Social Security and Other Legislation Amendment (Technical Changes No. 2) Act 2025 (79 of 2025)
Schedule 3 Income Apportionment Resolution Scheme
2 Establishment of Income Apportionment Resolution Scheme
Establishment of Income Apportionment Resolution Scheme
(1) A scheme (the Income Apportionment Resolution Scheme ) to provide for the Commonwealth to pay an amount of reparation (a resolution payment ) to a person who is covered by subitem (2), (3) or (4) is established by force of this Schedule.
Note 1: Despite this item, the Minister may determine that a person is not entitled to a resolution payment (see paragraph 3(1)(f)).
Note 2: For the appropriation for the Income Apportionment Resolution Scheme, see Schedule 4.
Entitlement to resolution payments
(2) A person is entitled to a resolution payment under the Income Apportionment Resolution Scheme if:
(a) the person owes or owed a debt to the Commonwealth under:
(i) the social security law; or
Note: The social security law includes the Farm Household Support Act 2014: see section 93 of that Act.
(ii) the repealed Farm Household Support Act 1992; or
(iii) the family assistance law; or
(iv) any other Act determined by the Minister under paragraph 3(1)(a); and
(b) the debt was raised, before this item commences, as a result of an overpayment of a payment or benefit under:
(i) the social security law; or
(ii) the repealed Farm Household Support Act 1992; or
(iii) the family assistance law; or
(iv) an Act determined for the purposes of subparagraph (a)(iv); and
(c) the debt relates to one or more periods ( debt periods ), and the debt periods included one or more days in the period:
(i) beginning on 20 September 2003; and
(ii) ending on 6 December 2020; and
(d) the debt arose (whether wholly or partly, or directly or indirectly) because the Division 2 work income of the person, or of a partner of the person, was worked out using the method set out in section 1114 or 1116 of the Social Security Act 1991 (as inserted by Schedule 1 to this Act).
Example: A person's debt may arise indirectly if the person's debt arises under the family assistance law because the Division 2 work income of the person, or the person's partner, was worked out using the method set out in section 1114 of the Social Security Act 1991.
(3) A person is entitled to a resolution payment under the Income Apportionment Resolution Scheme if:
(a) the person owes or owed a debt to the Commonwealth, and the person is covered by circumstances determined for the purposes of paragraph 3(1)(b); and
(b) the debt arose (whether wholly or partly, or directly or indirectly) because the Division 2 work income of the person, or of a partner of the person, was worked out using the method set out in section 1114 or 1116 of the Social Security Act 1991 (as inserted by Schedule 1 to this Act).
Payments to those acting on behalf of recipients
(4) To avoid doubt, a resolution payment to which a person (the recipient ) covered by subitem (2) or (3) is entitled to be paid under the Income Apportionment Resolution Scheme may be paid to another person who is acting for or on behalf of the recipient.
Effect of effective acceptance of offer of resolution payment - main case
(5) If a person covered by subitem (2) or (3) lodges an effective acceptance of an offer to be paid a resolution payment, then, by force of this subitem, at the time the person lodges the acceptance:
(a) the person releases and forever discharges the Commonwealth from all liability in relation to any claim against the Commonwealth that arises as a result (whether directly or indirectly) of the Division 2 work income of the person, or of the partner of the person, being worked out using the method set out in section 1114 or 1116 of the Social Security Act 1991; and
(b) the person cannot, whether as an individual, a representative party (within the meaning of Part IVA of the Federal Court of Australia Act 1976) or a member of a group, bring or continue any such claim against the Commonwealth.
Note: This subitem ceases to apply if the effective acceptance ceases to be in force (see subitem (7)).
Effect of effective acceptance of offer of resolution payment - agents
(6) If a person (the agent ), acting for or on behalf of another person (the recipient ) who is covered by subitem (2) or (3), lodges an effective acceptance of an offer to be paid a resolution payment, then, by force of this subitem, at the time the agent lodges the acceptance:
(a) the Commonwealth is released and forever discharged from all liability in relation to any claim against the Commonwealth that arises as a result (whether directly or indirectly) of the Division 2 work income of the recipient, or of the partner of the recipient, being worked out using the method set out in section 1114 or 1116 of the Social Security Act 1991; and
(b) no person can, whether as an individual, a representative party (within the meaning of Part IVA of the Federal Court of Australia Act 1976) or a member of a group, bring or continue any such claim against the Commonwealth to the extent that it relates to the recipient.
Note: This subitem ceases to apply if the effective acceptance ceases to be in force (see subitem (7)).
(7) Subitems (5) and (6) cease to apply in relation to a person if the effective acceptance of the offer to be paid a resolution payment relating to the person ceases to be in force.
Note: The Minister may determine provisions relating to when an effective acceptance ceases to be in force (see paragraph 3(1)(k)).