SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - TABLE OF PROVISIONS
TABLE OF PROVISIONSSection 1. Short title, &c. 2. Commencement 3. Rate of age or invalid pension 4. Calculation of income in respect of children 5. Omission of heading 6. Repeal of section 30A and substitution of new section - 30. Rent assistance 7. Notification by pensioner 8. Rate of wife's pension 9. Receipt of income or occurrence of event to be notified 10. Inmates of benevolent homes 11. Rate of widow's pension 12. Calculation of income in respect of children 13. Omission of heading 14. Repeal of section 65A and substitution of new section - 65. Rent assistance 15. Notification by widow 16. Receipt of income or occurrence of an event to be notified 17. Inmates of benevolent homes 18. Application of certain provisions 19. Interpretation 20. Rent assistance 21. Income test 22. Interpretation 23. Notification 24. Persons eligible to be paid rehabilitation allowance 25. Rate of rehabilitation allowance 26. Payment and calculation of instalments of certain pensions, &c. Section 27. Payments received under the New Enterprise Incentive Scheme - effect where recipient is in receipt of a particular pension benefit or allowance and spouse of recipient is not in receipt of wife's pension or carer's pension 28. Payments received under the New Enterprise Incentive Scheme - effect where spouse of recipient is in receipt of wife's pension or carer's pension 29. Application of amendments 30. Transitional SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - LONG TITLE
An Act relating to social security (Assented to 16 December 1985) SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 1 Short title, &c.
1. (1) This Act may be cited as the Social Security (Poverty Traps Reduction) Act 1985. (2) The Social Security Act 1947*1* is in this Act referred to as the Principal Act. (Minister's second reading speech made in- House of Representatives on 16 October 1985, Senate on 3 December 1985) *1*No. 26, 1947, as amended. For previous amendments, see Nos. 38 and 69, 1948; No. 16, 1949; Nos. 6 and 26, 1950; No. 22, 1951; Nos. 41 and 107, 1952; No. 51, 1953 ; No. 30, 1954; Nos. 15 and 38, 1955; Nos. 67 and 98, 1956; No. 46, 1957; No. 44, 1958; No. 57, 1959; No. 45, 1961; Nos. 1 and 95, 1962; No. 46, 1963; Nos. 3 and 63, 1964; Nos. 57 and 152, 1965; No. 41, 1966; Nos. 10 and 61, 1967; No. 65, 1968; No. 94, 1969; Nos. 2 and 59, 1970; Nos. 16 and 67, 1971; Nos. 1, 14, 53 and 79, 1972; Nos. 1, 26, 48, 103 and 216, 1973; Nos. 2, 23 and 91, 1974; Nos. 34, 56 101 and 110, 1975; Nos. 26, 62 and 111, 1976; No. 159, 1977; No. 128, 1978; No. 121, 1979 (as amended by Nos. 37 and 98, 1982); No. 130, 1980; Nos. 61 and 1970, 1981; No. 159, 1981 (as amended by No. 98, 1982); Nos. 37, 38 and 148, 1982; Nos. 4 and 36, 1983; No. 69, 1983 (as amended by No. 78, 1984); Nos. 46, 78, 93, 120, 134 and 165, 1984; and Nos. 24, 52, 95 and 127, 1985. SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 2 Commencement
2. This Act shall come into operation on 1 November 1986. SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 3 Rate of age or invalid pension
3. Section 28 of the Principal Act is amended - (a) by inserting in paragraph (1D) (a) "or section 30" after "subsection (1AA) OR (1B)"; (b) by inserting in paragraph (1D) (a) "and section 30" after "subsections (1AA) and (1B)"; (c) by omitting from paragraph (1D) (b) "payable" and substituting "applicable"; (d) by inserting in paragraph (1D) (b) "or by an amount under section 30," after "sub-section (1B)," (first occurring); (e) by inserting in paragraph (1D) (b) "or section 30," after "subsection (1B)," (last occurring); (f) by omitting from paragraph (1D) (b) "that would, in accordance with
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sub-section (2AAA), be taken to be included in, or to make up," and substituting "that comprises"; (g) by omitting from sub-paragraph (2) (a) (i) "$1,560" and substituting "$2,080"; (h) by omitting from sub-paragraph (2) (a) (ii) "$1,300" and substituting "$1,820"; (j) by omitting sub-section (2AAA); and (k) by inserting after sub-section (2AD) the following sub-section: "(3) Where - (a) the rate of pension applicable to a person is increased under this section, under section 30 or under this section and under section 30; and (b) the rate of that pension is to be reduced under sub-section (2) of this section, that sub-section shall be applied first to the rate of that pension apart from any increase under this section or under section 30, then to the amount of any increase under section 30 and then to the amount of any increase under this section.". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 4 Calculation of income in respect of children
4. Section 29 of the Principal Act is amended - (a) by omitting from paragraph (a) "$312" and substituting "$624"; and (b) by omitting from paragraph (b) "$156" and substituting "$312". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 5 Omission of heading
