Family and Community Services Legislation Amendment (Australians Working Together and other 2001 Budget Measures) Act 2003 (Incorporating amendments up to Act No. 122 of 2003) (35 of 2003)

Schedule 6   Working credit

Part 2   Amendment of the Social Security Act 1991

Social Security Act 1991

7   After subsection 23(4)

Insert:

(4A) Despite subsection (4), if:

(a) a person is receiving a social security pension or social security benefit; and

(b) the person's rate of payment of the pension or benefit is worked out with regard to the income test module of a rate calculator in Chapter 3; and

(c) the person has not reached pension age; and

(d) the person or the person's partner earns, derives or receives, or is taken to earn, derive or receive, employment income; and

(e) the person would, but for this subsection, cease to be receiving the pension or benefit on and from a day (the cessation day ):

(i) if paragraph (d) applies to the person - because of the employment income of the person (either alone or in combination with any other ordinary income earned, derived or received, or taken to have been earned, derived or received, by the person) (and after any working credit balance or student income bank balance of the person is reduced to nil); or

(ii) if paragraph (d) applies to the partner - because of the employment income of the partner (either alone or in combination with any other ordinary income earned, derived or received, or taken to have been earned, derived or received, by the partner) (and after any working credit balance or student income bank balance of the partner is reduced to nil); and

(f) but for the employment income, or the combined income, referred to in paragraph (e), the pension or benefit would continue to be payable to the person on and from the cessation day; and

(g) the person:

(i) in the case of a woman who would, but for this subsection, cease to be receiving wife pension because of the employment income, or the combined income, referred to in subparagraph (e)(ii) - continues, but for that employment income or combined income, to be qualified for wife pension on and from the cessation day; and

(ii) in any other case - continues to be qualified for the pension or benefit on and from the cessation day;

then, for the purposes only of the provisions of this Act that are specified in subsection (4AA), the person is taken to be receiving the pension or benefit until:

(h) 12 weeks after the end of the instalment period in which the cessation day occurs; or

(i) the day the person reaches pension age; or

(j) the day the pension or benefit would cease to be payable to the person for a reason other than the employment income, or the combined income, referred to in paragraph (e); or

(k) the day the person ceases to be qualified as mentioned in paragraph (g);

whichever happens first.

(4AA) For the purposes of subsection (4A), the following are the specified provisions of this Act:

(a) provisions in Chapter 2 that provide for an increase in a person's rate of payment by an amount to be known as the approved program of work supplement;

(b) section 1048;

(c) section 1061PJ;

(d) section 1061Q;

(e) point 1067G-F3;

(f) provisions within the rent assistance module of a rate calculator in Chapter 3 describing a partner with a rent increased pension;

(g) provisions within the rent assistance module of a rate calculator in Chapter 3 describing a partner with a rent increased benefit;

(h) provisions within the income test module of a rate calculator in Chapter 3 prescribing the partner income free area or the partner income excess for a person.