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.