SOCIAL SECURITY LEGISLATION AMENDMENT (BUDGET AND OTHER MEASURES) BILL 1996

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This is a Bill, not an Act. For current law, see the Acts databases.

SOCIAL SECURITY LEGISLATION AMENDMENT (BUDGET AND OTHER MEASURES) BILL 1996

1996

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Social Security Legislation Amendment (Budget and Other Measures) Bill 1996

No. , 1996

(Social Security)

A Bill for an Act to amend the law relating to social security, and for related purposes

9611520—3,025/11.9.1996—(115/96) Cat. No. 96 5087 3 ISBN 0644 478829

Contents

Social Security Act 1991 6sslabh1.html

Data-matching Program (Assistance and Tax) Act 1990 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Income Tax Assessment Act 1936 6sslabh1.html

Childcare Rebate Act 1993 6sslabh1.html

Part 1—Amendment of the Social Security Act 1991 relating to newstart allowance and sickness allowance 6sslabh1.html

Part 2—Amendment of the Social Security Act 1991 relating to sickness allowance 6sslabh1.html

Part 3—Amendment of the Student and Youth Assistance Act 1973 relating to youth training allowance 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 1—Amendments to clarify provisions relating to employer statements 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 2—Amendments to clarify the meaning of unsuitable work 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Employment Services Act 1994 6sslabh1.html

Part 3—Amendments relating to activity test deferment periods and administrative breach rate reduction periods 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Employment Services Act 1994 6sslabh1.html

Part 4—Amendments to make certain conduct subject to an activity test deferment period 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 5—Amendments to extend the non-payment period for moving to an area of lower employment prospects from 12 to 26 weeks 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 1—Replacement of the unused annual leave waiting period with an income maintenance period 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 2—Amendments relating to the liquid assets test waiting period 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 1—Allowing a grace period for the renewal of medical certificates 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 2—Amendments of the Social Security Act 1991 to abolish the sickness allowance loss of income provisions 6sslabh1.html

Part 3—Amendments relating to qualification for sickness allowance and exemptions from activity tests 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 1—Extension of qualification for widow allowance 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Part 2—Measures to achieve consistency between certain widow allowance and partner allowance provisions 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Part 3—Extension of qualification for partner allowance 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Part 4—Amendments to phase out widow B pensions and special needs widow B pensions earlier by excluding claims on or after 20 March 1997 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Part 5—Amendments to automatically transfer certain widow B pensioners and others to the age pension 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Part 1—Extension of compensation recovery provisions to age pensioners 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Part 2—Amendments relating to the treatment of lump sum compensation payments 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 1—Amendment relating to receipt of periodic compensation payments 6sslabh1.html

Part 2—Amendments relating to lump sum compensation 6sslabh1.html

Part 3—Amendments relating to compensation recovery 6sslabh1.html

Health Insurance Act 1973 6sslabh1.html

National Health Act 1953 6sslabh1.html

Hearing Services Act 1991 6sslabh1.html

Health Insurance Act 1973 6sslabh1.html

Social Security Act 1991 6sslabh1.html

National Health Act 1953 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 1—Automatic rate reductions for persons complying with notification obligations 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 2—Amendment of debt creation provisions 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 3—Amendments relating to methods of debt recovery and overseas application of provisions 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 4—Measures relating to waiver of debts 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 5—Amendments relating to writing off debts 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Social Security Legislation Amendment (Carer Pension and Other Measures) Act 1995 6sslabh1.html

Part 1—Amendments that commence on 1 January 1997 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 2—Amendments that commence on 20 March 1997 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 3—Amendments that commence on 20 September 1997 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

Part 4—Amendments that commence on 1 October 1997 6sslabh1.html

Social Security Act 1991 6sslabh1.html

Student and Youth Assistance Act 1973 6sslabh1.html

A Bill for an Act to amend the law relating to social security, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.

2 Commencement

(1) Subject to subsections (2), (3), (4), (5), (6), (7) and (8), this Act commences on the day on which it receives the Royal Assent.

(2) Schedules 3, 5, 6, 13, 14 and 22 and Part 1 of Schedule 24 commence on 1 January 1997.

(3) Schedules 8, 9, 10, 11, 12, 15 and 20 and Part 2 of Schedule 24 commence on 20 March 1997.

(4) Schedules 1, 2, 17, 18 and 19 commence on 1 July 1997.

(5) Schedules 4 and 7 and Part 3 of Schedule 24 commence on 20 September 1997.

(6) Schedule 21 and Part 4 of Schedule 24 commence on 1 October 1997.

(7) Schedule 16 is taken to have commenced on 1 July 1995.

(8) Schedule 23 is taken to have commenced on 1 July 1996, immediately after the commencement of Schedule 12 to the Social Security Legislation Amendment (Carer Pension and Other Measures) Act 1995.

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—Amendment of the Social Security Act 1991 to increase the flexibility of carer pension

1 Subparagraph 198(2)(c)(i)

Omit “42”, substitute “52”.

2 Paragraph 198(2AA)(b)

Omit “education or employment”, insert “education, unpaid voluntary work or paid employment”.

3 Paragraph 198(2AA)(c)

Omit “10”, substitute “20”.

Schedule 2—Amendments to change references in certain Acts from “carer pension” to “carer payment”

Social Security Act 1991

1 Subsection 17(1) (at the end of paragraph (n) of the definition of former payment type)

Add:

; or (o) a carer pension under this Act as previously in force.

2 Part 2.5 (heading)

Repeal the heading, substitute:

Part 2.5—Carer payment

3 Division 1 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 1—Qualification for and payability of carer payment

4 Division 2 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 2—Claim for carer payment

5 Division 4 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 4—Rate of carer payment

6 Division 5 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 5—Payment of carer payment

7 Division 6 of Part 2.5 (heading)

Repeal the heading, substitute:

Division 6—Protection of carer payment

8 Subdivision A of Division 9 of Part 2.5 (heading)

Repeal the heading, substitute:

Subdivision A—Continuation of carer payment

9 Division 8A of Part 2.13A (heading)

Repeal the heading, substitute:

Division 8A—Carer payment recipients

10 References to “carer pension”

Each of the following sections is amended by omitting “carer pension” (wherever occurring) and substituting “carer payment”:

sections 7, 17, 23, 48, 139, 140, 198, 198C, 198F, 198H, 198J, 198K, 198L, 198M, 198N, 198Q, 199, 200, 201, 201A, 201B, 202, 203, 206, 206AA, 206A, 206B, 206C, 208, 209, 210, 211, 212, 213, 214, 215, 216, 218, 219, 220, 221, 221A, 221B, 222, 223, 223A, 225, 225AA, 225A, 225B, 226, 227, 227A, 228, 228A, 229, 230, 231, 231A, 231AA, 231B, 232, 233, 234, 235, 236, 236A, 237, 240, 246, 247, 259, 303, 369, 665ZFA, 1064, 1067A, 1115, 1133, 1163, 1170, 1187, 1210, 1212, 1223, 1223A and 1223B.

Note 1: The heading to each of the following sections is altered by omitting “carer pension” and substituting “carer payment”:

sections 198, 199, 200, 210, 211, 220, 223, 225AA, 235, 236, 240 and 665ZFA.

Note 2: The heading to section 1064 is altered by omitting “and carer pensions” and substituting “pensions and carer payment”.

Note 3: The heading to subsection 201(2) is altered by omitting “carer pension” and substituting “carer payment”.

Data-matching Program (Assistance and Tax) Act 1990

11 Subsection 3(1) (subparagraph (c)(v) of the definition of personal assistance)

Repeal the subparagraph, substitute:

(v) carer’s pension, carer pension or carer payment;

Student and Youth Assistance Act 1973

12 References to “carer pension”

Each of the following provisions is amended by omitting “carer pension” (wherever occurring) and substituting “carer payment”:

sections 229, 231 and 233 and Schedule 2.

Income Tax Assessment Act 1936

13 Section 24AB (Index of payments)

Omit “carer pension”, substitute “carer payment”.

14 Subsection 24ABA(1)

Omit “carer pension”, substitute “carer payment”.