5. The heading to Division 4A of Part III is omitted.
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 6
6. Section 30A of the Principal Act is repealed and the following section is substituted:
Rent assistance "30. (1) Subject to this Part, this section applies to a person who is qualified to receive a pension under this Part, in respect of any period during which - (a) the person pays, or is liable to pay, rent at a rate exceeding $520 per annum; (b) the person is not and, if the person is a married person and the persons's spouse is living with the person in their home, the spouse is not, eligible to receive an incentive allowance under section 26 or 133JA; and (c) the person is in Australia. "(2) For the purposes of the application of this section to a married person - (a) where the person's spouse is living with the person in their home - any rent that the spouse pays, or is liable to pay, in respect of that home shall be deemed to be paid, or payable, by the person; and (b) where a direction is in force under sub-section 28 (1AAA) or subsection 32 (1A) in respect of the person - any rent that the person's spouse pays, or is liable to pay, in respect of the premises occupied by the person shall be deemed to be paid, or payable, by the person. "(3) Subject to sub-section (4), where this section applies to a person, the maximum rate of pension applicable to the person shall be increased by an amount per annum equal to - (a) 50% of the amount by which the amount of the annual rent paid, or payable, by the person exceeds $520; or (b) $780, whichever is the lesser amount. "(4) Where this section applies to a married person - (a) whose spouse is living with the person in their home; and (b) to whose spouse there is payable a prescribed pension (other than a benefit under Part VII) the rate of which is increased by reference to an amount of rent paid, or payable, by the person, the amount of any increase in the maximum rate of pension applicable to the person under sub-section (3) shall be reduced by 50%.". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 7 Notification by pensioner
7. Section 30B of the Principal Act is amended - (a) by omitting from sub-sections (1) and (1A) "in receipt of an allowance under section 30A" and substituting "the rate of whose pension is increased under section 30"; (b) by omitting paragraphs (1) (b) and (c) and substituting the following word and paragraph: "or (b) has the rate of that rent reduced,"; (c) by omitting from sub-section (1) ",the date on which his rate of rent was reduced or the last day of the period referred to in paragraph (c)" and substituting "or the date on which that reduction took place"; and (d) by omitting sub-section (2). SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 8 Rate of wife's pension
8. Section 32 of the Principal Act is amended - (a) by omitting from paragraph (2) (a) "$1,300" and substituting "$1,820";
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and (b) by adding at the end the following sub-section: "(3) Where - (a) the rate of a wife's pension applicable to a wife is increased under this section, under section 30 or under this section and under section 30; and (b) the rate of that pension is to be reduced under sub-section (2) of this section, that sub-section shall be applied first to the rate of that pension apart from any increase under this section or under section 30, then to the amount of any increase under section 30 and then to the amount of any increase under this section.". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 9 Receipt of income or occurrence of event to be notified
9. Section 45 of the Principal Act is amended - (a) by omitting paragraph (1) (c) and substituting the following paragraph: "(c) is not a person in receipt of a pension the rate of which is increased under section 30,"; (b) by omitting from sub-section (1) "$30" and substituting "$40"; (c) by omitting sub-paragraph (2) (a) (iii) and substituting the following sub-paragraph: "(iii) is not a person in receipt of a pension the rate of which is increased under section 30; and"; and (d) by omitting from sub-section (2) "$50" and substituting "$70". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 10 Inmates of benevolent homes
10. Section 50 of the Principal Act is amended by omitting from subsection (2) "(being the sum of the person's pension under this Part and any allowance to which the person is entitled under section 30A)".
