Table of pensions, benefits and allowances
Item	Type of pension, benefit and allowance
1	Age pension	(Part 2.2)
2	Service pension (age)	(Section 36 of the Veterans’ Entitlements Act)
3	Defence widow’s pension—if the widow has no dependent children	(Section 70 of the Veterans’ Entitlements Act)
4	War widow’s pension—if the widow has no dependent children	(Section 13 of the Veterans’ Entitlements Act)
5	Mature age allowance	(Part 2.12A or 2.12B)
6	Rehabilitation allowance	(Clause 35 of Schedule 1A)
7	Commonwealth allowance	(New Enterprise Incentive Scheme (NEIS))
8	Carer payment	(Part 2.5)
9	Service pension (carer)	(Section 39 of the Veterans’ Entitlements Act)
10	Defence widow’s pension—if the widow has a dependent child	(Section 70 of the Veterans’ Entitlements Act)
11	Disability support pension	(Part 2.3)
12	Service pension (invalidity)	(Section 37 of the Veterans’ Entitlements Act)
13	War widow’s pension—if the widow has a dependent child	(Section 13 of the Veterans’ Entitlements Act)
14	Newstart allowance	(Part 2.12)
15	Sickness allowance	(Part 2.14)
16	Special benefit	(Part 2.15)
17	Benefit PP (partnered)	(Part 2.10)

573B Assets value limit

(1) A person’s assets value limit is:

(a) $125,750 if the person:

(i) is not a member of a couple (see section 4); and

(ii) is a homeowner; or

(b) $215,750 if the person:

(i) is not a member of a couple; and

(ii) is not a homeowner; or

(c) $178,500 if the person:

(i) is a member of a couple; and

(ii) is a homeowner; or

(d) $268,500 if the person:

(i) is a member of a couple; and

(ii) is not a homeowner.

Note 1: For homeowner see subsection 11(4).

Note 2: The amounts in this section are indexed annually on 1 July (see sections 1191 to 1194).

(2) If the Secretary determines in writing a higher amount in substitution for an amount specified in subsection (1) (the existing amount), the higher amount is taken, from the commencement of this section, to have been substituted for the existing amount. A determination under this subsection is a disallowable instrument.

(3) Subsection (2) and this subsection are repealed at the end of 31 December 1998.

573C Value of person’s assets to include value of assets of partner

The value of a person’s assets is the sum of the following values:

(a) the value of the person’s assets (disregarding paragraph (b));

(b) if the person is a member of a couple (see section 4)—the value of the assets of the person’s partner.

Sections 573D and 573E apply for the purpose of working out the value of the person’s assets and of his or her partner (if any).

573D Assets of trust in which person benefits

A person’s assets include:

(a) any benefit to which the person is entitled directly or indirectly out of the assets of a trust; and

(b) any asset of a trust that the person can deal with directly or indirectly to his or her advantage; and

(c) any interest in the assets of a trust which has been assigned to someone else but which the person can directly or indirectly control.

573E Exclusion of certain farm assets

If:

(a) an exceptional circumstances certificate referred to in section 8A of the Farm Household Support Act 1992 was issued in respect of a person; and

(b) the certificate has effect;

the person’s assets do not include any asset that is an exempt asset in respect of the person within the meaning of that Act.

Subdivision C—Provisional commencement day

574 Provisional commencement day—basic rule

Subject to this Subdivision, a person’s provisional commencement day is the day on which the person claims an austudy payment.

574A Provisional commencement day—initial incorrect or inappropriate claim followed by claim for austudy payment

Subject to section 574B, if:

(a) a person makes a claim (initial claim) for:

(i) a social security pension, a social security benefit (other than an austudy payment) or a service pension; or

(ii) a pension, allowance, benefit or other payment that is similar in character to an austudy payment under an Act other than this Act or under a program administered by the Commonwealth; and

(b) on the day on which the person makes the initial claim, the person is qualified for austudy payment; and

(c) the person afterwards makes a claim for austudy payment; and

(d) the Secretary is satisfied that it is reasonable for this subsection to apply to the person;

the person’s provisional commencement day is the day on which the person made the initial claim.