15 Subsection 24ABF(1)

Omit “carer pension”, substitute “carer payment”.

Note: The heading to section 24ABF is replaced by the heading “Carer payment”.

Childcare Rebate Act 1993

16 Section 29

Omit “carer pension”, substitute “carer payment”.

Schedule 3—Abolition of the minimum rate of payment to under 18 year old sickness allowance, newstart allowance and youth training allowance recipients

Part 1—Amendment of the Social Security Act 1991 relating to newstart allowance and sickness allowance

1 Point 1067-G8

Repeal the point.

2 Point 1067-G11

Repeal the point, substitute:

Reduction for parental assets

1067-G11 A person’s reduction for parental assets is:

(a) if the person’s combined parental assets value does not exceed the parental assets value limit—nil; or

(b) if the person’s combined parental assets value exceeds the parental assets value limit—the person’s maximum payment rate.

Note: The parental assets value is indexed annually in line with CPI increases (see sections 1191 to 1194).

3 Point 1067-G22

Repeal the point.

4 Section 1190 (Indexed and Adjusted Amounts Table, item 43)

Repeal the item.

5 Subsection 1191(1) (CPI Indexation Table, item 29)

Repeal the item.

Part 2—Amendment of the Social Security Act 1991 relating to sickness allowance

6 Point 1067E-A1 (method statement, steps 7 to 10)

Repeal the steps, substitute:

Step 7. If the value of the person’s assets is more than the person’s assets value limit, then sickness allowance is not payable to the person and the following steps are to be disregarded.

Step 8. If the person is not independent and the parental income test applies to the person (see points 1067E-F2 and 1067E-F3 in Module F below), work out the reduction for parental income using that Module and take the reduction away from the maximum payment rate;

the result is called the parental income test reduced rate.

Step 9. If the parental income test reduced rate is nil, then sickness allowance is not payable to the person and the following steps are to be disregarded.

Step 10. Apply the income test using Module G below to work out the person’s income reduction.

Step 11. The rate of allowance is worked out by taking the person’s ordinary income reduction away from:

(a) if the person is not independent and Step 8 did not apply to the person because of points 1067E-F2 and 1067E-F3 (other than paragraph (g) of point 1067E-F3)—the maximum payment rate; or

(b) if the person is not independent and paragraph (g) of point 1067E-F3 applied to the person—the maximum payment rate; or

(c) if the person is not independent and Step 8 applied to the person but Step 9 did not—the parental income test reduced rate; or

(d) if the person is independent—the maximum payment rate;

and adding any amount payable by way of remote area allowance (see Module H below).

7 Point 1067E-A1 (method statement, note)

Repeal the note, substitute:

Note: If a person’s rate is reduced under Step 8 or 11, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1207 (maximum basic rate first, then rent assistance).

8 Section 1190 (Indexed and Adjusted Amounts Table, item 35A)

Repeal the item.

9 Subsection 1191(1) (CPI Indexation Table, item 23A)

Repeal the item.

Part 3—Amendment of the Student and Youth Assistance Act 1973 relating to youth training allowance

10 Part 2 of Schedule 1 (Module A, point A1, method statement, steps 7 to 10)

Repeal the steps, substitute:

Step 7. If the value of the person’s assets is more than the person’s assets value limit, then youth training allowance is not payable to the person and the following steps are to be disregarded.

Step 8. If the person is not independent and the parental income test applies to the person (see points F2 and F3 in Module F below), work out the reduction for parental income using that Module and take the reduction away from the maximum payment;

the result is called the parental income test reduced rate.

Step 9. If the parental income test reduced rate is nil, then youth training allowance is not payable to the person and the following steps are to be disregarded.

Step 10. Apply the income test using Module G below to work out the person’s income reduction.

Step 11. The rate of allowance is worked out by taking the person’s ordinary income reduction away from:

(a) if the person is not independent and Step 8 did not apply to the person because of points F2 and F3 (other than paragraph (g) of point F3)—the maximum payment rate; or

(b) if the person is not independent and paragraph (g) of point F3 applied to the person—the maximum payment rate; or

(c) if the person is not independent and Step 8 applied to the person but Step 9 did not—the parental income test reduced rate; or

(d) if the person is independent—the maximum payment rate;

and adding any amount payable by way of remote area allowance (see Module H below).

11 Part 2 of Schedule 1 (Module A, point A1, method statement, note)

Repeal the note, substitute:

Note: If a person’s rate is reduced under Step 8 or 11, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 257 (maximum basic rate first, then rent assistance).

12 Section 251 (Indexed Amounts Table, item 4)

Repeal the item.

13 Section 252 (CPI Indexation Table, item 4)

Repeal the item.

Schedule 4—Amendments to allow increased voluntary work participation for unemployed people

Social Security Act 1991

1 Section 603AA

Repeal the section, substitute:

603AA Relief from activity test—people engaged in voluntary work

(1) Subject to subsection (3), a person who has reached 50 years is taken to satisfy the activity test in respect of a period (the relevant period) if the person:

(a) is engaged in approved full-time unpaid voluntary work for an approved organisation for at least 32 hours in the period; or

(b) is engaged, for at least 40 hours in the period in a combination of:

(i) approved unpaid voluntary work for an approved organisation; and

(ii) suitable paid work for another person.

(2) Subject to subsection (3), a person who:

(a) is under 50 years; and

(b) has received income support payments in respect of a continuous period of at least 3 months but less than 12 months immediately before the start of the relevant period (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection);

is taken to satisfy the activity test in respect of a period (the relevant period) if:

(c) the person is engaged in approved full-time unpaid voluntary work for an approved organisation for at least 32 hours in the period; and

(d) the period occurs during the 12 months after the person commenced receiving income support payments (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection); and

(e) the person has not already undertaken approved full-time unpaid voluntary work with one or more approved organisations in more than 6 periods during the 12 months referred to in paragraph (d).

(3) Neither subsections (1) nor (2) apply to a person in respect of a day in a relevant period if, in respect of the person, having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that the subsection is not to apply to the person in respect of that day.

(4) For the purposes of subsections (1) and (2):

(a) approved voluntary unpaid work, either full-time or otherwise, is work that has been approved by the Secretary for the purposes of this section; and

(b) an approved organisation is an organisation that has been approved by the Secretary for the purposes of this section.

Student and Youth Assistance Act 1973

2 Subsection 58(1) (definition of approved organisation)

Repeal the definition.

3 Section 59

Repeal the section.

4 Section 77

Repeal the section, substitute:

77 Relief from activity test—people engaged in voluntary work

(1) This section applies to a person who has received income support payments in respect of a continuous period of at least 3 months but less than 12 months immediately before the start of the relevant period (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection).

(2) Subject to subsection (3), a person to whom this section applies is taken to satisfy the activity test in respect of a period (the relevant period) if:

(a) the person is engaged in approved full-time unpaid voluntary work for an approved organisation for at least 32 hours in the period; and

(b) the period occurs during the 12 months after the person commenced receiving income support payments (whether or not the kind of payment received has changed over the period and whether any part of it occurred before or after the commencement of this subsection); and

(c) the person has not already undertaken full-time unpaid voluntary work with one or more approved organisations in more than 6 periods during the 12 month period referred to in paragraph (b).

(3) Subsection (2) does not apply to a person in respect of a day in a relevant period if, in respect of the person, having regard to the opportunities, or possible opportunities, for employment that become available to the person on or before the day, the Secretary considers that the subsection is not to apply to the person in respect of that day.

(4) For the purposes of subsection (2):

(a) approved full-time voluntary unpaid work is work that has been approved by the Secretary for the purposes of this section; and

(b) an approved organisation is an organisation that has been approved by the Secretary for the purposes of this section.

Schedule 5—Amendments to tighten the activity test administration and simplify the penalty periods that apply to newstart allowance and youth training allowance

Part 1—Amendments to clarify provisions relating to employer statements

Social Security Act 1991

1 Subsections 601(1A) to (1E) (inclusive)

Repeal the subsections, substitute:

(1A) The Secretary may notify a person (other than a person who is not required to satisfy the activity test) who is receiving, or has lodged a claim for, a newstart allowance that the person must take reasonable steps to apply for a particular number of advertised job vacancies in the period specified in the notice.

