83   Section 1190 (table item 44)

Repeal the item, substitute:

84   Section 1190 (table item 46)

Repeal the item, substitute:

85   Section 1190 (table item 48)

Repeal the item, substitute:

86   Section 1190 (table items 49A and 49B)

Repeal the items, substitute:

87   Section 1190 (table item 56E)

Repeal the item.

88   At the end of section 1190

Add:

Note: Indexing the PS minimum rate will also result in the indexation of the rate of seniors supplement (see section 1061UB) and the rate of quarterly pension supplement (see section 1061VB).

89   Subsection 1191(1) (table item 1A)

Repeal the item, substitute:

90   Subsection 1191(1) (table item 33AE)

Repeal the item.

91   After subsection 1192(3A)

Insert:

(3B) The first indexation of amounts under items 1A and 1B of the CPI Indexation Table in subsection 1191(1) is to take place on 20 March 2010.

(3C) For the purposes of the first indexation of an amount under item 1C of the CPI Indexation Table in subsection 1191(1):

(a) that first indexation is to take place on 20 September 2009; and

(b) the current figure for the amount immediately before 20 September 2009 is taken to be the amount specified in the relevant item of the table in subsection 20A(5).

92   Subsection 1192(6A)

Repeal the subsection.

93   Section 1210

Repeal the section, substitute:

1210 Application of income and assets test reductions and of compensation reductions for income tax purposes

(1) If:

(a) the rate of a person's social security payment is increased under Part 3.7 (rent assistance) and/or either of the following Modules of the Rate Calculator:

(i) the pension supplement Module (the PS Module ) (if any);

(ii) the pharmaceutical allowance Module (the PA Module ) (if any); and

(b) that rate is to be reduced under:

(i) the income test Module or the assets test Module of the Rate Calculator; or

(ii) section 1168 (compensation reductions);

the reduction is to be applied as follows (in descending order):

Note: Table item (5) will not apply if an election by the person under subsection 1061VA(1) is in force, as the rate would have already been reduced to nil.

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

(a) disregard table items 2, 3 and 5 if the person's rate is increased under the PA Module (if any) of the Rate Calculator; and

(b) disregard table item 6 if the person's rate is increased under the PS Module (if any) of the Rate Calculator.

(3) If:

(a) the rate (the main rate ) of a person's social security payment is increased under the PS Module of the Rate Calculator; and

(b) that rate is to be reduced as described in paragraph (1)(b); and

(c) an election by the person under subsection 1061VA(1) is in force;

the person's quarterly pension supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person's minimum pension supplement amount would be reduced under subsection (1) were the election not in force.

Note: The reduction will be disregarded unless the person's quarterly pension supplement is reduced to nil (see subsection 43(5A) of the Administration Act).

(4) The following table sets out details of the Modules relevant to subsection (1):

Social Security (Administration) Act 1999

94   Section 12D

Repeal the section, substitute:

12D Seniors supplement

A claim is not required for seniors supplement.

12DA Quarterly pension supplement

A claim is not required for quarterly pension supplement.

95   Subsections 43(4) and (5)

Repeal the subsections, substitute:

(4) If:

(a) either of the following amounts (the added amount ) is added to a person's maximum basic rate for a particular day in working out the amount of an instalment of a social security payment:

(i) an amount of pharmaceutical allowance;

(ii) a pension supplement amount; and

(b) if the added amount is a pension supplement amount used by the Rate Calculator to produce an annual rate - the pension supplement amount is more than the person's pension supplement basic amount; and

(c) there is no election by the person under subsection 1061VA(1) in force on that day; and

(d) apart from this subsection, the portion of the instalment corresponding to that day would be less than the person's minimum daily rate, but more than a nil amount;

the amount of that portion of the instalment is to be increased to the person's minimum daily rate.

(5) In this section:

minimum daily rate , for a person, means:

(a) if the added amount is an amount of pharmaceutical allowance and the Rate Calculator for the social security payment produces a fortnightly rate - 1/14 of that amount; or

(b) if the added amount is an amount of pharmaceutical allowance and the Rate Calculator for the social security payment produces an annual rate - 1/364 of that amount; or

(c) if the added amount is a pension supplement amount - 1/364 of the person's minimum pension supplement amount.

(5A) If:

(a) an election by the person under subsection 1061VA(1) is in force on a particular day; and

(b) apart from this subsection, the portion of the instalment of the person's quarterly pension supplement that corresponds to that day would be reduced under subsection 1210(3), but not reduced to a nil amount;

the amount of that portion of the instalment is not to be reduced under subsection 1210(3).

96   Subsection 55(1)

After "48B", insert ", 48C".

97   Subsections 68(1) and 69(1)

Omit "seniors concession allowance", substitute "seniors supplement".

98   Paragraph 75(1)(b)

Omit "seniors concession allowance", substitute "seniors supplement".

99   Section 78A

Omit "seniors concession allowance", substitute "seniors supplement".

100   Section 90A

Omit "seniors concession allowance", substitute "seniors supplement".

101   Section 123A (paragraph (e) of the definition of relevant payment )

Omit "seniors concession allowance", substitute "seniors supplement".

102   Section 123A (at the end of the definition of relevant payment )

Add:

; or (f) a payment of quarterly pension supplement.

Part 5   Application and transitional

103   Pension supplement amounts - modifications for temporary singles' rate

(1) For the period:

(a) starting on 20 September 2009; and

(b) ending on 19 March 2010;

the Social Security Act 1991 (as amended by this Schedule) applies with the modifications set out in subitems (2) to (9).

(2) At the end of section 20A of that Act, add:

(7) The temporary singles' amount is worked out as follows:

(a) add up the following:

(i) the annual rate of utilities allowance for a person who is not a member of a couple;

(ii) the annual rate of telephone allowance for a person to whom section 1061SB (increased rate for home internet) applies, and who is not a member of a couple;

(iii) the annual rate of pharmaceutical allowance for a person who is not a member of a couple;

(iv) the pension supplement basic amount for a person who is not a member of a couple;

(v) $130;

(b) round up the result of paragraph (a) to the nearest multiple of $2.60.

(8) For the purposes of subsection (7), a rate mentioned in a paragraph of that subsection is that rate as at 20 September 2009.

