Youth Allowance Consolidation Act 2000
No. 106, 2000
Youth Allowance Consolidation Act 2000
No. 106, 2000
An Act to amend various Acts in relation to youth allowance and austudy payment, and for related purposes
Contents
1............ Short title............................................................................................ 2
2............ Commencement.................................................................................. 2
3............ Schedule(s).......................................................................................... 4
Schedule 1—Fares allowance 5
Social Security Act 1991 5
Schedule 2—Student Financial Supplement Scheme 22
Part 1—Amendments commencing on Royal Assent 22
Social Security Act 1991 22
Part 2—Amendments commencing on 1 July 1999 104
Social Security Act 1991 104
Schedule 3—Family actual means test 105
Social Security Act 1991 105
Schedule 4—Youth allowance and austudy payment 123
Part 1—Amendments commencing on Royal Assent 123
Social Security Act 1991 123
Part 2—Amendments commencing on 1 July 1998 148
Social Security Act 1991 148
Part 3—Amendment commencing on 20 September 1998 156
Social Security Act 1991 156
Part 4—Amendments commencing on 1 January 1999 157
Social Security Act 1991 157
Part 5—Amendment commencing on 1 July 1999 159
Social Security Act 1991 159
Part 6—Amendments commencing on 1 January 2000 160
Social Security Act 1991 160
Schedule 5—Youth allowance and the Student Financial Supplement Scheme 161
Part 1—Amendments commencing on Royal Assent 161
Data‑matching Program (Assistance and Tax) Act 1990 161
Income Tax Assessment Act 1936 161
Taxation (Interest on Overpayments and Early Payments) Act 1983 162
Part 2—Amendments commencing on 1 July 1998 163
Farm Household Support Act 1992 163
Taxation Administration Act 1953 163
Part 3—Amendment commencing on 1 July 1999 165
Taxation Administration Act 1953 165
Youth Allowance Consolidation Act 2000
No. 106, 2000
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
(cubic centimetres)
Allowance per kilometre
(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 would have ended.
1061ZZAN Eligibility period (no short course)
(1) This section explains whether, and how, to change the eligibility period for a person who is neither undertaking, nor 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 after 31 May in the year in which the period is included.
(3) The Secretary may decide that the period 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 and the person applied before 1 October in the year, the person’s new eligibility period is the period:
(a) starting on the later of 1 July and the start of the eligibility period otherwise applicable; and
(b) ending when the eligibility period otherwise applicable would have ended.
(5) If the eligibility period otherwise applicable is to be changed and the person applied on or after 1 October in the year, 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 would have ended.
1061ZZAO Maximum amount of financial supplement
(1) If:
(a) the person is undertaking, or intending to undertake, a short course; or
(b) the person is neither undertaking, nor intending to undertake, a short course and the person’s eligibility period is less than a year;
the maximum amount of financial supplement for the eligibility period in respect of the person is worked out using the following Method statement.
Method statement
Step 1. Multiply $2,000 by the number of weekdays in the eligibility period.
Step 2. Divide the result by the number of weekdays in the year that includes the eligibility period.
If the result is not a number of whole dollars, round the result up to the next number of whole dollars.
(2) If the person is neither undertaking, nor intending to undertake, a short course, and the person’s eligibility period is a year, the maximum amount of financial supplement for the eligibility period in respect of the person is $2,000.
(3) This section has effect subject to Subdivision C.
Subdivision C—Provisions applying to both category 1 students and category 2 students
1061ZZAP Minimum amount of financial supplement
The minimum amount of financial supplement in respect of a person is $500.
1061ZZAQ Person doing more than one course
(1) This section applies if a person undertakes, or intends to undertake, more than one tertiary course in the same period in a year.
(2) The maximum amount of financial supplement for the period in respect of the person is the maximum amount worked out under this Division for the period in respect of the person for one of the courses.
Division 7—Trading in youth allowance, austudy payment or pensioner education supplement for financial supplement
1061ZZAR Purpose of Division
(1) Financial supplement will be paid to a person who is eligible to obtain financial supplement at a rate determined by the person’s financial supplement contract.
(2) If youth allowance, austudy payment or pensioner education supplement is payable to the person, the payment of financial supplement will reduce the rate at which the youth allowance, austudy payment or pensioner education supplement is payable.
(3) The reduction of the rate of payment is a trade in.
(4) The Division explains how trade in works.
1061ZZAS Reduction of youth allowance, austudy payment or pensioner education supplement for financial supplement
(1) The period for which a payment of financial supplement will be made is an instalment period.
(2) Subject to subsection (3), the rate of youth allowance, austudy payment or pensioner education supplement that would have been payable to the person in an instalment period is reduced by an amount equal to one‑half of the amount of financial supplement to be paid during the instalment period under the financial supplement contract.
(3) If, apart from this subsection, the amount by which the rate would be reduced is an amount including one‑half of a cent, the amount is to be increased by one‑half of a cent.
(4) This section has effect despite any other provision of this Act.
Division 8—Obtaining or increasing financial supplement by trading back youth allowance, austudy payment or pensioner education supplement
Subdivision A—Purpose of Division
1061ZZAT Purpose of Division
(1) If a person who is eligible to obtain financial supplement wishes to obtain financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.
(2) If a person who is obtaining financial supplement wishes to increase the amount of financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.
(3) The repayment of the youth allowance, austudy payment or pensioner education supplement is a trade back.
(4) This Division explains how trade back works.
(5) This Division also sets out the effect of trade back.
(6) This Division does not affect the operation of Chapter 5.
Subdivision B—When a person may repay youth allowance, austudy payment or pensioner education supplement to obtain or increase financial supplement
1061ZZAU Election to repay youth allowance, austudy payment or pensioner education supplement
(1) A person to whom youth allowance, austudy payment or pensioner education supplement was payable during a payment period may elect to repay to the Commonwealth some or all of the youth allowance, austudy payment or pensioner education supplement.
(2) The person must make the election using the form approved under paragraph 1061ZZAI(a).
(3) A payment period is:
(a) the part of a year starting on 1 January and ending on 31 May; or
(b) the part of a year starting on 1 July and ending on 30 September.
1061ZZAV Timing of repayment
(1) A person who is not obtaining financial supplement may, in order to obtain financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement:
(a) while the person is eligible to obtain financial supplement; and
(b) during the payment period.
(2) However, if the person does not repay youth allowance, austudy payment or pensioner education supplement during the payment period, the person may, in order to obtain financial supplement, repay youth allowance, austudy payment or pensioner education supplement after that period if the Secretary is satisfied that:
(a) the person took reasonable steps to repay it during the payment period; and
(b) circumstances beyond the person’s control prevented the person from repaying it during the period; and
(c) the person repays it as soon as practicable after the end of the payment period and during the year that includes the payment period.
(3) A person who is obtaining financial supplement may, in order to increase the amount of financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement:
(a) while the person is eligible to obtain financial supplement; and
(b) during the year in which the youth allowance, austudy payment or pensioner education supplement was paid.
Subdivision C—Repayment
1061ZZAW Effect of repayment
If an amount is repaid by a person under this Division, the amount is taken never to have been paid to the person.
Division 9—Financial supplement contracts
Subdivision A—Making a contract for payment of financial supplement
1061ZZAX Making a contract between person and participating corporation
(1) If a person applies to a participating corporation under Division 5 for the payment of financial supplement for an eligibility period, the corporation must, as soon as practicable, accept the application by written notice to the person.
(2) A contract is made when the corporation accepts the application by giving the notice referred to in subsection (1). The contract is a financial supplement contract.
(3) A financial supplement contract is a contract for the making of a loan by the corporation to the person under this Division without any requirement on the person to pay interest.
(4) The contract must be for the amount of financial supplement for which the person from time to time asks, but the amount must not be less than the minimum amount, or more than the maximum amount, of financial supplement that the person is, from time to time, eligible to obtain under Division 6.
(5) The contract must also allow, but not compel, the person to make repayments during the contract period under Division 13 of the amount outstanding at any time under the contract.
(6) The contract must set out the termination date for the contract. The date to be set out is the last day of the contract period.
(7) The contract period is the period beginning on the day when the contract is made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ends.
1061ZZAY Existing contracts
(1) A contract is also a financial supplement contract if it is a contract referred to in section 8.2 of the Social Security Student Financial Supplement Scheme 1998.
(2) The termination date for the contract is the date set out in the contract.
(3) The contract period is the period beginning on the day when the contract was made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ended or ends.
1061ZZAZ Liability for money paid under a financial supplement contract
(1) A participating corporation may rely on advice given by the Commonwealth to decide:
(a) whether it must pay financial supplement to a person; and
(b) the amount of financial supplement.
(2) An amount paid to a person by a corporation, relying on advice given by the Commonwealth, is taken to be financial supplement paid under the contract even though the person may not have been eligible to obtain the amount.
(3) Subsection (2) does not affect the operation of Part 2B.2.
1061ZZBA Validity of financial supplement contract
(1) The validity of a financial supplement contract with a person is not affected merely because the person was not eligible to obtain financial supplement when the contract was made, or ceases at a later time to be eligible.
(2) The contract is not invalid, and is not voidable, under any other law (whether written or unwritten) in force in a State or Territory.
(3) The contract is not invalid merely because the person is an undischarged bankrupt when the contract is made.
(4) Bankruptcy does not release a person from his or her obligations under the contract.
Subdivision B—When a financial supplement contract can be cancelled
1061ZZBB Person has right to cancel financial supplement contract
(1) A person who makes a financial supplement contract has a right to cancel the contract.
(2) Subsection (1) does not affect the operation of section 1061ZZCU.
(3) If, under section 1061ZZBF, the person waives his or her right to cancel the contract, sections 1061ZZBC to 1061ZZBE do not apply to the contract.
1061ZZBC How to cancel financial supplement contract
(1) To exercise the right to cancel the contract, the person must give to the participating corporation written notice that the person is withdrawing his or her application for financial supplement
(2) The notice must be lodged at an office of the corporation.
1061ZZBD When to cancel financial supplement contract
The person’s right may be exercised within 14 days (the cooling off period) after the day when the contract is made under section 1061ZZAX.
1061ZZBE Payments made during cooling off period
(1) In the cooling off period, the participating corporation must not make a payment to the person under the contract.
(2) If the corporation makes a payment to the person under the contract within the cooling off period, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.
(3) If the corporation makes a payment to the person under the contract after the cooling off period and the person has exercised the right to cancel the contract, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.
1061ZZBF Person may waive right to cancel contract
The person may waive the right to cancel the contract.
1061ZZBG How to waive right to cancel contract
To waive the right to cancel the contract, the person must give to the participating corporation written notice that he or she is waiving the right to cancel the contract.
1061ZZBH When to waive right to cancel contract
To exercise the right of waiver, the person must give the participating corporation the notice referred to in section 1061ZZBG immediately after the contract is made under section 1061ZZAX.
Subdivision C—Financial supplement contract exempt from certain laws and taxes
1061ZZBI Financial supplement contract exempt from certain laws and taxes
(1) A law of a State or Territory about giving credit or other financial assistance does not apply to a financial supplement contract.
(2) An application for the payment of financial supplement, a financial supplement contract, or an act or thing done or transaction entered into under such a contract, is not taxable under any law of a State or Territory.
Division 10—Payment of financial supplement
1061ZZBJ Payment by instalments
(1) Financial supplement is to be paid by instalments for periods determined by the Secretary.
(2) Instalments of financial supplement are to be paid at times determined by the Secretary.
1061ZZBK Rounding off
If the amount of an instalment includes a fraction of a cent, the amount is to be rounded to the nearest whole cent (0.5 cent being rounded upwards).
1061ZZBL To whom instalments must be paid
(1) If a person who is a category 1 student is trading in, or trading back, youth allowance, financial supplement must be paid to the person to whom instalments of youth allowance are or were being paid under section 559D or 559E.
(2) If a person who is a category 1 student is trading in, or trading back, austudy payment, financial supplement must be paid to the person to whom instalments of austudy payment are or were being paid under section 584D.
(3) If a person who is a category 1 student is trading in, or trading back, pensioner education supplement, financial supplement must be paid to the person to whom instalments of pensioner education supplement are or were being paid under section 1061PZK.
(4) If a person who is a category 2 student obtains financial supplement, it must be paid to the person to whom instalments of youth allowance would be paid under section 559D or 559E if youth allowance were payable to the student.
(5) This section does not affect the liability of a person to make repayments under Part 2B.3.
1061ZZBM Payment into bank account
(1) If an amount of financial supplement is paid to a person, it must be paid to the credit of a bank account nominated and maintained by the person.
(2) The bank account may be maintained by the person alone or jointly or in common with someone else.
Division 11—Protection of financial supplement
1061ZZBN Financial supplement to be absolutely inalienable
Financial supplement is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.
1061ZZBO 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 in respect of the account; and
(c) an amount of financial supplement has been paid (whether on the person’s own behalf or not) 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 financial supplement paid to the credit of the account in the 4 weeks.
Step 2. Subtract from that amount the total amount withdrawn from the account in the 4 weeks.
The amount left is the saved amount.
Division 12—Obligations of category 2 students
Subdivision A—Statements about tax file numbers
1061ZZBP Secretary may request person obtaining financial supplement to give statement of person’s tax file number
Request for tax file number
(1) The Secretary may request, but not compel, a person who is a category 2 student and is obtaining financial supplement:
(a) if the person has a tax file number—to give the Secretary a written statement of the person’s tax file number; or
(b) if the person does not have a tax file number:
(i) to apply to the Commissioner of Taxation for a tax file number; and
(ii) to give the Secretary a written statement of the person’s tax file number after the Commissioner has issued it.
Failure to satisfy request
(2) A person is not eligible to obtain financial supplement if, at the end of 28 days after a request is made:
(a) the person has failed to satisfy the request; and
(b) the Secretary has not exempted the person from having to satisfy the request.
1061ZZBQ Secretary may request person obtaining financial supplement to give statement of parent’s tax file number
Request for parent’s tax file number
(1) If:
(a) a person (the recipient) who is a category 2 student is obtaining financial supplement; and
(b) the income of a parent of the recipient is required to be taken into account for the purpose of working out the recipient’s eligibility for financial supplement; and
(c) the parent is in Australia;
the Secretary may request, but not compel, the recipient to give the Secretary a written statement of the parent’s tax file number.
Failure to satisfy request
(2) A recipient is not eligible to obtain financial supplement if, at the end of 28 days after the request is made:
(a) the recipient has failed to satisfy the request; and
(b) the Secretary has not exempted the recipient from having to satisfy the request.