(1B) If a person refuses or fails to comply with a notice issued under subsection (1A), the person fails to satisfy the activity test in respect of the period specified in the notice.

(1C) The person must give the Secretary a written statement from each employer whose job vacancy the person applied for that confirms that the person applied for that job vacancy.

(1D) The statement from the employer must be in a form approved by the Secretary.

(1E) Subsection (1C) does not apply to a person if the Secretary is satisfied that there are special circumstances in which it is not reasonable to expect the person to give the statement referred to in that subsection.

(1F) If a person contravenes subsection (1C), the person fails to satisfy the activity test.

Student and Youth Assistance Act 1973

2 Subsections 75(2) to (6) (inclusive)

Repeal the subsections, substitute:

(2) The Secretary may notify a person (other than a person who is not required to satisfy the activity test) who is receiving, or has lodged a claim for, a youth training allowance that the person must take reasonable steps to apply for a particular number of advertised job vacancies in the period specified in the notice.

(3) If a person refuses or fails to comply with a notice under subsection (2), the person fails to satisfy the activity test in respect of the period specified in the notice.

(4) The person must give the Secretary a written statement from each employer whose job vacancy the person applied for that confirms that the person applied for that job vacancy.

(5) The statement from the employer must be in a form approved by the Secretary.

(6) Subsection (4) does not apply to a person if the Secretary is satisfied that there are special circumstances in which it is not reasonable to expect the person to give the statement referred to in that subsection.

(6A) If a person contravenes subsection (4), the person fails to satisfy the activity test.

Part 2—Amendments to clarify the meaning of unsuitable work

Social Security Act 1991

3 Subsection 601(2A)

Omit “For”, substitute “Subject to subsection (2AA), for”.

4 At the end of paragraph 601(2A)(a)

Add “and no training will be provided by the employer”.

5 Paragraph 601(2A)(b)

Repeal the paragraph, substitute:

(b) it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

6 Paragraph 601(2A)(c)

Repeal the paragraph, substitute:

(i) constitute a risk to health and safety; and

(ii) contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety;

and the person has made a reasonable attempt to remove or reduce the risk through discussions with the employer concerned; or

7 Paragraph 601(2A)(d)

Repeal the paragraph.

8 Paragraph 601(2A)(h)

Repeal the paragraph, substitute:

(h) the work would require enlistment in the Defence Force or the Reserve Forces; or

(i) the work requires the person to move from a home in a place to a home in another place and subsection (2AB) applies to the person; or

(j) for any other reason, the work is unsuitable for the person.

9 After subsection 601(2A)

Insert:

(2AA) If paragraph (2A)(i) does not apply, paragraph (2A)(g) does not apply.

(2AB) This subsection applies to a person if any of the following paragraphs applies:

(a) the person is under 18 years or over 50 years;

(b) the person is pregnant;

(d) subject to subsection (2AC), the person’s partner has a severe medical condition;

(e) the person resides with a partner who works on a full-time, permanent part-time or casual basis;

(f) the person is residing with a dependent child or dependent children;

(g) having regard to the educational and cultural background of the person, it is unreasonable for the person to move;

(h) moving would cause the person severe financial hardship.

Note: For dependent child see subsections 5(2) to 5(9).

(2AC) Neither paragraph (2AB)(c) nor (d) apply if, in all the circumstances of the person who is claiming a newstart allowance, it is reasonable for the person to move.

10 At the end of section 601

Add:

(7) In this section:

Reserve Forces means:

(a) the Australian Naval Reserve; or

(b) the Naval Emergency Reserve Forces; or

(d) the Australian Airforce Reserve; or

(e) the Airforce Emergency Reserve; or

(f) the Army Individual Emergency Reserve.

Student and Youth Assistance Act 1973

11 At the end of paragraph 75(8)(a)

Add “and no training will be provided by the employer”.

12 Paragraph 75(8)(b)

Repeal the paragraph, substitute:

(b) it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

13 Paragraph 75(8)(c)

Repeal the paragraph, substitute:

(i) constitute a risk to health and safety; and

(ii) contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety;

and the person has made a reasonable attempt to remove or reduce the risk through discussions with the employer concerned; or

14 Paragraph 75(8)(d)

Repeal the paragraph.

15 Paragraph 75(8)(h)

Repeal the paragraph, substitute:

(h) the work would require enlistment in the Defence Force or the Reserve Forces; or

(i) for any other reason, the work is unsuitable for the person.

16 At the end of section 84

Add:

(16) In this section:

Reserve Forces means:

(a) the Australian Naval Reserve; or

(b) the Naval Emergency Reserve Forces; or

(d) the Australian Airforce Reserve; or

(e) the Airforce Emergency Reserve; or

(f) the Army Individual Emergency Reserve.

Employment Services Act 1994

17 Subsection 42(1)

Omit “For”, substitute “Subject to subsection (2A), for”.

18 At the end of paragraph 42(1)(a)

Add “and no training will be provided by the employer”.

19 Paragraph 42(1)(b)

Repeal the paragraph, substitute:

(b) it has been established that there is medical evidence that the person has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed; or

20 Paragraph 42(1)(c)

Repeal the paragraph, substitute:

(i) constitute a risk to health and safety; and

(ii) contravene a law of the Commonwealth, a State or a Territory relating to occupational health and safety;

and the person has made a reasonable attempt to remove or reduce the risk through discussions with the employer concerned; or

21 Paragraph 42(1)(d)

Repeal the paragraph.

22 Paragraph 42(1)(h)

Repeal the paragraph, substitute:

(h) the work would require enlistment in the Defence Force or the Reserve Forces; or

(i) the work requires the person to move from a home in a place to a home in another place and subsection (2B) applies to the person; or

(j) for any other reason, the work is unsuitable for the person.

23 After subsection 42(2)

Insert:

(2A) If paragraph (1)(i) does not apply, paragraph (1)(g) does not apply.

(2B) This subsection applies to a person if any of the following paragraphs applies:

(a) the person is under 18 years or over 50 years;

(b) the person is pregnant;

(d) subject to subsection (2C), the person’s partner has a severe medical condition;

(e) the person resides with a partner who works on a full-time, permanent part-time or casual basis;

(f) the person is residing with a dependent child or dependent children;

(g) having regard to the educational and cultural background of the person, it is unreasonable for the person to move;

(h) moving would cause the person severe financial hardship.

Note: For dependent child see subsections 5(2) to 5(9) of the Social Security Act 1991.

(2C) Neither paragraph (2B)(c) nor (d) apply if, in all the circumstances of the person receiving an allowance, it is reasonable for the person to move.

24 At the end of section 42

Add:

(5) In this section:

Reserve Forces has the same meaning as in subsection 601(7) of the Social Security Act 1991.

Part 3—Amendments relating to activity test deferment periods and administrative breach rate reduction periods

Social Security Act 1991

25 Section 3

Omit:

administrative breach deferment period subsection 23(1)

26 Section 3

Omit:

deferment period subsection 23(1)

27 Section 3

Omit:

discretionary deferment period subsection 23(1)

28 Section 3

Omit:

JSA automatic deferment period subsection 23(1)

29 Section 3

Omit:

JSA discretionary deferment provision subsection 23(1)

30 Section 3

Omit:

NS allowance automatic deferment provision subsection 23(1)

31 Section 3

Omit:

NS allowance discretionary deferment provision subsection 23(1)

32 Subsection 23(1) (definition of activity test deferment period)

Repeal the definition, substitute:

activity test deferment period means one or more of the following periods:

(a) a period worked out under section 630A as in force before, on or after the commencement of this definition;

(b) a period worked out under section 109 of the Student and Youth Assistance Act 1973 as in force before, on or after the commencement of this definition;

33 Subsection 23(1) (definition of administrative breach deferment period)

Repeal the definition.

34 Subsection 23(1) (definition of deferment period)

Repeal the definition.

35 Subsection 23(1) (definition of discretionary deferment period)

Repeal the definition.

36 Subsection 23(1) (definition of JSA automatic deferment provision)

Repeal the definition.

37 Subsection 23(1) (definition of JSA discretionary deferment provision)

Repeal the definition.