(3) Omit point 1064-BA3 of that Act, substitute:

Residents in Australia etc. - no election in force

1064-BA3 The person's pension supplement amount is:

(a) if the person is partnered - 50% of the combined couple rate of pension supplement; and

(b) otherwise - the temporary singles' amount.

Note: For combined couple rate of pension supplement , see subsection 20A(1).

(4) Omit point 1065-BA3 of that Act, substitute:

Residents in Australia etc. - no election in force

1065-BA3 The person's pension supplement amount is:

(a) if the person is partnered - 50% of the combined couple rate of pension supplement; and

(b) otherwise - the temporary singles' amount.

Note: For combined couple rate of pension supplement , see subsection 20A(1).

(5) Omit point 1066-BA3 of that Act, substitute:

Residents in Australia etc. - no election in force

1066-BA3 The person's pension supplement amount is:

(a) if the person is partnered - 50% of the combined couple rate of pension supplement; and

(b) otherwise - the temporary singles' amount.

Note: For combined couple rate of pension supplement , see subsection 20A(1).

(6) Omit point 1067L-BA3 of that Act, substitute:

Amount if no election in force

1067L-BA3 The person's pension supplement amount is:

(a) if the person is partnered - 1/26 of 50% of the combined couple rate of pension supplement; and

(b) otherwise - 1/26 of the temporary singles' amount.

Note: For combined couple rate of pension supplement , see subsection 20A(1).

(7) Omit point 1068-BA3 of that Act, substitute:

Amount if no election in force

1068-BA3 The person's pension supplement amount is:

(a) if the person is partnered - 1/26 of 50% of the combined couple rate of pension supplement; and

(b) otherwise - 1/26 of the temporary singles' amount.

Note: For combined couple rate of pension supplement , see subsection 20A(1).

(8) Omit point 1068A-BA3 of that Act, substitute:

Residents in Australia etc. - no election in force

1068A-BA3 The person's pension supplement amount is the temporary singles' amount.

(9) Omit point 1068B-DA3 of that Act, substitute:

Amount if no election in force

1068B-DA3 The person's pension supplement amount is:

(a) if the person is partnered - 1/26 of 50% of the combined couple rate of pension supplement; and

(b) otherwise - 1/26 of the temporary singles' amount.

Note: For combined couple rate of pension supplement , see subsection 20A(1).

104   Seniors concession allowance

Despite the repeal of the following provisions by this Schedule:

(a) Part 2.25B of the Social Security Act 1991;

(b) section 48B of the Social Security (Administration) Act 1999;

those provisions continue to apply in relation to the seniors concession allowance test day on 20 September 2009, as if those repeals had not happened.

105   Quarterly pension supplement

Part 2.25C of the Social Security Act 1991 (as inserted by this Schedule) applies in relation to elections made under subsection 1061VA(1) of that Act (as inserted by this Schedule) on or after 1 July 2010.

Schedule 5   Flow-through of pension supplement to CPRS

Social Security Act 1991

1   Paragraphs 1061ZAAZA(2)(a) and (b)

Repeal the paragraphs, substitute:

(a) a social security pension (other than a special needs pension), social security benefit or social security entitlement;

(b) seniors supplement;

2   After paragraph 1061ZAAZA(2)(e)

Insert:

(ea) seniors concession allowance under Part VIIAD of the Veterans' Entitlements Act 1986;

3   Subsection 1192(2) (note 3)

Repeal the note, substitute:

Note 3: On the indexation days following 1 July 2012, the indexation of certain amounts may be affected by Division 8.

4   Subsection 1196(2) (note)

Omit "Note", substitute "Note 1".

5   At the end of subsection 1196(2)

Add:

Note 2: On the indexation days following 1 July 2012, the indexation of certain amounts may be affected by Division 8.

6   Division 8 of Part 3.16

Repeal the Division, substitute:

Division 8 - Increases related to Carbon Pollution Reduction Scheme

Subdivision A - Introduction

1206GF Objects of this Division

(1) The main object of this Division is to increase certain amounts that affect the rate at which social security payments are made to certain recipients of payments of kinds that include the following, on account of the Carbon Pollution Reduction Scheme's estimated cost of living increase:

(a) age pension;

(b) austudy payment;

(c) bereavement allowance;

(d) carer payment;

(e) disability support pension;

(f) newstart allowance;

(g) parenting payment;

(h) partner allowance;

(i) sickness allowance;

(j) widow allowance;

(k) widow B pension;

(l) wife pension;

(m) youth allowance;

(n) social security payments of kinds specified under section 1206GJ.

(2) Another object of this Division is to adjust indexation of those amounts after they are increased, to reflect the inclusion in the increases of elements brought forward from the Carbon Pollution Reduction Scheme's estimated cost of living increase.

Subdivision B - Increases to benefits

1206GG What this Subdivision applies to

This Subdivision applies to the following amounts (each of which is a base amount ):

(a) amounts provided for in a provision that is listed in column 1 of the following table and sets a rate;

(b) amounts specified under section 1206GK as amounts to which this Subdivision applies.

Note: Amounts provided for in provisions listed in the table are amounts as altered from time to time under Division 2 of this Part (CPI indexation).

1206GH Increase of 1% on 1 July 2011

This Act has effect as if, on 1 July 2011, each base amount were replaced by an amount (the replacement amount ) worked out by:

(a) calculating the amount (the provisional replacement amount ) that is 1% greater than the base amount; and

(b) if the provisional replacement amount is not a multiple of the rounding base for the base amount, rounding up or down to the nearest multiple of the rounding base (rounding up if the provisional replacement amount is not a multiple of the rounding base but is a multiple of half the rounding base).

Note: The 1% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.4% for the 2011-2012 financial year, which has been brought forward. The change to the indexation factor on or after 20 March 2012 under section 1206GL takes account of this brought forward increase.

1206GI Increase of 1.8% on 1 July 2012

This Act has effect as if, on 1 July 2012, the base amount were replaced by an amount (the replacement amount ) worked out by:

(a) calculating the amount (the provisional replacement amount ) that is 1.8% greater than the base amount; and

(b) if the provisional replacement amount is not a multiple of the rounding base for the base amount, rounding up or down to the nearest multiple of the rounding base (rounding up if the provisional replacement amount is not a multiple of the rounding base but is a multiple of half the rounding base).