574B Provisional commencement day—transferee to austudy payment

If a person:

(a) is a transferee to austudy payment; and

(b) claims austudy payment within 14 days after the transfer day;

the person’s provisional commencement day is the person’s transfer day.

Note: For transferee to austudy payment and transfer day see subsections 23(6) and (7).

574C Provisional commencement day—application of section 577C or reduction of rate to nil

If:

(a) a person receives an austudy payment; and

(b) either:

(i) the person is subject to an administrative exclusion because of the application of section 577C; or

(ii) an administrative breach rate reduction period under Subdivision C of Division 5 applies to the person and the person’s administrative breach reduced rate is a nil rate; and

(c) payment of the allowance is cancelled or automatically terminated; and

(d) the person lodges a claim for austudy payment within 14 days after the date of effect of the cancellation or automatic termination referred to in paragraph (c);

the person’s provisional commencement day is the day after the date of effect of the cancellation or automatic termination.

574D Provisional commencement day—claim resulting from a major disaster

If a person:

(a) claims a disaster relief payment; and

(b) is qualified for the payment; and

(c) as a result of the major disaster to which the payment relates, claims austudy payment within 14 days after the day on which the person claimed the disaster relief payment;

the person’s provisional commencement day is the day on which he or she was affected by the disaster.

Subdivision D—Waiting periods

575 Waiting periods

For the purposes of this Part, a person may be subject to the following waiting periods:

(a) a liquid assets test waiting period (see sections 575A, 575B and 575C);

(b) a newly arrived resident’s waiting period (see sections 575D and 575E).

575A Liquid assets test waiting period

When person subject to liquid assets test waiting period—general

(1) Subject to this section, if:

(a) the value of a person’s liquid assets is more than the person’s maximum reserve on:

(i) the day on which the person becomes qualified for austudy payment; or

(ii) the day on which the person claims austudy payment; and

(b) the person is not a transferee to austudy payment;

the person is subject to a liquid assets test waiting period.

Note 1: For liquid assets and maximum reserve see section 14A.

Note 2: For transferee to austudy payment see subsections 23(6) and (7).

Exception—person already subject to liquid assets test waiting period in previous 12 months

(2) Subsection (1) does not apply to a person if, at any time during the 12 months before:

(a) the day on which the person becomes qualified for austudy payment; or

(b) the day on which the person claims austudy payment;

the person:

(c) was subject to a liquid assets test waiting period under this Part and that period has ended; or

(d) has served a liquid assets test waiting period under another Part of this Act; or

(e) has served a liquid assets test waiting period under the Student Assistance Act 1973 as previously in force.

Exception—waiver for hardship

(3) If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while serving a liquid assets test waiting period, the Secretary may determine that the person does not have to serve the whole, or any part, of the waiting period.

Note 1: For in severe financial hardship see subsections 19C(2) (person who is not a member of a couple) and 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Exception—certain transferees to austudy payment

(4) Subsection (1) does not apply to a person if:

(a) the person is a transferee to austudy payment; and

(b) the person claims austudy payment within 14 days of the transfer day.

575B Start of liquid assets test waiting period

The liquid assets test waiting period of a person starts on the day on which the person became qualified for austudy payment.

575C Length of liquid assets test waiting period

Number of weeks

(1) A person’s liquid assets test waiting period is:

(a) if the result obtained under subsection (2) is 13 or more whole weeks—13 weeks; or

(b) if the result obtained under subsection (2) is fewer than 13 whole weeks—the number of whole weeks obtained under that subsection.