38 Subsection 23(1) (definition of NS allowance automatic deferment provision)

Repeal the definition.

39 Subsection 23(1) (definition of NS allowance discretionary deferment provision)

Repeal the definition.

40 Subsection 23(1) (definition of partner allowance automatic deferment provision)

Repeal the definition.

41 Subsection 23(1) (definition of youth training allowance automatic deferment provision)

Repeal the definition.

42 Subsection 23(1)

Insert:

administrative breach rate reduction period means either or both of the following periods:

(a) a period that applies under section 644B;

(b) a period that applies under section 136A of the Student and Youth Assistance Act 1973.

43 After paragraph 608(1)(i)

Insert:

(ia) the person fails to comply with a notification requirement under section 656, 657, 658 or 1034 (see section 631); or

44 Subparagraphs 608(1)(j)(iv) and (viii)

Repeal the subparagraphs.

45 Subsection 615(1)

After “(2A)”, insert “, (2B)”.

46 After subsection 615(2A)

Insert:

Provisional commencement day where newstart allowance ceases to be payable because of an administrative breach

(2B) If:

(a) a person receives a newstart allowance; and

(b) newstart allowance ceases to be payable to the person because of section 630C or 631; and

(d) the person lodges a claim for a newstart allowance within 14 days of 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.

47 Subsection 615(3)

Omit “If”, substitute “Subject to subsection (3A), if”.

48 After subsection 615(3)

Insert:

(3A) If:

(a) a person is receiving a newstart allowance; and

(b) newstart allowance ceases to be payable to the person because of section 630C or 631; and

(d) the person registers with the CES within 14 days after the day on which the newstart allowances ceases to be payable; and

(e) the person claims a newstart allowance within 14 days after registering with the CES;

then, the person’s provisional commencement day is 15 days after the date of effect of the cancellation or automatic termination.

49 Paragraph 628(b)

Repeal the paragraph, substitute:

(b) the Secretary is not satisfied that the person’s voluntary act was reasonable;

50 Section 630

Repeal the section, substitute:

630 Refusal of job offer

If the Secretary is satisfied that the person has refused or failed, without reasonable excuse, to accept a suitable offer of employment, newstart allowance is not payable to the person for the activity test deferment period.

51 Section 630A

Repeal the section, substitute:

630A Activity test deferment periods

(1) Subject to subsection (2), if an activity test deferment period applies to a person under this Part, the period applicable to the person is 6 weeks.

(2) If:

(a) an activity test deferment period applies to a person at a particular time; and

(b) one or more activity test deferment periods had applied to the person within a period of 3 years before the start of the activity test deferment period referred to in paragraph (a);

the deferment period is 13 weeks.

Note: For activity test deferment period see section 23.

52 Subsection 630B(1)

Omit “an automatic deferment provision of this Subdivision applies to a person”, substitute “an activity test deferment period applies to a person under this Part”.

53 Subsection 630B(3)

Omit “automatic deferment provision”, substitute “activity test deferment period”.

54 Subsection 630B(3)

Omit “subject to a deferment period”, substitute “subject to an activity test deferment period”.

55 Subsection 630B(4)

Omit “automatic deferment provision”, substitute “activity test deferment period”.

56 Paragraph 630B(6)(b)

Omit “a deferment period”, substitute “an activity test deferment period”.

57 Subsection 630B(6) (note)

Omit “, automatic deferment provision and deferment period”.

58 Subsection 630BA(1)

Repeal the subsection, substitute:

(1) Subject to subsection (2) and section 630BB, if:

(a) at a time when the person was not qualified for a newstart allowance, an event occurred that would have resulted in an activity test deferment period applying to the person under this Part had the person made a claim for a newstart allowance; and

(b) before the end of that period (assuming that the period had commenced on the day on which the event occurred), the person made a claim for a newstart allowance;

the activity test deferment period is taken to have commenced on the day after the day on which the event occurred.

59 Subsection 630BA(3)

Repeal the subsection and the note, substitute:

(3) Subject to section 630BB, if:

(b) the person made a claim for a newstart allowance after the end of that period (assuming that the period had commenced on the day on which the event occurred);

then:

(d) the Secretary is not obliged to give the person a written notice under subsection 630B(1) in respect of the activity test deferment period.

60 Subsection 630BB(1)

Omit “Subdivision”, substitute “Part”.

61 Subsection 630BB(1)

Omit “deferment period” (last occurring), substitute “activity test deferment period”.

62 Paragraphs 630BB(2)(a) and (b)

Omit “deferment period”, substitute “activity test deferment period”.

63 Section 630BC

Repeal the section, substitute:

630BC Effect of sections 630B, 630BA, 630BB

For the avoidance of doubt, sections 630B, 630BA and 630BB do not prevent a newstart allowance ceasing to be payable in circumstances that do not involve the application of an activity test deferment period under this Part.

64 Subsection 630C(1)

Omit “a newstart allowance is not payable to the person”, substitute “subsection (1A) applies to the person”.

65 After subsection 630C(1)

Insert:

(1A) If this subsection applies to a person:

(a) a newstart allowance is not payable to the person; and

(b) if, at a later time, a newstart allowance becomes payable to the person—an administrative breach rate reduction period applies to the person.

66 Subsection 630C(3)

Repeal the subsection, substitute:

(3) The Secretary may determine that:

(a) a newstart allowance is payable to a person that was not payable under paragraph (1A)(a); and

(b) an administrative breach rate reduction period does not apply to a person under paragraph (1A)(b);

if the Secretary is satisfied that the person had a reasonable excuse for not complying with the requirement under subsection (1).

67 Subsections 630C(4) and (4A)

Repeal the subsections.

68 Section 631

Repeal the section, substitute:

631 Administrative breach rate reduction period to apply to persons who fail to comply with notification requirements

If a person refuses or fails, without reasonable excuse, to comply with a requirement made of the person under section 656, 657, 658 or 1034:

(a) a newstart allowance is not payable to the person; and

(b) if, at a later time, a newstart allowance becomes payable to the person—an administrative breach rate reduction period applies to the person.

Note: For administrative breach rate reduction period see section 644B.

69 Sections 631A, 631B, 631C and 631D

Repeal the sections.

70 At the end of section 641

Add:

(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 a newstart allowance; and

(b) the allowance would be payable apart from:

(i) the application of a waiting period; or

(ii) the application of an activity test deferment period; or

(iii) the application of an administrative breach rate reduction period where the administrative breach rate reduction reduces the rate of newstart allowance payable to the person to nil.

71 Before section 643

Insert:

Subdivision A—Rate of newstart allowance

72 After section 644A

Insert in Division 4:

Subdivision B—Administrative breach reductions in the rate of newstart allowance

644B Administrative breach rate reduction periods

If an administrative breach rate reduction period applies to a person under this Part, the period applicable to the person is 8 weeks.

644C Commencement of administrative breach rate reduction periods

(1) If an administrative breach rate reduction period applies to a person under this Part, the Secretary must give to the person a written notice informing the person of the commencement of the administrative breach rate reduction period applicable to the person.

(2) Subject to subsections (3), (4) and (6) and sections 644D and 644E, the administrative breach rate reduction period commences on the day on which the notice is given to the person.

(3) Subject to sections 644D and 644E, if, at the time of the application of the administrative breach rate reduction period, the person is already subject to an administrative breach rate reduction period (the pre-existing reduction period) that has not yet ended, the administrative breach rate reduction period referred to in subsection (1) commences on the day after the day on which the pre-existing reduction period ends.

(4) If, at the time of the application of the administrative breach rate reduction period, the person is already subject to more than one pre-existing reduction period that has not ended, the reference in subsection (3) to the day on which the pre-existing reduction period ends is a reference to the day on which the last occurring of those pre-existing reduction periods ends.

(5) Subsections (3) and (4) apply in respect of a pre-existing reduction period whether or not it has commenced, and whether or not it is the subject of a notice under this section.

(6) Subject to sections 644D and 644E, if:

(a) on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have commenced, newstart allowance ceases to be payable to the person; and

(b) it has not ceased to be payable because of the application of an administrative breach rate reduction period;

the administrative breach rate reduction period referred to in subsection (1) commences on the day on which the newstart allowance ceases to be payable to the person.