Note: The 1.8% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.8% for the 2012-2013 financial year, which has also been brought forward. The change to the indexation factor on or after 20 March 2013 under section 1206GM takes account of this second brought forward increase.

1206GJ Other kinds of payments affected by this Subdivision

(1) The Minister may, by legislative instrument, specify kinds of social security payments in relation to which this Subdivision applies.

Note: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003.

(2) Kinds of social security payments may be specified by reference to either or both of the following:

(a) the persons to whom the payments are to be made;

(b) the circumstances in which the payments are to be made.

(3) Subsection (2) does not limit subsection (1).

1206GK Other amounts to which this Subdivision applies

(1) The Minister may, by legislative instrument, specify that this Subdivision applies to a specified amount that affects the rate at which a specified kind of social security payment is made.

Note 1: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003.

Note 2: A specified kind of payment could be a kind of payment specified under section 1206GJ.

(2) If the Minister does so, the instrument must also specify a rounding base for the amount for the purposes of sections 1206GH and 1206GI.

(3) An amount may be specified by reference to the fact that it affects the rate at which a specified kind of social security payment is made to specified persons or in specified circumstances.

(4) An instrument made under subsection (1) may specify that this Subdivision applies to an amount so far as it affects the rate at which a specified kind of social security payment is made to specified persons or in specified circumstances.

(5) Subsections (3) and (4) do not limit subsection (1).

(6) An instrument made under subsection (1) has effect according to its terms.

Subdivision C - Adjustment of indexation for benefits

1206GL Special rules for indexation of some amounts on or after 20 March 2012

(1) An indexation factor worked out under section 1193 for each indexation day that is:

(a) for AP MBR and YA MBR - on or after 1 January 2013; or

(b) for any other base amount to which Subdivision B applies - on or after 20 March 2012;

is to be reduced by the brought forward indexation amount, but not below 1.

(2) In this section:

brought forward indexation amount , in relation to a day, means 0.004 less any reduction made under this section for a previous day.

Note: Once the brought forward indexation amount becomes zero, there will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on 20 March 2012 is 1.003. The brought forward indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.

Further assume that on 20 September 2012 the indexation factor is 1.010. The brought forward indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.

The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

(3) This section affects the rate of a social security payment for a person if, and only if, section 1206GH affected that rate for the person.

1206GM Special rules for indexation of some amounts on or after 20 March 2013

(1) An indexation factor worked out under section 1193 for each indexation day that is:

(a) for AP MBR and YA MBR - on or after 1 January 2014; or

(b) for any other base amount to which Subdivision B applies - on or after 20 March 2013;

is to be reduced by the brought forward indexation amount, but not below 1.

(2) In this section:

brought forward indexation amount , in relation to a day, means 0.008 less any reduction made under this section for a previous day.

Note: Once the brought forward indexation amount becomes zero, there will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.005. The brought forward indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.

The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

(3) This section affects the rate of a social security payment for a person if, and only if, section 1206GI affected that rate for the person.

Subdivision D - Increases to pensions relating to 1 July 2011

1206GN Who this Subdivision applies to

This Subdivision applies to a person if, on 1 July 2011:

(a) a pension supplement amount is used to work out the rate of the person's social security payment under one of the following Rate Calculators:

(i) Pension Rate Calculator A, B or C;

(ii) Pension PP (Single) Rate Calculator; and

(b) that pension supplement amount is more than the person's pension supplement basic amount.

1206GO Increase of 1% on 1 July 2011

(1) This Act has effect as if, on 1 July 2011, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out by:

(a) adding the person's CPRS amount to what, apart from this section, would be the person's pension supplement amount on that day; and

(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

(2) This Act has effect as if, on 1 July 2011, the PS minimum rate used to work out the person's minimum pension supplement amount on and after that day were replaced by the PS minimum rate needed for the person's minimum pension supplement amount to be equal to the amount worked out by:

(a) adding the person's CPRS amount to what, apart from this section, would be the person's minimum pension supplement amount on that day; and

(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

(3) In this section:

CPRS amount , for a person, means:

(a) if the person is receiving a social security pension worked out under Pension Rate Calculator A - the sum of the following amounts:

(i) 1% of the person's maximum basic rate;

(ii) 1% of the person's pension supplement basic amount; and

(b) otherwise - the result of paragraph (a) worked out as if the person were receiving a social security pension worked out under Pension Rate Calculator A.

Note: The 1% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.4% for the 2011-2012 financial year, which has been brought forward. Subsection 1206GP(2), and the change to the indexation factor, and living cost indexation factor, on or after 20 March 2012 under section 1206GP, take account of this brought forward increase.

1206GP Special rules for indexation of some amounts on or after 20 March 2012

(1) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2012 for each of the following:

(a) the person's pension MBR;

(b) the person's PS minimum rate;

is to be reduced by the brought forward CPI indexation amount, but not below 1.

Note 1: The person's PS minimum rate is that rate as increased under subsection 1206GO(2).

Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on 20 March 2012 is 1.003. The brought forward CPI indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.

Further assume that on 20 September 2012 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.

The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

(2) If the indexation factor worked out under section 1193 for an indexation day is reduced under subsection (1), this Act has effect as if, on that day, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out as follows:

Method statement

Step 1. Work out the person's minimum pension supplement amount on that day.

Step 2. Work out what would, apart from subsection (1), be the person's minimum pension supplement amount on that day.

Step 3. Subtract the result of step 1 from the result of step 2.

Step 4. Subtract the result of step 3 from what would, apart from this subsection, be the person's pension supplement amount on that day.

Step 5. If the result of step 4 is not a multiple of $2.60, round the result up or down to the nearest multiple of $2.60 (rounding up if the result is not a multiple of $2.60 but is a multiple of $1.30).

Note 1: The amount in step 1 is the amount worked out from the PS minimum rate as adjusted under subsection (1).

Note 2: The amount in step 2 is the amount worked out from the PS minimum rate as increased under subsection 1206GO(2), and as indexed under section 1192, but without the adjustment under subsection (1) of this section.

Note 3: For step 4, the amount that would, apart from this subsection, be the person's pension supplement amount is the amount worked out from the PS rate as increased under subsection 1206GO(1) and as indexed under section 1192.

(3) A living cost indexation factor, worked out under section 1197 for each indexation day on or after 20 March 2012 for the person's pension MBR, is to be reduced by the brought forward PBLCI indexation amount, but not below 1.

