the person for the day.
PSday is the amount of pension supplement payable to the person for the day.
RAday is the amount of rent assistance payable to the person for the day.
RAAday is the amount of remote area allowance payable to the person for the day.
YDS­day is the amount of youth disability supplement payable to the person for the day.
Note 1   A person’s rate of participation payment amount may include an amount for supplements such as language, literacy and numeracy supplement and approved program of work supplement.
Note 2   A person may also receive allowances and supplements, such as mobility allowance, pensioner education supplement, telephone allowance, utilities allowance, and CDEP supplement, that are not part of the person’s rate of participation payment. These are not included in the calculation of the person’s daily penalty amount.
5              No show no pay penalty amount
         (1)   A person’s penalty amount for a no show no pay failure on a day is the lesser of:
                (a)    the person’s penalty amount for the day; and
               (b)    the person’s maximum penalty amount.
         (2)   However, a person’s penalty amount for a no show no pay failure on a day that occurs in a reconnection failure period for the person is nil.
         (3)   For paragraph (1)(a), a person’s penalty amount for a day is the lesser of the amounts calculated under subsections 6(1) and (2).
6              Calculations of penalty amount
         (1)   For subsection 5(3), the first penalty amount is calculated as follows:
penalty amount = PAR / (BDinst – BD­­RFP)
where:
PAR means the person’s penalty-affected rate for the instalment period in which the no show no pay failure occurs.
BDinst is the number of business days in that instalment period.
BDRFP is the number of business days in reconnection failure periods for the person in that instalment period, if any.
         (2)   For subsection 5(3), the second penalty amount is calculated as follows:
penalty amount = 1.4 × PAR / (Dayinst – Day­­RFP)
where:
PAR means the person’s penalty-affected rate for the instalment period in which the no show no pay failure occurs.
Dayinst is the number of days in that instalment period.
DayRFP is the number of days in reconnection failure periods for the person in that instalment period, if any.
         (3)   For subsections (1) and (2), a person’s penalty-affected rate for an instalment period is an amount equal to:
PPAinst – (PA­inst + PSinst + RA­­inst + RAAinst + YDSinst) – RFA­inst
where:
PPAinst is the amount of participation payment payable to the person for the instalment period, and includes any supplement or allowance that is part of the rate of that payment for that period.
PAinst is the amount of pharmaceutical allowance payable to the person for the instalment period.
PS­inst is the amount of pension supplement payable to the person for the instalment period.
RAinst is the amount of rent assistance payable to the person for the instalment period.
RAAinst is the amount of remote area allowance payable to the person for the instalment period.
YDSinst­ is the amount of youth disability supplement payable to the person for the instalment period.
RFAinst means the penalty amounts for reconnection failures during the instalment period, if any.
Note 1   A person’s rate of participation payment amount may include an amount for supplements such as language, literacy and numeracy supplement and approved program of work supplement.
Note 2   A person may also receive allowances and supplements, such as mobility allowance, pensioner education supplement, telephone allowance, utilities allowance, and CDEP supplement, that are not part of the person’s rate of participation payment. These are not included in the calculation of the person’s penalty-affected rate.