Note: For administrative breach rate reduction period see section 644B.

644D Administrative breach rate reduction periods—interaction with activity test deferment periods

(1) If, under this Part, an administrative breach rate reduction period that applies to a person would (apart from this subsection) commence at the same time as, or during, an activity test deferment period that applies to the person, the reduction period is taken to commence immediately after the end of the deferment period.

(2) If an activity test deferment period that applies to a person commences during an administrative breach rate reduction period that applies to the person:

(a) the reduction period is taken to be suspended for the duration of the deferment period; and

(b) the remainder of the reduction period continues immediately after the end of the deferment period.

(3) If an activity test deferment period applies to the person and another activity test deferment period commences immediately after the end of that deferment period, a reference in subsection (1) or (2) to the end of that deferment period is taken to be a reference to the end of the other deferment period.

Note: For activity test deferment period see subsection 23(1).

644E Waiting periods

(1) If, under this Part, an administrative breach rate reduction period that applies to a person would (apart from this subsection) commence at the same time as, or during, a waiting period that applies to the person, the reduction period is taken to commence immediately after the end of the waiting period.

(2) If a waiting period that applies to a person commences during an administrative breach rate reduction period that applies to the person:

(a) the reduction period is taken to be suspended for the duration of the waiting period; and

(b) the remainder of the reduction period continues immediately after the end of the waiting period.

(3) If a waiting period applies to the person and:

(a) another waiting period commences during that waiting period and continues after the end of that waiting period; or

(b) another waiting period commences immediately after the end of that waiting period;

a reference in subsection (1) or (2) to the end of that waiting period is taken to be a reference to the end of the other waiting period.

(4) A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 598.

Note: For waiting period see subsection 23(1).

644F Effect of sections 644D and 644E

For the avoidance of doubt, sections 644D and 644E do not prevent a newstart allowance ceasing to be payable in circumstances that do not involve the application of an administrative breach rate reduction period.

644G Administrative breach rate reduction period not to apply in certain circumstances

Despite any other provision of this Part, an administrative breach rate reduction period does not apply if:

(a) a person receives a newstart allowance; and

(b) newstart allowance ceases to be payable to the person because of section 630C or 631; and

(d) the person lodges a claim for a newstart allowance more than 14 days after the date of effect of the cancellation or automatic termination referred to in paragraph (c).

644H Rate of newstart allowance where administrative breach rate reduction applies

(1) If:

(a) an administrative breach rate reduction period applies to a person under this Part; and

(b) the person qualifies for a newstart allowance; and

the person’s rate of newstart allowance for the administrative breach rate reduction period is worked out as follows:

Newstart allowance rate calculator for administrative breach rate reduction period

This is how to work out a person’s rate of newstart allowance for an administrative breach rate reduction period that applies to the person.

Method statement

Step 1. Work out the person’s maximum basic rate of newstart allowance specified in:

(a) Table B of Module B of Part 3.5 (Benefit Rate Calculator A); or

(b) Table B of Module B of Part 3.6 (Benefit Rate Calculator B);

the result is called the maximum payment rate.

Step 2. Work out the rate reduction amount in accordance with subsection (2).

Step 3. Take the rate reduction amount away from the rate of benefit worked out in accordance with Benefit Rate Calculator A in section 1067 or Benefit Rate Calculator B in section 1068, as the case requires:

the result is called the administrative breach reduced rate.

Note: An administrative breach reduced rate may be a nil rate.

(2) A person’s rate reduction amount is worked out as follows:

73 Paragraph 660(2)(a)

Omit “660F, 660E or 660FAA”, substitute “660F or 660E”.

74 Section 660FAA

Repeal the section.

75 After subsection 771HA(3)

Insert:

Person subject to an administrative breach rate reduction period

(4) If an administrative breach rate reduction period applies to a person under Part 2.12 or under Part 8 of the Student and Youth Assistance Act 1973, the person is not qualified for partner allowance throughout the period.

76 Section 771HO

Repeal the section.

77 Subparagraph 1241(1)(b)(ii)

Omit “deferment period”, substitute “activity test deferment period”.

78 Subparagraph 1251(1)(b)(ii)

Omit “deferment period”, substitute “activity test deferment period”.

Student and Youth Assistance Act 1973

79 Subsection 58(1) (definition of activity test deferment period)

Repeal the definition, substitute:

activity test deferment period has the same meaning as in the Social Security Act.

80 Subsection 58(1) (definition of administrative breach deferment period)

Repeal the definition.

81 Subsection 58(1) (definition of automatic deferment period)

Repeal the definition.

82 Subsection 58(1) (definition of deferment period)

Repeal the definition.

83 Subsection 58(1) (definition of youth training allowance automatic deferment provision)

Repeal the definition.

84 Subsection 58(1)

Insert:

administrative breach rate reduction period has the same meaning as in the Social Security Act.

85 After paragraph 85(1)(j)

Insert:

(ja) the person fails to comply with a notification requirement under section 148, 149, 150 or 343 (see section 115); or

86 Paragraph 85(1)(l)

Repeal the paragraph.

87 Subparagraph 85(1)(m)(iv)

Repeal the subparagraph.

88 After subsection 91(2)

Insert:

Provisional commencement day where youth training allowance ceases to be payable because of an administrative breach

(2B) If:

(a) a person receives a youth training allowance; and

(b) youth training allowance ceases to be payable to the person because of section 114 or 115; and

(d) the person lodges a claim for a youth training allowance 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.

89 Subsection 91(3)

Omit “If”, substitute “Subject to subsection (3A), if”.

90 After subsection 91(3)

Insert:

(3A) If:

(a) a person is receiving a youth training allowance; and

(b) youth training allowance ceases to be payable to the person because of section 114 or 115; and

(d) the person registers with the CES within 14 days after the day on which the youth training allowances ceases to be payable; and

(e) the person claims a youth training allowance within 14 days after registering with the CES;

then, the person’s provisional commencement day is 15 days after the date of effect of the cancellation or automatic termination.

91 Paragraph 106(b)

Repeal the paragraph, substitute:

(b) the Secretary is not satisfied that the person’s voluntary act was reasonable;

92 Section 108

Repeal the section, substitute:

108 Refusal of job offer

If the Secretary is satisfied that a person has refused or failed, without reasonable excuse, to accept a suitable offer of employment, youth training allowance is not payable to the person for the activity test deferment period.

Note: See section 136A for the length of activity test deferment periods and section 136B for the commencement of activity test deferment periods.

93 Section 109

Repeal the section, substitute:

109 Activity test deferment periods

(1) Subject to subsection (2), if an activity test deferment period applies to a person under this Part, the period applicable to the person is 6 weeks.

(2) If:

(a) an activity test deferment period applies to a person at a particular time; and

(b) one or more activity test deferment periods had applied to the person within a period of 3 years before that time;

the deferment period is 13 weeks.

Note: For activity test deferment period see section 58.

94 Subsection 110(1)

Omit “a youth training automatic deferment provision of this Subdivision applies to a person”, substitute “an activity test deferment period applies to a person under this Part”.

95 Subsection 110(3)

Omit “automatic deferment period”, substitute “activity test deferment period”.

96 Subsection 110(3)

Omit “subject to a deferment period”, substitute “subject to an activity test deferment period”.

97 Subsection 110(4)

Omit “automatic deferment provision”, substitute “activity test deferment period”.

98 Paragraph 110(6)(b)

Omit “a deferment period”, substitute “an activity test deferment period”.

99 Subsection 110(6) (note)

Omit “, automatic deferment provision and deferment period”.

100 Subsection 111(1)

Repeal the subsection, substitute:

(1) Subject to subsection (2) and section 112, if:

(a) at a time when the person was not qualified for a youth training allowance, an event occurred that would have resulted in an activity test deferment period applying to the person under this Part had the person made a claim for a youth training allowance; and

(b) before the end of that period (assuming that the period had commenced on the day on which the event occurred), the person made a claim for a youth training allowance;

the activity test deferment period is taken to have commenced on the day after the day on which the event occurred.