Working out number of weeks

(2) Subject to subsection (3), the number of weeks is worked out by using the following formula:

where:

divisor, in relation to the person, means:

(a) if the person is not a member of a couple and does not have a dependent child—$500; or

(b) otherwise—$1,000.

liquid assets means the person’s liquid assets on the day referred to in subparagraph 575A(1)(a)(i) or (ii) (as the case requires).

maximum reserve amount means the maximum reserve in relation to the person under subsection 14A(1).

Weeks etc. to be disregarded

(3) For the purposes of subsection (2), disregard:

(a) any weeks after the person claimed austudy payment during which the person was not qualified for austudy payment; and

(b) any fractions of a week.

575D Newly arrived resident’s waiting period

Basic rule

(1) Subject to this section, a person is subject to a newly arrived resident’s waiting period if the person:

(a) has entered Australia on or after 4 March 1997; and

(b) has not been an Australian resident in Australia for a period of, or periods totalling, 104 weeks.

Note: For Australian resident see subsection 7(2).

Exception—qualifying residence exemption

(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for an austudy payment.

Note: For qualifying residence exemption see subsection 7(6).

Exception—person already subject to waiting period etc.

(3) Subsection (1) does not apply to a person if:

(a) the person has been subject to:

(i) a newly arrived resident’s waiting period under this Act; or

(ii) a waiting period under Part 2 of the Student Assistance Act 1973 as in force immediately before 1 July 1998; or

(iii) a newly arrived resident’s waiting period under Part 8 of the Student Assistance Act 1973 as in force immediately before 1 July 1998; and

(b) that period has ended.

(4) Subsection (1) does not apply to a person if:

(a) the person would:

(i) if the person had made a claim under this Act for a social security payment other than youth allowance—have been subject to a newly arrived resident’s waiting period under this Act; or

(ii) if the person had, before 1 July 1998, made a claim under the Student Assistance Act 1973—have been subject to a waiting period under Part 2 of that Act or a newly arrived resident’s waiting period under Part 8 of that Act;

and that period would have ended; or

(b) the person has had:

(i) a qualifying residence exemption for a newstart allowance or a sickness allowance under this Act; or

(ii) a qualifying residence exemption for a youth training allowance under the Student Assistance Act 1973; or

(c) in the case of an AUSTUDY allowance recipient—the person was not subject to a waiting period.

575E Length of newly arrived resident’s waiting period

If a person is subject to a newly arrived resident’s waiting period, the period:

(a) starts on the day on which the person first entered Australia; and

(b) ends when the person has been an Australian resident in Australia for a period of, or periods totalling, 104 weeks after that day.

Note: For Australian resident see subsection 7(2).

575F Effect of being subject to 2 waiting periods

For the avoidance of doubt, if a person is subject to 2 waiting periods under this Subdivision, an austudy payment is not payable to the person until both of those waiting periods have ended.

Subdivision E—Activity test non-payment periods

576 Third and subsequent activity test breaches lead to activity test non-payment period

An activity test non-payment period applies to a person if:

(a) the person commits an activity test breach (latest breach); and

(b) the latest breach is the third or subsequent activity test breach in the 2 years immediately before the day after the latest breach.

Note: If the latest breach is the first or second activity test breach in the 2 years before the latest breach, an activity test rate reduction period applies to the person (see Subdivision B of Division 5).

576A Activity test breaches

A person has committed an activity test breach if:

(a) the person fails to satisfy the activity test (see Subdivision B of Division 1); or

(b) the person refuses or fails, without reasonable excuse, to provide information in relation to the person’s income from remunerative work when required to do so under this Act; or

(c) the person knowingly or recklessly provides false or misleading information in relation to the person’s income from remunerative work when required to do so under this Act.

Note: An activity test breach may also arise under other sections of this Act and the Student Assistance Act 1973 as in force immediately before the commencement of section 576A of this Act (see subsection 23(1)).

576B Length of activity test non-payment period

Basic rule

(1) Subject to subsection (2), the length of an activity test non-payment period is 8 weeks.