(3) In this section:
parent has the same meaning as in paragraph (b) of the definition of parent in subsection 5(1).
Note 1: In some cases the request can be satisfied in relation to a parent by giving the Secretary a declaration by the parent about the parent’s tax file number and an authority by the parent to the Commissioner of Taxation to give the Secretary certain information relevant to the parent’s tax file number (see subsections 1061ZZAB(2) and (3).
Note 2: The Secretary may waive the requirement in some cases (see subsection 1061ZZAB(4)).
Subdivision B—Notice of events or changes in circumstances
1061ZZBR Secretary may give notice requiring information
(1) The Secretary may give a notice under this section to a person who is a category 2 student if:
(a) financial supplement is paid to the person on the person’s own behalf; or
(b) financial supplement is paid to someone else, on the person’s behalf, under section 1061ZZBL.
(2) The notice must require the person to tell the Department if:
(a) a stated event or change of circumstances happens; or
(b) the person becomes aware that a stated event or change of circumstances is likely to happen.
1061ZZBS Event or change relevant to payment
An event or change of circumstances is not to be stated in a notice given under section 1061ZZBR unless the event or change of circumstances might affect the payment of financial supplement.
1061ZZBT Formalities related to notice
Subject to section 1061ZZBU, a notice under section 1061ZZBR:
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must state how the person is to give the information to the Department; and
(d) must state the period in which the person is to give the information to the Department; and
(e) must state that the notice is a recipient notification notice given under this Act.
1061ZZBU Validity of notice
A notice under section 1061ZZBR is not invalid merely because it does not comply with paragraph 1061ZZBT(c) or (e).
1061ZZBV Period within which information to be given
(1) Subject to this section, the period stated under paragraph 1061ZZBT(d) must be the period of 14 days after:
(a) the day on which the event or change of circumstances happens; or
(b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.
(2) If the Secretary is satisfied that there are special circumstances related to the person to whom the notice under section 1061ZZBR is to be given, the period to be stated under paragraph 1061ZZBT(d) is such period as the Secretary directs in writing, being a period that ends not less than 15 days, and not more than 28 days, after:
(a) the day on which the event or change of circumstances happens; or
(b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.
(3) If the notice specifies an event consisting of the death of a person, the period to be stated under paragraph 1061ZZBT(d) is a period of 28 days after the day on which the event happens.
(4) If the notice requires the person to tell the Department of a proposal by the person to leave Australia, subsection (1) does not apply to that requirement.
(5) If the notice requires information about receipt of a compensation payment, the period stated under paragraph 1061ZZBT(d) in relation to the information must end at least 7 days after the day when the person becomes aware that he or she has received, or is to receive, a compensation payment.
1061ZZBW Refusal or failure to comply with notice
A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a notice under section 1061ZZBR to the extent that the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the amount of a penalty unit by the resulting number. The amount of a penalty unit is stated in section 4AA of that Act.
1061ZZBX Application overseas
This Subdivision extends to:
(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
Subdivision C—Notice about a matter relevant to payment of financial supplement
1061ZZBY Secretary may give notice requiring statement on matter
(1) The Secretary may give a notice under this section to a person who is a category 2 student if:
(a) financial supplement is paid to the person on the person’s own behalf; or
(b) financial supplement is paid to someone else, on the person’s behalf, under section 1061ZZBL.
(2) The notice must require the person to give the Department a statement about a matter that might affect the payment of financial supplement.
1061ZZBZ Formalities related to notice
Subject to section 1061ZZCA, a notice under section 1061ZZBY:
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must state how the statement is to be given to the Department; and
(d) must state the period within which the person is to give the statement to the Department; and
(e) must state that the notice is a recipient statement notice given under this Act.
1061ZZCA Validity of notice
A notice under section 1061ZZBY is not invalid merely because it does not comply with paragraph 1061ZZBZ(c) or (e).
1061ZZCB Period within which statement to be given
The period stated under paragraph 1061ZZBZ(d) must be at least 14 days after the day on which the notice is given.
1061ZZCC Statement must be in approved form
A statement given in response to a notice under section 1061ZZBY must be in writing and in accordance with a form approved by the Secretary.
1061ZZCD Refusal or failure to comply with notice
A person must not, without reasonable excuse, intentionally or recklessly refuse or fail to comply with a notice under section 1061ZZBY to the extent that the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the amount of a penalty unit by the resulting number. The amount of a penalty unit is stated in section 4AA of that Act.
1061ZZCE Application overseas
This Subdivision extends to:
(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b) all people irrespective of their nationality or citizenship.
Division 13—Early repayments of financial supplement
Subdivision A—Calculation and notification of amount outstanding under financial supplement contract
1061ZZCF Application of Subdivision
This Subdivision has effect subject to section 1061ZZEE.
1061ZZCG Calculation of amount outstanding under financial supplement contract before 1 June in the year after the year in which the contract was made
(1) The amount outstanding under a financial supplement contract at a time (the test time) before 1 June in the year immediately after the year in which the contract was made is the amount worked out using the formula:
(2) For the purpose of applying the formula in subsection (1) at the test time:
amounts repaid means the total of the amounts repaid under the contract before the test time.
discounts means the total of the discounts to which the person became entitled before the test time.
principal sum means the principal sum at the test time.
1061ZZCH Calculation of amount outstanding under financial supplement contract at a later time
(1) Subject to subsections 1061ZZCN(6) and (7), the amount outstanding under a financial supplement contract at a time (the test time) during a period of 12 months (the test period) referred to in either of the following paragraphs:
(a) the period of 12 months beginning on 1 June in the year immediately after the year in which the contract was made; or
(b) any of the following 3 periods of 12 months;
is the amount worked out using the formula:
(2) For the purpose of applying the formula in subsection (1) at the test time:
amounts repaid means the total of the amounts repaid under the contract during the test period but before the test time.
discounts means the total of the discounts to which the person became entitled during the test period but before the test time.
indexation factor means the number worked out using the method statement in subsection (3).
previous amount outstanding means the amount outstanding under the contract immediately before the beginning of the test period.
(3) The Method statement for the purposes of the definition of indexation factor in subsection (2) is as follows:
Method statement
Step 1. Work out the total of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters.
Step 2. Work out the total of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.
Step 3. Divide the total worked out under Step 1 by the total worked out under Step 2.
Step 4. Round the result to 3 decimal places.
(4) In subsection (3):
earlier reference period means the period of 12 months immediately before the later reference period.
later reference period means the period of 12 months immediately before the test period.
(5) If an indexation factor worked out under subsection (3) would end with a number greater than 4, were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.
(6) If, apart from this subsection, an amount worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.
1061ZZCI Notification of amount outstanding
(1) The Secretary must give to a person who is a party to a financial supplement contract with a participating corporation a notice of an amount outstanding under the contract that exists on:
(a) 1 June in the year following the year in which the contract was made; or
(b) 1 June in any of the following 3 years.
(2) The notice must state the amount outstanding under the contract at that date.
Subdivision B—Person’s rights to make repayments during contract period
1061ZZCJ Person not required to, but may, make repayments during contract period
(1) Subject to sections 1061ZZDE, 1061ZZDL, 1061ZZDV and 1061ZZEE, a person who is a party to a financial supplement contract with a participating corporation is not required during the contract period to make a repayment of the amount outstanding under the contract.
(2) Non‑payment by the person during the contract period of the amount outstanding is not a default under the contract for the purposes of any law of the Commonwealth, of a State or of a Territory.
(3) However, the person may, at any time during the contract period, make a repayment (an amount repaid) to the corporation of the whole or a part of the amount outstanding at that time.
(4) Subsection (3) has effect subject to section 1061ZZCL.
1061ZZCK What happens if person makes an excess repayment
If a person purports to make a repayment to a participating corporation under a financial supplement contract by paying an amount under subsection 1061ZZCJ(3) that exceeds the amount that, having regard to the discount to which the person is entitled, would be needed to pay in full the amount outstanding, the excess:
(a) is taken not to be a repayment; and
(b) must be repaid by the corporation to the person.
1061ZZCL Amount repaid not to include certain amounts
If the person makes a repayment under subsection 1061ZZCJ(3), the amount repaid is to be disregarded for the purposes of this Division:
(a) to the extent to which it relates to wrongly paid supplement; or
(b) if it is repaid after the giving of a notice under section 1061ZZCZ, 1061ZZDG, 1061ZZDQ or 1061ZZEA.
1061ZZCM How to work out discount
(1) If, during the contract period, a person makes a repayment of an amount that is less than the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula:
(2) If, during the contract period, a person makes a repayment of an amount that is equal to the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula:
(3) If, apart from this subsection, an amount worked out under subsection (1) or (2) would be an amount of dollars and cents, the amount is to be rounded to the nearest number of whole dollars (rounding 50 cents upwards).
1061ZZCN Effect of making a repayment during contract period
Application
(1) This section applies if a person, at a time (the repayment time) during the contract period of a financial supplement contract made by the person with a participating corporation, makes a repayment (the relevant repayment) in respect of the amount outstanding under the contract. For the purposes of this section, it is first necessary to work out whether an indexation amount is taken to have existed in respect of the contract immediately before the repayment time.
When an indexation amount is taken to have existed
(2) For the purposes of this section, an indexation amount is taken to have existed in respect of the contract immediately before the repayment time if:
(a) an amount outstanding under the contract existed immediately before the repayment time under section 1061ZZCH; and
(b) that amount outstanding exceeds the amount worked out using the formula:
Meaning of expressions used in formula
(3) For the purpose of applying the formula in subsection (2) immediately before the repayment time:
amounts repaid means the total of the amounts repaid under the contract before the repayment time.
amounts previously notionally repaid means the total of the amounts notionally repaid under the contract before the repayment time because of the application of this section in respect of previous repayments.
principal sum means the principal sum immediately before the repayment time.
What constitutes indexation amount
(4) The indexation amount referred to in subsection (2) is the amount of the excess referred to in paragraph (2)(b).
If no indexation amount
(5) If no indexation amount existed in respect of the contract immediately before the repayment time, the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid) equal to the discount to which the person is entitled in respect of the relevant repayment.
If discount does not exceed indexation amount
(6) If:
(a) an indexation amount existed in respect of the contract immediately before the repayment time; and
(b) the discount to which the person is entitled in respect of the relevant repayment is equal to or less than the indexation amount;
the amount outstanding under the contract is taken to be reduced by the discount.
If discount exceeds indexation amount
(7) If:
(a) an indexation amount existed in respect of the contract immediately before the repayment time; and
(b) the discount to which the person is entitled in respect of the relevant repayment exceeds the indexation amount;
the following paragraphs have effect:
(c) the amount outstanding under the contract is taken to be reduced by the indexation amount;
(d) the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid) equal to the excess.
Commonwealth to pay corporation amounts notionally repaid
(8) The Commonwealth must pay to the corporation an amount equal to any amount notionally repaid.
1061ZZCO Rights and liabilities of participating corporation if repayment made
(1) This section applies if, immediately after a repayment is made under a financial supplement contract made by a participating corporation, the total of the amounts repaid and the amounts notionally repaid is equal to or exceeds the principal sum.
(2) The corporation’s rights under the contract are, by this subsection, transferred to the Commonwealth immediately after the repayment is made.
(3) If the total of the amounts repaid and the amounts notionally repaid exceeds the principal sum, the corporation must pay the excess to the Commonwealth.
Subdivision C—What happens at the end of the contract period
1061ZZCP Corporation’s rights at end of contract period
(1) This section applies if, at the end of the contract period of a financial supplement contract made by a participating corporation, the corporation’s rights under the contract have not previously been transferred to the Commonwealth.
(2) The corporation’s rights under the contract are, by this subsection, transferred to the Commonwealth at the end of the contract period.
(3) If the principal sum exceeds the total of the amounts repaid and the amounts notionally repaid, the Commonwealth must pay the excess to the corporation.
1061ZZCQ Termination notice
(1) As soon as practicable after the termination date of a financial supplement contract made by a person with a participating corporation, the Secretary must arrange for written notice (the termination notice) to be given to the person if such a notice has not already been given under the Social Security Student Financial Supplement Scheme 1998 or the Student Assistance Act 1973 as in force at a time before 1 July 1998.
(2) The termination notice must:
(a) state that, at the end of the contract period, the person no longer owes a debt to the corporation under the contract and will not receive a discount for repayments made after that time; and
(b) state that, on a date referred to in the notice, being 1 June immediately following the termination date, the person incurred or will incur an FS debt or FS debts to the Commonwealth; and
(c) specify the amount of that debt or the amounts of those debts; and
(d) state that the person is entitled at any time to make repayments in respect of that debt or those debts and that so much of that debt or those debts as is not voluntarily repaid by the person will be recovered through the taxation system.
1061ZZCR Secretary may give notice correcting information in previous notice
If, after a notice has been given to a person under this Division 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 (including a notice previously given under this section or under a provision of that Scheme or Act corresponding to this section), the Secretary is satisfied that significant information in the notice was not, or is no longer, correct, the Secretary must arrange for a further written notice to be given to the person setting out the correct information.
1061ZZCS Person may request notice to be corrected
(1) If a person considers that a notice given to the person under this Division 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, was not, or is no longer, correct in a significant respect, the person may, by writing, request the Secretary to correct the notice.
(2) The person must make the request within 14 days after the date when the notice was received by the person or within such further period as the Secretary allows.
(3) A request must set out the information that is considered to be incorrect and the grounds on which the person considers the information to be incorrect.
(4) If a request is received by the Secretary, the Secretary must arrange, as soon as practicable, for it to be considered and for written notice of the decision on the request to be given to the person.
1061ZZCT Effect of notices and requests
(1) A notice to a person under this Division 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, is intended only to give information to the person and an FS debt of the person is not affected by a failure to give a notice or by any incorrect statement or information in a notice given under this Division or that corresponding provision.
(2) The making by a person of a request for a notice to be corrected does not affect an FS debt of the person.
Part 2B.2—Payments of financial supplement under scheme to stop in certain circumstances
Division 1—Payments to stop at request of recipient
1061ZZCU Person may ask for payment to stop
A person who is a party to a financial supplement contract with a participating corporation may, by written notice to the corporation lodged at an office of the corporation, tell the corporation that he or she does not want further payments under the contract to be made after a day stated in the notice.
1061ZZCV Effect of notice
(1) If a person gives a notice referred to in section 1061ZZCU, the corporation is discharged from liability to make further payments to the person under the contract from the end of the day stated in the notice.