Note: Once the brought forward PBLCI indexation amount becomes zero, there will be no further reduction of the factor.

Example: Assume that the living cost indexation factor worked out under section 1197 on 20 March 2012 is 1.003. The brought forward PBLCI indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.

Further assume that on 20 September 2012 the living cost indexation factor is 1.010. The brought forward PBLCI indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.

The brought forward PBLCI indexation amount in relation to later indexation days is now zero so there is no further reduction of the living cost indexation factor.

(4) In this section:

brought forward CPI indexation amount , in relation to a day, means:

(a) if the brought forward PBLCI indexation amount in relation to the day is zero - zero; and

(b) otherwise - 0.004 less any reduction made under subsection (1) for a previous day.

brought forward PBLCI indexation amount , in relation to a day, means:

(a) if the brought forward CPI indexation amount in relation to the day is zero - zero; and

(b) otherwise - 0.004 less any reduction made under subsection (3) for a previous day.

Subdivision E - Increases to pensions relating to 1 July 2012

1206GQ Who this Subdivision applies to

This Subdivision applies to a person if, on 1 July 2012:

(a) a pension supplement amount is used to work out the rate of the person's social security payment under one of the following Rate Calculators:

(i) Pension Rate Calculator A, B or C;

(ii) Pension PP (Single) Rate Calculator; and

(b) that pension supplement amount is more than the person's pension supplement basic amount.

1206GR Increase of 1.8% on 1 July 2012

(1) This Act has effect as if, on 1 July 2012, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out by:

(a) adding the person's CPRS amount to what, apart from this section, would be the person's pension supplement amount on that day; and

(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

(2) This Act has effect as if, on 1 July 2012, the PS minimum rate used to work out the person's minimum pension supplement amount on and after that day were replaced by the PS minimum rate needed for the person's minimum pension supplement amount to be equal to the amount worked out by:

(a) adding the person's CPRS amount to what, apart from this section, would be the person's minimum pension supplement amount on that day; and

(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

(3) In this section:

CPRS amount , for a person, means:

(a) if the person is receiving a social security pension worked out under Pension Rate Calculator A - the sum of the following amounts:

(i) 1.8% of the person's maximum basic rate;

(ii) 1.8% of the person's pension supplement basic amount; and

(b) otherwise - the result of paragraph (a) worked out as if the person were receiving a social security pension worked out under Pension Rate Calculator A.

Note: The 1.8% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.8% for the 2012-2013 financial year, which has also been brought forward. Subsection 1206GS(2), and the change to the indexation factor, and living cost indexation factor, on or after 20 March 2013 under section 1206GS, take account of this second brought forward increase.

1206GS Special rules for indexation of some amounts on or after 20 March 2013

(1) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2013 for each of the following:

(a) the person's pension MBR;

(b) the person's PS minimum rate;

is to be reduced by the brought forward CPI indexation amount, but not below 1.

Note 1: The person's PS minimum rate is that rate as increased under subsection 1206GR(2).

Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.005. The brought forward CPI indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.

The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

(2) If the indexation factor worked out under section 1193 for an indexation day is reduced under subsection (1), this Act has effect as if, on that day, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out as follows:

Method statement

Step 1. Work out the person's minimum pension supplement amount on that day.

Step 2. Work out what would, apart from subsection (1), be the person's minimum pension supplement amount on that day.

Step 3. Subtract the result of step 1 from the result of step 2.

Step 4. Subtract the result of step 3 from what would, apart from this subsection, be the person's pension supplement amount on that day.

Step 5. If the result of step 4 is not a multiple of $2.60, round the result up or down to the nearest multiple of $2.60 (rounding up if the result is not a multiple of $2.60 but is a multiple of $1.30).

Note 1: The amount in step 1 is the amount worked out from the PS minimum rate as adjusted under subsection (1).

Note 2: The amount in step 2 is the amount worked out from the PS minimum rate as increased under subsection 1206GR(2), and as indexed under section 1192, but without the adjustment under subsection (1) of this section.

Note 3: For step 4, the amount that would, apart from this subsection, be the person's pension supplement amount is the amount worked out from the PS rate as increased under subsection 1206GR(1) and as indexed under section 1192.

(3) A living cost indexation factor, worked out under section 1197 for each indexation day on or after 20 March 2013 for the person's pension MBR, is to be reduced by the brought forward PBLCI indexation amount, but not below 1.

Note: Once the brought forward PBLCI indexation amount becomes zero, there will be no further reduction of the factor.

Example: Assume that the living cost indexation factor worked out under section 1197 on 20 March 2013 is 1.005. The brought forward PBLCI indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the living cost indexation factor is 1.010. The brought forward PBLCI indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.

The brought forward PBLCI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

(4) In this section:

brought forward CPI indexation amount , in relation to a day, means:

(a) if the brought forward PBLCI indexation amount in relation to the day is zero - zero; and

(b) otherwise - 0.008 less any reduction made under subsection (1) for a previous day.

brought forward PBLCI indexation amount , in relation to a day, means:

(a) if the brought forward CPI indexation amount in relation to the day is zero - zero; and

(b) otherwise - 0.008 less any reduction made under subsection (3) for a previous day.

Subdivision F - Increases to pension PP (single) for persons residing in Australia who have not reached pension age and are in Australia

1206GT Persons receiving pension PP (single) on 1 July 2011

When this section applies

(1) This section applies to a person if, on 1 July 2011:

(a) a pension supplement amount is used to work out the rate of the person's pension PP (single) for that day; and

(b) that pension supplement amount is the person's PS basic rate; and

(c) the person is residing in Australia and:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Increase of 1% on 1 July 2011

(2) This Act has effect as if, on 1 July 2011, the person's PS basic rate on and after that day were replaced by the amount worked out by:

(a) adding the person's CPRS amount to what, apart from this section, would be the person's PS basic rate on that day; and

(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Special rules for indexation of some amounts on or after 20 March 2012

(3) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2012 for each of the following:

(a) the person's pension MBR;

(b) the person's PS basic rate;

is to be reduced by the brought forward CPI indexation amount, but not below 1.

Note 1: The person's PS basic rate is that rate as increased under subsection (2).

Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on 20 March 2012 is 1.003. The brought forward CPI indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.

Further assume that on 20 September 2012 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.