101 Subsection 111(3)

Repeal the subsection and the note, substitute:

(3) Subject to section 112, if:

(b) the person made a claim for a youth training allowance after the end of that period (assuming that the period had commenced on the day on which the event occurred);

then:

(d) the Secretary is not obliged to give the person a written notice under subsection 110(1) in respect of the activity test deferment period.

102 Subsection 112(1)

Omit “deferment period” (last occurring), substitute “activity test deferment period”.

103 Paragraphs 112(2)(a) and (b)

Omit “deferment period”, substitute “activity test deferment period”.

104 Section 113

Repeal the section, substitute:

113 Effect of sections 110, 111 and 112

For the avoidance of doubt, sections 110, 111 and 112 do not prevent a youth training allowance ceasing to be payable in circumstances that do not involve the application of an activity test deferment period under this Part.

105 Subsection 114(1)

Omit “a youth training allowance is not payable to the person”, substitute “subsection (1A) applies to the person”.

106 After subsection 114(1)

Insert:

(1A) If this subsection applies to a person:

(a) a youth training allowance is not payable to the person; and

(b) if, at a later time, a youth training allowance becomes payable to the person—an administrative breach rate reduction period applies to the person.

107 Subsection 114(2)

Repeal the subsection, substitute:

Reasonable excuse for not complying

(2) The Secretary may determine that:

(a) a youth training allowance is payable to a person that was not payable under paragraph (1A)(a); and

(b) an administrative breach rate reduction period does not apply to a person under paragraph (1A)(b);

if the Secretary is satisfied that the person had a reasonable excuse for not complying with the requirement under subsection (1).

108 Subsections 114(3) and (4)

Repeal the subsections.

109 Section 115

Repeal the section, substitute:

115 Administrative breach rate reduction period to apply to persons who fail to comply with notification requirements

If a person refuses or fails, without reasonable excuse, to comply with a requirement made of the person under section 148, 149, 150 or 343, an administrative breach rate reduction period applies to the person.

Note: For administrative breach rate reduction period see section 136A.

110 Sections 116, 117, 118 and 119

Repeal the sections.

111 At the end of section 133

Add:

(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 a youth training allowance; and

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

(i) a waiting period; or

(ii) the application of an activity test deferment period; or

(iii) the application of an administrative breach rate reduction period where the administrative breach rate reduction reduces the rate of youth training allowance payable to the person to nil.

112 Before section 135

Insert:

Subdivision A—Rate of youth training allowance

113 After section 136

Insert in Division 4:

Subdivision B—Administrative breach reductions in the rate of youth training allowance

136A Administrative breach rate reduction periods

If an administrative breach rate reduction period applies to a person under this Part, the period applicable to the person is 8 weeks.

136B Commencement of administrative breach rate reduction periods

(2) Subject to subsections (3), (4) and (6) and sections 136C and 136D, the administrative breach rate reduction period commences on the day on which the notice is given to the person.

(3) Subject to sections 136C and 136D, if, at the time of the application of the administrative breach rate reduction period, the person is already subject to an administrative breach rate reduction period (the pre-existing reduction period) that has not yet ended, the administrative breach rate reduction period referred to in subsection (1) commences on the day after the day on which the pre-existing reduction period ends.

(5) Subsections (3) and (4) apply in respect of a pre-existing reduction period whether or not it has commenced, and whether or not it is the subject of a notice under this section.

(6) Subject to sections 136C and 136D, if:

(a) on or before the day on which the period referred to in subsection (1) would (apart from this subsection) have commenced, youth training allowance ceases to be payable to the person; and

(b) it has not ceased to be payable because of the application of an administrative breach rate reduction period;

the administrative breach rate reduction period referred to in subsection (1) commences on the day on which the youth training allowance ceases to be payable to the person.

Note: For administrative breach rate reduction period see subsection 136B.

136C Administrative breach rate reduction periods—interaction with activity test deferment periods

(2) If an activity test deferment period that applies to a person commences during an administrative breach rate reduction period that applies to the person:

(a) the reduction period is taken to be suspended for the duration of the deferment period; and

(b) the remainder of the reduction period continues immediately after the end of the deferment period.

Note: For activity test deferment period see subsection 58(1).

136D Waiting periods

(2) If a waiting period that applies to a person commences during an administrative breach rate reduction period that applies to the person:

(a) the reduction period is taken to be suspended for the duration of the waiting period; and

(b) the remainder of the reduction period continues immediately after the end of the waiting period.

(3) If a waiting period applies to the person and:

(a) another waiting period commences during that waiting period and continues after the end of that waiting period; or

(b) another waiting period commences immediately after the end of that waiting period;

a reference in subsection (1) or (2) to the end of that waiting period is taken to be a reference to the end of the other waiting period.

(4) A reference in this section to a waiting period includes a reference to a liquid assets test waiting period under section 72.

Note: For waiting period see subsection 58(1).

136E Effect of sections 136C and 136D

For the avoidance of doubt, sections 136C and 136D do not prevent a youth training allowance ceasing to be payable in circumstances that do not involve the application of an administrative breach rate reduction period.

136F Administrative breach rate reduction period not to apply in certain circumstances

Despite any other provision of this Part, an administrative breach rate reduction period does not apply if:

(a) a person receives a youth training allowance; and

(b) youth training allowance ceases to be payable to the person because of section 114 or 115; and

(d) the person lodges a claim for a youth training allowance more than 14 days after the date of effect of the cancellation or automatic termination referred to in paragraph (c).

136G Rate of youth training allowance where administrative breach rate reduction applies

(1) If:

(a) an administrative breach rate reduction period applies to a person under this Part; and

(b) the person qualifies for a youth training allowance; and

the person’s rate of youth training allowance for the administrative breach rate reduction period is worked out as follows:

Youth training allowance rate calculator for administrative breach rate reduction period

This is how to work out a person’s rate of youth training allowance for an administrative breach rate reduction period that applies to the person.

Method statement

Step 1. Work out the person’s maximum basic rate of youth training allowance specified in Table B of Module B of Schedule 1;

the result is called the maximum payment rate.

Step 2. Work out the rate reduction amount in accordance with subsection (2).

Step 3. Take the rate reduction amount away from the rate of youth training allowance worked out in accordance with Schedule 1;

the result is called the administrative breach reduced rate.

Note: An administrative breach reduced rate may be a nil rate.

(2) A person’s rate reduction amount is worked out as follows:

114 Paragraph 151(2)(a)

Omit “156, 157 or 158”, substitute “156 or 157”.

115 Section 158

Repeal the section.

Employment Services Act 1994

116 Section 28 (note)

Repeal the note, substitute:

Note: This means that newstart allowance or youth training allowance would cease to be payable to the person and an administrative breach rate reduction period would apply to the person unless the person had a reasonable excuse for not complying with the request.

117 Section 31 (note)

Repeal the note, substitute:

118 Section 46(5)

Repeal the note, substitute:

Note: This means that newstart allowance or youth training allowance would cease to be payable to the and an administrative breach rate reduction period would apply to the person unless the person had a reasonable excuse for not complying with the request.

Part 4—Amendments to make certain conduct subject to an activity test deferment period

Social Security Act 1991

119 After section 601

Insert:

601A Certain actions deemed to be failure to satisfy activity test

(1) If a person, who is subject to the activity test in respect of a period, refuses or fails, without reasonable excuse, to attend a job interview, the person is taken to fail the activity test.

Note: For the consequences of failing the activity test see section 624.

(2) If a person, who is subject to the activity test in respect of a period, voluntarily ceases, without reasonable excuse, to take part in, or is dismissed for misconduct from, a labour market program, the person is taken to fail the activity test.

Note: For the consequences of failing the activity test see section 624.

120 After subparagraph 608(1)(j)(iii)

Insert:

(iv) the person has refused or failed to provide information in relation to the person’s income from remunerative work (see paragraph 630AA(a)); or

(iva) the person has knowingly or recklessly provided false or misleading information in relation to the person’s income from remunerative work; or

121 After section 630

Insert:

630AA Failure to provide information etc.