(2) However, if the corporation continues to make payments to the person after that day, any amounts paid after that day or the end of 4 weeks after the day on which the notice was given to the corporation, whichever is the later:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt due to it by the person.
Division 2—Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount
Subdivision A—Notice that payments are to stop
1061ZZCW Secretary must give notice to person and corporation
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a participating corporation; and
(b) the decision (the original decision) made in respect of the person under section 1061ZZAC, or under Part 3 of the Social Security Student Financial Supplement Scheme 1998, is reviewed under Chapter 6; and
(c) the person remains eligible to obtain financial supplement for the year or part of the year to which the contract relates; and
(d) because of the review, the original decision is varied so that the maximum amount (the original amount) of financial supplement that the person is eligible to obtain under the contract is reduced to another amount (the revised amount); and
(e) the revised amount is equal to or less than the amount of financial supplement that the person has already been paid under the contract.
(2) The Secretary must give written notice to the person and to the corporation:
(a) stating:
(i) that this section applies to the contract; and
(ii) that the corporation must stop paying financial supplement to the person; and
(b) specifying:
(i) the revised amount that the person is eligible to obtain; and
(ii) the amount (if any) of financial supplement paid in excess of the revised amount.
1061ZZCX Effect of notice
(1) If the Secretary gives a notice under section 1061ZZCW to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.
(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt due to it by the person.
1061ZZCY This Subdivision is subject to sections 1061ZZFS and 1061ZZFT
This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B—Original amount paid because person failed to notify change of circumstances
1061ZZCZ Secretary may give notice to person and corporation
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and
(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and
(c) the person was paid the original amount after the end of that period; and
(d) the payment of the original amount after the end of that period resulted from the person’s failure to comply with the notice referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and
(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and
(c) the person was paid the original amount after the commencement of this Chapter; and
(d) the payment of the original amount after the commencement of this Chapter resulted from the person’s failure to comply with the notice referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
1061ZZDA Effect of notice
If the Secretary gives a notice under section 1061ZZCZ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZDB Transfer of corporation’s rights to Commonwealth
(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZCZ(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the end of the period referred to in paragraph 1061ZZCZ(1)(b); and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(3) If the notice was given under subsection 1061ZZCZ(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.
1061ZZDC Apportionment of financial supplement
Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZCZ(1) or (2) are taken to have been made:
(a) first, in or towards the repayment of the wrongly paid supplement; and
(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
1061ZZDD Liability of Commonwealth to corporation
The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDE Liability of person to Commonwealth
(1) If the notice was given to the person under subsection 1061ZZCZ(1), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDB(2).
(2) If the notice was given to the person under subsection 1061ZZCZ(2), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDB(3).
1061ZZDF This Subdivision not to affect Subdivision A
This Subdivision does not affect the operation of Subdivision A.
Subdivision C—Original amount paid because of false or misleading information
1061ZZDG Secretary may give notice to person and corporation
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and
(b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and
(c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information;
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and
(b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and
(c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information;
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
1061ZZDH Effect of notice
If the Secretary gives a notice under section 1061ZZDG to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZDI Transfer of corporation’s rights to Commonwealth
(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZDG(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the time when the person had been paid an amount equal to the revised amount; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(3) If the notice was given under subsection 1061ZZDG(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.
1061ZZDJ Apportionment of financial supplement
Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDG(1) or (2) are taken to have been made:
(a) first, in or towards the repayment of the wrongly paid supplement; and
(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
1061ZZDK Liability of Commonwealth to corporation
The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDL Liability of person to Commonwealth
(1) If the notice was given to the person under subsection 1061ZZDG(1), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDI(2).
(2) If the notice was given to the person under subsection 1061ZZDG(2), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDI(3).
1061ZZDM This Subdivision not to affect Subdivision A
This Subdivision does not affect the operation of Subdivision A.
Division 3—Payments to stop if person ceases to be eligible to obtain financial supplement
Subdivision A—Notice that payments are to stop
1061ZZDN Secretary must give notice to person and corporation
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a participating corporation; and
(b) the decision (the original decision) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and
(c) because of the review, the original decision is varied so that the person ceases to be eligible to obtain financial supplement.
(2) The Secretary must give written notice to the person and the corporation:
(a) stating that the person ceased to be eligible; and
(b) specifying the date when the person ceased to be eligible.
1061ZZDO Effect of notice
(1) If the Secretary gives a notice under section 1061ZZDN to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.
(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt payable to it by the person.
1061ZZDP This Subdivision is subject to sections 1061ZZFS and 1061ZZFT
This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B—Financial supplement paid because person failed to notify change of circumstances
1061ZZDQ Secretary may give notice to person and corporation
(1) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZDN; and
(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change in circumstances, within the period prescribed for complying with the notice; and
(c) the person ceased to be eligible to obtain financial supplement because of the event or change in circumstances; and
(d) the person was paid financial supplement after the end of the period referred to in paragraph (b); and
(e) the payment of financial supplement after the end of that period resulted from the person’s failure to comply with the notice referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
(2) If the Secretary is satisfied that:
(a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.24 of the Social Security Student Financial Supplement Scheme 1998; and
(b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and
(c) the person was paid financial supplement after the commencement of this Chapter; and
(d) the payment of financial supplement after the commencement of this Chapter resulted from the person’s failure to comply with the notice referred to in paragraph (b);
the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.
1061ZZDR Effect of notice
If the Secretary gives a notice under section 1061ZZDQ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZDS Transfer of corporation’s rights to Commonwealth
(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the notice was given under subsection 1061ZZDQ(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the end of the period referred to in paragraph 1061ZZDQ(1)(b); and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).
(3) If the notice was given under subsection 1061ZZDQ(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.
1061ZZDT Apportionment of financial supplement
Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDQ(1) or (2) are taken to have been made:
(a) first, in or towards the repayment of the wrongly paid supplement; and
(b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.
1061ZZDU Liability of Commonwealth to corporation
The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.
1061ZZDV Liability of person to Commonwealth
(1) If the notice was given to the person under subsection 1061ZZDQ(1), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDS(2).
(2) If the notice was given to the person under subsection 1061ZZDQ(2), the person is liable to pay to the Commonwealth an amount equal to the total of:
(a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and
(b) the interest subsidy for the period referred to in subsection 1061ZZDS(3).
1061ZZDW This Subdivision not to affect Subdivision A
This Subdivision does not affect the operation of Subdivision A.
Division 4—Payments to stop if person is found never to have been eligible to obtain financial supplement
Subdivision A—Notice that payments are to stop
1061ZZDX Secretary must give notice to person and corporation
(1) This section applies if:
(a) a person is a party to a financial supplement contract with a participating corporation; and
(b) the decision (the original decision) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and
(c) because of the review the original decision is varied so that the statement in the supplement entitlement notice given to the person that the person was eligible to obtain financial supplement during an eligibility period was incorrect.
(2) The Secretary must give written notice to the person and the corporation stating that the person had never been eligible to obtain financial supplement.
1061ZZDY Effect of notice
(1) If the Secretary gives a notice under section 1061ZZDX to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.
(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.
(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable by the person to the corporation; and
(c) may be recovered by the corporation as a debt payable to it by the person.
1061ZZDZ This Subdivision is subject to sections 1061ZZFS and 1061ZZFT
This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.
Subdivision B—Financial supplement paid because of false or misleading information
1061ZZEA Secretary may give notice to person and corporation
If the Secretary is satisfied that the incorrectness of a statement referred to in section 1061ZZDX that was given to a person who is a party to a financial supplement contract with a participating corporation resulted from false or misleading information given to the Commonwealth about the person, the Secretary may give notice to the person and the corporation stating that he or she is so satisfied and that this Subdivision applies in relation to them.
1061ZZEB Effect of notice
If the Secretary gives a notice under section 1061ZZEA to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.
1061ZZEC Transfer of corporation’s rights to Commonwealth
(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.
(2) If the statement was in a supplement entitlement notice given under subsection 1061ZZAC(3) or 1061ZZAD(4), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the start of the contract period; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).
(3) If the statement was in a supplement entitlement notice referred to in subsection 1061ZZAE(3), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the commencement of this Chapter; and
(b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).
(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.
1061ZZED Liability of Commonwealth to corporation
The Commonwealth is liable to pay to the corporation an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula:
1061ZZEE Liability of person
(1) No amount is taken to be outstanding under the contract after the notice is given.
(2) However, the person is liable to pay to the Commonwealth an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula:
1061ZZEF Definitions
In sections 1061ZZED and 1061ZZEE:
amounts notionally repaid means the total of the amounts notionally repaid before the notice was given.
amounts repaid means the total of the amounts repaid under the contract before the notice was given.
interest subsidy means the interest subsidy in relation to financial supplement paid under the contract.
principal sum means the principal sum at the time when the notice was given.
1061ZZEG This Subdivision not to affect Subdivision A
This Subdivision does not affect the operation of Subdivision A.
Division 5—Payments to stop if person dies
1061ZZEH Secretary may give notice to corporation if other party to contract dies
If the Secretary becomes aware that a person who is a party to a financial supplement contract with a participating corporation has died, the Secretary may give written notice to the corporation stating that this Division applies in respect of the contract.
1061ZZEI Effect of notice
If the Secretary gives a notice under section 1061ZZEH to the corporation, the following provisions have effect.
1061ZZEJ Discharge of corporation’s liability
(1) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments under the contract.
(2) However, if the corporation continues to make payments under the contract after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:
(a) are taken not to be payments of financial supplement made under the contract; and
(b) are repayable from the person’s estate to the corporation; and
(c) may be recovered by the corporation as a debt payable to it from the person’s estate.
1061ZZEK Transfer of corporation’s rights to Commonwealth
(1) The corporation’s rights referred to in subsection (2) are transferred to the Commonwealth, by this subsection, at the earlier of:
(a) the time when the corporation stopped making payments under the contract; or
(b) the end of 4 weeks after the time when the notice was given.
(2) The rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:
(a) beginning at the start of the contract period; and
(b) ending at the end of the period of 4 weeks referred to in paragraph (1)(b).
1061ZZEL Liability of Commonwealth to corporation
(1) The Commonwealth is liable to pay to the corporation an amount worked out, as at the earlier of:
(a) the time when the corporation stopped making payments under the contract; or
(b) the end of the period of 4 weeks referred to in paragraph 1061ZZEK(1)(b);
using the formula:
(2) In this section:
amounts notionally repaid means the total of the amounts notionally repaid before the notice was given.
amounts repaid means the total of the amounts repaid under the contract before the notice was given.
principal sum means the principal sum at the time when the notice was given.
1061ZZEM Discharge of person’s liability
The person’s liability to the Commonwealth under the contract as a result of the transfer referred to in section 1061ZZEK is discharged by this section.
Part 2B.3—Repayment of financial supplement through taxation system after termination date
Division 1—Purpose and application of Part
1061ZZEN Purpose and application of Part
This Part provides for the recovery through the taxation system of a person’s debt in respect of financial supplement at the end of 4 years beginning on 1 June in the year immediately after the year in which the relevant financial supplement contract was made.
Division 2—FS debt and accumulated FS debt
1061ZZEO FS debt owed by person
(1) If, at the termination date of a financial supplement contract made by a person with a participating corporation, there was or is an amount outstanding under the contract, the person owes an FS debt to the Commonwealth.
(2) The FS debt is taken to have been incurred, or is incurred, as the case may be, on 1 June immediately after the termination date.
1061ZZEP How to work out FS debt
(1) The FS debt is worked out using the formula:
(2) In subsection (1):
amount outstanding means the amount outstanding under the contract at the termination date.
indexation factor means the factor worked out under section 1061ZZET.
1061ZZEQ Accumulated FS debt incurred by person
(1) If:
(a) a person had or has an FS debt or FS debts on 1 June in a year (the later date); and
(b) the debt was not or is not, or the debts did not or do not include, an FS debt that existed on the previous 1 June;
the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.
(2) If:
(a) a person had or has an FS debt or FS debts on 1 June in a year (the later date); and
(b) the debt was or is, or the debts included or include, an FS debt that existed on the previous 1 June (the earlier date);
the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.
1061ZZER How to work out accumulated FS debt
(1) A person’s accumulated FS debt referred to in subsection 1061ZZEQ(1) is an amount equal to the FS debt or the total of the FS debts referred to in that subsection.
(2) A person’s accumulated FS debt referred to in subsection 1061ZZEQ(2) is an amount worked out using the formula:
(3) In subsection (2):
adjusted accumulated FS debt means the person’s adjusted accumulated FS debt on the earlier date.
indexation factor means the factor worked out under section 1061ZZET.
later FS debts means any FS debt, or the total of any FS debts, of the person that did not exist on the earlier date.
1061ZZES Adjusted accumulated FS debt
(1) A person’s adjusted accumulated FS debt on the earlier date is the amount worked out using the formula:
(2) In this section:
accumulated FS debt means the person’s accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.
FSA debts means the total of:
(a) any FS assessment debt or FS assessment debts of the person, assessed on or after the earlier date and before the later date, excluding any FS assessment debt assessed because of a return lodged before the earlier date; and
(b) any FS assessment debt or FS assessment debts of the person, assessed on or after the later date because of a return lodged before the later date.
increases in FSA debts means any amount, or the total of any amounts, by which any FS assessment debt is increased by an amendment of the relevant assessment (whether because of an increase in the person’s taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.
reductions in FSA debts means any amount, or the total of any amounts, by which any FS assessment debt is reduced by an amendment of the relevant assessment (whether as a result of a reduction in the person’s taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.
repayments means any amount, or the total of any amounts, repaid, except in discharge of an FS assessment debt, on or after the earlier date and before the later date in reduction of the accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.
(3) For the purposes of subsection (2), an assessment or an amendment of an assessment is taken to have been made on the date stated in the notice of assessment or notice of amended assessment, as the case may be, to be the date of that notice.
1061ZZET Indexation factor
(1) The indexation factor for the purpose of calculating a person’s FS debt or accumulated FS debt at 1 June in a year (the relevant year), is worked out using the following Method statement.
Method statement
Step 1. Work out the total of the index number for the March quarter in the relevant year and the index numbers for the 3 immediately preceding quarters.
Step 2. Work out the total of the index number for the March quarter immediately before the relevant year and the index numbers for the 3 immediately preceding quarters.
Step 3. Divide the total worked out using Step 1 by the total worked out using Step 2.
Step 4. Round the result to 3 decimal places.
(2) If an indexation factor worked out using the Method statement would end with a number greater than 4 were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.