Pre-existing non-payment period

(2) If, at the time of the commencement of an activity test non-payment period under this Part, the person is already subject to an activity test non-payment period (pre-existing non-payment period), the pre-existing non-payment period is taken to end immediately before the commencement of the activity test non-payment period under this Part.

576C Start of activity test non-payment period

Notice of start of period

(1) If an activity test non-payment period applies to a person under this Part, the Secretary must give the person a written notice telling the person of the start of the period.

General rule

(2) Subject to subsection (3) of this section and section 576E, the activity test non-payment period starts on the day on which the notice is given to the person.

Austudy payment ceasing to be payable

(3) Subject to section 576E, if:

(a) on or before the day on which a person’s activity test non-payment period would (apart from this subsection) have started, an austudy payment ceases to be payable to the person; and

(b) it has not ceased to be payable because of the application of an activity test non-payment period;

the activity test non-payment period starts on the day on which the austudy payment ceases to be payable to the person.

576D Interaction with activity test breach rate reduction periods

Application of section

(1) This section applies if, under this Part:

(a) an activity test non-payment period applies to a person; and

(b) during the whole or a part of that period, the whole or a part of an activity test breach rate reduction period (overlap period) applies to the person.

Note: An administrative breach rate reduction period may also apply to the person (see section 583C).

Overlap period

(2) Subject to subsection (4), the activity test non-payment period and the activity test breach rate reduction period are to run concurrently during the overlap period.

Which restriction is to apply

(3) Subject to section 576E, only the non-payment restriction relating to the activity test non-payment period is to apply to the person during the overlap period.

Pre-existing activity test breach rate reduction period

(4) If, at the time of the commencement of an activity test non-payment period under this Part, the person is already subject to an activity test breach rate reduction period (pre-existing reduction period), the pre-existing reduction period is taken to end immediately before the commencement of the activity test non-payment period under this Part.

576E Interaction with waiting periods

Application of section

(1) This section applies if, under this Part:

(a) an activity test non-payment period applies to a person; and

(b) during the whole or a part of that period, the whole or a part of a waiting period (overlap period) applies to the person.

Note: An administrative breach rate reduction period may also apply to the person (see section 583C).

Overlap period

(2) The non-payment period and the waiting period are to run concurrently during the overlap period.

Which restriction is to apply

(3) Despite any other provision of this Act, only the restriction on payment relating to the waiting period is to apply to the person during the overlap period.

576F Effect of sections 576C, 576D and 576E

For the avoidance of doubt, sections 576C, 576D and 576E do not prevent an austudy payment ceasing to be payable in circumstances that do not involve the application of an activity test non-payment period under this Part.

576G Where one event may give rise to both an activity test penalty and an administrative breach rate reduction period

If, but for this section, an event would result in both an activity test penalty period and an administrative breach rate reduction period applying to a person under the provisions of this Act, only the provision imposing the activity test penalty period is to apply to the person.

Subdivision F—Administrative exclusions

577 Administrative exclusions

For the purposes of this Division, a person is subject to an administrative exclusion while one or more of sections 577A to 577D apply to the person.

Note: These sections apply because the person fails to do certain things. It is open to the person to end the administrative exclusion by doing those things.

577A Failure to comply with request to provide person’s tax file number

Person must provide tax file number or employment declaration

(1) A person is subject to an administrative exclusion if:

(a) the Secretary has requested the person under section 579F or 586:

(i) to give the Secretary a written statement of the person’s tax file number; or

(ii) to apply for a tax file number and give the Secretary a written statement of the person’s tax file number once 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).

Person does not know tax file number

(2) A 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 of Taxation 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 of Taxation has not told the Secretary that the person has no tax file number.

Application for tax file number pending

(3) A person satisfies this subsection if:

(a) the person’s 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 of Taxation has not told the Secretary that the person has not applied for a tax file number; and

(d) the Commissioner of Taxation 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.

