Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 (60 of 2009)
Schedule 4 Pension supplements
Part 4 Other amendments
Social Security Act 1991
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):
|
Item |
Component of the rate |
|
1 |
all of the rate apart from any increase mentioned in paragraph (a) |
|
2 |
the portion of the person's pension supplement amount (if any) equal to: (a) if the Rate Calculator produces an annual rate - the person's pension supplement basic amount; and (b) if the Rate Calculator produces a fortnightly rate - 1/26 of the person's pension supplement basic amount |
|
3 |
(a) if an election by the person under subsection 1061VA(1) is in force - any remaining portion of the person's pension supplement amount; or (b) otherwise - any remaining portion of the person's pension supplement amount to the extent to which it exceeds the person's minimum pension supplement amount |
|
4 |
the amount of any increase under Part 3.7 |
|
5 |
the person's minimum pension supplement amount |
|
6 |
the amount of any increase under the PA Module |
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):
|
Relevant Modules |
|||||
|
Item |
Pension Rate Calculator |
PS Module |
PA Module |
Income test Module |
Assets test Module |
|
1 |
Pension Rate Calculator A (section 1064) |
Module BA |
not applicable |
Module E |
Module G |
|
2 |
Pension Rate Calculator C (section 1066) |
Module BA |
not applicable |
Module E |
Module G |
|
3 |
Pension Rate Calculator D (section 1066A) |
not applicable |
Module D |
Module F |
Module H |
|
4 |
Youth Allowance Rate Calculator (section 1067G) |
not applicable |
Module C |
Module H |
not applicable |
|
5 |
Austudy Payment Rate Calculator (section 1067L) |
Module BA |
Module C |
Module D |
not applicable |
|
6 |
Benefit Rate Calculator B (section 1068) |
Module BA |
Module D |
Module G |
not applicable |
|
7 |
Pension PP (Single) Rate Calculator (section 1068A) |
Module BA |
Module C |
Module E |
not applicable |
|
8 |
Benefit PP (partnered) Rate Calculator (section 1068B) |
Module DA |
Module E |
Module D |
not applicable |