(3) If, apart from this subsection, the amount of an FS debt or accumulated FS debt worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.
1061ZZEU Accumulated FS debt discharges earlier debts
(1) An accumulated FS debt that a person is taken to have incurred or incurs on 1 June in a year (the relevant date) discharges, or discharges the unpaid part of:
(a) an accumulated FS debt that the person incurred on the previous 1 June; and
(b) an FS debt that the person incurred on the relevant date.
(2) The accumulated FS debt also discharges the person’s liability to pay the amount outstanding immediately before the relevant date.
(3) However, in applying sections 1061ZZEP to 1061ZZET, subsection (1) of this section is disregarded.
Division 3—Information to be given to Commissioner of Taxation
1061ZZEV Secretary to give notice to Commissioner of Taxation
If a person who has made a financial supplement contract with a participating corporation has an FS debt immediately after the termination date of the contract, the Secretary must, if such a notice has not already been given 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, give to the Commissioner of Taxation, as soon as practicable after that date, a notice stating as many of the following matters as the Secretary knows:
(a) the person’s name;
(b) the person’s identifying number;
(c) the person’s last‑known address;
(d) the person’s tax file number;
(e) the amount of the FS debt or the amounts of the FS debts that the person incurred on 1 June immediately following the termination date;
(f) any other information about the person that is reasonably required by the Commissioner to administer this Part.
1061ZZEW Secretary to give further notice to Commissioner of Taxation
If the Secretary or an officer of the Department is convinced that significant information in a notice referred to in section 1061ZZEV was not, or is no longer, correct, the Secretary must give to the Commissioner of Taxation a further notice setting out the correct information.
1061ZZEX Secretary to give certificate to Commissioner of Taxation
The Secretary must, if asked by the Commissioner of Taxation to do so, give a written certificate to the Commissioner setting out a matter mentioned by the Commissioner that was, or was required to be, set out in a notice under section 1061ZZEV or 1061ZZEW.
Division 4—Voluntary repayments of FS debts
1061ZZEY Voluntary repayments of FS debts
(1) If a person has a debt to the Commonwealth under this Part, he or she may at any time make a payment to reduce the debt.
(2) A payment under subsection (1) must be made to the Commissioner of Taxation.
Division 5—Compulsory repayments of accumulated FS debt
1061ZZEZ Person’s liability
(1) Subject to subsection (2), a person is liable, in respect of each year of income, to make payments, in accordance with this Part, to reduce the person’s relevant debt until that debt is repaid.
(2) The person is liable to make a payment in respect of a year of income only if:
(a) the person’s taxable income for the year of income is greater than the minimum prescribed amount for the year of income; and
(b) the person had an accumulated FS debt on 1 June immediately before an assessment of the person’s income is made for the year of income.
1061ZZFA Amount of liability
The person is liable to pay, in respect of a year of income, an amount equal to so much of the relevant debt as does not exceed:
(a) if the person’s taxable income for the year of income is not greater than the intermediate prescribed amount for the year of income—2% of the taxable income; or
(b) if the person’s taxable income for the year of income is greater than the intermediate prescribed amount for the year of income but is not greater than the maximum prescribed amount for the year of income—3% of the taxable income; or
(c) if the person’s taxable income for the year of income is greater than the maximum prescribed amount for the year of income—4% of the taxable income.
1061ZZFB Meaning of relevant debt
(1) The person’s relevant debt is:
(a) if an amount or amounts have been paid to reduce the person’s accumulated FS debt referred to in paragraph 1061ZZEZ(2)(b) or an amount or amounts have been assessed under Division 7 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, to be payable to reduce it—the amount remaining after deducting from that accumulated FS debt the amount or the sum of the amounts so paid or assessed to be payable; or
(b) otherwise—the person’s accumulated FS debt referred to in that paragraph.
(2) An amount assessed under Division 7, 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, to be payable to reduce a person’s accumulated FS debt is, if the amount has been increased or reduced by an amendment of the relevant assessment, taken to be the increased or reduced amount.
1061ZZFC Meaning of minimum prescribed amount
(1) For the year of income that ended on 30 June 1998, the minimum prescribed amount is $29,307.
(2) For a later year of income, the minimum prescribed amount is the number of whole dollars in the amount worked out using the formula:
1061ZZFD Meaning of intermediate prescribed amount
(1) For the year of income that ended on 30 June 1998, the intermediate prescribed amount is $33,305.
(2) For a later year of income, the intermediate prescribed amount is the number of whole dollars in the amount worked out using the formula:
1061ZZFE Meaning of maximum prescribed amount
(1) For the year of income that ended on 30 June 1998, the maximum prescribed amount is $46,629.
(2) For a later year of income, the maximum prescribed amount is the number of whole dollars in the amount worked out using the formula:
1061ZZFF Meaning of AWE
(1) In sections 1061ZZFC, 1061ZZFD and 1061ZZFE:
AWE means:
(a) the average weekly earnings for all employees for the reference period in the December quarter immediately before the year of income, as published by the Australian Statistician; and
(b) the average weekly earnings for all employees for the reference period in each of the 4 quarters immediately before that December quarter, as published by the Australian Statistician.
(2) The reference period in a particular quarter in a year is the period described by the Australian Statistician as the pay period ending on or before the third Friday of the middle month of that quarter.
Division 6—Application of tax legislation
1061ZZFG Application of tax legislation
(1) Part IV, and Division 1 of Part VI, of the Income Tax Assessment Act 1936, and Part IVC of the Taxation Administration Act 1953, apply, so far as they can be applied and subject to this Part, to a person’s FS assessment debt as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936.
(2) Sections 222A to 222F, 222 and 226G to 226ZB of the Income Tax Assessment Act 1936 apply as if a person’s FS assessment debt were income tax payable by the person for the year of income for which the assessment of that debt was made.
Division 7—Assessments
1061ZZFH Commissioner of Taxation may make assessment
(1) The Commissioner of Taxation may make an assessment of:
(a) the amount of a person’s accumulated FS debt at 1 June immediately before the assessment is made; and
(b) the amount required to be paid to reduce that debt under Division 5.
(2) To make an assessment, the Commissioner may use any information in his or her possession, whether or not it came from a return.
1061ZZFI Notice of assessment may be served
If:
(a) the Commissioner of Taxation is required to serve on a person a notice of assessment in respect of the person’s income of a year of income under section 174 of the Income Tax Assessment Act 1936; and
(b) an assessment (the relevant assessment) has been made in respect of the person of the amounts referred to in section 1061ZZFH but notice of the relevant assessment has not been served on the person;
notice of the relevant assessment may be served by setting out the amounts concerned in the notice referred to in paragraph (a).
Division 8—Commissioner of Taxation may delay assessment
1061ZZFJ Commissioner of Taxation may delay assessment
(1) The Commissioner of Taxation may, on written application by a person who has an accumulated FS debt, delay the making of an assessment under section 1061ZZFH.
(2) An assessment may be delayed if the Commissioner considers that:
(a) were the assessment to be made, payment of the assessed amount would cause serious hardship to the person; or
(b) there are other special reasons that make it fair and reasonable to delay the assessment.
(3) The Commissioner may delay the assessment for a period that he or she considers appropriate.
1061ZZFK Commissioner of Taxation may amend assessment
(1) The Commissioner of Taxation may, on written application by a person who has an accumulated FS debt, amend an assessment made under section 1061ZZFH so that no amount is payable under the assessment.
(2) The Commissioner may amend the assessment if he or she considers that:
(a) payment of the assessed amount has caused or would cause serious hardship to the person; or
(b) there are other special reasons that make it fair and reasonable to make the amendment.
1061ZZFL When Commissioner of Taxation must make decision to delay or amend assessment
(1) If an application referred to in section 1061ZZFJ or 1061ZZFK is made, the Commissioner of Taxation must, as soon as practicable:
(a) consider it; and
(b) give to the applicant written notice of his or her decision on the application.
(2) A notice of the decision must:
(a) include a statement that, if the applicant is dissatisfied with the decision of the Commissioner on the application, an application may, subject to the Administrative Appeals Tribunal Act 1975, be made to the Administrative Appeals Tribunal for review of the decision; and
(b) except if subsection 28(4) of that Act applies, also include a statement to the effect that the applicant may ask for a statement under section 28 of that Act.
(3) A failure to comply with subsection (2) does not affect the validity of the notice or of the decision to which the notice relates.
Division 9—Review of Commissioner of Taxation’s decision
1061ZZFM Application to Administrative Appeals Tribunal
An applicant under section 1061ZZFJ or 1061ZZFK may apply to the Administrative Appeals Tribunal for review of:
(a) a decision of the Commissioner of Taxation on the application referred to in section 1061ZZFJ; or
(b) a decision by the Commissioner refusing to amend an assessment after receiving the application referred to in section 1061ZZFK.
Division 10—Treatment of payments under financial supplement scheme
1061ZZFN Payments not subject to taxation
(1) An amount paid, or other benefit given, to a person under this Chapter is not subject to taxation under a law of the Commonwealth unless a provision of such a law expressly provides to the contrary.
(2) However, subsection (1) does not affect the liability to taxation of a participating corporation for a subsidy or other amount paid to the corporation under this Chapter.
1061ZZFO Application of payments
An amount paid by a person to reduce the person’s debt to the Commonwealth under this Part must be applied in accordance with the person’s direction or, if there is no direction or the direction does not adequately deal with the matter:
(a) first, to discharge or reduce the person’s FS assessment debts; and
(b) then, to discharge or reduce the person’s accumulated FS debt.
1061ZZFP Debt discharged by death
If a person dies owing a debt owing to the Commonwealth under this Part, other than an FS assessment debt, the debt is discharged by force of this section.
Part 2B.4—Miscellaneous
Division 1—Application of the Bankruptcy Act 1966
1061ZZFQ Application of Division
This Division applies if, after a person makes a financial supplement contract with a participating corporation, whether before or after the termination date:
(a) the person becomes bankrupt; or
(b) the person enters into a deed of assignment, a deed of arrangement or a composition under Part X of the Bankruptcy Act 1966.
1061ZZFR Treatment of debt
(1) A debt arising under or out of the contract is not a provable debt in the bankruptcy or for the purposes of the deed of assignment, deed of arrangement or composition.
(2) A right of the Commonwealth or of the corporation to bring an action or other proceeding against the person in respect of the debt is not affected by the bankruptcy, deed of assignment, deed of arrangement or composition.
(3) The trustee of the estate of the bankrupt person or the trustee of the deed of assignment, deed of arrangement or composition is not entitled to recover under the Bankruptcy Act 1966 a payment made by the person to the Commonwealth or to the corporation in respect of the debt.
(4) In this section:
debt arising under or out of the contract:
(a) includes, but is not limited to:
(i) an amount outstanding under the contract; and
(ii) an amount that the person is liable to pay under section 1061ZZDE, 1061ZZDL, 1061ZZDV or 1061ZZEE; and
(iii) an accumulated FS debt that discharges, or discharges the unpaid part of, an FS debt; but
(b) does not include:
(i) a debt constituted by an obligation to repay the amount of a payment that, because of paragraph 1061ZZCV(2)(a), 1061ZZCX(3)(a), 1061ZZDO(3)(a) or 1061ZZDY(3)(a), is not a payment of financial supplement; or
(ii) an FS assessment debt that is required to be paid to reduce an accumulated FS debt.
Division 2—Review of decisions
1061ZZFS What happens if a decision of the Secretary is set aside
(1) Subject to subsection (2), if a decision of the Secretary under this Chapter is set aside after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision had not been made.
(2) If the decision is set aside after a review under Chapter 6 and another decision is substituted for the original decision, this Chapter has effect, and is taken to have always had effect, as if the substituted decision had been the original decision.
1061ZZFT What happens if a decision of the Secretary is varied
If a decision of the Secretary under this Chapter is varied after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision as varied had been the original decision.
Division 3—Transfer of rights under this Chapter
1061ZZFU Notices of transfer
If any rights of a participating corporation to receive a payment from a person under this Chapter are transferred to the Commonwealth, the Secretary must, as soon as practicable, arrange for a written notice to be given to the person:
(a) stating that the rights have been transferred; and
(b) identifying any future payments that, because of the transfer, are required to be made to the Commonwealth.
1061ZZFV Transfers not subject to State or Territory taxes
A transfer to the Commonwealth under this Chapter of any of the corporation’s rights under a financial supplement contract, or any other act or thing done or transaction entered into under this Chapter, is not subject to taxation under a law of a State or Territory.
7 After section 1361
Insert:
1361A Evidentiary certificates relating to financial supplement
(1) A certificate given by the Secretary stating:
(a) that a specified amount was the principal sum at a particular time under a specified financial supplement contract; or
(b) that a specified amount was the sum of the amounts repaid, or the sum of the amounts notionally repaid, before a particular time or during a particular period in respect of a specified financial supplement contract; or
(c) that a specified amount was the amount, or the total of the amounts, of subsidy paid by the Commonwealth to a specified participating corporation in respect of a specified financial supplement contract in lieu of interest on the principal sum or in lieu of interest on the principal sum in relation to a specified period; or
(d) that a specified amount was, at a particular time, the amount outstanding under a specified financial supplement contract; or
(e) that a specified amount was, at a particular time, the indexation amount in relation to a specified financial supplement contract; or
(f) that the rights, or specified rights, of a specified participating corporation in respect of a specified person under a specified financial supplement contract were transferred by the corporation to the Commonwealth on a specified date; or
(g) that, on a specified day, a person had an FS debt or FS debts to the Commonwealth of a specified amount or specified amounts; or
(h) that, on a specified day, a notice, to a specified effect, under a provision of Chapter 2B was given to a specified person by the Secretary;
is prima facie evidence of the matters stated in the certificate.
(2) In any proceeding, a document purporting to be a certificate by the Secretary under this section is taken, unless the contrary is established, to be such a certificate and to have been duly given.
Part 2—Amendments commencing on 1 July 1999
Social Security Act 1991
8 Section 3 (index of definitions)
Omit:
weekday
19AB(2)
9 Subsection 19AB(2) (definition of weekday)
Repeal the definition.
10 Subsection 1061ZZAK(2) (steps 1 and 2 of the method statement)
Omit “weekdays”, substitute “days”.
11 Subsection 1061ZZAO(2) (steps 1 and 2 of the method statement)
Omit “weekdays”, substitute “days”.