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 11 Rate of widow's pension
11. Section 63 of the Principal Act is amended - (a) by omitting from paragraph (2) (a) "$1,560" and substituting "$2,080"; and (b) by adding at the end the following sub-section: "(4) Where the rate of a widow's pension applicable to a class A widow or a class B widow is to be reduced under sub-section (2) of this section, that sub-section shall be applied first to that part of the rate of that pension that is calculated by reference to paragraph 28 (1) (a), then to the amount of any increase under section 65 and then to that part of the rate of that pension (if any) calculated by reference to sub-section 28 (1AA) or (1B).".
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 12 Calculation of income in respect of children
12. Section 64 of the Principal Act is amended by omitting from paragraph (a) "$312" and substituting "$624".
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 13 Omission of heading
13. The heading to Division 3A of Part IV is omitted.
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 14
14. Section 65A of the Principal Act is repealed and the following section is substituted:
Rent assistance "65. (1) Subject to this Part, this section applies to a widow who is qualified to receive a pension under this Part in respect of any period during which - (a) the widow pays, or is liable to pay, rent at a rate exceeding $520 per annum; and (b) the widow is in Australia. "(2) Where this section applies to a widow, the maximum rate of pension under this Part applicable to the widow shall be increased by an amount per annum equal to - (a) 50% of the amount by which the amount of the annual rent paid, or payable, by the widow exceeds $520; or (b) $780, whichever is the lesser amount.". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 15 Notification by widow
15. Section 65B of the Principal Act is amended - (a) by omitting "in receipt of an allowance under section 65A" (wherever occurring) and substituting "the rate of whose pension is increased under section 65"; (b) by omitting paragraphs (1) (b) and (c) and substituting the following word and paragraph: "or (b) has the rate of that rent reduced,"; and (c) by omitting from sub-section (1) ", the date on which the rate of her rent was reduced or the last day of the period referred to in paragraph (c)" and substituting "or the date on which that reduction took place". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 16 Receipt of income or occurrence of an event to be notified
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16. Section 74 of the Principal Act is amended - (a) by omitting from sub-section (1) "an allowance under section 65A" and substituting "a pension the rate of which is increased under section 65"; and (b) by omitting from sub-section (1) "$30" and substituting "$40". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 17 Inmates of benevolent homes
17. Section 80 of the Principal Act is amended by omitting from subsection (2) "(being the sum of her widow's pension and any allowance to which she is entitled under section 65A)".
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 18 Application of certain provisions
18. Section 83AAG of the Principal Act is amended - (a) by omitting "3A,"; and (b) by adding at the end the following sub-section: "(2) Where the rate of a supporting parent's benefit payable to a person is increased by reference to section 30 or 65, section 30B or 65B, as the case may be, applies in relation to the person.".