577B Failure to comply with request to provide partner’s tax file number

Person must provide partner’s tax file number

(1) Subject to subsection (4), a person is subject to an administrative exclusion if:

(a) the person is a member of a couple; and

(b) the person is requested under section 579G or 586A to give the Secretary a written statement of the tax file number of the person’s partner; and

(c) at the end of 28 days after the request is made the person has neither:

(i) given the Secretary a written statement of the partner’s tax file number; nor

(ii) given the Secretary a declaration by the partner in a form approved by the Secretary and satisfied either subsection (2) or (3).

Partner does not know tax file number

(2) The person satisfies this subsection if:

(a) the partner’s declaration states that the partner:

(i) has a tax file number but does not know what it is; and

(ii) has asked the Commissioner of Taxation to inform the partner of the partner’s tax file number; and

(b) the person has given the Secretary a document signed by the partner that authorises the Commissioner of Taxation to tell the Secretary:

(i) whether the partner has a tax file number; and

(ii) if the partner has a tax file number—the tax file number; and

(c) the Commissioner of Taxation has not told the Secretary that the partner has no tax file number.

Application for partner’s tax file number pending

(3) The person satisfies this subsection if:

(a) the partner’s declaration states that the partner has applied for a tax file number; and

(b) the person has given the Secretary a document signed by the partner that authorises the Commissioner of Taxation to tell the Secretary:

(i) if a tax file number is issued to the partner—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 of Taxation has not told the Secretary that an application by the partner for a tax file number has been refused; and

(d) the application for a tax file number has not been withdrawn.

Secretary may waive requirement

(4) The Secretary may waive the request for a statement of the partner’s tax file number if the Secretary is satisfied that:

- (a) the person does not know the partner’s tax file number; and

(b) the person can obtain none of the following from the partner:

(i) the partner’s tax file number;

(ii) a statement of the partner’s tax file number;

(iii) a declaration by the partner under subparagraph (1)(c)(ii).

577C Failure to attend the Department etc.—person required to satisfy activity test etc.

Requirement to attend the Department etc.

(1) Subject to subsection (2), a person is subject to an administrative exclusion if:

(a) a person is receiving, or has lodged a claim for, an austudy payment; and

(b) the Secretary is of the opinion that the person should:

(i) attend an office of the Department; or

(ii) contact the Department; or

(iii) give information to the Secretary; and

(c) the Secretary informs the person that the person is required to:

(i) attend that office; or

(ii) contact that Department; or

(iii) give that information; and

(d) the requirement is reasonable; and

(e) the person does not comply with the requirement.

Reasonable excuse for non-compliance

(2) The Secretary may determine that a person is not subject to an administrative exclusion under this section if the Secretary is satisfied that the person had a reasonable excuse for not complying with the requirement.

577D Failure to nominate account etc.

Period within which account is to be nominated

(1) A person is subject to an administrative exclusion if, at the end of the period (preliminary period) of 28 days starting on the day on which an austudy payment became payable to the person:

(a) no account has been nominated for the purposes of subsection 584E(2); and

(b) the Secretary has not given a direction under subsection 584E(4) in relation to the payment of instalments of the austudy payment to the person.

Cessation of administrative exclusion

(2) If an account is nominated for the purposes of subsection 584E(2) after the end of the preliminary period, then, subject to this Part, the person ceases to be subject to the administrative exclusion and the allowance is payable to the person:

(a) if the nomination was made within 3 months after the end of the preliminary period—on and from the first day after the end of that period; or

(b) otherwise—on and from the day on which the nomination was made.

Subdivision G—Multiple entitlement exclusions

578 Multiple entitlement exclusions

For the purposes of this Division, a person is subject to a multiple entitlement exclusion if:

(a) the person is receiving an austudy payment and another social security benefit, a social security pension or a service pension becomes payable to the person; or

(b) a payment under a scheme referred to in section 578A has been or may be made to the person; or

(c) an assurance of support applies to the person (see section 578B); or

(d) the person has received, or may receive, income that is paid by a community or group from funds provided under a Commonwealth funded employment program.