Schedule 3—Family actual means test
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:
actual means
10B(2)
AIC scheme
10B(2)
appropriate tax year
10B(2)
base tax year
10B(2)
business
10B(2)
claimant/recipient
10B(2)
combined parental income
10B(2)
designated parent
10B(3)
family actual means free area
10B(2)
income assistance
10B(4)
independent employment
10B(2)
insolvent under administration
10B(2)
interest
10B(2)
liquid assets
10B(2)
net passive business loss
10B(2)
passive business
10B(2)
relevant person
10B(2)
savings
10B(5) and (6)
secondary course
10B(2)
secondary student
10B(2)
trust
10B(2)
unlisted public company
10B(2)
2 After section 10A
Insert:
10B Family actual means test definitions
(1) This section has effect for the purposes of Module G of the Youth Allowance Rate Calculator at the end of section 1067G.
(2) Unless the contrary intention appears:
actual means has the meaning given by point 1067G‑G8.
AIC scheme means the Commonwealth scheme known as the Assistance for Isolated Children Scheme.
appropriate tax year has the meaning given by point 1067G‑G4.
base tax year has the same meaning as in point 1067G‑F5.
business has the meaning given by point 1067G‑F19A.
claimant/recipient has the meaning given by point 1067G‑G7.
combined parental income has the meaning given by point 1067G‑F10.
designated parent has the meaning given by subsection (3).
family actual means free area has the meaning given by point 1067G‑G14.
income assistance has the meaning given by subsection (4).
independent employment means employment engaged in by a person that is not provided by:
(a) a family member of the person; or
(b) a proprietary company, an unlisted public company, a partnership, or a trust, in which the person, or a family member of the person, has an interest.
insolvent under administration has the same meaning as in the Corporations Law.
interest in a trust:
(a) includes:
(i) the interest of a settlor in property subject to the trust; and
(ii) a power of appointment under the trust; and
(iii) a power to rescind or vary a provision of, or to rescind or vary the effect of the exercise of a power under, the trust; and
(iv) an interest that is conditional, contingent or deferred; but
(b) does not include:
(i) the interest of a person as an agent or creditor of the trustee; or
(ii) the interest of a person as a person employed by the trustee.
liquid assets means assets that, under subsection 14A(1), are liquid assets for Parts 2.11, 2.11A, 2.12 and 2.14.
net passive business loss, for the appropriate tax year, means a loss that, under subpoint 1067G‑F11(4), is a net passive business loss for that year.
passive business means a business that, under point 1067G‑F19A, is a passive business for the purposes of subpoint 1067G‑F11(4).
relevant person has the meaning given by point 1067G‑G7.
savings has the meaning given by subsection (5).
secondary course means a course that is determined, under section 5D of the Student Assistance Act 1973, to be a secondary course for the purposes of that Act.
secondary student means a person who is receiving youth allowance and is undertaking full‑time study in respect of a secondary course.
trust does not include:
(a) a trust in relation to an account held in a bank only for the benefit of a dependent child of the trustee; or
(b) a trust under which property of the estate of a deceased person, or of a person who is an insolvent under administration, is distributed; or
(c) a trust in relation to a superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 that is not an excluded fund within the meaning of that Act; or
(d) a public unit trust in which units are held by 50 or more persons who are not family members of the trustee, or are offered for subscription or purchase by the public; or
(e) the trust constituted by a trust account that the trustee is required by a law to establish; or
(f) a charitable trust; or
(g) a trust created by operation of law.
unlisted public company means a public company that is not listed on a stock exchange.
(3) A parent of a person (the person concerned) is a designated parent for a youth allowance payment period if:
(a) within 10 years before 1 January in the calendar year in which the youth allowance payment period ends, the parent first entered Australia under a permanent visa or entry permit within the meaning of the Migration Act 1958 for the grant of which a criterion or requirement was that the parent demonstrate skills in business; or
(b) the parent has an interest (the value of which is $2,500 or more) in assets outside Australia and its external territories; or
(c) in the base tax year, the parent had an interest in:
(i) a proprietary company; or
(ii) an unlisted public company; or
(iii) a trust; or
(d) in the base tax year, the parent derived income of $2,500 or more from a source outside Australia and its external territories (except Norfolk Island) that does not consist only of income from a pension or similar payment, and was either:
(i) ordinary income; or
(ii) an amount included in the person concerned’s combined parental income; or
(e) the parent derived income from salary or wages in the base tax year and has claimed, or will claim, a tax deduction for a business loss (whether for that year or a previous year) that does not consist only of a net passive business loss; or
(f) in the base tax year, the parent was a member of a partnership; or
(g) in the base tax year, the parent:
(i) worked for gain or reward otherwise than under a contract of employment or apprenticeship, whether or not the parent employed one or more other persons; but
(ii) was not, in so working, wholly or mainly engaged in a primary production business owned by him or her.
(4) A payment received by a person is income assistance if it is:
(a) a youth allowance received by a person who is undertaking full‑time study; or
(b) an austudy payment; or
(c) a payment under this Act (except a family tax payment), or the Veterans’ Entitlements Act 1986, that is exempt from income tax under Division 1AA of Part 3 of the Income Tax Assessment Act 1936 or Subdivision 52‑A, 52‑B or 52‑C of the Income Tax Assessment Act 1997; or
(d) a payment under:
(i) a Student Financial Supplement Scheme; or
(ii) the scheme known as the ABSTUDY scheme; or
(iii) the AIC scheme; or
(e) an AUSTUDY allowance; or
(f) a payment under a scholarship; or
(g) a payment by a State or Territory, or a State or Territory authority, to assist the primary, secondary or tertiary education of a student.
(5) The savings of a person include the following amounts:
(a) the person’s share in any profit retained by a company of which the person is a director, or shareholder, who has a substantial influence over whether company profit is distributed to:
(i) the person or a family member of the person; or
(ii) another company, or a partnership or trust, in which the person or a family member of the person has an interest;
(b) the person’s share in any profit retained by a partnership of which the person is a member who has a substantial influence over whether partnership profit is distributed to:
(i) the person or a family member of the person; or
(ii) another partnership, or a company or trust, in which the person or a family member of the person has an interest;
(c) any undistributed profit of a trust that is attributable to the person;
(d) the total undistributed profit of a trust where:
(i) the person is a trustee or beneficiary of the trust; and
(ii) no part of that undistributed profit is attributable to the person; and
(iii) the person controls the trust.
(6) For the purposes of subparagraph (5)(d)(iii), a person controls a trust if the person has:
(a) a power of appointment under the trust; or
(b) a power to rescind or vary a provision of, or to rescind or vary the effect of the exercise of a power under, the trust; or
(c) a substantial influence over whether trust profit is distributed to:
(i) the person or a family member of the person; or
(ii) another trust, or a company or partnership, in which the person or a family member of the person has an interest.
3 Section 1067G (Module G of the Youth Allowance Rate Calculator)
Repeal the Module, substitute:
Module G—Family actual means test
Submodule 1—Preliminary
How to work out effect of actual means of a person’s family on maximum payment rate
1067G‑G1 This is how to work out the effect (if any) of the actual means of a person’s family on the person’s maximum payment rate in respect of a particular youth allowance payment period.
Method statement
Step 1. Work out whether the family actual means test applies to the person using Submodule 2.
Step 2. If the family actual means test applies to the person, identify the appropriate tax year in relation to the person using Submodule 3.
Step 3. Work out the actual means of the person’s family for that year using Submodule 4.
Step 4. Work out the person’s family actual means free area using Submodule 5.
Step 5. Work out the person’s reduction for family actual means for that year using Submodule 6.
Submodule 2—Persons to whom family actual means test applies
General provision
1067G‑G2 Subject to point 1067G‑G3, the family actual means test applies to a person who:
(a) claims or receives youth allowance; and
(b) is not independent; and
(c) has a parent who is a designated parent.
Exceptions
1067G‑G3(1) The family actual means test does not apply to a person:
(a) while a family member of the person is receiving exceptional circumstances relief payment; or
(b) for so much of the calendar year in which the relief payment is received as follows the cessation of the relief payment.
(2) In subpoint (1):
exceptional circumstances relief payment means:
(a) exceptional circumstances relief payment under the Farm Household Support Act 1992; or
(b) drought relief payment under that Act as in force immediately before the commencement of the Farm Household Support Amendment (Restart and Exceptional Circumstances) Act 1997.
Submodule 3—Identification of appropriate tax year
Meaning of appropriate tax year
1067G‑G4 The appropriate tax year in relation to a person for a youth allowance payment period is:
(a) the base tax year for the period; or
(b) if a determination of a tax year is made by the Secretary under point 1067G‑G6 in relation to the person in respect of the period—the tax year specified in the determination.
Person who may request Secretary to determine appropriate tax year
1067G‑G5(1) This point applies to a person who claims or receives youth allowance if the following conditions are satisfied.
(2) The first condition is that, except for this point, youth allowance:
(a) would not be payable to the person because the rate of youth allowance is calculated to be nil; or
(b) would be calculated to be payable at a reduced rate.
(3) The second condition is that the person gives to the Secretary, in writing:
(a) evidence, or an estimate, that the amount of the actual means of the person’s family for the tax year (the following tax year) immediately after the base tax year is substantially less than it was in the base tax year:
(i) because of a circumstance or event that is beyond the control of the person and the person’s family members; or
(ii) because the person or a family member of the person is undertaking full‑time study in the following tax year; or
(iii) because a designated parent of the person has ceased to be a parent of the kind referred to in paragraph 10B(3)(c), (d), (e), (f) or (g); and
(b) if subparagraph (a)(i) applies—evidence of the circumstance or event concerned;
and, if the person gives an estimate as referred to in paragraph (a), the person agrees, in writing, to the person’s rate of youth allowance being recalculated if the actual means of the person’s family for the following tax year exceed the amount of the estimate.
(4) For the purposes of subparagraph (3)(a)(i), an expected decrease in the profitability of a business is not ordinarily to be taken to be a circumstance or event that is beyond the control of the person and the person’s family members.
(5) The third condition is that the person’s family actual means are unlikely to increase beyond the amount evidenced, or estimated, under paragraph (3)(a) for the 2 years beginning on the later of the following days:
(a) 1 January in the following tax year; or
(b) the day on which the amount of the family’s actual means was reduced.
Making of request
1067G‑G6(1) A person to whom point 1067G‑G5 applies may request the Secretary, in accordance with a form approved by the Secretary, to make a determination under this point in relation to a youth allowance payment period.
(2) If:
(a) the person makes such a request; and
(b) the youth allowance payment period to which the request relates ends on or after the later of:
(i) the day on which the request is made; or
(ii) 1 January in a year;
the Secretary must determine, subject to subpoint (3), that the appropriate tax year for the person in relation to the youth allowance payment period is the tax year immediately after the base tax year.
(3) If the request is based on an estimate, the Secretary may make a determination only if he or she is satisfied that the estimate is current and reasonable.
Submodule 4—Actual means of person’s family
How to work out the actual means of person’s family
1067G‑G7(1) To work out the actual means of the family of a person (the claimant/recipient) for the appropriate tax year, first calculate, in accordance with this Submodule, the actual means of the claimant/recipient and the actual means of each family member of the claimant/recipient and then apply the formula in subpoint 1067G‑G13(1) using the results of those calculations.
(2) A reference in any of the following provisions of this Submodule to a relevant person is a reference to the claimant/recipient or a family member of the claimant/recipient.
Meaning of actual means
1067G‑G8(1) Subject to point 1067G‑G9, the actual means of a relevant person for the appropriate tax year is an amount equal to the total spending and savings of the person in that tax year.
(2) An amount of spending or savings is taken to have been spent or saved in the appropriate tax year if the Secretary considers that the amount should be so taken.
Amounts not included in actual means of a relevant person
1067G‑G9(1) This point applies in working out the actual means, for the appropriate tax year, of a relevant person.
(2) The following amounts spent or saved in the appropriate tax year by the person are not included in the actual means of the person:
(a) spending or savings from any income assistance received by the person in that tax year;
(b) spending for the maintenance of:
(i) a child of the person if the person does not have legal responsibility for the day‑to‑day care, welfare and development of the child; or
(ii) a former partner of the person;
(c) spending in boarding away from home a family member who qualified for the boarding allowance under the AIC scheme—to the extent of the lesser of:
(i) the amount of the spending; and
(ii) $5,274, less the amount of the boarding allowance;
(d) spending in boarding away from home a family member who:
(i) is a secondary student; and
(ii) is not independent; and
(iii) is required to live away from home;
to the extent of the lesser of:
(iv) the amount of the spending; and
(v) $5,274, less the amount of the person’s after‑tax income concession (if any) for the student under point 1067G‑G11;
(e) if the person has a disability—spending to acquire, or modify, property to assist the person to cope with the disability;
(f) spending or savings from any arm’s length loan received by the person in that tax year;
(g) spending to repay a loan received by the person in that tax year that is not an arm’s length loan, or to pay interest on the loan;
(h) spending or savings from the proceeds of any liquidation of assets of the person that were held at the beginning of that year;
(i) spending or savings from the amount of any windfall gain that is not a gift to the person;
(j) spending or savings, of not more than $6,000, from income that is exempt income under item 1.4 of the table in section 51‑5 of the Income Tax Assessment Act 1997;
(k) spending or savings from any part of a lump sum compensation payment made to the person on which tax is not payable under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
(3) Also, the actual means of the person do not include the following amounts:
(a) subject to subpoint (4), an amount equal to the amount of the income or resources of a business of the person that is deductible under the Income Tax Assessment Act 1936, or the Income Tax Assessment Act 1997 because the amount was, or will be, necessarily incurred in carrying on the business;
(b) an amount equal to the amount of any reduction in liquid assets of the person held at the beginning of the appropriate tax year and not accounted for by spending of a kind referred to in subpoint (2).
(4) The reference in paragraph (3)(a) to the amount of the income or resources of a business of the person that is deductible does not include:
(a) the amount of any losses from the business that are carried forward from a tax year earlier than the appropriate tax year; or
(b) the amount of a contribution to a superannuation fund, in relation to the business, that exceeds:
(i) for an employee—the minimum contribution for the employee under the Superannuation Guarantee (Administration) Act 1992; or
(ii) for a person engaged otherwise than as an employee—the lesser of $3,000 and the total amount of the contributions for the person, and each family member of the person, for the appropriate tax year.
Amounts not included in actual means of a family member of claimant/recipient
1067G‑G10 In working out the actual means, for the appropriate tax year, of a family member of the claimant/recipient, being a family member of a kind referred to in subparagraph 23(15)(b)(i), (ii) or (iii), spending or savings from any income of the family member from independent employment (except so much of such spending or savings as exceeds $6,000) is not included.