If a person:

(a) refuses or fails, without reasonable excuse, to provide information in relation to the person’s income from remunerative work; or

(b) knowingly or recklessly provides false or misleading information in relation to the person’s income from remunerative work;

when required to do so under a provision of this Act, a newstart allowance is not payable to the person for the activity test deferment period.

122 After section 630BC

Insert in Subdivision F of Division 1 of Part 2.12:

630BD Where one event may give rise to both an activity test deferment period and an administrative breach rate reduction period

If, but for this section, an event would result in an activity test deferment 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 deferment period is to apply to the person.

123 After subparagraph 729(2)(d)(v)

Insert:

(va) section 630AA (failing to provide information);

124 After subparagraph 729(2)(db)(v)

Insert:

(va) section 108A of that Act (failing to provide information);

Student and Youth Assistance Act 1973

125 After section 75

Insert:

75A Certain actions deemed to be failure to satisfy activity test

(1) If a person, who is subject to the activity test in respect of a period, refuses or fails, without reasonable excuse, to attend a job interview, the person is taken to fail the activity test.

Note: For the consequences of failing the activity test see section 103.

126 After subparagraph 85(1)(m)(iii)

Insert:

(iiia) the person has refused or failed to provide information in relation to the person’s income from remunerative work (see paragraph 108A(a)); or

(iiib) the person has knowingly or recklessly provided false or misleading information in relation to the person’s income from remunerative work; or

127 After section 108

Insert:

108A Failure to provide information etc.

If a person:

(a) refuses or fails, without reasonable excuse, to provide information in relation to the person’s income from remunerative work; or

(b) knowingly or recklessly provides false or misleading information in relation to the person’s income from remunerative work;

when required to do so under a provision of this Act, a youth training allowance is not payable to the person for the activity test deferment period.

128 After section 113

Insert in Subdivision F of Division 2 of Part 8:

113A Where one event would give rise to both an activity test deferment period and an administrative breach rate reduction period

Part 5—Amendments to extend the non-payment period for moving to an area of lower employment prospects from 12 to 26 weeks

Social Security Act 1991

129 Subdivision H of Division 1 of Part 2.12 (heading)

Repeal the heading, substitute:

Subdivision H—Other situations where allowance not payable

130 Subsection 634(1)

Omit “12 weeks”, substitute “26 weeks”.

Student and Youth Assistance Act 1973

131 Subsection 122(1)

Omit “12 weeks”, substitute “26 weeks”.

Schedule 6—Amendments relating to unemployment due to industrial action

Social Security Act 1991

1 Subsection 596(3)

After “occurs”, insert “6 weeks or more”.

2 Subsection 660XBE(3)

After “occurs”, insert “6 weeks or more”.

3 Subsection 771HB(3)

After “occurs”, insert “6 weeks or more ”.

Student and Youth Assistance Act 1973

4 Subsection 69(3)

After “occurs”, insert “6 weeks or more”.

Schedule 7—Amendments relating to waiting periods

Part 1—Replacement of the unused annual leave waiting period with an income maintenance period

Social Security Act 1991

1 Subsection 23(1) (definition of unused annual leave)

Repeal the definition.

2 Subsection 23(1) (definition of unused annual leave waiting period)

Repeal the definition.

3 Subsection 23(1) (paragraph (a) of the definition of waiting period)

Repeal the paragraph.

4 Subsection 23(1) (paragraph (fb) of the definition of waiting period)

Repeal the paragraph.

5 Subsection 23(1) (paragraph (h) of the definition of waiting period)

Repeal the paragraph.

6 Subsection 23(1) (paragraph (m) of the definition of waiting period)

Repeal the paragraph.

7 Subsection 23(1)

Insert:

income maintenance period has the meaning given in points 1067-H5G, 1067E-G6G, 1068-G7AG or 1068A-D8B.

8 Subsection 23(10)

Omit “an unused annual leave waiting period or”.

9 Subsection 23(10) (note 1)

Repeal the note.

10 Paragraph 608(1)(f)

Repeal the paragraph.

11 Subsection 616(2) (note 2, paragraph (a))

Repeal the paragraph.

12 Subsection 616(2) (note 3)

Repeal the note.

13 Subsection 616A(2) (note 1, paragraph (a))

Repeal the paragraph.

14 Subsection 616A(3) (note 1)

Repeal the note.

15 Subsection 616A(5) (note 1)

Repeal the note.

16 Sections 617, 618 and 619

Repeal the sections.

17 Paragraph 621(1)(b)

Repeal the paragraph.

18 Subsection 621(2)

Repeal the subsection.

19 Paragraph 621(5)(b)

Repeal the paragraph, substitute:

(b) because of sections 96 and 97 of the Student and Youth Assistance Act 1973 (ordinary waiting period), youth training allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

(i) if the person is not disqualified for youth training allowance under section 72 of that Act (liquid assets test)—the person’s youth training allowance provisional commencement day; or

(ii) if the person is disqualified for youth training allowance under section 72 of that Act (liquid assets test)—the day after the day on which the person’s youth training allowance liquid assets waiting period ends; and

20 Subsection 621(6)

Repeal the subsection.

21 Paragraph 621(7)(b)

Repeal the paragraph, substitute:

(b) because of sections 693 and 694 (ordinary waiting period), sickness allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

(i) if the person is not disqualified for sickness allowance under section 676 (liquid assets test)—the person’s sickness allowance provisional commencement day; or

(ii) if the person is disqualified for sickness allowance under section 676 (liquid assets test)—the day after the day on which the person’s sickness allowance liquid assets waiting period ends; and

22 Subparagraph 641(2)(b)(iii)

Repeal the subparagraph, substitute:

(iii) an administrative breach rate reduction period applies and the administrative breach rate reduction reduces the rate of newstart allowance payable to the person to nil; or

(iv) an income maintenance period applies.

23 Paragraph 677(1)(g)

Repeal the paragraph.

24 Subsection 688(2) (note 1, paragraph (a))

Repeal the paragraph.

25 Subsection 688(3) (note 1)

Repeal the note.

26 Subsection 688(6)

Repeal the note.

27 Subsection 694(5)

Repeal the subsection.

28 Paragraph 694(6)(b)

Repeal the paragraph, substitute:

(b) because of sections 620 and 621 (ordinary waiting period), newstart allowance is not payable to the person for a period starting on the day (the applicable day) applicable to the person under subparagraph (i) or (ii), as the case may be:

(i) if the person is not disqualified for newstart allowance under section 598 (liquid assets test)—the person’s newstart allowance provisional commencement day; or

(ii) if the person is disqualified for newstart allowance under section 598 (liquid assets test)—the day after the day on which the person’s newstart allowance liquid assets waiting period ends; and

29 Paragraph 694(7)(b)

Repeal the paragraph, substitute:

(i) if the person is not disqualified for youth training allowance under section 72 of that Act (liquid assets test)—the person’s youth training allowance provisional commencement day; or

30 Paragraph 909(1)(j)

Repeal the paragraph.

31 Sections 923, 924 and 925

Repeal the sections.

32 Point 1067-H5

Omit “If”, substitute “Subject to points 1067-H5F to 1067-H5R (inclusive), if”.

33 Point 1067-H5F

Repeal the point, substitute:

Roll-over of lump sum leave payments

1067-H5F If:

(a) a person’s employment has been terminated; and

(b) as a result the person is entitled to a lump sum leave payment from the person’s former employer; and

(c) the person rolls over the lump sum leave payment into an approved deposit fund, a superannuation fund or a deferred annuity;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of Module H of section 1067.

Certain leave payments taken to be ordinary income

1067-H5G Subject to points 1067-H5A to 1067-H5E (inclusive), if a person receives a leave payment (whether as a lump sum payment, as a payment that is a part of a series of regular payments or otherwise), the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period of leave to which the payment relates.

More than one leave payment on a day

1067-H5H Subject to points 1067-H5A to 1067-H5E (inclusive), if a person receives more than one leave payment on a day, the income maintenance period is worked out by adding the periods of leave to which the payments relate.

Start of income maintenance period

1067-H5J Subject to point 1067-H5K, the income maintenance period starts on the day the person is paid the leave payment.

