Child Support Legislation Amendment (Reform of the Child Support Scheme - New Formula and Other Measures) Act 2006 (146 of 2006)

Schedule 8   Amendments relating to family tax benefit (commencing on 1 July 2008)

Part 1   Regular care children

Division 2   Application and saving provisions

147   Saving qualification and rates for double orphan pension

(1) This item applies if:

(a) immediately before 1 July 2008, a person is receiving a double orphan pension for a young person under the Social Security Act 1991; and

(b) on 1 July 2008:

(i) the person would (apart from this item) cease to qualify for a double orphan pension for the young person because of the amendments to the A New Tax System (Family Assistance) Act 1999 made by this Schedule; or

(ii) the rate of the double orphan pension payable to the person for the young person would (apart from this item) be affected by the amendments to the Social Security Act 1991 made by items 122, 123 and 124 of this Schedule.

Continuation of qualification

(2) If subparagraph (1)(b)(i) applies, then, on and after 1 July 2008, the person continues to qualify for a double orphan pension for the young person, despite the amendments to the A New Tax System (Family Assistance) Act 1999 made by this Schedule.

(3) However, the person ceases to qualify under subitem (2) for a double orphan pension for the young person if:

(a) the person would cease to qualify for a double orphan pension for the young person under the Social Security Act 1991 for a reason other than because of the amendments to the A New Tax System (Family Assistance) Act 1999 made by this Schedule; or

(b) the rate at which the double orphan pension would be payable to the person for the young person under the Social Security Act 1991 (assuming the person continued to qualify for a double orphan pension for the young person under that Act) becomes equal to or greater than the rate at which the double orphan pension is payable under subitem (4).

Continuation of rate

(4) On and after 1 July 2008, while the person continues to qualify for a double orphan pension for the young person (whether under subitem (2) or, if subparagraph (1)(b)(ii) applies, under the Social Security Act 1991), the double orphan pension is payable to the person for the young person at the lower of the following rates (the saved rate ):

(a) the rate at which the double orphan pension was payable to the person for the young person immediately before 1 July 2008, despite:

(i) the amendments to the Social Security Act 1991 made by items 122, 123 and 124 of this Schedule; and

(ii) section 1190 of that Act (indexation);

(b) if the young person is an FTB child of the person on or after 1 July 2008 - the rate that would be payable to the person for the young person under section 1010 of the Social Security Act 1991 as in force immediately before 1 July 2008.

(5) However, the double orphan pension ceases to be payable to the person for the young person at the saved rate if the rate at which the double orphan pension would otherwise be payable to the person for the young person under the Social Security Act 1991 becomes equal to or greater than the saved rate.