After‑tax income concession for secondary student
1067G‑G11(1) This point explains how a relevant person’s after‑tax income concession for a secondary student referred to in subparagraph 1067G‑G9(2)(d)(v) is worked out.
(2) The purpose of the concession is to compensate the family of a secondary student who is required to live away from home for the additional expenditure incurred in maintaining the student while he or she is required to live away from home. The compensation is effected by reducing the actual means of the family by an amount calculated by reference to the additional amount of youth allowance that is payable because the student is required to live away from home.
(3) Accordingly, a relevant person’s after‑tax income concession is the amount worked out using the formula:
(4) In this section:
after‑tax income means the amount calculated using the formula:
income tax means the amount of income tax, before any rebates, and without regard to any increase occurring in the tax free threshold because of section 20C or 20D of the Income Tax Rates Act 1986, that would be notionally payable by a person for the appropriate tax year if the person’s taxable income were the amount obtained by dividing the parental income by the number of parents whose income is included in the claimant/recipient’s combined parental income.
medicare levy means the amount of medicare levy that would be notionally payable by a married person for the appropriate tax year if:
(a) the person’s taxable income were the amount obtained by dividing the parental income by the number of parents whose income is included in the claimant/recipient’s combined parental income; and
(b) the person were a parent of the student, and of all the family members of the student who were children referred to in paragraph 23(15)(b); and
(c) the student and each of those children had no separate net income, within the meaning of section 159J of the Income Tax Assessment Act 1936, in the appropriate tax year.
notional after‑tax income means the amount calculated using the formula:
notional income tax means the amount of income tax, before any rebates, and without regard to any increase occurring in the tax free threshold because of section 20C or 20D of the Income Tax Rates Act 1986, that would be notionally payable by a person for the appropriate tax year if the person’s taxable income were the amount obtained by dividing the notional parental income by the number of parents whose income is included in the claimant/recipient’s combined parental income.
notional medicare levy means the amount of medicare levy that would be notionally payable by a married person for the appropriate tax year if:
(a) the person’s taxable income were the amount obtained by dividing the notional parental income by the number of parents whose income is included in the claimant/recipient’s combined parental income; and
(b) the person were a parent of the student, and of all the family members of the student who were children referred to in paragraph 23(15)(b); and
(c) the student and each of those children had no separate net income, within the meaning of section 159J of the Income Tax Assessment Act 1936, in the appropriate tax year.
notional parental income means the minimum amount of the combined parental income in relation to the student for the appropriate tax year that would cause the student’s youth allowance rate to be reduced to nil if the student’s maximum basic rate were the amount specified in column 3 of item 1 of Table BA in point 1067G‑B2 as at 1 January of that year.
number of students means the number of persons who:
(a) are included in the group of persons constituted by the student and his or her family members; and
(b) are secondary students; and
(c) receive youth allowance; and
(d) are not independent; and
(e) are required to live away from home.
parental income means the minimum amount of the combined parental income in relation to the student for the appropriate tax year that would cause the student’s youth allowance rate to be reduced to nil if the student’s maximum basic rate were the amount specified in column 3 of item 3 of Table BA in point 1067G‑B2 as at 1 January of that year.
Powers of Secretary to determine fair market value
1067G‑G12(1) If the Secretary considers that an amount of spending that would otherwise be included in the actual means of a relevant person does not represent the fair market value of the matter or thing to which the spending related:
(a) the Secretary must determine the fair market value of the matter or thing; and
(b) an amount equal to the value so determined is taken to be the amount of the spending.
(2) If the Secretary considers that spending by a person other than a family member of a relevant person is spending for the benefit of the relevant person:
(a) the Secretary must determine the fair market value of the matter or thing to which the spending related; and
(b) an amount equal to the value so determined is taken to be an amount of spending by the relevant person.
Actual means of family of claimant/recipient
1067G‑G13(1) The actual means of the family of a claimant/recipient for the appropriate tax year is the amount worked out using the formula:
(2) In this section:
after‑tax income, in relation to a parent of the claimant/recipient for the appropriate tax year, means the gross income of the parent for that year less any income tax or medicare levy payable in respect of the parent’s taxable income for that year.
GAM (gross actual means), in relation to the claimant/recipient’s family for the appropriate tax year, means the total of the amounts of the actual means, for that year, of the claimant/recipient and of each of the family members of the claimant/recipient.
NITML (notional income tax/medicare levy), in relation to a parent of the claimant/recipient for the appropriate tax year, means the sum of:
(a) the amount of income tax, before any rebates, and without regard to any increase occurring in the tax free threshold because of section 20C or 20D of the Income Tax Rates Act 1986 that would be notionally payable by the parent for that year; and
(b) the amount of medicare levy that would be notionally payable by the parent for that year if none of the parent’s children who are children referred to in paragraph 23(15)(b) had a separate net income within the meaning of section 159J of the Income Tax Assessment Act 1936 in that year;
that would result in the after‑tax income of the parent for that year being an amount equal to one‑half of GAM of the claimant/recipient’s family for that year.
NPBL (net passive business loss) means the sum of the net passive business losses (if any) of each of the parents of the claimant/recipient in the appropriate tax year.
TFTI (tax‑free threshold increase) means 20% of the total of the amounts calculated in respect of each of the parents of the claimant/recipient for the appropriate tax year under section 20C (without regard to section 20K) of the Income Tax Rates Act 1986.
TNITML (total notional income tax/medicare levy) means the total of the amounts of NITML in relation to each of the parents of the claimant/recipient for the appropriate tax year.
Submodule 5—Family actual means free area
Family actual means free area
1067G‑G14 A person’s family actual means free area is the amount that is the person’s parental income free area worked out under Submodule 5 of Module F.
Submodule 6—Reduction for family actual means
Reduction for family actual means
1067G‑G15(1) A person’s reduction for family actual means for the appropriate tax year is the amount obtained by dividing by 26 the person’s family actual means excess for that year.
(2) A person’s family actual means excess for the appropriate tax year is the amount worked out using the formula:
where:
actual family means means the actual means of the person’s family for that year.
actual means free area means the person’s family actual means free area.
(3) If the amount worked out under subsection (2) is an amount of dollars and cents, disregard the amount of cents.
(4) If the amount worked out under subsection (2) is less than $1, the amount is taken to be nil.
Schedule 4—Youth allowance and austudy payment
Part 1—Amendments commencing on Royal Assent
Social Security Act 1991
1A Paragraph 541B(1)(b)
Repeal the paragraph, substitute:
(b) the person:
(i) is undertaking in the particular study period (such as, for example, a semester) for which he or she is enrolled for the course; or
(ii) intends to undertake in the next study period for which he or she intends to enrol for the course;
either:
(iii) in a case to which subsection (1A) does not apply—at least three‑quarters of the normal amount of full‑time study in respect of the course for that period (see subsections (2) to (4)); or
(iv) in a case to which subsection (1A) applies—at least two‑thirds of the normal amount of full‑time study in respect of the course for that period (see subsections (2) to (4)); and
1B After subsection 541B(1)
Insert:
When two‑thirds study load applies
(1A) This subsection applies for the purposes of subparagraph (1)(b)(iv) if the person cannot undertake the normal amount of full‑time study in respect of the course for that period:
(a) because of the usual requirements of the institution in question in respect of the course; or
(b) because of a specific direction in writing to the student from the academic registrar, or an equivalent officer, of the institution in question; or
(c) because the academic registrar, or an equivalent officer, of the institution in question recommends in writing that the person undertake the amount of study mentioned in subparagraph (1)(b)(iv) in respect of the course for specified academic or vocational reasons.
Paragraph (c) applies for no longer than half of the academic year.
1 Paragraphs 551C(1)(c) and (d)
Repeal the paragraphs, substitute:
(c) the Secretary is of the opinion that the person should:
(i) attend an office of the Department; or
(ii) attend a particular place for a particular purpose; or
(iii) contact the Department; or
(iv) give information to the Secretary; and
(d) the Secretary gives the person a written notice stating that the person is required, within a period of not less than 14 days stated in the notice, to:
(i) attend the office; or
(ii) attend the place; or
(iii) contact the Department; or
(iv) give the information; and
2 Paragraph 552(b)
After “person”, insert “or to someone else in respect of the person”.
3 After paragraph 552A(1)(a)
Insert:
(aa) the Assistance for Isolated Children Scheme; and
4 Subsection 561B(1)
Repeal the subsection, substitute:
(1) The Secretary may give to a person in respect of whom a youth allowance is being paid a notice that requires the person to tell the Department if:
(a) a stated event or change of circumstances occurs; or
(b) the person becomes aware that a stated event or change of circumstances is likely to occur.
5 Subsection 561C(1)
Repeal the subsection, substitute:
(1) The Secretary may give to a person in respect of whom a youth allowance is being paid a notice that requires the person to give the Department a statement about a matter that might affect the payment of the allowance to the person.
6 After Subdivision D of Division 9 of Part 2.11
Insert:
Subdivision EA—Recalculation of rate of youth allowance
565F Recalculation if combined parental income or actual means of family exceeds estimated amount
(1) If:
(a) in working out the rate of youth allowance payable to a person, regard is had to the combined parental income of the person, or the actual means of the family of the person, for a tax year; and
(b) the combined parental income of the person, or the actual means of the family of the person, to which regard was had consisted of an amount estimated by the person; and
(c) the combined parental income of the person, or the actual means of the family of the person, for the tax year is more than the amount of the combined parental income of the person, or the actual means of the family of the person, as the case may be, on which the determination of the rate of youth allowance was based;
the person’s rate of youth allowance is to be recalculated on the basis of the combined parental income of the person or the actual means of the family of the person, as the case may be.
(2) In subsection (1):
actual means of the family of a person has the same meaning as in Submodule 4 of Module G of the Youth Allowance Rate Calculator in section 1067G.
combined parental income of a person has the same meaning as in Submodule 4 of Module F of the Youth Allowance Rate Calculator in section 1067G.
565G Recalculation because of increase in combined parental income
If point 1067G‑F6 applies to a person in respect of a youth allowance payment period that ends after 30 September in a year, the person’s rate of youth allowance is to be recalculated on the basis of the changed appropriate tax year referred to in that point.
7 Paragraph 569D(4)(a)
After “Service”, insert “or an appropriate medical practitioner who has a detailed knowledge of the person’s physical condition”.
8 After subsection 569H(6)
Insert:
Current 25% concessional study‑load students who have previously undertaken courses on a different basis
(6A) If:
(a) a person is undertaking a course as a 25% concessional study‑load student; and
(b) the person has previously undertaken:
(i) part of that course; or
(ii) one or more than one other course at the same level as that course;
in any of the following ways:
(iii) as a full‑time student;
(iv) as a 66% concessional study‑load student;
(v) on a part‑time basis; and
(c) the time spent by the person undertaking the part of the course referred to in subparagraph (b)(i), or the course or courses referred to in subparagraph (b)(ii), (the previous study) is not to be disregarded under subsection (7);
the time spent by the person undertaking the previous study is taken to be:
(d) twice the time that the person took to complete the previous study; or
(e) if the Secretary has approved, under subsection (4), a longer allowable study time in relation to the person for the course—the time taken by the person to complete the previous study multiplied by the factor used by the Secretary for the purposes of the approval under that subsection.
9 Point 1066A‑B1 (table and notes)
Repeal the table and notes, substitute:
Table B—Maximum basic rates
Column 1
Item
Column 2
Person’s family situation
Column 3
Rate per year
Column 4
Rate per fortnight
Column 3A
Person with dependent child
Column 3B
Person without dependent child
Column 4A
Person with dependent child
Column 4B
Person without dependent child
1
Not a member of a couple and person:
(a) is under 18 years of age; and
(b) is not a homeless person; and
(c) is not an independent young person; and
(d) is not living away from the person’s parental home because of a medical condition of the person
$9,206.60
$3,848.00
$354.10
$148.00
2
Not a member of a couple and person:
(a) is under 18 years of age; and
(b) is:
(i) a homeless person; or
(ii) an independent young person; or
(iii) living away from the person’s parental home because of a medical condition of the person
$9,206.60
$7,027.80
$354.10
$270.30
3
Not a member of a couple and person:
(a) has reached 18 years of age; and
(b) is living at a home of parent or parents
$9,206.60
$4,625.40
$354.10
$177.90
4
Not a member of a couple and person:
(a) has reached 18 years of age; and
(b) is not living at a home of parent or parents
$9,206.60
$7,027.80
$354.10
$270.30
5
Partnered
$7,716.80
$7,027.80
$296.80
$270.30
6
Member of illness separated couple, member of respite care couple or partnered (partner in gaol)
$9,206.60
$7,027.80
$354.10
$270.30
Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Note 2: For dependent child, homeless person and independent young person see section 5.
Note 3: For living away from the person’s parental home see subsection 23(4D).
Note 4: The rates in columns 3A and 3B are adjusted annually in line with CPI changes (see section 1198B).
9A Point 1066A‑B1 (table and notes)
Repeal the table and notes, substitute:
Table B—Maximum basic rates
Column 1
Item
Column 2
Person’s family situation
Column 3
Rate per year
Column 4
Rate per fortnight
Column 3A
Person with dependent child
Column 3B
Person without dependent child
Column 4A
Person with dependent child
Column 4B
Person without dependent child
1
Not a member of a couple and person:
(a) is under 18 years of age; and
(b) is not a homeless person; and
(c) is not an independent young person; and
(d) is not living away from the person’s parental home because of a medical condition of the person
$9,575.80
$4,001.40
$368.30
$153.90
2
Not a member of a couple and person:
(a) is under 18 years of age; and
(b) is:
(i) a homeless person; or
(ii) an independent young person; or
(iii) living away from the person’s parental home because of a medical condition of the person
$9,575.80
$7,308.60
$368.30
$281.10
3
Not a member of a couple and person:
(a) has reached 18 years of age; and
(b) is living at a home of parent or parents
$9,575.80
$4,810.00
$368.30
$185.00
4
Not a member of a couple and person:
(a) has reached 18 years of age; and
(b) is not living at a home of parent or parents
$9,575.80
$7,308.60
$368.30
$281.10
5
Partnered
$8,026.20
$7,308.60
$308.70
$281.10
6
Member of illness separated couple, member of respite care couple or partnered (partner in gaol)
$9,575.80
$7,308.60
$368.30
$281.10
Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Note 2: For dependent child, homeless person and independent young person see section 5.