The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

(4) In this section:

brought forward CPI indexation amount , in relation to a day, means 0.004 less any reduction made under subsection (1) for a previous day.

CPRS amount , for a person, means the sum of the following amounts worked out as if the person were receiving a social security pension worked out under Pension Rate Calculator A:

(a) 1% of the person's maximum basic rate;

(b) 1% of the person's pension supplement basic amount.

Note: The 1% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.4% for the 2011-2012 financial year, which has been brought forward. The change to the indexation factor on or after 20 March 2012 under subsection (3) takes account of this brought forward increase.

1206GU Persons receiving pension PP (single) on 1 July 2012

When this section applies

(1) This section applies to a person if, on 1 July 2012:

(a) a pension supplement amount is used to work out the rate of the person's pension PP (single) for that day; and

(b) that pension supplement amount is the person's PS basic rate; and

(c) the person is residing in Australia and:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Increase of 1.8% on 1 July 2012

(2) This Act has effect as if, on 1 July 2012, the person's PS basic rate on and after that day were replaced by the amount worked out by:

(a) adding the person's CPRS amount to what, apart from this section, would be the person's PS basic rate on that day; and

(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multipleof $2.60 but is a multiple of $1.30).

Special rules for indexation of some amounts on or after 20 March 2013

(3) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2013 for each of the following:

(a) the person's pension MBR;

(b) the person's PS basic rate;

is to be reduced by the brought forward CPI indexation amount, but not below 1.

Note 1: The person's PS basic rate is that rate as increased under subsection (2).

Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.

Example: Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.005. The brought forward CPI indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.

Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.

The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

(4) In this section:

brought forward CPI indexation amount , in relation to a day, means 0.008 less any reduction made under subsection (1) for a previous day.

CPRS amount , for a person, means the sum of the following amounts worked out as if the person were receiving a social security pension worked out under Pension Rate Calculator A:

(a) 1.8% of the person's maximum basic rate;

(b) 1.8% of the person's pension supplement basic amount.

Note: The 1.8% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.8% for the 2012-2013 financial year, which has also been brought forward. The change to the indexation factor on or after 20 March 2013 under subsection (3) takes account of this second brought forward increase.

7   After clause 149 of Schedule 1A

Insert:

149A Increases in rates payable under clause 146 related to Carbon Pollution Reduction Scheme

Application

(1) This clause applies if:

(a) clause 146 affects the rate at which a social security pension is payable to a person for a day on or after 1 July 2011; and

(b) subclause 147(1) or (2) is relevant to the person.

Purpose

(2) The purpose of this clause is to ensure appropriate increases in the rate of the person's pension on account of the Carbon Pollution Reduction Scheme's estimated cost of living increase, by:

(a) providing for increases in the amount described in subparagraph 146(4)(a)(i) of this Schedule; and

(b) modifying the operation of Subdivisions D and E of Division 8 of Part 3.16 (which apply because of clause 149).

Increase on 1 July 2011

(3) This Act has effect as if, on 1 July 2011, the amount described in subparagraph 146(4)(a)(i) of this Schedule (apart from this subclause) for the person were replaced by the amount worked out by:

(a) adding the CPRS amount defined in subsection 1206GO(3) for the person (worked out disregarding clause 149) to the amount described in subparagraph 146(4)(a)(i) of this Schedule on that day (apart from this subclause); and

(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Increase on 1 July 2012

(4) This Act has effect as if, on 1 July 2012, the amount described in subparagraph 146(4)(a)(i) of this Schedule (apart from this subclause) for the person were replaced by the amount worked out by:

(a) adding the CPRS amount defined in subsection 1206GR(3) for the person (worked out disregarding clause 149) to the amount described in subparagraph 146(4)(a)(i) of this Schedule on that day (apart from this subclause); and

(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Modification of Division 8 of Part 3.16

(5) Subsections 1206GP(1) and 1206GS(1), and the definition of brought forward CPI indexation amount (except paragraph (a) of that definition) in each of subsections 1206GP(4) and 1206GS(4), apply in relation to the amount described in subparagraph 146(4)(a)(i) of this Schedule for the person in the same way as they apply in relation to the person's PS minimum rate.

(6) Subsections 1206GP(2) and 1206GS(2) apply as if each reference in those subsections to the PS rate were a reference to the amount described in subparagraph 146(4)(a)(i) of this Schedule for the person.

Note: The reference in step 4 of the method statement in each of subsections 1206GP(2) and 1206GS(2), as they apply because of this clause, to what would, apart from that subsection, be the person's pension supplement amount is a reference to that amount worked out taking account of clause 149. Note 3 to each of those subsections is not relevant to the application of those subsections because of this clause.

(7) The following provisions do not affect the rate of the person's pension worked out under clause 146 or an amount worked out in relation to the person's pension because of clause 149:

(a) subsection 1206GO(1);

(b) paragraph 1206GP(1)(a);

(c) subsection 1206GP(3);

(d) subsection 1206GR(1);

(e) paragraph 1206GS(1)(a);

(f) subsection 1206GS(3).

Schedule 6   Income tests

Part 1   Taper rate

Social Security Act 1991

1   Point 1064-E10 (formula)

Omit "0.4", substitute "0.5".

2   Point 1066-E8 (formula)

Omit "0.4", substitute "0.5".

3   Point 1066A-F9

Repeal the point, substitute:

Pension reduction for ordinary income in excess of ordinary income free area

1066A-F9 A person's reduction for ordinary income is:

Part 2   Income free area

Social Security Act 1991

4   Point 1064-E1 (method statement, step 2)

Omit "points 1064-E4 to 1064-E9", substitute "point 1064-E4".

5   Point 1064-E4

Omit "plus an additional corresponding amount in column 5 for each dependent child of the person".

6   Point 1064-E4 (table E-1, columns 5 and 6)

Repeal the columns.

7   Point 1064-E4 (note 2)

Repeal the note.

8   Points 1064-E5, 1064-E6, 1064-E7, 1064-E8, 1064-E9 and 1064-E12

Repeal the points.

9   Point 1066-E1 (method statement, step 2)

Omit "points 1066-E4 to 1066-E7", substitute "point 1066-E4".

10   Point 1066-E4

Omit "plus an additional amount in column 3 for each dependent child of the person".

11   Point 1066-E4 (table E, columns 3 and 4)

Repeal the columns.

