Commonwealth Consolidated Acts Commonwealth Consolidated Acts
1 Subsections 1073AA(2) to (4)
Repeal the subsections, substitute:
Employment income greater than or equal to income concession amount
(2) If the person's employment income for an instalment period is greater than or equal to the income concession amount for that period, then, for the purposes of Module E of that Rate Calculator, the amount of the person's employment income for that period is reduced by an amount equal to the income concession amount.
Example 1: David earns $2,250 of employment income in an instalment period of 14 days. David's rate of social security pension for that period is greater than nil.
David's employment income for that period is reduced by $250, leaving David $2,000 of employment income for that period.
Example 2: Amy earns $1,000 of employment income in an instalment period of 14 days. Amy's rate of social security pension for that period is greater than nil.
Amy's employment income for that period is reduced by $250, leaving Amy $750 of employment income for that period.
(3) If the person's unused concession balance (see section 1073AB) is greater than or equal to the amount (the current amount ) of the person's employment income that remains after applying subsection ( 2) of this section in relation to an instalment period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is further reduced to nil; and
(b) if the person's rate of social security pension for that period is greater than nil--the person's unused concession balance is reduced by an amount equal to the current amount.
Example 1: To continue example 1 in subsection ( 2), assume David's unused concession balance is $2,000. The current amount is $2,000.
David's employment income for that period is further reduced to nil.
David's unused concession balance is now nil.
Example 2: To continue example 2 in subsection ( 2), assume Amy's unused concession balance is $1,600. The current amount is $750.
Amy's employment income for that period is further reduced to nil.
Amy's unused concession balance is now $850.
(4) If the person's unused concession balance (see section 1073AB) is greater than nil but less than the amount of the person's employment income that remains after applying subsection ( 2) of this section in relation to an instalment period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is further reduced by an amount equal to that unused concession balance; and
(b) if the person's rate of social security pension for that period is greater than nil--the person's unused concession balance is reduced to nil.
Example: Bill earns $1,250 of employment income in an instalment period of 14 days. Bill's rate of social security pension for that period is greater than nil.
Under subsection ( 2), Bill's employment income for that period is reduced by $250, leaving Bill $1,000 of employment income for that period.
Assume Bill's unused concession balance is $800.
Under subsection ( 4), Bill's employment income for that period is further reduced by $800 leaving Bill $200 of employment income for that period.
Bill's unused concession balance is now nil.
Employment income less than income concession amount
(4A) If the person has employment income for an instalment period but that income is less than the income concession amount for that period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is reduced to nil; and
(b) if the person's rate of social security pension for that period is greater than nil--the person's unused concession balance (see section 1073AB) is increased, subject to subsection 1073AB(2), by an amount equal to the difference between that income concession amount and that employment income (before it was reduced).
Example: Emma earns $100 of employment income in an instalment period of 14 days. Emma's rate of social security pension for that period is greater than nil.
Emma's employment income for that period is reduced to nil.
Emma's unused concession balance is increased by $150.
No employment income
(4B) If:
(a) the person has no employment income for an instalment period; and
(b) the person's rate of social security pension for that period is greater than nil;
the person's unused concession balance (see section 1073AB) is increased, subject to subsection 1073AB(2), by an amount equal to the income concession amount for that period.
Definition
(4C) The income concession amount is:
(a) for an instalment period of 14 days--$250; and
(b) for an instalment period of less than 14 days--the amount worked out using the following formula:
2 Subsection 1073AA(6) (examples 1 and 2)
Repeal the examples.
3 Subsection 1073AA(8)
Repeal the subsection, substitute:
(8) If:
(a) the person is a member of a couple; and
(b) the person's partner's employment income (within the meaning of section 46AB of the Veterans' Entitlements Act 1986 ) is reduced by one or more amounts (each of which is a reduction amount ) under section 46AA of that Act;
then, in applying point 1064 - E2 or point 1066 - E2 (whichever is relevant), the ordinary income of the person's partner is to be reduced by an amount equal to the total of the reduction amounts.