Note 3: For living away from the person’s parental home see subsection 23(4D).
Note 4: The rates in columns 3A and 3B are adjusted annually in line with CPI changes (see section 1198B).
10 Point 1066B‑B1 (table and notes)
Repeal the table and notes, substitute:
Table B—Maximum basic rates
Column 1
Item
Column 2
Person’s family situation
Column 3
Rate per year
Column 4
Rate per fortnight
Column 3A
Person with dependent child
Column 3B
Person without dependent child
Column 4A
Person with dependent child
Column 4B
Person without dependent child
1
Not a member of a couple and person:
(a) is under 18 years of age; and
(b) is not a homeless person; and
(c) is not an independent young person; and
(d) is not living away from the person’s parental home because of a medical condition of the person
$9,206.60
$3,848.00
$354.10
$148.00
2
Not a member of a couple and person:
(a) is under 18 years of age; and
(b) is:
(i) a homeless person; or
(ii) an independent young person; or
(iii) living away from the person’s parental home because of a medical condition of the person
$9,206.60
$7,027.80
$354.10
$270.30
3
Not a member of a couple and person:
(a) has reached 18 years of age; and
(b) is living at a home of parent or parents
$9,206.60
$4,625.40
$354.10
$177.90
4
Not a member of a couple and person:
(a) has reached 18 years of age; and
(b) is not living at a home of parent or parents
$9,206.60
$7,027.80
$354.10
$270.30
5
Partnered
$7,716.80
$7,027.80
$296.80
$270.30
6
Member of illness separated couple, member of respite care couple or partnered (partner in gaol)
$9,206.60
$7,027.80
$354.10
$270.30
Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Note 2: For dependent child, homeless person and independent young person see section 5.
Note 3: For living away from the person’s parental home see subsection 23(4D).
Note 4: The rates in columns 3A and 3B are adjusted annually in line with CPI changes (see section 1198B).
10A Point 1066B‑B1 (table and notes)
Repeal the table and notes, substitute:
Table B—Maximum basic rates
Column 1
Item
Column 2
Person’s family situation
Column 3
Rate per year
Column 4
Rate per fortnight
Column 3A
Person with dependent child
Column 3B
Person without dependent child
Column 4A
Person with dependent child
Column 4B
Person without dependent child
1
Not a member of a couple and person:
(a) is under 18 years of age; and
(b) is not a homeless person; and
(c) is not an independent young person; and
(d) is not living away from the person’s parental home because of a medical condition of the person
$9,575.80
$4,001.40
$368.30
$153.90
2
Not a member of a couple and person:
(a) is under 18 years of age; and
(b) is:
(i) a homeless person; or
(ii) an independent young person; or
(iii) living away from the person’s parental home because of a medical condition of the person
$9,575.80
$7,308.60
$368.30
$281.10
3
Not a member of a couple and person:
(a) has reached 18 years of age; and
(b) is living at a home of parent or parents
$9,575.80
$4,810.00
$368.30
$185.00
4
Not a member of a couple and person:
(a) has reached 18 years of age; and
(b) is not living at a home of parent or parents
$9,575.80
$7,308.60
$368.30
$281.10
5
Partnered
$8,026.20
$7,308.60
$308.70
$281.10
6
Member of illness separated couple, member of respite care couple or partnered (partner in gaol)
$9,575.80
$7,308.60
$368.30
$281.10
Note 1: For member of a couple, partnered, illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Note 2: For dependent child, homeless person and independent young person see section 5.
Note 3: For living away from the person’s parental home see subsection 23(4D).
Note 4: The rates in columns 3A and 3B are adjusted annually in line with CPI changes (see section 1198B).
11 Paragraph 1067A(10)(a)
Omit “the preceding”, substitute “any period of”.
12 Subsection 1067A(10)
Omit “However, the employment must not have involved work outside Australia.”.
13 Paragraph 1067F(1)(b)
Repeal the paragraph.
14 Paragraph 1067F(2)(b)
Repeal the paragraph.
15 After paragraph (c) of point 1067G‑B4
Insert:
; and (d) whether the person is a member of a couple (see section 4).
16 Point 1067G‑B4 (table)
Repeal the table, substitute:
Table BC—Maximum basic rates (long term income support students)
Column 1
Item
Column 2
Person’s situation
Column 3
Rate
1
Not independent, lives at home and not a member of a couple
$218.50
2
Not independent, required to live away from home and not a member of a couple
$328.30
3
Accommodated independent person and not a member of a couple
$218.50
4
Independent, not an accommodated independent person and not a member of a couple
$328.30
5
Member of a couple
$296.80
Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191‑1194).
16A Point 1067G‑B4 (table)
Repeal the table, substitute:
Table BC—Maximum basic rates (long term income support students)
Column 1
Item
Column 2
Person’s situation
Column 3
Rate
1
Not independent, lives at home and not a member of a couple
$227.20
2
Not independent, required to live away from home and not a member of a couple
$341.40
3
Accommodated independent person and not a member of a couple
$227.20
4
Independent, not an accommodated independent person and not a member of a couple
$341.40
5
Member of a couple
$308.70
Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191‑1194).
17 Paragraph 1067K(1)(a)
Repeal the paragraph.
18 Paragraph 1067K(2)(a)
Repeal the paragraph.
19 Points 1067L‑B2 and 1067L‑B3
Repeal the points, substitute:
Person who is not a long term income support student
1067L‑B2(1) If the person is not a long term income support student (see section 1067K), work out:
(a) whether the person is a member of a couple (see section 4); and
(b) whether the person has a dependent child (see subsections 5(2) to (9)); and
(c) if the person is not a member of a couple, whether the person has a YA child (see subpoint (2)).
The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Table BA—Maximum basic rates (persons who are not long term income support students)
Column 1
Item
Column 2
Person’s situation
Column 3
Rate
1
Does not have a dependent child or a YA child
$270.30
2
Is a member of a couple and has a dependent child
$296.80
3
Is not a member of a couple and has a dependent child or YA child
$354.10
Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191‑1194).
(2) In this point:
YA child, in relation to a person who is not a member of a couple, means a child who is receiving youth allowance, is under 18 years of age and would be a dependent child of the person if he or she were not receiving the allowance.
Person who is a long term income support student
1067L‑B3 If the person is a long term income support student (see section 1067K), work out whether the person is a member of a couple (see section 4).
The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Table BB—Maximum basic rates (persons who are long term income support students)
Column 1
Item
Column 2
Person’s situation
Column 3
Rate
1
Is a member of a couple
$296.80
2
Is not a member of a couple
$328.30
19A Points 1067L‑B2 and 1067L‑B3
Repeal the points, substitute:
Person who is not a long term income support student
1067L‑B2(1) If the person is not a long term income support student (see section 1067K), work out:
(a) whether the person is a member of a couple (see section 4); and
(b) whether the person has a dependent child (see subsections 5(2) to (9)); and
(c) if the person is not a member of a couple, whether the person has a YA child (see subpoint (2)).
The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Table BA—Maximum basic rates (persons who are not long term income support students)
Column 1
Item
Column 2
Person’s situation
Column 3
Rate
1
Does not have a dependent child or a YA child
$281.10
2
Is a member of a couple and has a dependent child
$308.70
3
Is not a member of a couple and has a dependent child or YA child
$368.30
Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191‑1194).
(2) In this point:
YA child, in relation to a person who is not a member of a couple, means a child who is receiving youth allowance, is under 18 years of age and would be a dependent child of the person if he or she were not receiving the allowance.
Person who is a long term income support student
1067L‑B3 If the person is a long term income support student (see section 1067K), work out whether the person is a member of a couple (see section 4).
The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.
Table BB—Maximum basic rates (persons who are long term income support students)
Column 1
Item
Column 2
Person’s situation
Column 3
Rate
1
Is a member of a couple
$308.70
2
Is not a member of a couple
$341.40
20 Subpoint 1069‑F2(1)
Omit “(2) and (3)”, substitute “(2), (3) and (4)”.
21 At the end of point 1069‑F2
Add:
(4) An amount is not to be added to a person’s standard family allowance rate under subpoint (1) unless that rate exceeds the person’s minimum family allowance rate.
23 Paragraph 1123(2)(a)
After “partner”, insert “or someone else of whom the person is a family member”.
24 After section 1126
Insert:
1126A Disposal of assets in pre‑pension year—family members
(1) Subject to this section, if:
(a) a person (the relevant person) has disposed of an asset; and
(b) the relevant person is a family member of another person (the other person) when the other person claims a youth allowance; and
(c) the relevant person disposed of the asset during a pre‑pension year of the other person; and
(d) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during that pre‑pension year, exceeds $10,000;
then, for the purpose of determining whether a youth allowance is payable to the other person, there is to be included in the value of the other person’s assets for the period of 5 years that starts on the day on which the disposition took place:
(e) the amount by which the sum of the amount of the first‑mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during that pre‑pension year exceeds $10,000; or
(f) the amount of the first‑mentioned disposition;
whichever is the lesser amount.
Note 1: For disposes of assets see section 1123.
Note 2: For amount of disposition see section 1124.
Note 3: For the effect of a transaction that constitutes both a disposal of an asset and a disposal of ordinary income see section 1110.
(2) If:
(a) amounts are included under subsection (1) in the value of the other person’s assets because of a disposition of an asset by the relevant person; and
(b) the relevant person ceases to be a family member of the other person;
any amount that was included in the value of the other person’s assets because of the disposition ceases to be included in the value of those assets.
(3) If:
(a) an amount is included under subsection (1) in the value of the assets of the other person because of a disposition of an asset by the relevant person; and
(b) the relevant person dies;
any amount that was included in the value of those assets because of the disposition ceases to be included in the value of those assets.
1126B Disposal of assets in pension year—family members
(1) Subject to this section, if:
(a) a person (the relevant person) has disposed of an asset during a pension year of another person (the other person) of whom the relevant person is a family member; and
(b) the other person is receiving youth allowance; and
(c) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during that pension year, exceeds $10,000;
then, for the purposes of this Act, there is to be included in the value of the other person’s assets for the period of 5 years that starts on the day on which the disposition took place:
(d) the amount by which the sum of the amount of the first‑mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during the pension year exceeds $10,000; or
(e) the amount of the first‑mentioned disposition;
whichever is the lesser amount.
Note 1: For disposes of assets see section 1123.
Note 2: For amount of disposition see section 1124.
Note 3: For the effect of a transaction that constitutes both a disposal of an asset and a disposal of ordinary income see section 1110.
(2) If:
(a) amounts are included under subsection (1) in the value of the other person’s assets because of a disposition of an asset by the relevant person; and
(b) the relevant person ceases to be a family member of the other person;
any amount that was included in the value of the other person’s assets because of the disposition ceases to be included in the value of those assets.
(3) If:
(a) an amount is included under subsection (1) in the value of the assets of the other person because of a disposition of an asset by the relevant person; and
(b) the relevant person dies;
any amount that was included in the value of those assets because of the disposition ceases to be included in the value of those assets.
25 Section 1127
Repeal the section, substitute:
1127 Disposition more than 5 years old to be disregarded
This Division does not apply to a disposition of an asset that took place:
(a) more than 5 years before the time when:
(i) the person who disposed of the asset; or
(ii) if that person was, at the time when the disposition took place, a member of a couple—the person’s partner; or
(iii) if that person was, at that time, a family member of another person who is receiving or claiming youth allowance and is not independent—the other person;
became qualified for a social security pension, a social security benefit or family allowance; or
(b) less than 5 years before the time referred to in paragraph (a) and before the time when the Secretary is satisfied that the person who disposed of the asset could reasonably have expected that the person, the person’s partner or the other person, as the case may be, would become qualified for such a pension, benefit or allowance.
26 Section 1128
Repeal the section.
27 Section 1198A
Repeal the section.
28 Section 1198B
Repeal the section, substitute:
1198B Adjustment of disability support pension (under 21) MBRs
This Act (and any other Act that refers to this Act) have effect as if, on 1 January each year, the amount worked out by applying the formula:
to an amount identified in column 2 of an item in the following table were substituted for the amount identified in column 3 of the item.
Adjustment of DSP (under 21) MBR table
Column 1
Item
Column 2
YA MBR amount
Column 3
corresponding DSP (under 21) MBR amount
Youth Allowance Rate Calculator—point 1067G‑B3—Table BB
Pension Rate Calculator D—point 1066A‑B1—Table B and Pension Rate Calculator E—Point 1066B‑B1—Table B
1
column 3—item 6
column 3A—items 1, 2, 3, 4 and 6
2
column 3—item 7
column 3A—item 5
3
column 3—item 1
column 3B—item 1
4
column 3—item 5
column 3B—items 2, 4, 5 and 6
5
column 3—item 2
column 3B—item 3
29 Subsections 1223(3) and (4)
Repeal the subsections, substitute:
(3) Subject to subsection (4), if:
(a) an amount (the received amount) has been paid to a person by way of youth allowance or family allowance; and
(b) either of the following subparagraphs applies:
(i) the person’s rate of youth allowance is recalculated under section 565F (underestimate of combined parental income or of actual means of family) or 565G (increase in combined parental income);
(ii) the person’s rate of family allowance is recalculated under section 884 (amendment of assessable income), 885 (underestimate of income) or 886 (failure to notify notifiable event);
(c) the received amount exceeds the amount (the correct amount) of the youth allowance or family allowance, as the case may be, payable to the person;
the excess is a debt due to the Commonwealth.
Note: For the date of effect of a determination made to take account of an amendment of assessable income, see section 890.
(4) If:
(a) youth allowance or family allowance is paid to a person in a tax year; and
(b) an amount of youth allowance or family allowance is recoverable under subsection (3) from the person; and
(c) apart from this subsection the amount would be recoverable before the end of the tax year;
the following paragraphs have effect:
(d) if the amount is an amount of youth allowance—it is recoverable only after the end of the tax year;
(e) if the amount is an amount of family allowance that is recoverable because of:
(i) an increase in the person’s income; or
(ii) an underestimate of the person’s income;
it is recoverable only after the end of the tax year.
Part 2—Amendments commencing on 1 July 1998
Social Security Act 1991
30 Section 3 (index of definitions)
Omit:
receiving full‑time education at a school, college or university
5(10)
31 Subsection 5(1) (definition of homeless person)
Before “means”, insert “, in Part 3.4A (Pension Rate Calculator D) and Part 3.4B (Pension Rate Calculator E),”.
32 Subsection 5(1) definition of independent young person)
Before “means”, insert “, in Part 3.4A (Pension Rate Calculator D) and Part 3.4B (Pension Rate Calculator E),”.