Note: For Commonwealth funded employment program see subsection 23(1).

578A Person receiving payment under certain schemes

General

(1) Subject to subsection (2), the schemes for the purposes of paragraph 578(b) are:

(a) a prescribed educational scheme other than the ABSTUDY Tertiary Scheme to the extent that it applies to part-time students; and

(b) the scheme to provide an allowance known as the Maintenance Allowance for Refugees; and

(c) the scheme to provide an allowance known as the Adult Migrant Education Program Living Allowance; and

(d) the scheme to provide an allowance known as the English as a Second Language Allowance to the extent that the scheme applies to full-time students; and

(e) a LEAP program.

Note 1: For prescribed educational scheme see section 5.

Note 2: For LEAP program see subsection 23(1).

Application made under ABSTUDY Scheme

(2) If:

(a) a person is undertaking qualifying study in respect of a course of education that is to last for 6 months or more; and

(b) an application is made for a payment in respect of the person under:

(i) the ABSTUDY Schooling Scheme; or

(ii) the ABSTUDY Tertiary Scheme; and

(c) the person was receiving an austudy payment immediately before the start of the course;

the Secretary may decide that the person is not subject to a multiple entitlement exclusion, because of subsection (1), before:

(d) the application is determined; or

(e) the end of the period of 3 weeks beginning on the day on which the course starts;

whichever happens first.

578B Assurance of support

An assurance of support applies to a person if:

(a) an assurance of support is in force in respect of the person (assuree); and

(b) the person who gave the assurance was willing and able to provide an adequate level of support to the assuree; and

(c) it was reasonable for the assuree to accept that support.

Note: For assurance of support see subsection 23(1).

Division 3—Claim for austudy payment

579 Need for a claim

Proper claim

(1) A person who wants to be granted an austudy payment must make a proper claim for the austudy payment.

Note: For proper claim see section 579A (form), sections 579B and 579C (manner of lodgment) and section 579D (residence/presence in Australia).

Claim taken not to be made

(2) For the purposes of subsection (1), if:

(a) a claim for an austudy payment is made by or on behalf of a person; and

(b) at the time the claim is made, the claim cannot be granted because the person is not qualified for austudy payment;

the claim is taken not to have been made.

579A 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.

579B Lodgment of claim

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.

579C Claims by telephone, facsimile or computer

Contacting Department prior to lodging claim

(1) A person is taken to have lodged a claim in accordance with section 579B on the day on which the Department is contacted under paragraph (a) of this section if:

(a) the Department is contacted by or on behalf of the person by telephone, or by the transmission of a message by use of facsimile or computer equipment, in relation to making a claim for:

(i) an austudy payment; or

(ii) a disability support pension; or

(iii) a sickness allowance; or

(iv) a newstart allowance; and

(b) on that day, the person was qualified for an austudy payment; and

(c) the Secretary gives the person a written notice acknowledging that the Department has been contacted in relation to making the claim; and

(d) the person lodges a claim for a pension or allowance referred to in paragraph (a) within the period allowed under this section; and

(e) if the claim referred to in paragraph (d) is not a claim for an austudy payment—the person subsequently lodges a claim for an austudy payment; and

(f) either:

(i) the person gives the Secretary the notice referred to in paragraph (c) when lodging the claim referred to in paragraph (d); or

(ii) the Department has a written record that the notice referred to in paragraph (c) has been sent to the person.

Period for lodging claim

(2) Subject to subsection (3), for the purposes of paragraph (1)(d), the period is 14 days after the day on which the Department is contacted.