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 19 Interpretation
19. Section 106 of the Principal Act is amended - (a) by omitting "and includes an allowance under this Part" from the definition of "benefit" in sub-section (1); and (b) by omitting from sub-section (1) the definition of "rent assistance". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 20 Rent assistance
20. Section 112A of the Principal Act is amended - (a) by omitting paragraph (b) of the definition of "prescribed period" in sub-section (1) and substituting the following paragraph: "(b) in relation to a person who is qualified to receive a sickness benefit in respect of a period and who, immediately before becoming qualified to receive that benefit, was receiving - (i) an incentive allowance under section 26 or 133JA; or (ii) a prescribed pension the rate of which was calculated by reference to rent paid, or payable, by the person or to an incentive allowance under section 26 or 133JA, any part of that period in respect of which the person pays, or is liable to pay, rent at a weekly rate exceeding $10;"; (b) by omitting "or a special benefit" from paragraphs (c) and (d) of the definition of "prescribed period" in sub-section (1); and (c) by omitting sub-section (3), (3AA), (3A), (3B), (3C) and (4) and substituting the following sub-sections: "(3) Subject to this Part, where a person - (a) who is qualified to receive an unemployment benefit or a sickness benefit; (b) who is in Australia; (c) if the person is a married person who is living with his or her spouse in their home - whose spouse is not in receipt of - (i) an incentive allowance under section 26 or 133JA; or (ii) a prescribed pension (other than a benefit) the rate of which is calculated by reference to rent paid, or payable, by the person or to an incentive allowance under section 26 or 133JA; and (d) if the benefit is an unemployment benefit - (i) who is over the age of 25 years; (ii) who is a married person or who has a dependant; or (iii) who is over the age of 18 years and living permanently or indefinitely away from the principal home of each parent of the person, this section applies to the person in respect of any period that is a prescribed period in relation to the person. "(4) Subject to sub-section (5), where this section applies to a person, the amount of benefit applicable to the person shall be increased by an amount per week equal to - (a) in the case of a person who is qualified to receive a sickness benefit - (i) 50% of the amount by which the amount of the weekly rent paid, or payable, by the person exceeds $10; or (ii) $15; whichever is the lesser amount; or (b) in the case of a person who is qualified to receive an unemployment benefit - (i) 50% of the amount by which the amount of the weekly rent paid, or payable, by the person exceeds $10; or (ii) $10, whichever is the lesser amount. "(5) Where this section applies to a married person - (a) whose spouse is living with the person in their home; and (b) to whose spouse this section also applies, the amount of any increase in the amount of benefit applicable to the person under sub-section (4) shall be reduced by 50%.".
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SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 21 Income test
21. Section 114 of the Principal Act is amended by inserting after subsection (3) the following sub-section:
"(4) Where - (a) the rate of an unemployment or sickness benefit applicable to a person under sub-sections 112 (1), (2), (3) and (4) is increased under another sub-section of section 112, under section 112A or under such another sub-section and under 112A; and (b) the rate of that benefit is to be reduced under this section, this section shall be applied first to the rate of that benefit apart from any increase, then to the amount of any increase under section 112A and then to the amount of any other increase.". SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 22 Interpretation
22. Section 115 of the Principal Act is amended by omitting sub-section (1) and substituting the following sub-section:
"115. (1) In this Division, 'sickness benefit' includes so much of any amount paid to a person by way of a rehabilitation allowance under Part VIII as, in the opinion of the Secretary, would have been payable to the person by way of sickness benefit in respect of a relevant incapacity if that rehabilitation allowance had not become payable to the person.".
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 23 Notification
23. Section 130 of the Principal Act is amended by omitting from subsections (1A) and (1AA) "to whom rent assistance is payable" and substituting "the rate of whose benefit is increased under section 112A".
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 24 Persons eligible to be paid rehabilitation allowance
24. Section 135B of the Principal Act is amended by omitting from subsection (3) "(including incentive allowance or an allowance by way of rent assistance)".
SOCIAL SECURITY (POVERTY TRAPS REDUCTION) ACT 1985 No. 169, 1985 - SECT 25 Rate of rehabilitation allowance
25. Section 135BA of the Principal Act is amended - (a) by omitting from sub-paragraph (1) (a) (i) "(including any amount by way of rent assistance or incentive allowance)"; (b) by omitting from sub-paragraph (1) (a) (ii) "(including any amount by way of rent assistance or incentive allowance)"; (c) by omitting from sub-paragraph (1) (b) (i) "or 30A"; (d) by omitting from sub-paragraph (1) (b) (ii) "or 30A"; and (e) by omitting from sub-section (2) "(other than an allowance by way of rent assistance)".