33 Subsection 5(1) (subparagraph (b)(ii) of the definition of parent)
Omit “paragraph (a)”, substitute “subparagraph (b)(i)”.
34 Subsection 5(1) (paragraphs (b) and (c) of the definition of prescribed educational scheme)
Repeal the paragraphs, substitute:
(b) the ABSTUDY Scheme; or
35 Subsection 5(1) (definition of receiving full‑time education at a school, college or university)
Repeal the definition.
36 Paragraph 540A(1)(a)
Repeal the paragraph.
37 Subsection 543A(2)
Repeal the subsection, substitute:
(2) A person who satisfies paragraph (1)(a) or (b) but is not yet 18 years old is not taken under subsection (1) to have attained the minimum age for youth allowance unless the person:
(a) has completed the final year of secondary school, or an equivalent level of education; or
(b) is undertaking full‑time study; or
(c) has agreed to enter into a Youth Allowance activity agreement.
38 Paragraph 550A(a)
After “fails”, insert “, without reasonable excuse,”.
39 Paragraph 552A(1)(a)
Omit “Tertiary”.
40 Paragraph 552A(2)(b)
Repeal the paragraph, substitute:
(b) an application is made for a payment in respect of the person under the ABSTUDY Scheme; and
41 Paragraph 569D(4)(c)
Omit “Australian Psychological Society”, substitute “Board established under the law of a State or Territory that registers psychologists”.
42 Paragraph 576A(a)
After “fails”, insert “, without reasonable excuse,”.
43 Paragraph 578A(1)(a)
Omit “Tertiary”.
44 Paragraph 578A(2)(b)
Repeal the paragraph, substitute:
(b) an application is made for a payment in respect of the person under the ABSTUDY Scheme; and
45 Paragraph 614(4)(a)
Omit “Tertiary”.
46 Paragraph 614(6)(c)
Repeal the paragraph, substitute:
(c) an application is made for a payment in respect of the person under the ABSTUDY Scheme; and
47 Subparagraph 737(1)(b)(i)
Omit “18”, substitute “16”.
48 Subparagraph 738(1)(b)(i)
Omit “18”, substitute “16”.
49 Section 833
Repeal the section, substitute:
833 FA child—child over 16
(1) Subject to subsection (2), a person who has reached the age of 16 years cannot be an FA child.
(2) A person who has reached the age of 16 years and is undertaking full‑time study in a secondary course within the meaning of section 541B may be an FA child until:
(a) the end of the calendar year in which the person reaches the age of 18 years; or
(b) the person ceases to undertake that full‑time study;
whichever first happens.
Note: For undertaking full‑time study see section 541B.
50 After subsection 887(5B)
Insert:
(5C) If:
(a) a person (the youth allowance claimant) makes a claim for youth allowance (the initial claim); and
(b) on the day on which the initial claim is made, the youth allowance claimant is an FA child of another person; and
(c) the other person afterwards requests that his or her rate of family allowance be increased on the ground that the youth allowance claimant is an FA child of the other person; and
(d) a favourable determination is made as a result of the request; and
(e) the Secretary is satisfied that it is reasonable for this subsection to apply to the other person;
the determination takes effect on a day specified in the determination (not being a day before the day on which the initial claim was made).
51 Subparagraph 1067A(9)(a)(iii)
Repeal the subparagraph, substitute:
(iii) because the parent or parents are unable to provide the person with a suitable home owing to a lack of stable accommodation; and
52 Paragraph 1067A(10)(c)
Repeal the paragraph, substitute:
(c) a period or periods of employment over an 18 month period since the person last left secondary school, earning the person at least the equivalent of 75% of the maximum Commonwealth training award payment that applied at the start of the period of the employment.
53 Paragraph 1067F(1)(d)
Omit “out of the preceding 39 weeks”, substitute “weeks out of the period of 39 weeks that ended when the person commenced to undertake the full‑time study referred to in paragraph (c)”.
54 Point 1067G‑F3
Omit “gets” (wherever occurring), substitute “is receiving”.
55 Paragraph 1067G‑F8(d)
Omit “for that tax year” (first occurring).
56 Section 1067G (table in Module L of the Youth Allowance Rate Calculator)
Omit “gets” (wherever occurring), substitute “is receiving”.
57 Section 1067G (at the end of the table in Module L of the Youth Allowance Rate Calculator)
Add:
27
Austudy payment
(Part 2.11A)
58 Paragraph 1067K(1)(d)
Omit “out of the preceding 39 weeks”, substitute “weeks in the period of 39 weeks that ended when the person commenced to undertake the study referred to in paragraph (c)”.
59 Paragraphs 1068(1)(a) and (b)
Repeal the paragraphs, substitute:
(a) newstart allowance; or
(b) sickness allowance; or
60 Point 1068‑B1 (table items 1 and 2)
Repeal the items.
61 Point 1068‑B1 (table item 3, paragraph (b) of column 2)
Omit “has turned 21 but”.
62 Point 1068‑B1 (table item 4A, paragraph (b) of column 2)
Omit “has turned 21 but”.
63 Point 1068‑B1 (table item 6)
Repeal the item.
64 Point 1068‑B1 (table item 7)
Omit “and person has turned 21”.
65 Point 1068‑B1 (table item 8)
Repeal the item.
66 Point 1068‑B1 (table item 9)
Omit “and person has turned 21”.
67 Point 1068‑B1 (table item 10)
Repeal the item.
68 Point 1068‑B1 (table item 11)
Omit “and person has turned 21”.
69 Paragraph 1068‑D2(a)
Repeal the paragraph.
70 Subsection 1132A(1BB) (subparagraph (a)(ii) of the definition of FA child)
After “receiving”, insert “youth allowance or”.
71 Subparagraph 1157E(1)(c)(ii)
Omit “or a sickness allowance”, substitute “, a sickness allowance or a youth allowance”.
72 Subparagraph 1157F(1)(c)(iv)
Omit “or a sickness allowance”, substitute “, a sickness allowance or a youth allowance”.
73 Section 1169
Repeal the section, substitute:
1169 Rate reduction under income/assets/parental income/family actual means tests and this Part
If:
(a) the rate of a person’s compensation affected payment is to be reduced under this Part; and
(b) the person’s rate is reduced under the ordinary income test Module, or the assets test Module, of a Rate Calculator or under the parental income test in Module F, or the family actual means test in Module G, of the Youth Allowance Rate Calculator;
the reduction under this Part is to apply to the person’s rate as reduced as referred to in paragraph (b).
74 Section 1190 (table item 3B, column 4)
Omit “—Table BB—column 3—all amounts”.
75 Section 1190 (table item 41, column 2)
Omit “ordinary”.
76 Subsection 1191(1) (after table item 21)
Insert:
21A
benefit “single” non‑homeowner AVL
1 July
December
most recent December quarter before reference quarter
$250.00
21B
benefit “partnered” (item 2) homeowner AVL
1 July
December
most recent December quarter before reference quarter
$250.00
21C
benefit “partnered” (item 2) non‑homeowner AVL
1 July
December
most recent December quarter before reference quarter
$250.00
77 Subsection 1191(1) (table item 30, column 2)
After “parental”, insert “income”.
78 Subsection 1192(6)
Repeal the subsection.
79 Paragraph 1236(1B)(a)
Omit “from a person’s youth training allowance”.
80 Clause 109 of Schedule 1A (the clause 109 inserted by item 14 of Schedule 2 to the Social Security and Veterans’ Affairs Legislation Amendment (Budget and Other Measures) Act 1998)
Renumber as clause 109A.
81 Subclause 111A(2) of Schedule 1A
Omit “AUSTUDY age”, substitute “austudy age”.
Part 3—Amendment commencing on 20 September 1998
Social Security Act 1991
82 Clause 110 of Schedule 1A (the clause 110 inserted by item 43 of Schedule 3 to the Social Security and Veterans’ Affairs Legislation Amendment (Budget and Other Measures) Act 1998)
Renumber as clause 120A.
Part 4—Amendments commencing on 1 January 1999
Social Security Act 1991
83 Subsection 543A(2)
Omit “A person”, substitute “Subject to subsections (2A) and (2B), a person”.
84 Paragraphs 543A(2)(ba) and (c)
Repeal the paragraphs, substitute:
(c) the person has agreed to enter into a Youth Allowance activity agreement.
85 Subsection 543A(2A)
Omit all the words before paragraph (a), substitute:
(2A) Subject to subsection (2B), subsection (2) does not apply to the person if the Secretary considers that the person does not have the capacity to undertake full‑time study or training because he or she:
86 Subsection 543A(2B)
Repeal the subsection, substitute:
(2B) If the following circumstances exist in relation to the person in respect of a period (the qualifying period):
(a) except for paragraph 540(b), the person would be qualified for a youth allowance in respect of the qualifying period;
(b) the person is taken to have attained the minimum age for youth allowance in respect of the qualifying period only because one or more of the grounds (the precluding grounds) referred to in subsection (2A) preclude subsection (2) from applying to the person;
the person is qualified for youth allowance under section 540 only in respect of so much of the qualifying period as does not exceed:
(c) if the only precluding ground is the ground referred to in paragraph (2A)(c) or (d)—6 weeks; or
(d) if the only precluding ground is the ground referred to in paragraph (2A)(h) or (j)—2 weeks; or
(e) if the only precluding ground is the ground referred to in paragraph (2A)(l)—the period for which the work, education or training lasts; or
(f) if the only precluding grounds are 2 or more of the grounds referred to in paragraphs (2A)(c), (d), (h), (j) and (l)—the longer or longest period prescribed by paragraphs (c), (d) and (e) of this subsection in relation to those precluding grounds; or
(g) otherwise—13 weeks or such longer period as the Secretary approves.
Part 5—Amendment commencing on 1 July 1999
Social Security Act 1991
87 Section 584A
Repeal the section, substitute:
584A Payment by instalments
(1) Austudy payment is to be paid:
(a) in arrears; and
(b) by instalments relating to such periods (not exceeding 14 days) as the Secretary determines.
(2) Instalments of austudy payment are to be paid at such times as the Secretary determines.
(3) The amount that is to be paid to a person as an instalment of austudy payment in relation to a period is the total of the amounts of austudy payment (calculated by reference to the daily rate of payment applicable to each day) payable to the person for the days in that period on which austudy payment was payable to the person.
(4) Each of the periods determined by the Secretary under subsection (1) is an instalment period in relation to austudy payment.
Part 6—Amendments commencing on 1 January 2000
Social Security Act 1991
88 After paragraph 552A(1)(d)
Insert:
(da) the scheme known as the Ready Reserve Education Assistance Scheme; and
89 After paragraph 578A(1)(d)
Insert:
(da) the scheme known as the Ready Reserve Education Assistance Scheme; and
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
1 Subsection 3(1) (paragraph (cb) of the definition of personal assistance)
Repeal the paragraph, substitute:
(cb) a payment of financial supplement under:
(i) Chapter 2B of the Social Security Act 1991; or
(ii) the Student Financial Supplement Scheme established under Chapter 2B of the Social Security Act 1991 as in force before the commencement of Schedule 2 to the Youth Allowance Consolidation Act 2000; or
Income Tax Assessment Act 1936
2 Subsection 163B(10) (paragraphs (a) and (b) of the definition of FS assessment debt)
Repeal the paragraphs, substitute:
(a) subsection 19AB(2) of the Social Security Act 1991; or
(b) the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.
3 Paragraph 202(ha)
Repeal the paragraph, substitute:
(ha) to facilitate the administration of:
(i) Part 2B.3 of the Social Security Act 1991; or
(ii) a provision of an instrument under Chapter 2B of the Social Security Act 1991 (as in force before the commencement of Schedule 2 to the Youth Allowance Consolidation Act 2000) establishing a Student Financial Supplement Scheme, being a provision relating to the recovery through the taxation system of a student’s outstanding indebtedness in respect of financial supplement paid to the student in accordance with the Scheme; and
4 Subsection 221ZY(1) (paragraphs (a) and (b) of the definition of FS assessment debt)
Repeal the paragraphs, substitute:
(a) subsection 19AB(2) of the Social Security Act 1991; or
(b) the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.
Taxation (Interest on Overpayments and Early Payments) Act 1983
5 Subsection 3(1) (paragraphs (a) and (b) of the definition of FS assessment debt)
Repeal the paragraphs, substitute:
(a) subsection 19AB(2) of the Social Security Act 1991; or
(b) the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.
Part 2—Amendments commencing on 1 July 1998
Farm Household Support Act 1992
6 Paragraph 24A(1)(a)
Repeal the paragraph, substitute:
(a) the fortnightly rate at which:
(i) if the person is of youth allowance age—youth allowance would be payable to the person if he or she were entitled to receive youth allowance; or
(ii) if the person is not of youth allowance age—newstart allowance would be payable to the person if he or she were entitled to receive newstart allowance;
7 Subsection 24A(1A) (paragraph (b) of the definition of income support payment rate)
After “newstart allowance”, insert “or youth allowance”.
8 Paragraph 24B(1)(a)
Repeal the paragraph, substitute:
(a) the fortnightly rate at which:
(i) if the person is of youth allowance age—youth allowance would be payable to the person if he or she were entitled to receive youth allowance; or
(ii) if the person is not of youth allowance age—newstart allowance would be payable to the person if he or she were entitled to receive newstart allowance; and
9 Subsection 24B(2) (paragraph (b) of the definition of income support payment rate)
After “newstart allowance”, insert “or youth allowance”.
Taxation Administration Act 1953
10 Paragraph 8WA(1)(b)
Repeal the paragraph, substitute:
(b) the first‑mentioned person requires or requests the number to be quoted in connection with that person exercising powers or performing functions under or in relation to, or complying with an obligation imposed by, a taxation law or a law of the Commonwealth of the kind referred to in paragraph 202(c), (d), (g), (h), (ha), (i) or (j) of the Income Tax Assessment Act 1936; or
11 Paragraphs 8WB(1)(d) and (e)
After “(h),”, insert “(ha),”.
Part 3—Amendment commencing on 1 July 1999
Taxation Administration Act 1953
12 Section 8AAZA (definition of FS assessment debt)
Repeal the definition, substitute:
FS assessment debt means an FS assessment debt under:
(a) subsection 19AB(2) of the Social Security Act 1991; or
(b) the Student Assistance Act 1973 as in force at a time on or after 1 July 1998.
[Minister’s second reading speech made in—
House of Representatives on 11 February 1999
Senate on 27 April 1999]
(8/99)