Extensions of period

(3) The Secretary may determine by written notice given to the person:

(a) within the 14 day period referred to in subsection (2); or

(b) within the period of any extension under this subsection;

that the period for the purposes of paragraph (1)(d) is extended for such further period as the Secretary considers reasonable.

Time Department taken to have been contacted

(4) For the purposes of this section, a person who contacts the Department by transmitting a message by use of facsimile or computer equipment is taken to have done so when the message is received in the Department.

579D Claimant must be Australian resident and in Australia

A claim by a person is not a proper claim unless the person is:

(a) an Australian resident; and

(b) in Australia;

on the day on which the claim is lodged.

Note: For Australian resident see subsections 7(2) and (3).

579E Claim may be withdrawn

Withdrawal of claim

(1) A claimant for an austudy payment or a person on behalf of the claimant may withdraw a claim that has not been determined.

Effect of withdrawal

(2) A claim that is withdrawn is taken not to have been made.

Manner of withdrawal

(3) A withdrawal may be made orally or in writing.

579F Secretary may request claimant to give statement of claimant’s tax file number

Request for claimant’s tax file number etc.

(1) The Secretary may request but not compel a claimant for an austudy payment:

(a) if the claimant has a tax file number—to give the Secretary a written statement of the claimant’s tax file number; or

(b) if the claimant 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 claimant’s tax file number after the Commissioner of Taxation has issued it.

Failure to satisfy request

(2) An austudy payment is not payable to a claimant if, at the end of 28 days after a request is made:

(a) the claimant has failed to satisfy the request; and

(b) the Secretary has not exempted the claimant from having to satisfy the request.

579G Secretary may request claimant to give statement of partner’s tax file number

Request for partner’s tax file number

(1) If:

(a) a claimant for an austudy payment is a member of a couple; and

(b) the claimant’s partner is in Australia;

the Secretary may request but not compel the claimant to give the Secretary a written statement of the tax file number of the claimant’s partner.

Failure to satisfy request

(2) An austudy payment is not payable to a claimant if, at the end of 28 days after a request is made:

(a) the claimant has failed to satisfy the request; and

(b) the Secretary has not exempted the claimant from having to satisfy the request.

Note 1: In some cases the request can be satisfied by giving the Secretary a declaration by the partner about the partner’s tax file number and an authority by the partner to the Commissioner of Taxation to give the Secretary certain information relevant to the partner’s tax file number (see subsections 577B(2) and (3)).

Note 2: The Secretary may waive the requirement in some cases (see subsection 577B(4)).

Division 4—Determination of claim

580 Secretary to determine claim

The Secretary must, in accordance with this Part, determine a claim for an austudy payment.

580A Grant of claim

General rule

(1) The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

(a) the person is qualified for austudy payment; and

(b) the allowance is payable.

Person subject to waiting period etc.

(2) The Secretary is to determine that the claim is to be granted if the Secretary is satisfied that:

(a) the person is qualified, or is expected to be qualified, for austudy payment; and

(b) the austudy payment would be payable, apart from the application of:

(i) a waiting period; or

(ii) an activity test non-payment period; or

(iii) an activity test breach rate reduction period where the person’s activity test breach reduced rate is a nil rate; or

(iv) an administrative breach rate reduction period where the person’s administrative breach reduced rate is a nil rate; or

(v) an income maintenance period within the meaning of point 1067G-H11.

580B Date of effect of determination

Date of effect

(1) Subject to this section, a determination under section 580A takes effect on the day on which the determination is made or on any later day or earlier day that is stated in the determination.

Notified decision—review sought within 3 months

(2) If:

(a) a decision (previous decision) is made rejecting a person’s claim for an austudy payment; and

(b) a notice is given to the person telling the person of the making of the previous decision; and

(c) the person applies to the Secretary under section 1240, within 3 months after the notice is given, for review of the previous decision; and

(d) a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Notified decision—review sought after 3 months

(3) If:

(a) a decision (previous decision) is made rejecting a person’s claim for an austudy payment; and

(b) a notice is given to the person telling the person of the making of the previous decision; and

(c) the person applies to the Secretary under section 1240, more than 3 months after the notice is given, for review of the previous decision; and

(d) a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the person sought the review.

