Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act 2010 (93 of 2010)
Schedule 2 Income management regime
Part 2 New income management measures
Social Security (Administration) Act 1999
42 After Subdivision B of Division 5 of Part 3B
Insert:
Subdivision BA - Vulnerable welfare payment recipients
123XJA Deductions from category I welfare payments - instalments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime under section 123UCA; and
(b) an instalment of category I welfare payment is payable to the person.
Deductions from category I welfare payments - instalments
(2) The following provisions have effect:
(a) the Secretary must deduct from the instalment of the category I welfare payment the deductible portion of the instalment;
(b) an amount equal to the deductible portion of the instalment is credited to the Special Account;
(c) an amount equal to the deductible portion of the instalment is credited to the person's income management account.
Deductible portion - instalments of baby bonus
(3) For the purposes of subsection (2), the deductible portion of an instalment of baby bonus under the Family Assistance Act is:
(a) 100%; or
(b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph - the lower percentage;
of the net amount of the instalment (rounded down to the nearest cent).
Deductible portion - instalments of other category I welfare payments
(4) For the purposes of subsection (2), the deductible portion of an instalment of a category I welfare payment (other than baby bonus under the Family Assistance Act) is:
(a) 50%; or
(b) if another percentage (not exceeding 100%) is specified in a legislative instrument made by the Minister for the purposes of this paragraph - the other percentage;
of the net amount of the instalment (rounded down to the nearest cent).
(5) An instrument under paragraph (4)(b) may specify different percentages in relation to different category I welfare payments.
(6) An instrument under paragraph (4)(b) may specify a percentage that is higher than 50% only if the Minister considers the higher percentage is necessary to promote the objects of this Part.
123XJB Deductions from category I welfare payments - lump sums
Scope
(1) This section applies if:
(a) a person is subject to the income management regime under section 123UCA; and
(b) a category I welfare payment is payable to the person otherwise than by instalments.
Deductions from category I welfare payments - lump sums
(2) The following provisions have effect:
(a) the Secretary must deduct from the category I welfare payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Special Account;
(c) an amount equal to the deductible portion of the payment is credited to the person's income management account.
Deductible portion
(3) For the purposes of subsection (2), the deductible portion of a category I welfare payment is:
(a) 100%; or
(b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph - the lower percentage;
of the net amount of the instalment (rounded down to the nearest cent).
(4) An instrument under paragraph (3)(b) may specify different percentages in relation to different category I welfare payments.
Subdivision BB - Disengaged youth and long-term welfare payment recipients
123XJC Deductions from category I welfare payments - instalments
Scope
(1) This section applies if:
(a) a person is subject to the income management regime under section 123UCB or 123UCC; and
(b) an instalment of category I welfare payment is payable to the person.
Deductions from category I welfare payments - instalments
(2) The following provisions have effect:
(a) the Secretary must deduct from the instalment of the category I welfare payment the deductible portion of the instalment;
(b) an amount equal to the deductible portion of the instalment is credited to the Special Account;
(c) an amount equal to the deductible portion of the instalment is credited to the person's income management account.
Deductible portion - instalments of baby bonus
(3) For the purposes of subsection (2), the deductible portion of an instalment of baby bonus under the Family Assistance Act is:
(a) 100%; or
(b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph - the lower percentage;
of the net amount of the instalment (rounded down to the nearest cent).
Deductible portion - instalments of other category I welfare payments
(4) For the purposes of subsection (2), the deductible portion of an instalment of a category I welfare payment (other than baby bonus under the Family Assistance Act) is:
(a) 50%; or
(b) if another percentage (not exceeding 100%) is specified in a legislative instrument made by the Minister for the purposes of this paragraph - the other percentage;
of the net amount of the instalment (rounded down to the nearest cent).
(5) An instrument under paragraph (4)(b) may specify different percentages in relation to different category I welfare payments.
(6) An instrument under paragraph (4)(b) may specify a percentage that is higher than 50% only if the Minister considers the higher percentage is necessary to promote the objects of this Part.
123XJD Deductions from category I welfare payments - lump sums
Scope
(1) This section applies if:
(a) a person is subject to the income management regime under section 123UCB or 123UCC; and
(b) a category I welfare payment is payable to the person otherwise than by instalments.
Deductions from category I welfare payments - lump sums
(2) The following provisions have effect:
(a) the Secretary must deduct from the category I welfare payment the deductible portion of the payment;
(b) an amount equal to the deductible portion of the payment is credited to the Special Account;
(c) an amount equal to the deductible portion of the payment is credited to the person's income management account.
Deductible portion
(3) For the purposes of subsection (2), the deductible portion of a category I welfare payment is:
(a) 100%; or
(b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph - the lower percentage;
of the net amount of the instalment (rounded down to the nearest cent).
(4) An instrument under paragraph (3)(b) may specify different percentages in relation to different category I welfare payments.