4 At the end of Division 1AAA of Part 3.10
Add:
1073AB Unused concession balance
Initial unused concession balance of nil
(1) A person has an unused concession balance of nil on the first day that is after 30 June 2011 and is a day on which section 1073AA applies to the person.
Maximum unused concession balance
(2) If, apart from this subsection, the person's unused concession balance would exceed $6,500, that balance is instead taken to be $6,500.
Example: John has an unused concession balance of $6,400. John earns $50 of employment income in an instalment period of 14 days.
Instead of John's unused concession balance increasing to $6,600 under subsection 1073AA(4A), John's unused concession balance increases to $6,500.
Effect of ceasing to receive social security pension
(3) If the person ceases to receive the social security pension referred to in paragraph 1073AA(1)(a), the person retains the person's unused concession balance immediately before that cessation.
Note: If section 1073AA applies to the person again, the person's unused concession balance will be that retained balance.
5 Application
The amendments made by items 1, 2 and 4 apply in relation to the instalment period that includes 1 July 2011 and later instalment periods.
Veterans' Entitlements Act 1986
6 Subsections 46AA(2) to (4)
Repeal the subsections, substitute:
Employment income greater than or equal to income concession amount
(2) If the person's employment income for a pension period is greater than or equal to the income concession amount for that period, then, for the purposes of Module E of that Rate Calculator, the amount of the person's employment income for that period is reduced by an amount equal to the income concession amount.
Note: For employment income see section 46AB.
Example 1: David earns $2,250 of employment income in a pension period. David's rate of service pension or income support supplement for that period is greater than nil.
David's employment income for that period is reduced by $250, leaving David $2,000 of employment income for that period.
Example 2: Amy earns $1,000 of employment income in a pension period. Amy's rate of service pension or income support supplement for that period is greater than nil.
Amy's employment income for that period is reduced by $250, leaving Amy $750 of employment income for that period.
(3) If the person's unused concession balance (see section 46AC) is greater than or equal to the amount (the current amount ) of the person's employment income that remains after applying subsection ( 2) of this section in relation to a pension period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is further reduced to nil; and
(b) if the person's rate of service pension or income support supplement for that period is greater than nil--the person's unused concession balance is reduced by an amount equal to the current amount.
Example 1: To continue example 1 in subsection ( 2), assume David's unused concession balance is $2,000. The current amount is $2,000.
David's employment income for that period is further reduced to nil.
David's unused concession balance is now nil.
Example 2: To continue example 2 in subsection ( 2), assume Amy's unused concession balance is $1,600. The current amount is $750.
Amy's employment income for that period is further reduced to nil.
Amy's unused concession balance is now $850.
(4) If the person's unused concession balance (see section 46AC) is greater than nil but less than the amount of the person's employment income that remains after applying subsection ( 2) of this section in relation to a pension period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is further reduced by an amount equal to that unused concession balance; and
(b) if the person's rate of service pension or income support supplement for that period is greater than nil--the person's unused concession balance is reduced to nil.
Example: Bill earns $1,250 of employment income in a pension period. Bill's rate of service pension or income support supplement for that period is greater than nil.
Under subsection ( 2), Bill's employment income for that period is reduced by $250, leaving Bill $1,000 of employment income for that period.
Assume Bill's unused concession balance is $800.
Under subsection ( 4), Bill's employment income for that period is further reduced by $800 leaving Bill $200 of employment income for that period.
Bill's unused concession balance is now nil.
Employment income less than income concession amount
(4A) If the person has employment income for a pension period but that income is less than the income concession amount for that period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is reduced to nil; and
(b) if the person's rate of service pension or income support supplement for that period is greater than nil--the person's unused concession balance (see section 46AC) is increased, subject to subsection 46AC(2), by an amount equal to the difference between that income concession amount and that employment income (before it was reduced).
Note: For employment income see section 46AB.