Commencement of income maintenance period where there is a second leave payment

1067-H5K If a person is subject to an income maintenance period (the first period) and the person is paid another leave payment during that period (the second leave payment), the income maintenance period for the second leave payment commences the day after the end of the first period.

Leave payments in respect of periods longer than a fortnight

1067-H5L Subject to points 1067-H5A to 1067-H5E (inclusive), if:

(a) a person receives a leave payment; and

(b) the payment is in respect of a period of leave greater than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

(c) dividing the amount received by the number of days in the period of leave to which the payment relates (the daily rate); and

(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period of leave.

Secretary may determine in certain circumstances that the whole or part of an income maintenance period does not apply

1067-H5M The Secretary may determine that the whole or any part of an income maintenance period that would, apart from this point, apply to the person, does not apply to the person if the Secretary is satisfied that:

(a) the application of the income maintenance period to the person would cause the person severe financial hardship; and

(b) the circumstances that would cause the severe financial hardship were not reasonably foreseeable by the person.

When a person receives a leave payment

1067-H5N For the purposes of points 1067-H5B, 1067-H5D and 1067-H5F to 1067-H5M (inclusive), a person (the first person) is taken to receive a leave payment if the payment is made to another person:

(a) at the direction of the first person or a court; or

(b) on behalf of the first person; or

(d) the first person waives or assigns the first person’s right to receive the payment.

Single payment in respect of different kinds of leave

1067-H5P If a person receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1067-H5F to 1067-H5N (inclusive), each payment in respect of a different kind of leave is taken to be a separate payment and the income maintenance period in respect of the payment is worked out by adding the periods of leave to which the payments relate.

Definitions

1067-H5Q In points 1067-H5F to 1067-H5P (inclusive):

payment fortnight means a fortnight in respect of which a sickness allowance or a newstart allowance, as the case requires, is paid, or would be paid apart from the application of an income maintenance period, to a person.

roll-over, in relation to a lump sum leave payment, has the same meaning as roll-over in 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.

1067-H5R In points 1067-H5A to 1067-H5Q (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.

34 Point 1067-H8

Omit “If”, substitute “Subject to points 1067-H5F to 1067-H5R (inclusive), if”.

35 Point 1067E-G6

Omit “If”, substitute “Subject to points 1067E-G6F to 1067E-G6R (inclusive), if”.

36 Point 1067E-G6F

Repeal the point, substitute:

Roll-over of lump sum leave payments

1067E-G6F If:

(a) a person’s employment has been terminated; and

(b) as a result the person is entitled to a lump sum leave payment from the person’s former employer; and

(c) the person rolls over the lump sum leave payment into an approved deposit fund, a superannuation fund or a deferred annuity;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of Module G of section 1067E.

Certain leave payments taken to be ordinary income

1067E-G6G Subject to points 1067E-G6A to 1067-H5E (inclusive), if a person receives a leave payment (whether as a lump sum payment, as a payment that is a part of a series of regular payments or otherwise), the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period of leave to which the payment relates.

More than one leave payment on a day

1067E-G6H Subject to points 1067E-G6A to 1067E-G6E (inclusive), if a person receives more than one leave payment on a day, the income maintenance period is worked out by adding the periods of leave to which the payments relate.

Start of income maintenance period

1067E-G6J Subject to point 1067E-G6K, the income maintenance period starts on the day the person is paid the leave payment.

Commencement of income maintenance period where there is a second leave payment

1067E-G6K If a person is subject to an income maintenance period (the first period) and the person is paid another leave payment during that period (the second leave payment), the income maintenance period for the second leave payment commences the day after the end of the first period.

Leave payments in respect of periods longer than a fortnight

1067E-G6L Subject to points 1067E-G6A to 1067E-G6E (inclusive), if:

(a) a person receives a leave payment; and

(b) the payment is in respect of a period of leave greater than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

(c) dividing the amount received by the number of days in the period of leave to which the payment relates (the daily rate); and

(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period of leave.

Secretary may determine in certain circumstances that the whole or part of an income maintenance period does not apply

1067E-G6M The Secretary may determine that the whole or any part of an income maintenance period that would, apart from this point, apply to the person, does not apply to the person if the Secretary is satisfied that:

(a) the application of the income maintenance period to the person would cause the person severe financial hardship; and

(b) the circumstances that would cause the severe financial hardship were not reasonably foreseeable by the person.

When a person receives a leave payment

1067E-G6N For the purposes of points 1067E-G6B , 1067E-G6D and 1067E-G6F to 1067E-G6M (inclusive), a person (the first person) is taken to receive a leave payment if the payment is made to another person:

(a) at the direction of the first person or a court; or

(b) on behalf of the first person; or

(d) the first person waives or assigns the first person’s right to receive the payment.

Single payment in respect of different kinds of leave

1067E-G6P If a person receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1067E-G6F to 1067E-G6N (inclusive), each payment in respect of a different kind of leave is taken to be a separate payment and the income maintenance period in respect of the payment is worked out by adding the periods of leave to which the payments relate.

Definitions

1067E-G6Q In points 1067E-G6F to 1067E-G6P (inclusive):

payment fortnight means a fortnight in respect of which a sickness allowance is paid, or would be paid apart from the application of an income maintenance period, to a person.

roll-over, in relation to a lump sum leave payment, has the same meaning as roll-over in 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.

1067E-G6R In points 1067E-G6A to 1067E-G6Q (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.

37 Point 1067E-G10

Omit “If”, substitute “Subject to points 1067E-G6F to 1067E-G6R (inclusive), if”.

38 Point 1068-G7

Omit “If”, substitute “Subject to points 1068-G7AF to 1068-G7AR (inclusive), if”.

39 Point 1068-G7AF

Repeal the point, substitute:

Roll-over of lump sum leave payments

1068-G7AF If:

(a) a person’s employment has been terminated; and

(b) as a result the person is entitled to a lump sum leave payment from the person’s former employer; and

(c) the person rolls over the lump sum leave payment into an approved deposit fund, a superannuation fund or a deferred annuity;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of Module G of section 1068.

Certain leave payments taken to be ordinary income

1068-G7AG Subject to points 1068-G7AA to 1068-G7AE (inclusive), if a person receives a leave payment (whether as a lump sum payment, as a payment that is a part of a series of regular payments or otherwise), the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period of leave to which the payment relates.

More than one leave payment on a day

1068-G7AH Subject to points 1068-G7AA to 1068-G7AE (inclusive), if a person receives more than one leave payment on a day, the income maintenance period is worked out by adding the periods of leave to which the payments relate.

Start of income maintenance period

1068-G7AJ Subject to point 1068-G7AK, the income maintenance period starts on the day the person is paid the leave payment.

Commencement of income maintenance period where there is a second leave payment

1068-G7AK Subject to points 1068-G7AA to 1068-G7AE (inclusive), if a person is subject to an income maintenance period (the first period) and the person is paid another leave payment during that period (the second leave payment), the income maintenance period for the second leave payment commences the day after the end of the first period.

Leave payments in respect of periods longer than a fortnight

1068-G7AL Subject to points 1068-G7AA to 1068-G7AE (inclusive), if:

(a) a person receives a leave payment; and

(b) the payment is in respect of a period of leave greater than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

(c) dividing the amount received by the number of days in the period of leave to which the payment relates (the daily rate); and

(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period of leave.

Secretary may determine in certain circumstances that the whole or part of an income maintenance period does not apply

1068-G7AM The Secretary may determine that the whole or any part of an income maintenance period that would, apart from this point, apply to the person, does not apply to the person if the Secretary is satisfied that:

(a) the application of the income maintenance period to the person would cause the person severe financial hardship; and

(b) the circumstances that would cause the severe financial hardship were not reasonably foreseeable by the person.

When a person receives a leave payment

1068-G7AN For the purposes of points 1068-G7AB and 1068-G7AD to 1068-G7AM (inclusive), a person (the first person) is taken to receive a leave payment if the payment is made to another person:

(a) at the direction of the first person or a court; or

(b) on behalf of the first person; or

(d) the first person waives or assigns the first person’s right to receive the payment.

Single payment in respect of different kinds of leave

1068-G7AP If a person receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1068-G7AF to 1068-G7