12   Point 1066-E4 (note 1)

Repeal the note.

13   Point 1066-E4 (note 2)

Omit "2".

14   Points 1066-E5, 1066-E6, 1066-E7 and 1066-E10

Repeal the points.

15   Point 1066A-F1 (method statement, step 2)

Omit "points 1066A-F3 to 1066A-F8", substitute "point 1066A-F3".

16   Point 1066A-F3

Omit "plus an additional corresponding amount in column 5 for each dependent child of the person".

17   Point 1066A-F3 (table F-1, columns 5 and 6)

Repeal the columns.

18   Point 1066A-F3 (note 2)

Repeal the note.

19   Points 1066A-F4, 1066A-F5, 1066A-F6, 1066A-F7, 1066A-F8 and 1066A-F11

Repeal the points.

Part 3   Application of amendments

20   Application of amendments

The amendments made by this Schedule apply for the purposes of working out the rates of social security payments for days on or after 20 September 2009.

Note: After applying those amendments, different rates for some social security payments may be worked out under Schedule 1A to the Social Security Act 1991.

Schedule 7   Work bonus

Social Security Act 1991

1   Point 1064-E1 (note 2)

After:

· the general concept of ordinary income (sections 1072 and 1073);

insert:

· the work bonus (section 1073AA);

2   Point 1066-E1 (note 2)

After:

· the general concept of ordinary income (sections 1072 and 1073);

insert:

· the work bonus (section 1073AA);

3   Section 1072 (note 2)

After "see", insert "section 1073AA (work bonus),".

4   After Division 1 of Part 3.10

Insert:

Division 1AAA - Work bonus

1073AA Work bonus

(1) This section applies to a person if:

(a) the person's rate of social security pension is calculated in accordance with Pension Rate Calculator A at the end of section 1064 or Pension Rate Calculator C at the end of section 1066; and

(b) the person has reached pension age.

Note: For pension age see subsections 23(5A), (5B), (5C) and (5D).

(2) If the person's employment income for an instalment period is greater than or equal to the income concession amount for that period, the amount of the person's employment income to be disregarded for that period for the purposes of Module E of that Rate Calculator is 50% of that income concession amount.

(3) If a person's employment income for an instalment period is less than the income concession amount for that period, the amount of the person's employment income to be disregarded for that period for the purposes of Module E of that Rate Calculator is 50% of the person's employment income for that period.

Definition

(4) The income concession amount is:

(a) for an instalment period of 14 days - $500; and

(b) for an instalment period of less than 14 days - the amount worked out using the following formula:

$500 x (Number of days in the instalment period / 14)

Interpretation

(5) For the purposes of this section, a person's employment income for an instalment period includes an amount that is taken to have been earned, derived or received over that period because of subsection 1073A(1).

(6) To avoid doubt, apply this section before applying point 1064-E2 or point 1066-E2 (whichever is relevant).

Example 1: David and Amy are members of a couple. David earns $50 of employment income in an instalment period of 14 days and Amy earns $500 of employment income in that period.

For David, $25 of the $50 is disregarded for the purposes of the ordinary income test.

For Amy, $250 of the $500 is disregarded for the purposes of the ordinary income test.

Example 2: Ian and Simone are members of a couple. Ian earns no employment income in an instalment period of 14 days and Simone earns $1,000 of employment income in that period.

For Simone, $250 is disregarded for the purposes of the ordinary income test (which is 50% of the income concession amount).

5   Application

The amendment made by item 4 applies in respect of an instalment period that includes 20 September 2009 and later instalment periods.

Schedule 8   Employment income attribution for persons of pension age

Social Security Act 1991

1   Subparagraph 1073A(1)(b)(ii)

Omit "and".

2   Subparagraph 1073A(1)(b)(iii)

Repeal the subparagraph.

3   Section 1073B

Before "If", insert "(1)".

4   Paragraph 1073B(c)

Repeal the paragraph.

5   At the end of section 1073B

Add:

(2) If a person has reached pension age and is receiving a social security benefit, subsection (1) does not apply to the person, to the extent that it relates to that benefit.

Note 1: Subsection (1) applies to a person who has not reached pension age and is receiving a social security benefit.

Note 2: For pension age see subsections 23(5A), (5B), (5C) and (5D).

6   Application

The amendments made by this Schedule apply in relation to employment income that is earned, derived or received, or is taken to have been earned, derived or received, on or after the commencement of this item.

Schedule 9   Pension bonus scheme

Social Security Act 1991

1   After subsection 92J(1)

Insert:

(1A) However, the Secretary must not register a person as a member of the pension bonus scheme if the person's date of qualification for the age pension occurs on or after 20 September 2009.

(1B) For the purposes of subsection (1A), subsections 92H(8) and (9) apply in a way corresponding to the way in which they apply for the purposes of section 92H.

2   Application

The amendment made by item 1 applies in relation to applications for registration that are made on or after the commencement of that item.

Schedule 10   Transitional arrangements

Part 1   Main amendment

Social Security Act 1991

1   At the end of Schedule 1A

Add:

144 Saving and transitional provisions for section 93H

Saving provision

(1) Section 93H, as in force before 20 September 2009, continues to apply to set a person's annual pension rate for the purposes of Division 6 of Part 2.2A if the start day for the age pension was before 20 September 2009.

Indexation of subsection 93H(4) amounts on 20 September 2009

(2) Part 3.16, as amended by Part 3 of Schedule 1 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009, applies to the indexation on 20 September 2009, and later indexation days, of the amounts in subsection 93H(4).

145 Saving provision for income test taper rate for disability support pensioners under 21 without dependent children

(1) Point 1066A-F9, as in force before 20 September 2009, continues to apply to working out a person's rate of disability support pension under Pension Rate Calculator D in section 1066A if:

(a) the person was receiving disability support pension immediately before that day at a rate worked out under that Calculator; and

(b) the rate was worked out taking account of an ordinary income excess under point 1066A-F10 that was more than nil.

Note: This clause is relevant only if Pension Rate Calculator D in section 1066A continues to apply to working out the person's rate of disability support pension.