Example: Emma earns $100 of employment income in a pension period. Emma's rate of service pension or income support supplement for that period is greater than nil.
Emma's employment income for that period is reduced to nil.
Emma's unused concession balance is increased by $150.
No employment income
(4B) If:
(a) the person has no employment income for a pension period; and
(b) the person's rate of service pension or income support supplement for that period is greater than nil;
the person's unused concession balance (see section 46AC) is increased, subject to subsection 46AC(2), by an amount equal to the income concession amount for that period.
Note: For employment income see section 46AB.
Definition
(4C) The income concession amount for a pension period is $250.
7 Subsection 46AA(5) (examples 1 and 2)
Repeal the examples.
8 Subsection 46AA(5A)
Repeal the subsection, substitute:
(5A) If:
(a) the person is a member of a couple; and
(b) the person's partner's employment income (within the meaning of the Social Security Act 1991 ) is reduced by one or more amounts (each of which is a reduction amount ) under section 1073AA of that Act;
then, in applying p oint SCH6 - E3 of Schedule 6, the ordinary/adjusted income of the person's partner is to be reduced by an amount equal to the total of the reduction amounts.
9 Subsection 46AA(6)
Repeal the subsection, substitute:
(6) This section is subject to section 46AD (about no double income reductions under this section and section 115G).
10 At the end of Division 1A of Part IIIB
Add:
46AC Unused concession balance
Initial unused concession balance of nil
(1) A person has an unused concession balance of nil on the first day that is after 30 June 2011 and is a day on which section 46AA applies to the person.
Maximum unused concession balance
(2) If, apart from this subsection, the person's unused concession balance would exceed $6,500, that balance is instead taken to be $6,500.
Example: John has an unused concession balance of $6,400. John earns $50 of employment income in a pension period.
Instead of John's unused concession balance increasing to $6,600 under subsection 46AA(4A), John's unused concession balance increases to $6,500.
Effect of ceasing to receive service pension or income support supplement
(3) If the person ceases to receive service pension or income support supplement, the person retains the person's unused concession balance immediately before that cessation.
Note: If section 46AA applies to the person again, the person's unused concession balance will be that retained balance.
46AD No double income reductions under sections 46AA and 115G
Scope
(1) This section applies if, apart from this section:
(a) an amount (the initial amount ) would be an excluded amount under subsection 115G(1) or (2) in respect of a veteran and a pension period; and
(b) the veteran's employment income would be reduced by one or more amounts (each of which is a reduction amount ) under section 46AA in relation to that period.
Income reduction under section 46AA
(2) If the total of the reduction amounts is more than the initial amount:
(a) subsection 115G(1) or (2), as the case may be, does not apply in relation to that veteran and that period; and
(b) subsections 46AA(2) to (4A) do apply in relation to that veteran and that period.
Income reduction under section 115G
(3) If the total of the reduction amounts is less than or equal to the initial amount:
(a) subsections 46AA(2) to (4A) do not apply to reduce the veteran's employment income in relation to that period, but they do apply for the purposes of working out any adjustment to the veteran's unused concession balance in relation to that period (as if those reductions had occurred); and
(b) subsection 115G(1) or (2), as the case may be, does apply in relation to that veteran and that period.
Note: Subsections 115G(1) and (2) are about excluding income amounts for certain veterans.
Example: Jim earns $100 of employment income in a pension period. Jim's rate of service pension or income support supplement for that period is greater than nil. Assume Jim also has an amount of $100 worked out under subsection 115G(1) in relation to that period.
There is no reduction in Jim's employment income under section 46AA for that period, but $100 is excluded under subsection 115G(1).
Under subsection 46AA(4A), Jim's unused concession balance is increased by $150.
11 Subsection 115G(4)
Repeal the subsection, substitute:
(4) This section is subject to section 46AD (about no double income reductions under this section and section 46AA).
12 Application
The amendments made by items 6, 7, 9, 10 and 11 apply in relation to the pension period that includes 1 July 2011 and later pension periods.