Decision not notified

(4) If:

(a) a decision (previous decision) is made rejecting a person’s claim for an austudy payment; and

(b) no notice is given to the person telling the person of the making of the previous decision; and

(c) the person applies to the Secretary under section 1240 for review of the previous decision; and

(d) a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

Division 5—Rate of austudy payment

Subdivision A—Rate of austudy payment

581 How to work out a person’s austudy payment rate

Austudy Payment Rate Calculator in section 1067L

(1) Subject to this section, the rate of a person’s austudy payment is to be worked out in accordance with the Austudy Payment Rate Calculator in section 1067L.

Activity test breach rate reduction period only

(2) Subject to subsection (4), if an activity test breach rate reduction period applies to the person, the person’s rate of austudy payment for that period is to be worked out in accordance with Subdivision B.

Administrative breach rate reduction period only

(3) Subject to subsection (4), if an administrative breach rate reduction period applies to the person, the person’s rate of austudy payment for that period is to be worked out in accordance with Subdivision C.

Activity test breach rate reduction period and administrative breach rate reduction period

(4) If both an activity test breach rate reduction period and an administrative breach rate reduction period apply to the person, the person’s rate of austudy payment is to be worked out in accordance with Subdivisions B and C.

Subdivision B—Activity test breach reductions in the rate of austudy payment

582 Activity test breach rate reduction period

An activity test breach rate reduction period applies to a person if:

(a) a person commits an activity test breach referred to in section 576A (latest breach); and

(b) the latest breach is the first or second activity test breach in the 2 years immediately before the day after the latest breach.

Note: If the latest breach is the third or subsequent activity test breach in the 2 years before the latest breach, an activity test non-payment period applies to the person (see Subdivision E of Division 2).

582A Length of activity test breach rate reduction period

Basic rule

(1) Subject to subsection (2), the length of an activity test breach rate reduction period is 26 weeks.

Pre-existing rate reduction period

(2) If, at the time of the commencement of an activity test breach rate reduction period under this Part, the person is already subject to an activity test breach rate reduction period (pre-existing rate reduction period), the pre-existing rate reduction period is taken to end immediately before the commencement of the activity test breach rate reduction period under this Part.

582B Start of activity test breach rate reduction period

Notice of start of period

(1) If an activity test breach rate reduction period applies to a person under this Part, the Secretary must give to the person a written notice telling the person of the start of the period.

General rule

(2) Subject to subsection (3), the activity test breach rate reduction period starts on the day on which the notice is given to the person.

Austudy payment ceasing to be payable

(3) If, on or before the day on which the person’s activity test breach rate reduction period would (apart from this subsection) have started, an austudy payment ceases to be payable to the person, the period starts on the day on which the austudy payment ceases to be payable to the person.

582C Interaction with waiting periods

Application of section

(1) This section applies if, under this Part:

(a) an activity test breach rate reduction period applies to a person; and

(b) during the whole or a part of that period the whole or a part of a waiting period also applies to the person (overlap period).

Note: Other periods such as an administrative breach rate reduction period may also apply (see section 583D).

Overlap period

(2) The activity test breach rate reduction period and the waiting period are to run concurrently during the overlap period.

Which restriction is to apply

(3) Despite any other provision of this Act, only the restriction on payment relating to the waiting period is to apply to the person during the overlap period.

582D Rate of austudy payment where activity test breach rate reduction period applies

Activity test breach reduced rate

(1) If an activity test breach rate reduction period applies to a person under this Part, the person’s rate of austudy payment for the activity test breach rate reduction period is worked out as follows:

Method statement

Step 1. Work out the person’s maximum basic rate of austudy payment using Module B of the Austudy Payment