(2) Subclause (1) ceases to apply, and does not apply ever again, in relation to the person if:

(a) the person's rate of disability support pension under Pension Rate Calculator D in section 1066A for a day on or after 20 September 2009 is worked out taking account of an ordinary income excess under point 1066A-F10 that is nil or less; or

(b) Pension Rate Calculator D in section 1066A ceases to apply for working out the person's rate of disability support pension for a day on or after 20 September 2009; or

(c) the person ceases to receive disability support pension on or after 20 September 2009.

146 Transitional provision for rates of certain social security pensions on and after 20 September 2009

Application

(1) This clause applies if:

(a) on 19 September 2009 a person was receiving one of the following social security pensions:

(i) age pension;

(ii) disability support pension;

(iii) wife pension;

(iv) carer payment;

(v) bereavement allowance;

(vi) widow B pension;

(vii) special needs pension; and

(b) the person continues (without a break) to receive one of those social security pensions (whether or not of the same sort as the one the person received on that day).

Purpose

(2) This clause has effect for the purposes of working out the rate of one of those social security pensions for the person for a day (the relevant day ) after 19 September 2009 under point 1064-A1, 1065-A1 or 1066-A1, or under section 796 so far as one or more of those points are relevant because of that section.

Provisional annual payment rate

(3) The person's provisional annual payment rate is taken to be the amount worked out under subclause (4) if the total of:

(a) 1/364 of that amount; and

(b) the amount (if any) of DFISA that would be payable to the person on the relevant day assuming that:

(i) the person's provisional annual payment rate were the amount worked out under subclause (4); and

(ii) the amendments made by Schedules 6 and 7 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been made;

is greater than the total of:

(c) 1/364 of the person's provisional annual payment rate apart from this clause; and

(d) the amount (if any) of DFISA that would be payable to the person on the relevant day apart from this clause.

Note: The provisional annual payment rate is an amount worked out under the method statement in whichever of points 1064-A1 and 1066-A1 is relevant. Point 1064-A1 may be relevant of its own force or because of point 1065-A1 or section 796.

(4) The amount is the one that would be the provisional annual payment rate under the relevant point if:

(a) the maximum payment rate for the person were the total of:

(i) the amount worked out under whichever of subclauses 147(1), (2), (3) and (4) is relevant to the person; and

(ii) the amount (if any) per year calculated for the person under paragraph 1070A(b) (for rent assistance);

reduced, if subclause 147(1) or (2) is relevant to the person and an election by the person under subsection 1061VA(1) is in force, by the minimum pension supplement amount; and

(b) the amendments made by Schedules 6 and 7 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been made.

Note 1: The maximum payment rate is an amount used in points 1064-A1 and 1066-A1.

Note 2: Subclause 147(1) deals with a person in Australia who is not a member of a couple or is a member of an illness separated couple or respite care couple, or is partnered (partner in gaol).

Note 3: Subclause 147(2) deals with a person in Australia who is a member of a couple (but not a member of an illness separated couple or respite care couple, and not partnered (partner in gaol)).

Note 4: Subclause 147(3) deals with a person who has been outside Australia for more than 13 weeks and is not a member of a couple or is a member of an illness separated couple or respite care couple, or is partnered (partner in gaol).

Note 5: Subclause 147(4) deals with a person who has been outside Australia for more than 13 weeks and is a member of a couple (but not a member of an illness separated couple or respite care couple, and not partnered (partner in gaol)).

Note 6: The amount described in subparagraph (4)(a)(i) is indexed under sections 1191 to 1194 (CPI indexation) on and after 20 March 2010.

Limit on future application of subclause (3)

(5) Subclause (3) does not apply again for working out the rate of a social security pension of the person for a day after the relevant day if the amount worked out under subclause (4) for the relevant day is less than or equal to the person's provisional annual payment rate for the relevant day apart from this clause.

Relationship with DFISA provisions

(6) This clause does not affect the operation of Part VIIAB (Defence Force Income Support Allowance and related payments) of the Veterans' Entitlements Act 1986 for the purposes of working out amounts of payments under that Part after working out the provisional annual payment rate for a social security pension taking account of this clause.

147 Amounts for subparagraph 146(4)(a)(i)

Single Australian resident in Australia

(1) For the purposes of subparagraph 146(4)(a)(i), work out the amount as follows, if, on the relevant day:

(a) the person's family situation is any of the following:

(i) not a member of a couple;

(ii) member of an illness separated couple;

(iii) member of a respite care couple;

(iv) partnered (partner in gaol); and

(b) the person is residing in Australia; and

(c) the person either:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Method statement

Step 1. Work out what each of the following amounts (described using the abbreviation used in Part 3.16 for the amount) would be on 20 September 2009, taking account of indexation (if any) under that Part on that day, if the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been enacted:

(a) the amount that would be the pension MBR for a person who is not a member of a couple assuming that section 1195 did not apply on 20 September 2009;

(b) pension supplement for a person who is not (and was not on 1 July 2000) a member of a couple;

(c) pension PA "single" rate;

(d) TA (Internet) "single" rate;

(e) UA "single" rate.

Step 2. Identify the greater of the amount described in paragraph (e) of step 1 and $525.20 (or either of them if they are the same).

Step 3. Add up all the amounts worked out under step 1 and the amount identified under step 2.

Step 4. If the result of step 3 is not a multiple of $2.60, round that result up to the next multiple of $2.60.

Note 1: For member of a couple , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

Note 2: Subsection 7(3) is relevant to determining whether a person is residing in Australia.

Note 3: Section 1190 explains the abbreviations used in Part 3.16.

Partnered Australian resident in Australia

(2) For the purposes of subparagraph 146(4)(a)(i), work out the amount as follows, if, on the relevant day:

(a) the person is a member of a couple, but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol); and

(b) the person is residing in Australia; and

(c) the person either:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

Method statement

Step 1. Work out what each of the following amounts (described using the abbreviation used in Part 3.16 for the amount) would be on 20 September 2009, taking account of indexation (if any) under that Part on that day, if the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been enacted:

(a) the amount that would be the pension MBR for a person who is a member of a couple (but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol)) assuming that section 1195 did not apply on 20 September 2009;

(b) pension supplement for a person who is (and was on 1 July 2000) a member of a couple (but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol));

(c) Pension PA "partnered" (item 2) rate;

(d) TA (Internet) "partnered" (item 5) rate;

(e) half the UA "single" rate.

Step 2. Identify the greater of the amount described in paragraph (e) of step 1 and $262.60 (or either of them if they are the same).

