Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009 (60 of 2009)

Schedule 5   Flow-through of pension supplement to CPRS

Social Security Act 1991

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).