Step 3. Add up all the amounts worked out under step 1 and the amount identified under step 2.

Step 4. If the result of step 3 is not a multiple of $2.60, round that result up to the next multiple of $2.60.

Note 1: For member of a couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

Note 2: Subsection 7(3) is relevant to determining whether a person is residing in Australia.

Note 3: Section 1190 explains the abbreviations used in Part 3.16.

Single person not covered by subclause (1)

(3) For the purposes of subparagraph 146(4)(a)(i), work out the amount as follows, if, on the relevant day:

(a) the person's family situation is any of the following:

(i) not a member of a couple;

(ii) member of an illness separated couple;

(iii) member of a respite care couple;

(iv) partnered (partner in gaol); and

(b) the person either:

(i) is not residing in Australia; or

(ii) is absent from Australia and has been so for a continuous period exceeding 13 weeks.

Method statement

Step 1. Work out what each of the following amounts (described using the abbreviation used in Part 3.16 for the amount) would be on 20 September 2009, taking account of indexation under that Part on that day, if the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been enacted:

(a) the amount that would be the pension MBR for a person who is not a member of a couple assuming that section 1195 did not apply on 20 September 2009;

(b) pension supplement for a person who is not (and was not on 1 July 2000) a member of a couple.

Step 2. Add up the amounts worked out under step 1.

Note 1: For member of a couple , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

Note 2: Subsection 7(3) is relevant to determining whether a person is residing in Australia.

Note 3: Section 1190 explains the abbreviations used in Part 3.16.

Partnered person not covered by subclause (2)

(4) For the purposes of subparagraph 146(4)(a)(i), work out the amount as follows, if, on the relevant day:

(a) the person is a member of a couple, but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol); and

(b) the person either:

(i) is not residing in Australia; or

(ii) is absent from Australia and has been so for a continuous period exceeding 13 weeks.

Method statement

Step 1. Work out what each of the following amounts (described using the abbreviation used in Part 3.16 for the amount) would be on 20 September 2009, taking account of indexation under that Part on that day, if the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 had not been enacted:

(a) the amount that would be the pension MBR for a person who is a member of a couple (but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol)) assuming that section 1195 did not apply on 20 September 2009;

(b) pension supplement for a person who is (and was on 1 July 2000) a member of a couple (but not a member of an illness separated couple or respite care couple and not partnered (partner in gaol)).

Step 2. Add up the amounts worked out under step 1.

Note 1: For member of a couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

Note 2: Subsection 7(3) is relevant to determining whether a person is residing in Australia.

Note 3: Section 1190 explains the abbreviations used in Part 3.16.

148 Rate of social security payments to partners of persons affected by clause 146

(1) This clause applies if clause 146 applies to a person who is a member of a couple and that clause affects the rate at which a social security pension is payable to the person.

(2) In working out the amount of a social security payment payable to a partner of the person, assume that the social security pension payable to the person is payable at the rate at which it would be payable if clause 146 had not been enacted.

149 Payment and income tax consequences of receiving social security pension at rate affected by clause 146

Application

(1) This clause applies if clause 146 affects the rate at which a social security pension is payable to a person.

Purpose

(2) The purpose of this clause is to ensure that the person is treated appropriately in relation to the payment, and income taxation, of the pension by modifying the operation of the social security law (and thus affecting the related income tax law) in relation to the person and the pension.

Note: This clause does not modify the operation of subsection 20A(4), which provides for working out the person's minimum pension supplement amount.

Pension supplement amount

(3) The social security law applies in relation to the person's pension as if the amount described in subparagraph 146(4)(a)(i), as affected by any indexation and any relevant reduction described in paragraph 146(4)(a), were an amount added under the pension supplement Module of the relevant Pension Rate Calculator (and therefore used to work out the rate of the pension).

Note 1: One effect of subclause (3) is that the amount is the person's pension supplement amount (as defined in subsection 23(1)).

Note 2: If that amount exceeds the person's pension supplement basic amount (as affected by subclause (4)), other effects of subclause (3) include the following:

(a) the excess being tax-exempt pension supplement under subsection 20A(6) of this Act;

(b) Part 2.25C (Quarterly pension supplement) of this Act applying, which may affect timing of payment of some of the pension under the Administration Act;

(c) the possibility of the minimum amount of fortnightly instalments of the pension being affected under section 43 of the Administration Act;

(d) telephone allowance not being payable because of section 1061R of this Act;

(e) utilities allowance not being payable because of section 1061T of this Act.

Note 3: Yet another effect of subclause (3) is that section 1210 will affect the operation of reductions of the maximum payment rate because of the income test and assets test.

Pension supplement basic amount

(4) The social security law applies in relation to the person's pension as if:

(a) each reference in the table in subsection 20A(5) to $507 were a reference to $14,814.80; and

(b) the reference in the table in subsection 20A(5) to $423.80 were a reference to $12,373.40.

Note 1: This affects the person's pension supplement basic amount.

Note 2: The provisions for indexing amounts in the table in subsection 20A(5) apply to the higher figures mentioned in this subclause.

Part 2   Related amendments

Division 1   Amendments commencing on 20 September 2009

Social Security Act 1991

2   At the end of point 1064-A1

Add:

Note 7: Clause 146 of Schedule 1A may affect the provisional annual payment rate in step 11.

3   At the end of point 1066-A1

Add:

Note 6: Clause 146 of Schedule 1A may affect the provisional annual payment rate in step 11.

Division 2   Amendments commencing on 21 September 2009

Social Security Act 1991

4   Section 1190 (at the end of the table)

Add:

5   Subsection 1191(1) (at the end of the table)

Add:

Schedule 11   Pension age

Social Security Act 1991

1   Subsection 23(5A)

Repeal the subsection, substitute:

Pension age

(5A) A man born during the period specified in column 2 of an item in the following table reaches pension age when he turns the age specified in column 3 of that item.

2   Subsection 23(5D)

Repeal the subsection, substitute:

(5D) A woman born during the period specified in column 2 of an item in the following table reaches pension age when she turns the age specified in column 3 of that item.

Schedule 12   Advance payments

Social Security Act 1991

1   Subsection 23(1)

Insert:

advance payment qualifying amount , for a person, means:

(a) if the person is receiving a social security pension worked out under Pension Rate Calculator A - the sum of the following amounts: